Public Act 095-0876
 
SB2023 Enrolled LRB095 15537 NHT 41531 b

    AN ACT to revise the law by combining multiple enactments
and making technical corrections.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Nature of this Act.
    (a) This Act may be cited as the First 2008 General
Revisory Act.
    (b) This Act is not intended to make any substantive change
in the law. It reconciles conflicts that have arisen from
multiple amendments and enactments and makes technical
corrections and revisions in the law.
    This Act revises and, where appropriate, renumbers certain
Sections that have been added or amended by more than one
Public Act. In certain cases in which a repealed Act or Section
has been replaced with a successor law, this Act may
incorporate amendments to the repealed Act or Section into the
successor law. This Act also corrects errors, revises
cross-references, and deletes obsolete text.
    (c) In this Act, the reference at the end of each amended
Section indicates the sources in the Session Laws of Illinois
that were used in the preparation of the text of that Section.
The text of the Section included in this Act is intended to
include the different versions of the Section found in the
Public Acts included in the list of sources, but may not
include other versions of the Section to be found in Public
Acts not included in the list of sources. The list of sources
is not a part of the text of the Section.
    (d) Public Acts 94-1069 through 95-702 were considered in
the preparation of the combining revisories included in this
Act. Many of those combining revisories contain no striking or
underscoring because no additional changes are being made in
the material that is being combined.
 
    Section 5. The Regulatory Sunset Act is amended by changing
Sections 4.18, 4.26, 4.27, and 4.28 as follows:
 
    (5 ILCS 80/4.18)
    Sec. 4.18. Acts repealed January 1, 2008 and December 31,
2008.
    (a) The following Acts are repealed on January 1, 2008:
        The Home Medical Equipment and Services Provider
    License Act.
        The Marriage and Family Therapy Licensing Act.
        The Nursing Home Administrators Licensing and
    Disciplinary Act.
        The Physician Assistant Practice Act of 1987.
        The Structural Pest Control Act.
    (b) The following Acts are repealed on December 31, 2008:
        The Medical Practice Act of 1987.
        The Environmental Health Practitioner Licensing Act.
(Source: P.A. 94-754, eff. 5-10-06; 94-1075, eff. 12-29-06;
94-1085, eff. 1-19-07; 95-187, eff. 8-16-07; 95-235, eff.
8-17-07; 95-450, eff. 8-27-07; 95-465, eff. 8-27-07; 95-639,
eff. 10-5-07; 95-687, eff. 10-23-07; 95-689, eff. 10-29-07;
revised 12-17-07.)
 
    (5 ILCS 80/4.26)
    Sec. 4.26. Acts repealed on January 1, 2016. The following
Acts are repealed on January 1, 2016:
    The Illinois Athletic Trainers Practice Act.
    The Illinois Roofing Industry Licensing Act.
    The Illinois Dental Practice Act.
    The Collection Agency Act.
    The Barber, Cosmetology, Esthetics, and Nail Technology
Act of 1985.
    The Respiratory Care Practice Act.
    The Hearing Instrument Consumer Protection Act.
    The Illinois Physical Therapy Act.
    The Professional Geologist Licensing Act.
    The Illinois Petroleum Education and Marketing Act.
(Source: P.A. 94-246, eff. 1-1-06; 94-254, eff. 7-19-05;
94-409, eff. 12-31-05; 94-414, eff. 12-31-05; 94-451, eff.
12-31-05; 94-523, eff. 1-1-06; 94-527, eff. 12-31-05; 94-651,
eff. 1-1-06; 94-708, eff. 12-5-05; 94-1085, eff. 1-19-07;
95-331, eff. 8-21-07; revised 12-18-07.)
 
    (5 ILCS 80/4.27)
    Sec. 4.27. Acts repealed on January 1, 2017. The following
Acts are repealed on January 1, 2017:
    The Illinois Optometric Practice Act of 1987.
    The Clinical Psychologist Licensing Act.
    The Boiler and Pressure Vessel Repairer Regulation Act.
    Articles II, III, IV, V, V 1/2, VI, VIIA, VIIB, VIIC, XVII,
XXXI, XXXI 1/4, and XXXI 3/4 of the Illinois Insurance Code.
(Source: P.A. 94-787, eff. 5-19-06; 94-870, eff. 6-16-06;
94-956, eff. 6-27-06; 94-1076, eff. 12-29-06; 95-331, eff.
8-21-07; revised 10-29-07.)
 
    (5 ILCS 80/4.28)
    Sec. 4.28. Acts Act repealed on January 1, 2018. The
following Acts are Act is repealed on January 1, 2018:
    The Illinois Petroleum Education and Marketing Act.
    The Podiatric Medical Practice Act of 1987.
    The Acupuncture Practice Act.
    The Illinois Speech-Language Pathology and Audiology
Practice Act.
    The Interpreter for the Deaf Licensure Act of 2007.
    The Nurse Practice Act.
    The Clinical Social Work and Social Work Practice Act.
    The Pharmacy Practice Act.
(Source: P.A. 95-187, eff. 8-16-07; 95-235, eff. 8-17-07;
95-450, eff. 8-27-07; 95-465, eff. 8-27-07; 95-617, eff.
9-12-07; 95-639, eff. 10-5-07; 95-687, eff. 10-23-07; 95-689,
eff. 10-29-07; revised 12-17-07.)
 
    (5 ILCS 80/4.17 rep.)
    Section 7. The Regulatory Sunset Act is amended by
repealing Section 4.17.
 
    Section 10. The State Employees Group Insurance Act of 1971
is amended by changing Section 6.11 as follows:
 
    (5 ILCS 375/6.11)
    Sec. 6.11. Required health benefits; Illinois Insurance
Code requirements. The program of health benefits shall provide
the post-mastectomy care benefits required to be covered by a
policy of accident and health insurance under Section 356t of
the Illinois Insurance Code. The program of health benefits
shall provide the coverage required under Sections 356g.5,
356u, 356w, 356x, 356z.2, 356z.4, 356z.6, and 356z.9, and
356z.10 356z.9 of the Illinois Insurance Code. The program of
health benefits must comply with Section 155.37 of the Illinois
Insurance Code.
(Source: P.A. 95-189, eff. 8-16-07; 95-422, eff. 8-24-07;
95-520, eff. 8-28-07; revised 12-4-07.)
 
    Section 15. The Election Code is amended by changing
Section 17-23 as follows:
 
    (10 ILCS 5/17-23)  (from Ch. 46, par. 17-23)
    Sec. 17-23. Pollwatchers in a general election shall be
authorized in the following manner:
    (1) Each established political party shall be entitled to
appoint two pollwatchers per precinct. Such pollwatchers must
be affiliated with the political party for which they are
pollwatching. For all elections, the pollwatchers must be
registered to vote in Illinois.
    (2) Each candidate shall be entitled to appoint two
pollwatchers per precinct. For all elections, the pollwatchers
must be registered to vote in Illinois.
    (3) Each organization of citizens within the county or
political subdivision, which has among its purposes or
interests the investigation or prosecution of election frauds,
and which shall have registered its name and address and the
name and addresses of its principal officers with the proper
election authority at least 40 days before the election, shall
be entitled to appoint one pollwatcher per precinct. For all
elections, the pollwatcher must be registered to vote in
Illinois.
    (3.5) Each State nonpartisan civic organization within the
county or political subdivision shall be entitled to appoint
one pollwatcher per precinct, provided that no more than 2
pollwatchers appointed by State nonpartisan civic
organizations shall be present in a precinct polling place at
the same time. Each organization shall have registered the
names and addresses of its principal officers with the proper
election authority at least 40 days before the election. The
pollwatchers must be registered to vote in Illinois. For the
purpose of this paragraph, a "State nonpartisan civic
organization" means any corporation, unincorporated
association, or organization that:
        (i) as part of its written articles of incorporation,
    bylaws, or charter or by separate written declaration, has
    among its stated purposes the provision of voter
    information and education, the protection of individual
    voters' rights, and the promotion of free and equal
    elections;
        (ii) is organized or primarily conducts its activities
    within the State of Illinois; and
        (iii) continuously maintains an office or business
    location within the State of Illinois, together with a
    current listed telephone number (a post office box number
    without a current listed telephone number is not
    sufficient).
    (4) In any general election held to elect candidates for
the offices of a municipality of less than 3,000,000 population
that is situated in 2 or more counties, a pollwatcher who is a
resident of Illinois shall be eligible to serve as a
pollwatcher in any poll located within such municipality,
provided that such pollwatcher otherwise complies with the
respective requirements of subsections (1) through (3) of this
Section and is a registered voter in Illinois.
    (5) Each organized group of proponents or opponents of a
ballot proposition, which shall have registered the name and
address of its organization or committee and the name and
address of its chairman with the proper election authority at
least 40 days before the election, shall be entitled to appoint
one pollwatcher per precinct. The pollwatcher must be
registered to vote in Illinois.
    All pollwatchers shall be required to have proper
credentials. Such credentials shall be printed in sufficient
quantities, shall be issued by and under the facsimile
signature(s) of the election authority and shall be available
for distribution at least 2 weeks prior to the election. Such
credentials shall be authorized by the real or facsimile
signature of the State or local party official or the candidate
or the presiding officer of the civic organization or the
chairman of the proponent or opponent group, as the case may
be. The election authority may not require any such party
official or the candidate or the presiding officer of the civic
organization or the chairman of the proponent or opponent group
to submit the names or other information concerning
pollwatchers before making credentials available to such
persons or organizations.
    Pollwatcher credentials shall be in substantially the
following form:
 
POLLWATCHER CREDENTIALS
TO THE JUDGES OF ELECTION:
    In accordance with the provisions of the Election Code, the
undersigned hereby appoints .......... (name of pollwatcher)
who resides at ........... (address) in the county of
..........., .......... (township or municipality) of
........... (name), State of Illinois and who is duly
registered to vote from this address, to act as a pollwatcher
in the ........... precinct of the ........... ward (if
applicable) of the ........... (township or municipality) of
........... at the ........... election to be held on (insert
date).
........................  (Signature of Appointing Authority)
......................... TITLE  (party official,  candidate,
                                civic organization president,
                        proponent or opponent group chairman)
 
    Under penalties provided by law pursuant to Section 29-10
of the Election Code, the undersigned pollwatcher certifies
that he or she resides at ................ (address) in the
county of ............, ......... (township or municipality)
of ........... (name), State of Illinois, and is duly
registered to vote in Illinois.
..........................           .......................
(Precinct and/or Ward in          (Signature of Pollwatcher)
Which Pollwatcher Resides)
 
    Pollwatchers must present their credentials to the Judges
of Election upon entering the polling place. Pollwatcher
credentials properly executed and signed shall be proof of the
qualifications of the pollwatcher authorized thereby. Such
credentials are retained by the Judges and returned to the
Election Authority at the end of the day of election with the
other election materials. Once a pollwatcher has surrendered a
valid credential, he may leave and reenter the polling place
provided that such continuing action does not disrupt the
conduct of the election. Pollwatchers may be substituted during
the course of the day, but established political parties,
candidates and qualified civic organizations can have only as
many pollwatchers at any given time as are authorized in this
Article. A substitute must present his signed credential to the
judges of election upon entering the polling place. Election
authorities must provide a sufficient number of credentials to
allow for substitution of pollwatchers. After the polls have
closed pollwatchers shall be allowed to remain until the
canvass of votes is completed; but may leave and reenter only
in cases of necessity, provided that such action is not so
continuous as to disrupt the canvass of votes.
    Candidates seeking office in a district or municipality
encompassing 2 or more counties shall be admitted to any and
all polling places throughout such district or municipality
without regard to the counties in which such candidates are
registered to vote. Actions of such candidates shall be
governed in each polling place by the same privileges and
limitations that apply to pollwatchers as provided in this
Section. Any such candidate who engages in an activity in a
polling place which could reasonably be construed by a majority
of the judges of election as campaign activity shall be removed
forthwith from such polling place.
    Candidates seeking office in a district or municipality
encompassing 2 or more counties who desire to be admitted to
polling places on election day in such district or municipality
shall be required to have proper credentials. Such credentials
shall be printed in sufficient quantities, shall be issued by
and under the facsimile signature of the election authority of
the election jurisdiction where the polling place in which the
candidate seeks admittance is located, and shall be available
for distribution at least 2 weeks prior to the election. Such
credentials shall be signed by the candidate.
    Candidate credentials shall be in substantially the
following form:
 
CANDIDATE CREDENTIALS
    TO THE JUDGES OF ELECTION:
    In accordance with the provisions of the Election Code, I
...... (name of candidate) hereby certify that I am a candidate
for ....... (name of office) and seek admittance to .......
precinct of the ....... ward (if applicable) of the .......
(township or municipality) of ....... at the ....... election
to be held on (insert date).
.........................             .......................
(Signature of Candidate)              OFFICE FOR WHICH
                                      CANDIDATE SEEKS
                                      NOMINATION OR
                                      ELECTION
 
    Pollwatchers shall be permitted to observe all proceedings
and view all reasonably requested records relating to the
conduct of the election, provided the secrecy of the ballot is
not impinged, and to station themselves in a position in the
voting room as will enable them to observe the judges making
the signature comparison between the voter application and the
voter registration record card; provided, however, that such
pollwatchers shall not be permitted to station themselves in
such close proximity to the judges of election so as to
interfere with the orderly conduct of the election and shall
not, in any event, be permitted to handle election materials.
Pollwatchers may challenge for cause the voting qualifications
of a person offering to vote and may call to the attention of
the judges of election any incorrect procedure or apparent
violations of this Code.
    If a majority of the judges of election determine that the
polling place has become too overcrowded with pollwatchers so
as to interfere with the orderly conduct of the election, the
judges shall, by lot, limit such pollwatchers to a reasonable
number, except that each established or new political party
shall be permitted to have at least one pollwatcher present.
    Representatives of an election authority, with regard to an
election under its jurisdiction, the State Board of Elections,
and law enforcement agencies, including but not limited to a
United States Attorney, a State's attorney, the Attorney
General, and a State, county, or local police department, in
the performance of their official election duties, shall be
permitted at all times to enter and remain in the polling
place. Upon entering the polling place, such representatives
shall display their official credentials or other
identification to the judges of election.
    Uniformed police officers assigned to polling place duty
shall follow all lawful instructions of the judges of election.
    The provisions of this Section shall also apply to
supervised casting of absentee ballots as provided in Section
19-12.2 of this Act.
(Source: P.A. 94-645, eff. 8-22-05; 95-267, eff. 8-17-07;
95-699, eff. 11-9-07; revised 11-14-07.)
 
    Section 20. The Attorney General Act is amended by changing
Section 6.5 as follows:
 
    (15 ILCS 205/6.5)
    Sec. 6.5. Consumer Utilities Unit.
    (a) The General Assembly finds that the health, welfare,
and prosperity of all Illinois citizens, and the public's
interest in adequate, safe, reliable, cost-effective electric,
natural gas, water, cable, video, and telecommunications
services, requires effective public representation by the
Attorney General to protect the rights and interests of the
public in the provision of all elements of electric, natural
gas, water, cable, video, and telecommunications service both
during and after the transition to a competitive market, and
that to ensure that the benefits of competition in the
provision of electric, natural gas, water, cable, video, and
telecommunications services to all consumers are attained,
there shall be created within the Office of the Attorney
General a Consumer Utilities Unit.
    (b) As used in this Section: "Electric services" means
services sold by an electric service provider. "Electric
service provider" shall mean anyone who sells, contracts to
sell, or markets electric power, generation, distribution,
transmission, or services (including metering and billing) in
connection therewith. Electric service providers shall include
any electric utility and any alternative retail electric
supplier as defined in Section 16-102 of the Public Utilities
Act.
    (b-5) As used in this Section: "Telecommunications
services" means services sold by a telecommunications carrier,
as provided for in Section 13-203 of the Public Utilities Act.
"Telecommunications carrier" means anyone who sells, contracts
to sell, or markets telecommunications services, whether
noncompetitive or competitive, including access services,
interconnection services, or any services in connection
therewith. Telecommunications carriers include any carrier as
defined in Section 13-202 of the Public Utilities Act.
    (b-10) As used in this Section, : "natural gas services"
means natural gas services sold by a "gas utility" or by an
"alternative gas supplier", as those terms are defined in
Section 19-105 of the Public Utilities Act.
    (b-15) As used in this Section, : "water services" means
services sold by any corporation, company, limited liability
company, association, joint stock company or association,
firm, partnership, or individual, its lessees, trustees, or
receivers appointed by any court and that owns, controls,
operates, or manages within this State, directly or indirectly,
for public use, any plant, equipment, or property used or to be
used for or in connection with (i) the production, storage,
transmission, sale, delivery, or furnishing of water or (ii)
the treatment, storage, transmission, disposal, sale of
services, delivery, or furnishing of sewage or sewage services.
    (b-20) As used in this Section, : "cable service and video
service" means services sold by anyone who sells, contracts to
sell, or markets cable services or video services pursuant to a
State-issued authorization under the Cable and Video
Competition Law of 2007.
    (c) There is created within the Office of the Attorney
General a Consumer Utilities Unit, consisting of Assistant
Attorneys General appointed by the Attorney General, who,
together with such other staff as is deemed necessary by the
Attorney General, shall have the power and duty on behalf of
the people of the State to intervene in, initiate, enforce, and
defend all legal proceedings on matters relating to the
provision, marketing, and sale of electric, natural gas, water,
and telecommunications service whenever the Attorney General
determines that such action is necessary to promote or protect
the rights and interests of all Illinois citizens, classes of
customers, and users of electric, natural gas, water, and
telecommunications services.
    (d) In addition to the investigative and enforcement powers
available to the Attorney General, including without
limitation those under the Consumer Fraud and Deceptive
Business Practices Act, the Illinois Antitrust Act, and any
other law of this State, the Attorney General shall be a party
as a matter of right to all proceedings, investigations, and
related matters involving the provision of electric, natural
gas, water, and telecommunications services before the
Illinois Commerce Commission, the courts, and other public
bodies. Upon request, the Office of the Attorney General shall
have access to and the use of all files, records, data, and
documents in the possession or control of the Commission. The
Office of the Attorney General may use information obtained
under this Section, including information that is designated as
and that qualifies for confidential treatment, which
information the Attorney General's office shall maintain as
confidential, to be used for law enforcement purposes only,
which information may be shared with other law enforcement
officials. Nothing in this Section is intended to take away or
limit any of the powers the Attorney General has pursuant to
common law or other statutory law.
(Source: P.A. 94-291, eff. 7-21-05; 95-9, eff. 6-30-07; revised
7-9-07.)
 
    Section 25. The State Treasurer Act is amended by changing
Section 16.5 as follows:
 
    (15 ILCS 505/16.5)
    Sec. 16.5. College Savings Pool. The State Treasurer may
establish and administer a College Savings Pool to supplement
and enhance the investment opportunities otherwise available
to persons seeking to finance the costs of higher education.
The State Treasurer, in administering the College Savings Pool,
may receive moneys paid into the pool by a participant and may
serve as the fiscal agent of that participant for the purpose
of holding and investing those moneys.
    "Participant", as used in this Section, means any person
who has authority to withdraw funds, change the designated
beneficiary, or otherwise exercise control over an account.
"Donor", as used in this Section, means any person who makes
investments in the pool. "Designated beneficiary", as used in
this Section, means any person on whose behalf an account is
established in the College Savings Pool by a participant. Both
in-state and out-of-state persons may be participants, donors,
and designated beneficiaries in the College Savings Pool.
    New accounts in the College Savings Pool may be processed
through participating financial institutions. "Participating
financial institution", as used in this Section, means any
financial institution insured by the Federal Deposit Insurance
Corporation and lawfully doing business in the State of
Illinois and any credit union approved by the State Treasurer
and lawfully doing business in the State of Illinois that
agrees to process new accounts in the College Savings Pool.
Participating financial institutions may charge a processing
fee to participants to open an account in the pool that shall
not exceed $30 until the year 2001. Beginning in 2001 and every
year thereafter, the maximum fee limit shall be adjusted by the
Treasurer based on the Consumer Price Index for the North
Central Region as published by the United States Department of
Labor, Bureau of Labor Statistics for the immediately preceding
calendar year. Every contribution received by a financial
institution for investment in the College Savings Pool shall be
transferred from the financial institution to a location
selected by the State Treasurer within one business day
following the day that the funds must be made available in
accordance with federal law. All communications from the State
Treasurer to participants and donors shall reference the
participating financial institution at which the account was
processed.
    The Treasurer may invest the moneys in the College Savings
Pool in the same manner and , in the same types of investments
provided for the investment of moneys by the Illinois State
Board of Investment. To enhance the safety and liquidity of the
College Savings Pool, to ensure the diversification of the
investment portfolio of the pool, and in an effort to keep
investment dollars in the State of Illinois, the State
Treasurer may make a percentage of each account available for
investment in participating financial institutions doing
business in the State. The State Treasurer may deposit with the
participating financial institution at which the account was
processed the following percentage of each account at a
prevailing rate offered by the institution, provided that the
deposit is federally insured or fully collateralized and the
institution accepts the deposit: 10% of the total amount of
each account for which the current age of the beneficiary is
less than 7 years of age, 20% of the total amount of each
account for which the beneficiary is at least 7 years of age
and less than 12 years of age, and 50% of the total amount of
each account for which the current age of the beneficiary is at
least 12 years of age. The Treasurer shall develop, publish,
and implement an investment policy covering the investment of
the moneys in the College Savings Pool. The policy shall be
published (i) at least once each year in at least one newspaper
of general circulation in both Springfield and Chicago and (ii)
each year as part of the audit of the College Savings Pool by
the Auditor General, which shall be distributed to all
participants. The Treasurer shall notify all participants in
writing, and the Treasurer shall publish in a newspaper of
general circulation in both Chicago and Springfield, any
changes to the previously published investment policy at least
30 calendar days before implementing the policy. Any investment
policy adopted by the Treasurer shall be reviewed and updated
if necessary within 90 days following the date that the State
Treasurer takes office.
    Participants shall be required to use moneys distributed
from the College Savings Pool for qualified expenses at
eligible educational institutions. "Qualified expenses", as
used in this Section, means the following: (i) tuition, fees,
and the costs of books, supplies, and equipment required for
enrollment or attendance at an eligible educational
institution and (ii) certain room and board expenses incurred
while attending an eligible educational institution at least
half-time. "Eligible educational institutions", as used in
this Section, means public and private colleges, junior
colleges, graduate schools, and certain vocational
institutions that are described in Section 481 of the Higher
Education Act of 1965 (20 U.S.C. 1088) and that are eligible to
participate in Department of Education student aid programs. A
student shall be considered to be enrolled at least half-time
if the student is enrolled for at least half the full-time
academic work load for the course of study the student is
pursuing as determined under the standards of the institution
at which the student is enrolled. Distributions made from the
pool for qualified expenses shall be made directly to the
eligible educational institution, directly to a vendor, or in
the form of a check payable to both the beneficiary and the
institution or vendor. Any moneys that are distributed in any
other manner or that are used for expenses other than qualified
expenses at an eligible educational institution shall be
subject to a penalty of 10% of the earnings unless the
beneficiary dies, becomes disabled, or receives a scholarship
that equals or exceeds the distribution. Penalties shall be
withheld at the time the distribution is made.
    The Treasurer shall limit the contributions that may be
made on behalf of a designated beneficiary based on the
limitations established by the Internal Revenue Service. The
contributions made on behalf of a beneficiary who is also a
beneficiary under the Illinois Prepaid Tuition Program shall be
further restricted to ensure that the contributions in both
programs combined do not exceed the limit established for the
College Savings Pool. The Treasurer shall provide the Illinois
Student Assistance Commission each year at a time designated by
the Commission, an electronic report of all participant
accounts in the Treasurer's College Savings Pool, listing total
contributions and disbursements from each individual account
during the previous calendar year. As soon thereafter as is
possible following receipt of the Treasurer's report, the
Illinois Student Assistance Commission shall, in turn, provide
the Treasurer with an electronic report listing those College
Savings Pool participants who also participate in the State's
prepaid tuition program, administered by the Commission. The
Commission shall be responsible for filing any combined tax
reports regarding State qualified savings programs required by
the United States Internal Revenue Service. The Treasurer shall
work with the Illinois Student Assistance Commission to
coordinate the marketing of the College Savings Pool and the
Illinois Prepaid Tuition Program when considered beneficial by
the Treasurer and the Director of the Illinois Student
Assistance Commission. The Treasurer's office shall not
publicize or otherwise market the College Savings Pool or
accept any moneys into the College Savings Pool prior to March
1, 2000. The Treasurer shall provide a separate accounting for
each designated beneficiary to each participant, the Illinois
Student Assistance Commission, and the participating financial
institution at which the account was processed. No interest in
the program may be pledged as security for a loan. Moneys held
in an account invested in the Illinois College Savings Pool
shall be exempt from all claims of the creditors of the
participant, donor, or designated beneficiary of that account,
except for the non-exempt College Savings Pool transfers to or
from the account as defined under subsection (j) of Section
12-1001 of the Code of Civil Procedure (735 ILCS 5/12-1001(j)).
    The assets of the College Savings Pool and its income and
operation shall be exempt from all taxation by the State of
Illinois and any of its subdivisions. The accrued earnings on
investments in the Pool once disbursed on behalf of a
designated beneficiary shall be similarly exempt from all
taxation by the State of Illinois and its subdivisions, so long
as they are used for qualified expenses. Contributions to a
College Savings Pool account during the taxable year may be
deducted from adjusted gross income as provided in Section 203
of the Illinois Income Tax Act. The provisions of this
paragraph are exempt from Section 250 of the Illinois Income
Tax Act.
    The Treasurer shall adopt rules he or she considers
necessary for the efficient administration of the College
Savings Pool. The rules shall provide whatever additional
parameters and restrictions are necessary to ensure that the
College Savings Pool meets all of the requirements for a
qualified state tuition program under Section 529 of the
Internal Revenue Code (26 U.S.C. 529). The rules shall provide
for the administration expenses of the pool to be paid from its
earnings and for the investment earnings in excess of the
expenses and all moneys collected as penalties to be credited
or paid monthly to the several participants in the pool in a
manner which equitably reflects the differing amounts of their
respective investments in the pool and the differing periods of
time for which those amounts were in the custody of the pool.
Also, the rules shall require the maintenance of records that
enable the Treasurer's office to produce a report for each
account in the pool at least annually that documents the
account balance and investment earnings. Notice of any proposed
amendments to the rules and regulations shall be provided to
all participants prior to adoption. Amendments to rules and
regulations shall apply only to contributions made after the
adoption of the amendment.
    Upon creating the College Savings Pool, the State Treasurer
shall give bond with 2 or more sufficient sureties, payable to
and for the benefit of the participants in the College Savings
Pool, in the penal sum of $1,000,000, conditioned upon the
faithful discharge of his or her duties in relation to the
College Savings Pool.
(Source: P.A. 95-23, eff. 8-3-07; 95-306, eff. 1-1-08; 95-521,
eff. 8-28-07; revised 10-30-07.)
 
    Section 30. The Illinois Act on the Aging is amended by
changing Sections 4.01 and 4.02 and by setting forth and
renumbering multiple versions of Section 4.08 as follows:
 
    (20 ILCS 105/4.01)  (from Ch. 23, par. 6104.01)
    Sec. 4.01. Additional powers and duties of the Department.
In addition to powers and duties otherwise provided by law, the
Department shall have the following powers and duties:
    (1) To evaluate all programs, services, and facilities for
the aged and for minority senior citizens within the State and
determine the extent to which present public or private
programs, services and facilities meet the needs of the aged.
    (2) To coordinate and evaluate all programs, services, and
facilities for the Aging and for minority senior citizens
presently furnished by State agencies and make appropriate
recommendations regarding such services, programs and
facilities to the Governor and/or the General Assembly.
    (3) To function as the sole State agency to develop a
comprehensive plan to meet the needs of the State's senior
citizens and the State's minority senior citizens.
    (4) To receive and disburse State and federal funds made
available directly to the Department including those funds made
available under the Older Americans Act and the Senior
Community Service Employment Program for providing services
for senior citizens and minority senior citizens or for
purposes related thereto, and shall develop and administer any
State Plan for the Aging required by federal law.
    (5) To solicit, accept, hold, and administer in behalf of
the State any grants or legacies of money, securities, or
property to the State of Illinois for services to senior
citizens and minority senior citizens or purposes related
thereto.
    (6) To provide consultation and assistance to communities,
area agencies on aging, and groups developing local services
for senior citizens and minority senior citizens.
    (7) To promote community education regarding the problems
of senior citizens and minority senior citizens through
institutes, publications, radio, television and the local
press.
    (8) To cooperate with agencies of the federal government in
studies and conferences designed to examine the needs of senior
citizens and minority senior citizens and to prepare programs
and facilities to meet those needs.
    (9) To establish and maintain information and referral
sources throughout the State when not provided by other
agencies.
    (10) To provide the staff support as may reasonably be
required by the Council and the Coordinating Committee of State
Agencies Serving Older Persons.
    (11) To make and enforce rules and regulations necessary
and proper to the performance of its duties.
    (12) To establish and fund programs or projects or
experimental facilities that are specially designed as
alternatives to institutional care.
    (13) To develop a training program to train the counselors
presently employed by the Department's aging network to provide
Medicare beneficiaries with counseling and advocacy in
Medicare, private health insurance, and related health care
coverage plans. The Department shall report to the General
Assembly on the implementation of the training program on or
before December 1, 1986.
    (14) To make a grant to an institution of higher learning
to study the feasibility of establishing and implementing an
affirmative action employment plan for the recruitment,
hiring, training and retraining of persons 60 or more years old
for jobs for which their employment would not be precluded by
law.
    (15) To present one award annually in each of the
categories of community service, education, the performance
and graphic arts, and the labor force to outstanding Illinois
senior citizens and minority senior citizens in recognition of
their individual contributions to either community service,
education, the performance and graphic arts, or the labor
force. The awards shall be presented to four senior citizens
and minority senior citizens selected from a list of 44
nominees compiled annually by the Department. Nominations
shall be solicited from senior citizens' service providers,
area agencies on aging, senior citizens' centers, and senior
citizens' organizations. The Department shall consult with the
Coordinating Committee of State Agencies Serving Older Persons
to determine which of the nominees shall be the recipient in
each category of community service. The Department shall
establish a central location within the State to be designated
as the Senior Illinoisans Hall of Fame for the public display
of all the annual awards, or replicas thereof.
    (16) To establish multipurpose senior centers through area
agencies on aging and to fund those new and existing
multipurpose senior centers through area agencies on aging, the
establishment and funding to begin in such areas of the State
as the Department shall designate by rule and as specifically
appropriated funds become available.
    (17) To develop the content and format of the
acknowledgment regarding non-recourse reverse mortgage loans
under Section 6.1 of the Illinois Banking Act; to provide
independent consumer information on reverse mortgages and
alternatives; and to refer consumers to independent counseling
services with expertise in reverse mortgages.
    (18) To develop a pamphlet in English and Spanish which may
be used by physicians licensed to practice medicine in all of
its branches pursuant to the Medical Practice Act of 1987,
pharmacists licensed pursuant to the Pharmacy Practice Act, and
Illinois residents 65 years of age or older for the purpose of
assisting physicians, pharmacists, and patients in monitoring
prescriptions provided by various physicians and to aid persons
65 years of age or older in complying with directions for
proper use of pharmaceutical prescriptions. The pamphlet may
provide space for recording information including but not
limited to the following:
        (a) name and telephone number of the patient;
        (b) name and telephone number of the prescribing
    physician;
        (c) date of prescription;
        (d) name of drug prescribed;
        (e) directions for patient compliance; and
        (f) name and telephone number of dispensing pharmacy.
    In developing the pamphlet, the Department shall consult
with the Illinois State Medical Society, the Center for
Minority Health Services, the Illinois Pharmacists Association
and senior citizens organizations. The Department shall
distribute the pamphlets to physicians, pharmacists and
persons 65 years of age or older or various senior citizen
organizations throughout the State.
    (19) To conduct a study by April 1, 1994 of the feasibility
of implementing the Senior Companion Program throughout the
State for the fiscal year beginning July 1, 1994.
    (20) With respect to contracts in effect on July 1, 1994,
the Department shall increase the grant amounts so that the
reimbursement rates paid through the community care program for
chore housekeeping services and home care aides are at the same
rate, which shall be the higher of the 2 rates currently paid.
With respect to all contracts entered into, renewed, or
extended on or after July 1, 1994, the reimbursement rates paid
through the community care program for chore housekeeping
services and home care aides shall be the same.
    (21) From funds appropriated to the Department from the
Meals on Wheels Fund, a special fund in the State treasury that
is hereby created, and in accordance with State and federal
guidelines and the intrastate funding formula, to make grants
to area agencies on aging, designated by the Department, for
the sole purpose of delivering meals to homebound persons 60
years of age and older.
    (22) To distribute, through its area agencies on aging,
information alerting seniors on safety issues regarding
emergency weather conditions, including extreme heat and cold,
flooding, tornadoes, electrical storms, and other severe storm
weather. The information shall include all necessary
instructions for safety and all emergency telephone numbers of
organizations that will provide additional information and
assistance.
    (23) To develop guidelines for the organization and
implementation of Volunteer Services Credit Programs to be
administered by Area Agencies on Aging or community based
senior service organizations. The Department shall hold public
hearings on the proposed guidelines for public comment,
suggestion, and determination of public interest. The
guidelines shall be based on the findings of other states and
of community organizations in Illinois that are currently
operating volunteer services credit programs or demonstration
volunteer services credit programs. The Department shall offer
guidelines for all aspects of the programs including, but not
limited to, the following:
        (a) types of services to be offered by volunteers;
        (b) types of services to be received upon the
    redemption of service credits;
        (c) issues of liability for the volunteers and the
    administering organizations;
        (d) methods of tracking service credits earned and
    service credits redeemed;
        (e) issues of time limits for redemption of service
    credits;
        (f) methods of recruitment of volunteers;
        (g) utilization of community volunteers, community
    service groups, and other resources for delivering
    services to be received by service credit program clients;
        (h) accountability and assurance that services will be
    available to individuals who have earned service credits;
    and
        (i) volunteer screening and qualifications.
The Department shall submit a written copy of the guidelines to
the General Assembly by July 1, 1998.
(Source: P.A. 95-298, eff. 8-20-07; 95-689, eff. 10-29-07;
revised 10-30-07.)
 
    (20 ILCS 105/4.02)  (from Ch. 23, par. 6104.02)
    (Text of Section before amendment by P.A. 95-565)
    Sec. 4.02. The Department shall establish a program of
services to prevent unnecessary institutionalization of
persons age 60 and older in need of long term care or who are
established as persons who suffer from Alzheimer's disease or a
related disorder under the Alzheimer's Disease Assistance Act,
thereby enabling them to remain in their own homes or in other
living arrangements. Such preventive services, which may be
coordinated with other programs for the aged and monitored by
area agencies on aging in cooperation with the Department, may
include, but are not limited to, any or all of the following:
        (a) home health services;
        (b) home nursing services;
        (c) home care aide services;
        (d) chore and housekeeping services;
        (e) adult day services;
        (f) home-delivered meals;
        (g) education in self-care;
        (h) personal care services;
        (i) adult day health services;
        (j) habilitation services;
        (k) respite care;
        (k-5) community reintegration services;
        (l) other nonmedical social services that may enable
    the person to become self-supporting; or
        (m) clearinghouse for information provided by senior
    citizen home owners who want to rent rooms to or share
    living space with other senior citizens.
    The Department shall establish eligibility standards for
such services taking into consideration the unique economic and
social needs of the target population for whom they are to be
provided. Such eligibility standards shall be based on the
recipient's ability to pay for services; provided, however,
that in determining the amount and nature of services for which
a person may qualify, consideration shall not be given to the
value of cash, property or other assets held in the name of the
person's spouse pursuant to a written agreement dividing
marital property into equal but separate shares or pursuant to
a transfer of the person's interest in a home to his spouse,
provided that the spouse's share of the marital property is not
made available to the person seeking such services.
    Beginning July 1, 2002, the Department shall require as a
condition of eligibility that all financially eligible
applicants and recipients apply for medical assistance under
Article V of the Illinois Public Aid Code in accordance with
rules promulgated by the Department.
    The Department shall, in conjunction with the Department of
Public Aid (now Department of Healthcare and Family Services),
seek appropriate amendments under Sections 1915 and 1924 of the
Social Security Act. The purpose of the amendments shall be to
extend eligibility for home and community based services under
Sections 1915 and 1924 of the Social Security Act to persons
who transfer to or for the benefit of a spouse those amounts of
income and resources allowed under Section 1924 of the Social
Security Act. Subject to the approval of such amendments, the
Department shall extend the provisions of Section 5-4 of the
Illinois Public Aid Code to persons who, but for the provision
of home or community-based services, would require the level of
care provided in an institution, as is provided for in federal
law. Those persons no longer found to be eligible for receiving
noninstitutional services due to changes in the eligibility
criteria shall be given 60 days notice prior to actual
termination. Those persons receiving notice of termination may
contact the Department and request the determination be
appealed at any time during the 60 day notice period. With the
exception of the lengthened notice and time frame for the
appeal request, the appeal process shall follow the normal
procedure. In addition, each person affected regardless of the
circumstances for discontinued eligibility shall be given
notice and the opportunity to purchase the necessary services
through the Community Care Program. If the individual does not
elect to purchase services, the Department shall advise the
individual of alternative services. The target population
identified for the purposes of this Section are persons age 60
and older with an identified service need. Priority shall be
given to those who are at imminent risk of
institutionalization. The services shall be provided to
eligible persons age 60 and older to the extent that the cost
of the services together with the other personal maintenance
expenses of the persons are reasonably related to the standards
established for care in a group facility appropriate to the
person's condition. These non-institutional services, pilot
projects or experimental facilities may be provided as part of
or in addition to those authorized by federal law or those
funded and administered by the Department of Human Services.
The Departments of Human Services, Healthcare and Family
Services, Public Health, Veterans' Affairs, and Commerce and
Economic Opportunity and other appropriate agencies of State,
federal and local governments shall cooperate with the
Department on Aging in the establishment and development of the
non-institutional services. The Department shall require an
annual audit from all chore/housekeeping and home care aide
vendors contracting with the Department under this Section. The
annual audit shall assure that each audited vendor's procedures
are in compliance with Department's financial reporting
guidelines requiring an administrative and employee wage and
benefits cost split as defined in administrative rules. The
audit is a public record under the Freedom of Information Act.
The Department shall execute, relative to the nursing home
prescreening project, written inter-agency agreements with the
Department of Human Services and the Department of Healthcare
and Family Services, to effect the following: (1) intake
procedures and common eligibility criteria for those persons
who are receiving non-institutional services; and (2) the
establishment and development of non-institutional services in
areas of the State where they are not currently available or
are undeveloped. On and after July 1, 1996, all nursing home
prescreenings for individuals 60 years of age or older shall be
conducted by the Department.
    As part of the Department on Aging's routine training of
case managers and case manager supervisors, the Department may
include information on family futures planning for persons who
are age 60 or older and who are caregivers of their adult
children with developmental disabilities. The content of the
training shall be at the Department's discretion.
    The Department is authorized to establish a system of
recipient copayment for services provided under this Section,
such copayment to be based upon the recipient's ability to pay
but in no case to exceed the actual cost of the services
provided. Additionally, any portion of a person's income which
is equal to or less than the federal poverty standard shall not
be considered by the Department in determining the copayment.
The level of such copayment shall be adjusted whenever
necessary to reflect any change in the officially designated
federal poverty standard.
    The Department, or the Department's authorized
representative, shall recover the amount of moneys expended for
services provided to or in behalf of a person under this
Section by a claim against the person's estate or against the
estate of the person's surviving spouse, but no recovery may be
had until after the death of the surviving spouse, if any, and
then only at such time when there is no surviving child who is
under age 21, blind, or permanently and totally disabled. This
paragraph, however, shall not bar recovery, at the death of the
person, of moneys for services provided to the person or in
behalf of the person under this Section to which the person was
not entitled; provided that such recovery shall not be enforced
against any real estate while it is occupied as a homestead by
the surviving spouse or other dependent, if no claims by other
creditors have been filed against the estate, or, if such
claims have been filed, they remain dormant for failure of
prosecution or failure of the claimant to compel administration
of the estate for the purpose of payment. This paragraph shall
not bar recovery from the estate of a spouse, under Sections
1915 and 1924 of the Social Security Act and Section 5-4 of the
Illinois Public Aid Code, who precedes a person receiving
services under this Section in death. All moneys for services
paid to or in behalf of the person under this Section shall be
claimed for recovery from the deceased spouse's estate.
"Homestead", as used in this paragraph, means the dwelling
house and contiguous real estate occupied by a surviving spouse
or relative, as defined by the rules and regulations of the
Department of Healthcare and Family Services, regardless of the
value of the property.
    The Department shall develop procedures to enhance
availability of services on evenings, weekends, and on an
emergency basis to meet the respite needs of caregivers.
Procedures shall be developed to permit the utilization of
services in successive blocks of 24 hours up to the monthly
maximum established by the Department. Workers providing these
services shall be appropriately trained.
    Beginning on the effective date of this Amendatory Act of
1991, no person may perform chore/housekeeping and home care
aide services under a program authorized by this Section unless
that person has been issued a certificate of pre-service to do
so by his or her employing agency. Information gathered to
effect such certification shall include (i) the person's name,
(ii) the date the person was hired by his or her current
employer, and (iii) the training, including dates and levels.
Persons engaged in the program authorized by this Section
before the effective date of this amendatory Act of 1991 shall
be issued a certificate of all pre- and in-service training
from his or her employer upon submitting the necessary
information. The employing agency shall be required to retain
records of all staff pre- and in-service training, and shall
provide such records to the Department upon request and upon
termination of the employer's contract with the Department. In
addition, the employing agency is responsible for the issuance
of certifications of in-service training completed to their
employees.
    The Department is required to develop a system to ensure
that persons working as home care aides and chore housekeepers
receive increases in their wages when the federal minimum wage
is increased by requiring vendors to certify that they are
meeting the federal minimum wage statute for home care aides
and chore housekeepers. An employer that cannot ensure that the
minimum wage increase is being given to home care aides and
chore housekeepers shall be denied any increase in
reimbursement costs.
    The Community Care Program Advisory Committee is created in
the Department on Aging. The Director shall appoint individuals
to serve in the Committee, who shall serve at their own
expense. Members of the Committee must abide by all applicable
ethics laws. The Committee shall advise the Department on
issues related to the Department's program of services to
prevent unnecessary institutionalization. The Committee shall
meet on a bi-monthly basis and shall serve to identify and
advise the Department on present and potential issues affecting
the service delivery network, the program's clients, and the
Department and to recommend solution strategies. Persons
appointed to the Committee shall be appointed on, but not
limited to, their own and their agency's experience with the
program, geographic representation, and willingness to serve.
The Director shall appoint members to the Committee to
represent provider, advocacy, policy research, and other
constituencies committed to the delivery of high quality home
and community-based services to older adults. Representatives
shall be appointed to ensure representation from community care
providers including, but not limited to, adult day service
providers, homemaker providers, case coordination and case
management units, emergency home response providers, statewide
trade or labor unions that represent home care homecare aides
and direct care staff, area agencies on aging, adults over age
60, membership organizations representing older adults, and
other organizational entities, providers of care, or
individuals with demonstrated interest and expertise in the
field of home and community care as determined by the Director.
    Nominations may be presented from any agency or State
association with interest in the program. The Director, or his
or her designee, shall serve as the permanent co-chair of the
advisory committee. One other co-chair shall be nominated and
approved by the members of the committee on an annual basis.
Committee members' terms of appointment shall be for 4 years
with one-quarter of the appointees' terms expiring each year. A
member shall continue to serve until his or her replacement is
named. The Department shall fill vacancies that have a
remaining term of over one year, and this replacement shall
occur through the annual replacement of expiring terms. The
Director shall designate Department staff to provide technical
assistance and staff support to the committee. Department
representation shall not constitute membership of the
committee. All Committee papers, issues, recommendations,
reports, and meeting memoranda are advisory only. The Director,
or his or her designee, shall make a written report, as
requested by the Committee, regarding issues before the
Committee.
    The Department on Aging and the Department of Human
Services shall cooperate in the development and submission of
an annual report on programs and services provided under this
Section. Such joint report shall be filed with the Governor and
the General Assembly on or before September 30 each year.
    The requirement for reporting to the General Assembly shall
be satisfied by filing copies of the report with the Speaker,
the Minority Leader and the Clerk of the House of
Representatives and the President, the Minority Leader and the
Secretary of the Senate and the Legislative Research Unit, as
required by Section 3.1 of the General Assembly Organization
Act and filing such additional copies with the State Government
Report Distribution Center for the General Assembly as is
required under paragraph (t) of Section 7 of the State Library
Act.
    Those persons previously found eligible for receiving
non-institutional services whose services were discontinued
under the Emergency Budget Act of Fiscal Year 1992, and who do
not meet the eligibility standards in effect on or after July
1, 1992, shall remain ineligible on and after July 1, 1992.
Those persons previously not required to cost-share and who
were required to cost-share effective March 1, 1992, shall
continue to meet cost-share requirements on and after July 1,
1992. Beginning July 1, 1992, all clients will be required to
meet eligibility, cost-share, and other requirements and will
have services discontinued or altered when they fail to meet
these requirements.
(Source: P.A. 94-48, eff. 7-1-05; 94-269, eff. 7-19-05; 94-336,
eff. 7-26-05; 94-954, eff. 6-27-06; 95-298, eff. 8-20-07;
95-473, eff. 8-27-07; revised 10-30-07.)
 
    (Text of Section after amendment by P.A. 95-565)
    Sec. 4.02. Community Care Program. The Department shall
establish a program of services to prevent unnecessary
institutionalization of persons age 60 and older in need of
long term care or who are established as persons who suffer
from Alzheimer's disease or a related disorder under the
Alzheimer's Disease Assistance Act, thereby enabling them to
remain in their own homes or in other living arrangements. Such
preventive services, which may be coordinated with other
programs for the aged and monitored by area agencies on aging
in cooperation with the Department, may include, but are not
limited to, any or all of the following:
        (a) (blank);
        (b) (blank);
        (c) home care aide services;
        (d) personal assistant services;
        (e) adult day services;
        (f) home-delivered meals;
        (g) education in self-care;
        (h) personal care services;
        (i) adult day health services;
        (j) habilitation services;
        (k) respite care;
        (k-5) community reintegration services;
        (k-6) flexible senior services;
        (k-7) medication management;
        (k-8) emergency home response;
        (l) other nonmedical social services that may enable
    the person to become self-supporting; or
        (m) clearinghouse for information provided by senior
    citizen home owners who want to rent rooms to or share
    living space with other senior citizens.
    The Department shall establish eligibility standards for
such services taking into consideration the unique economic and
social needs of the target population for whom they are to be
provided. Such eligibility standards shall be based on the
recipient's ability to pay for services; provided, however,
that in determining the amount and nature of services for which
a person may qualify, consideration shall not be given to the
value of cash, property or other assets held in the name of the
person's spouse pursuant to a written agreement dividing
marital property into equal but separate shares or pursuant to
a transfer of the person's interest in a home to his spouse,
provided that the spouse's share of the marital property is not
made available to the person seeking such services.
    Beginning July 1, 2002, the Department shall require as a
condition of eligibility that all financially eligible
applicants apply for medical assistance under Article V of the
Illinois Public Aid Code in accordance with rules promulgated
by the Department.
    Beginning January 1, 2008, the Department shall require as
a condition of eligibility that all new financially eligible
applicants apply for and enroll in medical assistance under
Article V of the Illinois Public Aid Code in accordance with
rules promulgated by the Department.
    The Department shall, in conjunction with the Department of
Public Aid (now Department of Healthcare and Family Services),
seek appropriate amendments under Sections 1915 and 1924 of the
Social Security Act. The purpose of the amendments shall be to
extend eligibility for home and community based services under
Sections 1915 and 1924 of the Social Security Act to persons
who transfer to or for the benefit of a spouse those amounts of
income and resources allowed under Section 1924 of the Social
Security Act. Subject to the approval of such amendments, the
Department shall extend the provisions of Section 5-4 of the
Illinois Public Aid Code to persons who, but for the provision
of home or community-based services, would require the level of
care provided in an institution, as is provided for in federal
law. Those persons no longer found to be eligible for receiving
noninstitutional services due to changes in the eligibility
criteria shall be given 60 days notice prior to actual
termination. Those persons receiving notice of termination may
contact the Department and request the determination be
appealed at any time during the 60 day notice period. With the
exception of the lengthened notice and time frame for the
appeal request, the appeal process shall follow the normal
procedure. In addition, each person affected regardless of the
circumstances for discontinued eligibility shall be given
notice and the opportunity to purchase the necessary services
through the Community Care Program. If the individual does not
elect to purchase services, the Department shall advise the
individual of alternative services. The target population
identified for the purposes of this Section are persons age 60
and older with an identified service need. Priority shall be
given to those who are at imminent risk of
institutionalization. The services shall be provided to
eligible persons age 60 and older to the extent that the cost
of the services together with the other personal maintenance
expenses of the persons are reasonably related to the standards
established for care in a group facility appropriate to the
person's condition. These non-institutional services, pilot
projects or experimental facilities may be provided as part of
or in addition to those authorized by federal law or those
funded and administered by the Department of Human Services.
The Departments of Human Services, Healthcare and Family
Services, Public Health, Veterans' Affairs, and Commerce and
Economic Opportunity and other appropriate agencies of State,
federal and local governments shall cooperate with the
Department on Aging in the establishment and development of the
non-institutional services. The Department shall require an
annual audit from all personal assistant chore/housekeeping
and home care aide vendors contracting with the Department
under this Section. The annual audit shall assure that each
audited vendor's procedures are in compliance with
Department's financial reporting guidelines requiring an
administrative and employee wage and benefits cost split as
defined in administrative rules. The audit is a public record
under the Freedom of Information Act. The Department shall
execute, relative to the nursing home prescreening project,
written inter-agency agreements with the Department of Human
Services and the Department of Healthcare and Family Services,
to effect the following: (1) intake procedures and common
eligibility criteria for those persons who are receiving
non-institutional services; and (2) the establishment and
development of non-institutional services in areas of the State
where they are not currently available or are undeveloped. On
and after July 1, 1996, all nursing home prescreenings for
individuals 60 years of age or older shall be conducted by the
Department.
    As part of the Department on Aging's routine training of
case managers and case manager supervisors, the Department may
include information on family futures planning for persons who
are age 60 or older and who are caregivers of their adult
children with developmental disabilities. The content of the
training shall be at the Department's discretion.
    The Department is authorized to establish a system of
recipient copayment for services provided under this Section,
such copayment to be based upon the recipient's ability to pay
but in no case to exceed the actual cost of the services
provided. Additionally, any portion of a person's income which
is equal to or less than the federal poverty standard shall not
be considered by the Department in determining the copayment.
The level of such copayment shall be adjusted whenever
necessary to reflect any change in the officially designated
federal poverty standard.
    The Department, or the Department's authorized
representative, shall recover the amount of moneys expended for
services provided to or in behalf of a person under this
Section by a claim against the person's estate or against the
estate of the person's surviving spouse, but no recovery may be
had until after the death of the surviving spouse, if any, and
then only at such time when there is no surviving child who is
under age 21, blind, or permanently and totally disabled. This
paragraph, however, shall not bar recovery, at the death of the
person, of moneys for services provided to the person or in
behalf of the person under this Section to which the person was
not entitled; provided that such recovery shall not be enforced
against any real estate while it is occupied as a homestead by
the surviving spouse or other dependent, if no claims by other
creditors have been filed against the estate, or, if such
claims have been filed, they remain dormant for failure of
prosecution or failure of the claimant to compel administration
of the estate for the purpose of payment. This paragraph shall
not bar recovery from the estate of a spouse, under Sections
1915 and 1924 of the Social Security Act and Section 5-4 of the
Illinois Public Aid Code, who precedes a person receiving
services under this Section in death. All moneys for services
paid to or in behalf of the person under this Section shall be
claimed for recovery from the deceased spouse's estate.
"Homestead", as used in this paragraph, means the dwelling
house and contiguous real estate occupied by a surviving spouse
or relative, as defined by the rules and regulations of the
Department of Healthcare and Family Services, regardless of the
value of the property.
    The Department shall increase the effectiveness of the
existing Community Care Program by:
        (1) ensuring that in-home services included in the care
    plan are available on evenings and weekends;
        (2) ensuring that care plans contain the services that
    eligible participants participants' need based on the
    number of days in a month, not limited to specific blocks
    of time, as identified by the comprehensive assessment tool
    selected by the Department for use statewide, not to exceed
    the total monthly service cost maximum allowed for each
    service; the . The Department shall develop administrative
    rules to implement this item (2);
        (3) ensuring that the participants have the right to
    choose the services contained in their care plan and to
    direct how those services are provided, based on
    administrative rules established by the Department;
        (4) ensuring that the determination of need tool is
    accurate in determining the participants' level of need; to
    achieve this, the Department, in conjunction with the Older
    Adult Services Advisory Committee, shall institute a study
    of the relationship between the Determination of Need
    scores, level of need, service cost maximums, and the
    development and utilization of service plans no later than
    May 1, 2008; findings and recommendations shall be
    presented to the Governor and the General Assembly no later
    than January 1, 2009; recommendations shall include all
    needed changes to the service cost maximums schedule and
    additional covered services;
        (5) ensuring that homemakers can provide personal care
    services that may or may not involve contact with clients,
    including but not limited to:
            (A) bathing;
            (B) grooming;
            (C) toileting;
            (D) nail care;
            (E) transferring;
            (F) respiratory services;
            (G) exercise; or
            (H) positioning;
        (6) ensuring that homemaker program vendors are not
    restricted from hiring homemakers who are family members of
    clients or recommended by clients; the Department may not,
    by rule or policy, require homemakers who are family
    members of clients or recommended by clients to accept
    assignments in homes other than the client; and
        (7) ensuring that the State may access maximum federal
    matching funds by seeking approval for the Centers for
    Medicare and Medicaid Services for modifications to the
    State's home and community based services waiver and
    additional waiver opportunities in order to maximize
    federal matching funds; this shall include, but not be
    limited to, modification that reflects all changes in the
    Community Care Program services and all increases in the
    services cost maximum.
    By January 1, 2009 or as soon after the end of the Cash and
Counseling Demonstration Project as is practicable, the
Department may, based on its evaluation of the demonstration
project, promulgate rules concerning personal assistant
services, to include, but need not be limited to,
qualifications, employment screening, rights under fair labor
standards, training, fiduciary agent, and supervision
requirements. All applicants shall be subject to the provisions
of the Health Care Worker Background Check Act.
    The Department shall develop procedures to enhance
availability of services on evenings, weekends, and on an
emergency basis to meet the respite needs of caregivers.
Procedures shall be developed to permit the utilization of
services in successive blocks of 24 hours up to the monthly
maximum established by the Department. Workers providing these
services shall be appropriately trained.
    Beginning on the effective date of this Amendatory Act of
1991, no person may perform chore/housekeeping and home care
aide services under a program authorized by this Section unless
that person has been issued a certificate of pre-service to do
so by his or her employing agency. Information gathered to
effect such certification shall include (i) the person's name,
(ii) the date the person was hired by his or her current
employer, and (iii) the training, including dates and levels.
Persons engaged in the program authorized by this Section
before the effective date of this amendatory Act of 1991 shall
be issued a certificate of all pre- and in-service training
from his or her employer upon submitting the necessary
information. The employing agency shall be required to retain
records of all staff pre- and in-service training, and shall
provide such records to the Department upon request and upon
termination of the employer's contract with the Department. In
addition, the employing agency is responsible for the issuance
of certifications of in-service training completed to their
employees.
    The Department is required to develop a system to ensure
that persons working as home care aides and personal assistants
chore housekeepers receive increases in their wages when the
federal minimum wage is increased by requiring vendors to
certify that they are meeting the federal minimum wage statute
for home care aides and personal assistants chore housekeepers.
An employer that cannot ensure that the minimum wage increase
is being given to home care aides and personal assistants chore
housekeepers shall be denied any increase in reimbursement
costs.
    The Community Care Program Advisory Committee is created in
the Department on Aging. The Director shall appoint individuals
to serve in the Committee, who shall serve at their own
expense. Members of the Committee must abide by all applicable
ethics laws. The Committee shall advise the Department on
issues related to the Department's program of services to
prevent unnecessary institutionalization. The Committee shall
meet on a bi-monthly basis and shall serve to identify and
advise the Department on present and potential issues affecting
the service delivery network, the program's clients, and the
Department and to recommend solution strategies. Persons
appointed to the Committee shall be appointed on, but not
limited to, their own and their agency's experience with the
program, geographic representation, and willingness to serve.
The Director shall appoint members to the Committee to
represent provider, advocacy, policy research, and other
constituencies committed to the delivery of high quality home
and community-based services to older adults. Representatives
shall be appointed to ensure representation from community care
providers including, but not limited to, adult day service
providers, homemaker providers, case coordination and case
management units, emergency home response providers, statewide
trade or labor unions that represent home care homecare aides
and direct care staff, area agencies on aging, adults over age
60, membership organizations representing older adults, and
other organizational entities, providers of care, or
individuals with demonstrated interest and expertise in the
field of home and community care as determined by the Director.
    Nominations may be presented from any agency or State
association with interest in the program. The Director, or his
or her designee, shall serve as the permanent co-chair of the
advisory committee. One other co-chair shall be nominated and
approved by the members of the committee on an annual basis.
Committee members' terms of appointment shall be for 4 years
with one-quarter of the appointees' terms expiring each year. A
member shall continue to serve until his or her replacement is
named. The Department shall fill vacancies that have a
remaining term of over one year, and this replacement shall
occur through the annual replacement of expiring terms. The
Director shall designate Department staff to provide technical
assistance and staff support to the committee. Department
representation shall not constitute membership of the
committee. All Committee papers, issues, recommendations,
reports, and meeting memoranda are advisory only. The Director,
or his or her designee, shall make a written report, as
requested by the Committee, regarding issues before the
Committee.
    The Department on Aging and the Department of Human
Services shall cooperate in the development and submission of
an annual report on programs and services provided under this
Section. Such joint report shall be filed with the Governor and
the General Assembly on or before September 30 each year.
    The requirement for reporting to the General Assembly shall
be satisfied by filing copies of the report with the Speaker,
the Minority Leader and the Clerk of the House of
Representatives and the President, the Minority Leader and the
Secretary of the Senate and the Legislative Research Unit, as
required by Section 3.1 of the General Assembly Organization
Act and filing such additional copies with the State Government
Report Distribution Center for the General Assembly as is
required under paragraph (t) of Section 7 of the State Library
Act.
    Those persons previously found eligible for receiving
non-institutional services whose services were discontinued
under the Emergency Budget Act of Fiscal Year 1992, and who do
not meet the eligibility standards in effect on or after July
1, 1992, shall remain ineligible on and after July 1, 1992.
Those persons previously not required to cost-share and who
were required to cost-share effective March 1, 1992, shall
continue to meet cost-share requirements on and after July 1,
1992. Beginning July 1, 1992, all clients will be required to
meet eligibility, cost-share, and other requirements and will
have services discontinued or altered when they fail to meet
these requirements.
    For the purposes of this Section, "flexible senior
services" refers to services that require one-time or periodic
expenditures including, but not limited to, respite care, home
modification, assistive technology, housing assistance, and
transportation.
(Source: P.A. 94-48, eff. 7-1-05; 94-269, eff. 7-19-05; 94-336,
eff. 7-26-05; 94-954, eff. 6-27-06; 95-298, eff. 8-20-07;
95-473, eff. 8-27-07; 95-565, eff. 6-1-08; revised 10-30-07.)
 
    (20 ILCS 105/4.08)
    Sec. 4.08. Rural and small town meals program. Subject to
appropriation, the Department may establish a program to ensure
the availability of congregate or home-delivered meals in
communities with populations of under 5,000 that are not
located within the large urban counties of Cook, DuPage, Kane,
Lake, or Will.
    The Department may meet these requirements by entering into
agreements with Area Agencies on Aging or Department designees,
which shall in turn enter into grants or contractual agreements
with such local entities as restaurants, cafes, churches,
facilities licensed under the Nursing Home Care Act, the
Assisted Living and Shared Housing Act, or the Hospital
Licensing Act, facilities certified by the Department of
Healthcare and Family Services, senior centers, or Older
American Act designated nutrition service providers.
    First consideration shall be given to entities that can
cost effectively meet the needs of seniors in the community by
preparing the food locally.
    In no instance shall funds provided pursuant to this
Section be used to replace funds allocated to a given area or
program as of the effective date of this amendatory Act of the
95th General Assembly.
    The Department shall establish guidelines and standards by
administrative rule, which shall include submission of an
expenditure plan by the recipient of the funds.
(Source: P.A. 95-68, eff. 8-13-07.)
 
    (20 ILCS 105/4.09)
    Sec. 4.09 4.08. Medication management program. Subject to
appropriation, the Department shall establish a program to
assist persons 60 years of age or older in managing their
medications. The Department shall establish guidelines and
standards for the program by rule.
(Source: P.A. 95-535, eff. 8-28-07; revised 12-5-07.)
 
    Section 35. The Children and Family Services Act is amended
by changing Section 5 as follows:
 
    (20 ILCS 505/5)  (from Ch. 23, par. 5005)
    (Text of Section before amendment by P.A. 95-642)
    Sec. 5. Direct child welfare services; Department of
Children and Family Services. To provide direct child welfare
services when not available through other public or private
child care or program facilities.
    (a) For purposes of this Section:
        (1) "Children" means persons found within the State who
    are under the age of 18 years. The term also includes
    persons under age 19 who:
            (A) were committed to the Department pursuant to
        the Juvenile Court Act or the Juvenile Court Act of
        1987, as amended, prior to the age of 18 and who
        continue under the jurisdiction of the court; or
            (B) were accepted for care, service and training by
        the Department prior to the age of 18 and whose best
        interest in the discretion of the Department would be
        served by continuing that care, service and training
        because of severe emotional disturbances, physical
        disability, social adjustment or any combination
        thereof, or because of the need to complete an
        educational or vocational training program.
        (2) "Homeless youth" means persons found within the
    State who are under the age of 19, are not in a safe and
    stable living situation and cannot be reunited with their
    families.
        (3) "Child welfare services" means public social
    services which are directed toward the accomplishment of
    the following purposes:
            (A) protecting and promoting the health, safety
        and welfare of children, including homeless, dependent
        or neglected children;
            (B) remedying, or assisting in the solution of
        problems which may result in, the neglect, abuse,
        exploitation or delinquency of children;
            (C) preventing the unnecessary separation of
        children from their families by identifying family
        problems, assisting families in resolving their
        problems, and preventing the breakup of the family
        where the prevention of child removal is desirable and
        possible when the child can be cared for at home
        without endangering the child's health and safety;
            (D) restoring to their families children who have
        been removed, by the provision of services to the child
        and the families when the child can be cared for at
        home without endangering the child's health and
        safety;
            (E) placing children in suitable adoptive homes,
        in cases where restoration to the biological family is
        not safe, possible or appropriate;
            (F) assuring safe and adequate care of children
        away from their homes, in cases where the child cannot
        be returned home or cannot be placed for adoption. At
        the time of placement, the Department shall consider
        concurrent planning, as described in subsection (l-1)
        of this Section so that permanency may occur at the
        earliest opportunity. Consideration should be given so
        that if reunification fails or is delayed, the
        placement made is the best available placement to
        provide permanency for the child;
            (G) (blank);
            (H) (blank); and
            (I) placing and maintaining children in facilities
        that provide separate living quarters for children
        under the age of 18 and for children 18 years of age
        and older, unless a child 18 years of age is in the
        last year of high school education or vocational
        training, in an approved individual or group treatment
        program, in a licensed shelter facility, or secure
        child care facility. The Department is not required to
        place or maintain children:
                (i) who are in a foster home, or
                (ii) who are persons with a developmental
            disability, as defined in the Mental Health and
            Developmental Disabilities Code, or
                (iii) who are female children who are
            pregnant, pregnant and parenting or parenting, or
                (iv) who are siblings, in facilities that
            provide separate living quarters for children 18
            years of age and older and for children under 18
            years of age.
    (b) Nothing in this Section shall be construed to authorize
the expenditure of public funds for the purpose of performing
abortions.
    (c) The Department shall establish and maintain
tax-supported child welfare services and extend and seek to
improve voluntary services throughout the State, to the end
that services and care shall be available on an equal basis
throughout the State to children requiring such services.
    (d) The Director may authorize advance disbursements for
any new program initiative to any agency contracting with the
Department. As a prerequisite for an advance disbursement, the
contractor must post a surety bond in the amount of the advance
disbursement and have a purchase of service contract approved
by the Department. The Department may pay up to 2 months
operational expenses in advance. The amount of the advance
disbursement shall be prorated over the life of the contract or
the remaining months of the fiscal year, whichever is less, and
the installment amount shall then be deducted from future
bills. Advance disbursement authorizations for new initiatives
shall not be made to any agency after that agency has operated
during 2 consecutive fiscal years. The requirements of this
Section concerning advance disbursements shall not apply with
respect to the following: payments to local public agencies for
child day care services as authorized by Section 5a of this
Act; and youth service programs receiving grant funds under
Section 17a-4.
    (e) (Blank).
    (f) (Blank).
    (g) The Department shall establish rules and regulations
concerning its operation of programs designed to meet the goals
of child safety and protection, family preservation, family
reunification, and adoption, including but not limited to:
        (1) adoption;
        (2) foster care;
        (3) family counseling;
        (4) protective services;
        (5) (blank);
        (6) homemaker service;
        (7) return of runaway children;
        (8) (blank);
        (9) placement under Section 5-7 of the Juvenile Court
    Act or Section 2-27, 3-28, 4-25 or 5-740 of the Juvenile
    Court Act of 1987 in accordance with the federal Adoption
    Assistance and Child Welfare Act of 1980; and
        (10) interstate services.
    Rules and regulations established by the Department shall
include provisions for training Department staff and the staff
of Department grantees, through contracts with other agencies
or resources, in alcohol and drug abuse screening techniques
approved by the Department of Human Services, as a successor to
the Department of Alcoholism and Substance Abuse, for the
purpose of identifying children and adults who should be
referred to an alcohol and drug abuse treatment program for
professional evaluation.
    (h) If the Department finds that there is no appropriate
program or facility within or available to the Department for a
ward and that no licensed private facility has an adequate and
appropriate program or none agrees to accept the ward, the
Department shall create an appropriate individualized,
program-oriented plan for such ward. The plan may be developed
within the Department or through purchase of services by the
Department to the extent that it is within its statutory
authority to do.
    (i) Service programs shall be available throughout the
State and shall include but not be limited to the following
services:
        (1) case management;
        (2) homemakers;
        (3) counseling;
        (4) parent education;
        (5) day care; and
        (6) emergency assistance and advocacy.
    In addition, the following services may be made available
to assess and meet the needs of children and families:
        (1) comprehensive family-based services;
        (2) assessments;
        (3) respite care; and
        (4) in-home health services.
    The Department shall provide transportation for any of the
services it makes available to children or families or for
which it refers children or families.
    (j) The Department may provide categories of financial
assistance and education assistance grants, and shall
establish rules and regulations concerning the assistance and
grants, to persons who adopt physically or mentally
handicapped, older and other hard-to-place children who (i)
immediately prior to their adoption were legal wards of the
Department or (ii) were determined eligible for financial
assistance with respect to a prior adoption and who become
available for adoption because the prior adoption has been
dissolved and the parental rights of the adoptive parents have
been terminated or because the child's adoptive parents have
died. The Department may continue to provide financial
assistance and education assistance grants for a child who was
determined eligible for financial assistance under this
subsection (j) in the interim period beginning when the child's
adoptive parents died and ending with the finalization of the
new adoption of the child by another adoptive parent or
parents. The Department may also provide categories of
financial assistance and education assistance grants, and
shall establish rules and regulations for the assistance and
grants, to persons appointed guardian of the person under
Section 5-7 of the Juvenile Court Act or Section 2-27, 3-28,
4-25 or 5-740 of the Juvenile Court Act of 1987 for children
who were wards of the Department for 12 months immediately
prior to the appointment of the guardian.
    The amount of assistance may vary, depending upon the needs
of the child and the adoptive parents, as set forth in the
annual assistance agreement. Special purpose grants are
allowed where the child requires special service but such costs
may not exceed the amounts which similar services would cost
the Department if it were to provide or secure them as guardian
of the child.
    Any financial assistance provided under this subsection is
inalienable by assignment, sale, execution, attachment,
garnishment, or any other remedy for recovery or collection of
a judgment or debt.
    (j-5) The Department shall not deny or delay the placement
of a child for adoption if an approved family is available
either outside of the Department region handling the case, or
outside of the State of Illinois.
    (k) The Department shall accept for care and training any
child who has been adjudicated neglected or abused, or
dependent committed to it pursuant to the Juvenile Court Act or
the Juvenile Court Act of 1987.
    (l) Before July 1, 2000, the Department may provide, and
beginning July 1, 2000, the Department shall offer family
preservation services, as defined in Section 8.2 of the Abused
and Neglected Child Reporting Act, to help families, including
adoptive and extended families. Family preservation services
shall be offered (i) to prevent the placement of children in
substitute care when the children can be cared for at home or
in the custody of the person responsible for the children's
welfare, (ii) to reunite children with their families, or (iii)
to maintain an adoptive placement. Family preservation
services shall only be offered when doing so will not endanger
the children's health or safety. With respect to children who
are in substitute care pursuant to the Juvenile Court Act of
1987, family preservation services shall not be offered if a
goal other than those of subdivisions (A), (B), or (B-1) of
subsection (2) of Section 2-28 of that Act has been set.
Nothing in this paragraph shall be construed to create a
private right of action or claim on the part of any individual
or child welfare agency.
    The Department shall notify the child and his family of the
Department's responsibility to offer and provide family
preservation services as identified in the service plan. The
child and his family shall be eligible for services as soon as
the report is determined to be "indicated". The Department may
offer services to any child or family with respect to whom a
report of suspected child abuse or neglect has been filed,
prior to concluding its investigation under Section 7.12 of the
Abused and Neglected Child Reporting Act. However, the child's
or family's willingness to accept services shall not be
considered in the investigation. The Department may also
provide services to any child or family who is the subject of
any report of suspected child abuse or neglect or may refer
such child or family to services available from other agencies
in the community, even if the report is determined to be
unfounded, if the conditions in the child's or family's home
are reasonably likely to subject the child or family to future
reports of suspected child abuse or neglect. Acceptance of such
services shall be voluntary.
    The Department may, at its discretion except for those
children also adjudicated neglected or dependent, accept for
care and training any child who has been adjudicated addicted,
as a truant minor in need of supervision or as a minor
requiring authoritative intervention, under the Juvenile Court
Act or the Juvenile Court Act of 1987, but no such child shall
be committed to the Department by any court without the
approval of the Department. A minor charged with a criminal
offense under the Criminal Code of 1961 or adjudicated
delinquent shall not be placed in the custody of or committed
to the Department by any court, except a minor less than 13
years of age committed to the Department under Section 5-710 of
the Juvenile Court Act of 1987.
    (l-1) The legislature recognizes that the best interests of
the child require that the child be placed in the most
permanent living arrangement as soon as is practically
possible. To achieve this goal, the legislature directs the
Department of Children and Family Services to conduct
concurrent planning so that permanency may occur at the
earliest opportunity. Permanent living arrangements may
include prevention of placement of a child outside the home of
the family when the child can be cared for at home without
endangering the child's health or safety; reunification with
the family, when safe and appropriate, if temporary placement
is necessary; or movement of the child toward the most
permanent living arrangement and permanent legal status.
    When determining reasonable efforts to be made with respect
to a child, as described in this subsection, and in making such
reasonable efforts, the child's health and safety shall be the
paramount concern.
    When a child is placed in foster care, the Department shall
ensure and document that reasonable efforts were made to
prevent or eliminate the need to remove the child from the
child's home. The Department must make reasonable efforts to
reunify the family when temporary placement of the child occurs
unless otherwise required, pursuant to the Juvenile Court Act
of 1987. At any time after the dispositional hearing where the
Department believes that further reunification services would
be ineffective, it may request a finding from the court that
reasonable efforts are no longer appropriate. The Department is
not required to provide further reunification services after
such a finding.
    A decision to place a child in substitute care shall be
made with considerations of the child's health, safety, and
best interests. At the time of placement, consideration should
also be given so that if reunification fails or is delayed, the
placement made is the best available placement to provide
permanency for the child.
    The Department shall adopt rules addressing concurrent
planning for reunification and permanency. The Department
shall consider the following factors when determining
appropriateness of concurrent planning:
        (1) the likelihood of prompt reunification;
        (2) the past history of the family;
        (3) the barriers to reunification being addressed by
    the family;
        (4) the level of cooperation of the family;
        (5) the foster parents' willingness to work with the
    family to reunite;
        (6) the willingness and ability of the foster family to
    provide an adoptive home or long-term placement;
        (7) the age of the child;
        (8) placement of siblings.
    (m) The Department may assume temporary custody of any
child if:
        (1) it has received a written consent to such temporary
    custody signed by the parents of the child or by the parent
    having custody of the child if the parents are not living
    together or by the guardian or custodian of the child if
    the child is not in the custody of either parent, or
        (2) the child is found in the State and neither a
    parent, guardian nor custodian of the child can be located.
If the child is found in his or her residence without a parent,
guardian, custodian or responsible caretaker, the Department
may, instead of removing the child and assuming temporary
custody, place an authorized representative of the Department
in that residence until such time as a parent, guardian or
custodian enters the home and expresses a willingness and
apparent ability to ensure the child's health and safety and
resume permanent charge of the child, or until a relative
enters the home and is willing and able to ensure the child's
health and safety and assume charge of the child until a
parent, guardian or custodian enters the home and expresses
such willingness and ability to ensure the child's safety and
resume permanent charge. After a caretaker has remained in the
home for a period not to exceed 12 hours, the Department must
follow those procedures outlined in Section 2-9, 3-11, 4-8, or
5-415 of the Juvenile Court Act of 1987.
    The Department shall have the authority, responsibilities
and duties that a legal custodian of the child would have
pursuant to subsection (9) of Section 1-3 of the Juvenile Court
Act of 1987. Whenever a child is taken into temporary custody
pursuant to an investigation under the Abused and Neglected
Child Reporting Act, or pursuant to a referral and acceptance
under the Juvenile Court Act of 1987 of a minor in limited
custody, the Department, during the period of temporary custody
and before the child is brought before a judicial officer as
required by Section 2-9, 3-11, 4-8, or 5-415 of the Juvenile
Court Act of 1987, shall have the authority, responsibilities
and duties that a legal custodian of the child would have under
subsection (9) of Section 1-3 of the Juvenile Court Act of
1987.
    The Department shall ensure that any child taken into
custody is scheduled for an appointment for a medical
examination.
    A parent, guardian or custodian of a child in the temporary
custody of the Department who would have custody of the child
if he were not in the temporary custody of the Department may
deliver to the Department a signed request that the Department
surrender the temporary custody of the child. The Department
may retain temporary custody of the child for 10 days after the
receipt of the request, during which period the Department may
cause to be filed a petition pursuant to the Juvenile Court Act
of 1987. If a petition is so filed, the Department shall retain
temporary custody of the child until the court orders
otherwise. If a petition is not filed within the 10 day period,
the child shall be surrendered to the custody of the requesting
parent, guardian or custodian not later than the expiration of
the 10 day period, at which time the authority and duties of
the Department with respect to the temporary custody of the
child shall terminate.
    (m-1) The Department may place children under 18 years of
age in a secure child care facility licensed by the Department
that cares for children who are in need of secure living
arrangements for their health, safety, and well-being after a
determination is made by the facility director and the Director
or the Director's designate prior to admission to the facility
subject to Section 2-27.1 of the Juvenile Court Act of 1987.
This subsection (m-1) does not apply to a child who is subject
to placement in a correctional facility operated pursuant to
Section 3-15-2 of the Unified Code of Corrections, unless the
child is a ward who was placed under the care of the Department
before being subject to placement in a correctional facility
and a court of competent jurisdiction has ordered placement of
the child in a secure care facility.
    (n) The Department may place children under 18 years of age
in licensed child care facilities when in the opinion of the
Department, appropriate services aimed at family preservation
have been unsuccessful and cannot ensure the child's health and
safety or are unavailable and such placement would be for their
best interest. Payment for board, clothing, care, training and
supervision of any child placed in a licensed child care
facility may be made by the Department, by the parents or
guardians of the estates of those children, or by both the
Department and the parents or guardians, except that no
payments shall be made by the Department for any child placed
in a licensed child care facility for board, clothing, care,
training and supervision of such a child that exceed the
average per capita cost of maintaining and of caring for a
child in institutions for dependent or neglected children
operated by the Department. However, such restriction on
payments does not apply in cases where children require
specialized care and treatment for problems of severe emotional
disturbance, physical disability, social adjustment, or any
combination thereof and suitable facilities for the placement
of such children are not available at payment rates within the
limitations set forth in this Section. All reimbursements for
services delivered shall be absolutely inalienable by
assignment, sale, attachment, garnishment or otherwise.
    (o) The Department shall establish an administrative
review and appeal process for children and families who request
or receive child welfare services from the Department. Children
who are wards of the Department and are placed by private child
welfare agencies, and foster families with whom those children
are placed, shall be afforded the same procedural and appeal
rights as children and families in the case of placement by the
Department, including the right to an initial review of a
private agency decision by that agency. The Department shall
insure that any private child welfare agency, which accepts
wards of the Department for placement, affords those rights to
children and foster families. The Department shall accept for
administrative review and an appeal hearing a complaint made by
(i) a child or foster family concerning a decision following an
initial review by a private child welfare agency or (ii) a
prospective adoptive parent who alleges a violation of
subsection (j-5) of this Section. An appeal of a decision
concerning a change in the placement of a child shall be
conducted in an expedited manner.
    (p) There is hereby created the Department of Children and
Family Services Emergency Assistance Fund from which the
Department may provide special financial assistance to
families which are in economic crisis when such assistance is
not available through other public or private sources and the
assistance is deemed necessary to prevent dissolution of the
family unit or to reunite families which have been separated
due to child abuse and neglect. The Department shall establish
administrative rules specifying the criteria for determining
eligibility for and the amount and nature of assistance to be
provided. The Department may also enter into written agreements
with private and public social service agencies to provide
emergency financial services to families referred by the
Department. Special financial assistance payments shall be
available to a family no more than once during each fiscal year
and the total payments to a family may not exceed $500 during a
fiscal year.
    (q) The Department may receive and use, in their entirety,
for the benefit of children any gift, donation or bequest of
money or other property which is received on behalf of such
children, or any financial benefits to which such children are
or may become entitled while under the jurisdiction or care of
the Department.
    The Department shall set up and administer no-cost,
interest-bearing accounts in appropriate financial
institutions for children for whom the Department is legally
responsible and who have been determined eligible for Veterans'
Benefits, Social Security benefits, assistance allotments from
the armed forces, court ordered payments, parental voluntary
payments, Supplemental Security Income, Railroad Retirement
payments, Black Lung benefits, or other miscellaneous
payments. Interest earned by each account shall be credited to
the account, unless disbursed in accordance with this
subsection.
    In disbursing funds from children's accounts, the
Department shall:
        (1) Establish standards in accordance with State and
    federal laws for disbursing money from children's
    accounts. In all circumstances, the Department's
    "Guardianship Administrator" or his or her designee must
    approve disbursements from children's accounts. The
    Department shall be responsible for keeping complete
    records of all disbursements for each account for any
    purpose.
        (2) Calculate on a monthly basis the amounts paid from
    State funds for the child's board and care, medical care
    not covered under Medicaid, and social services; and
    utilize funds from the child's account, as covered by
    regulation, to reimburse those costs. Monthly,
    disbursements from all children's accounts, up to 1/12 of
    $13,000,000, shall be deposited by the Department into the
    General Revenue Fund and the balance over 1/12 of
    $13,000,000 into the DCFS Children's Services Fund.
        (3) Maintain any balance remaining after reimbursing
    for the child's costs of care, as specified in item (2).
    The balance shall accumulate in accordance with relevant
    State and federal laws and shall be disbursed to the child
    or his or her guardian, or to the issuing agency.
    (r) The Department shall promulgate regulations
encouraging all adoption agencies to voluntarily forward to the
Department or its agent names and addresses of all persons who
have applied for and have been approved for adoption of a
hard-to-place or handicapped child and the names of such
children who have not been placed for adoption. A list of such
names and addresses shall be maintained by the Department or
its agent, and coded lists which maintain the confidentiality
of the person seeking to adopt the child and of the child shall
be made available, without charge, to every adoption agency in
the State to assist the agencies in placing such children for
adoption. The Department may delegate to an agent its duty to
maintain and make available such lists. The Department shall
ensure that such agent maintains the confidentiality of the
person seeking to adopt the child and of the child.
    (s) The Department of Children and Family Services may
establish and implement a program to reimburse Department and
private child welfare agency foster parents licensed by the
Department of Children and Family Services for damages
sustained by the foster parents as a result of the malicious or
negligent acts of foster children, as well as providing third
party coverage for such foster parents with regard to actions
of foster children to other individuals. Such coverage will be
secondary to the foster parent liability insurance policy, if
applicable. The program shall be funded through appropriations
from the General Revenue Fund, specifically designated for such
purposes.
    (t) The Department shall perform home studies and
investigations and shall exercise supervision over visitation
as ordered by a court pursuant to the Illinois Marriage and
Dissolution of Marriage Act or the Adoption Act only if:
        (1) an order entered by an Illinois court specifically
    directs the Department to perform such services; and
        (2) the court has ordered one or both of the parties to
    the proceeding to reimburse the Department for its
    reasonable costs for providing such services in accordance
    with Department rules, or has determined that neither party
    is financially able to pay.
    The Department shall provide written notification to the
court of the specific arrangements for supervised visitation
and projected monthly costs within 60 days of the court order.
The Department shall send to the court information related to
the costs incurred except in cases where the court has
determined the parties are financially unable to pay. The court
may order additional periodic reports as appropriate.
    (u) In addition to other information that must be provided,
whenever the Department places a child with a prospective
adoptive parent or parents or in a licensed foster home, group
home, child care institution, or in a relative home, the
Department shall provide to the prospective adoptive parent or
parents or other caretaker:
        (1) available detailed information concerning the
    child's educational and health history, copies of
    immunization records (including insurance and medical card
    information), a history of the child's previous
    placements, if any, and reasons for placement changes
    excluding any information that identifies or reveals the
    location of any previous caretaker;
        (2) a copy of the child's portion of the client service
    plan, including any visitation arrangement, and all
    amendments or revisions to it as related to the child; and
        (3) information containing details of the child's
    individualized educational plan when the child is
    receiving special education services.
    The caretaker shall be informed of any known social or
behavioral information (including, but not limited to,
criminal background, fire setting, perpetuation of sexual
abuse, destructive behavior, and substance abuse) necessary to
care for and safeguard the children to be placed or currently
in the home. The Department may prepare a written summary of
the information required by this paragraph, which may be
provided to the foster or prospective adoptive parent in
advance of a placement. The foster or prospective adoptive
parent may review the supporting documents in the child's file
in the presence of casework staff. In the case of an emergency
placement, casework staff shall at least provide known
information verbally, if necessary, and must subsequently
provide the information in writing as required by this
subsection.
    The information described in this subsection shall be
provided in writing. In the case of emergency placements when
time does not allow prior review, preparation, and collection
of written information, the Department shall provide such
information as it becomes available. Within 10 business days
after placement, the Department shall obtain from the
prospective adoptive parent or parents or other caretaker a
signed verification of receipt of the information provided.
Within 10 business days after placement, the Department shall
provide to the child's guardian ad litem a copy of the
information provided to the prospective adoptive parent or
parents or other caretaker. The information provided to the
prospective adoptive parent or parents or other caretaker shall
be reviewed and approved regarding accuracy at the supervisory
level.
    (u-5) Effective July 1, 1995, only foster care placements
licensed as foster family homes pursuant to the Child Care Act
of 1969 shall be eligible to receive foster care payments from
the Department. Relative caregivers who, as of July 1, 1995,
were approved pursuant to approved relative placement rules
previously promulgated by the Department at 89 Ill. Adm. Code
335 and had submitted an application for licensure as a foster
family home may continue to receive foster care payments only
until the Department determines that they may be licensed as a
foster family home or that their application for licensure is
denied or until September 30, 1995, whichever occurs first.
    (v) The Department shall access criminal history record
information as defined in the Illinois Uniform Conviction
Information Act and information maintained in the adjudicatory
and dispositional record system as defined in Section 2605-355
of the Department of State Police Law (20 ILCS 2605/2605-355)
if the Department determines the information is necessary to
perform its duties under the Abused and Neglected Child
Reporting Act, the Child Care Act of 1969, and the Children and
Family Services Act. The Department shall provide for
interactive computerized communication and processing
equipment that permits direct on-line communication with the
Department of State Police's central criminal history data
repository. The Department shall comply with all certification
requirements and provide certified operators who have been
trained by personnel from the Department of State Police. In
addition, one Office of the Inspector General investigator
shall have training in the use of the criminal history
information access system and have access to the terminal. The
Department of Children and Family Services and its employees
shall abide by rules and regulations established by the
Department of State Police relating to the access and
dissemination of this information.
    (v-1) Prior to final approval for placement of a child, the
Department shall conduct a criminal records background check of
the prospective foster or adoptive parent, including
fingerprint-based checks of national crime information
databases. Final approval for placement shall not be granted if
the record check reveals a felony conviction for child abuse or
neglect, for spousal abuse, for a crime against children, or
for a crime involving violence, including rape, sexual assault,
or homicide, but not including other physical assault or
battery, or if there is a felony conviction for physical
assault, battery, or a drug-related offense committed within
the past 5 years.
    (v-2) Prior to final approval for placement of a child, the
Department shall check its child abuse and neglect registry for
information concerning prospective foster and adoptive
parents, and any adult living in the home. If any prospective
foster or adoptive parent or other adult living in the home has
resided in another state in the preceding 5 years, the
Department shall request a check of that other state's child
abuse and neglect registry.
    (w) Within 120 days of August 20, 1995 (the effective date
of Public Act 89-392), the Department shall prepare and submit
to the Governor and the General Assembly, a written plan for
the development of in-state licensed secure child care
facilities that care for children who are in need of secure
living arrangements for their health, safety, and well-being.
For purposes of this subsection, secure care facility shall
mean a facility that is designed and operated to ensure that
all entrances and exits from the facility, a building or a
distinct part of the building, are under the exclusive control
of the staff of the facility, whether or not the child has the
freedom of movement within the perimeter of the facility,
building, or distinct part of the building. The plan shall
include descriptions of the types of facilities that are needed
in Illinois; the cost of developing these secure care
facilities; the estimated number of placements; the potential
cost savings resulting from the movement of children currently
out-of-state who are projected to be returned to Illinois; the
necessary geographic distribution of these facilities in
Illinois; and a proposed timetable for development of such
facilities.
(Source: P.A. 94-215, eff. 1-1-06; 94-1010, eff. 10-1-06;
95-10, eff. 6-30-07; 95-601, eff. 9-11-07; revised 10-30-07.)
 
    (Text of Section after amendment by P.A. 95-642)
    Sec. 5. Direct child welfare services; Department of
Children and Family Services. To provide direct child welfare
services when not available through other public or private
child care or program facilities.
    (a) For purposes of this Section:
        (1) "Children" means persons found within the State who
    are under the age of 18 years. The term also includes
    persons under age 19 who:
            (A) were committed to the Department pursuant to
        the Juvenile Court Act or the Juvenile Court Act of
        1987, as amended, prior to the age of 18 and who
        continue under the jurisdiction of the court; or
            (B) were accepted for care, service and training by
        the Department prior to the age of 18 and whose best
        interest in the discretion of the Department would be
        served by continuing that care, service and training
        because of severe emotional disturbances, physical
        disability, social adjustment or any combination
        thereof, or because of the need to complete an
        educational or vocational training program.
        (2) "Homeless youth" means persons found within the
    State who are under the age of 19, are not in a safe and
    stable living situation and cannot be reunited with their
    families.
        (3) "Child welfare services" means public social
    services which are directed toward the accomplishment of
    the following purposes:
            (A) protecting and promoting the health, safety
        and welfare of children, including homeless, dependent
        or neglected children;
            (B) remedying, or assisting in the solution of
        problems which may result in, the neglect, abuse,
        exploitation or delinquency of children;
            (C) preventing the unnecessary separation of
        children from their families by identifying family
        problems, assisting families in resolving their
        problems, and preventing the breakup of the family
        where the prevention of child removal is desirable and
        possible when the child can be cared for at home
        without endangering the child's health and safety;
            (D) restoring to their families children who have
        been removed, by the provision of services to the child
        and the families when the child can be cared for at
        home without endangering the child's health and
        safety;
            (E) placing children in suitable adoptive homes,
        in cases where restoration to the biological family is
        not safe, possible or appropriate;
            (F) assuring safe and adequate care of children
        away from their homes, in cases where the child cannot
        be returned home or cannot be placed for adoption. At
        the time of placement, the Department shall consider
        concurrent planning, as described in subsection (l-1)
        of this Section so that permanency may occur at the
        earliest opportunity. Consideration should be given so
        that if reunification fails or is delayed, the
        placement made is the best available placement to
        provide permanency for the child;
            (G) (blank);
            (H) (blank); and
            (I) placing and maintaining children in facilities
        that provide separate living quarters for children
        under the age of 18 and for children 18 years of age
        and older, unless a child 18 years of age is in the
        last year of high school education or vocational
        training, in an approved individual or group treatment
        program, in a licensed shelter facility, or secure
        child care facility. The Department is not required to
        place or maintain children:
                (i) who are in a foster home, or
                (ii) who are persons with a developmental
            disability, as defined in the Mental Health and
            Developmental Disabilities Code, or
                (iii) who are female children who are
            pregnant, pregnant and parenting or parenting, or
                (iv) who are siblings, in facilities that
            provide separate living quarters for children 18
            years of age and older and for children under 18
            years of age.
    (b) Nothing in this Section shall be construed to authorize
the expenditure of public funds for the purpose of performing
abortions.
    (c) The Department shall establish and maintain
tax-supported child welfare services and extend and seek to
improve voluntary services throughout the State, to the end
that services and care shall be available on an equal basis
throughout the State to children requiring such services.
    (d) The Director may authorize advance disbursements for
any new program initiative to any agency contracting with the
Department. As a prerequisite for an advance disbursement, the
contractor must post a surety bond in the amount of the advance
disbursement and have a purchase of service contract approved
by the Department. The Department may pay up to 2 months
operational expenses in advance. The amount of the advance
disbursement shall be prorated over the life of the contract or
the remaining months of the fiscal year, whichever is less, and
the installment amount shall then be deducted from future
bills. Advance disbursement authorizations for new initiatives
shall not be made to any agency after that agency has operated
during 2 consecutive fiscal years. The requirements of this
Section concerning advance disbursements shall not apply with
respect to the following: payments to local public agencies for
child day care services as authorized by Section 5a of this
Act; and youth service programs receiving grant funds under
Section 17a-4.
    (e) (Blank).
    (f) (Blank).
    (g) The Department shall establish rules and regulations
concerning its operation of programs designed to meet the goals
of child safety and protection, family preservation, family
reunification, and adoption, including but not limited to:
        (1) adoption;
        (2) foster care;
        (3) family counseling;
        (4) protective services;
        (5) (blank);
        (6) homemaker service;
        (7) return of runaway children;
        (8) (blank);
        (9) placement under Section 5-7 of the Juvenile Court
    Act or Section 2-27, 3-28, 4-25 or 5-740 of the Juvenile
    Court Act of 1987 in accordance with the federal Adoption
    Assistance and Child Welfare Act of 1980; and
        (10) interstate services.
    Rules and regulations established by the Department shall
include provisions for training Department staff and the staff
of Department grantees, through contracts with other agencies
or resources, in alcohol and drug abuse screening techniques
approved by the Department of Human Services, as a successor to
the Department of Alcoholism and Substance Abuse, for the
purpose of identifying children and adults who should be
referred to an alcohol and drug abuse treatment program for
professional evaluation.
    (h) If the Department finds that there is no appropriate
program or facility within or available to the Department for a
ward and that no licensed private facility has an adequate and
appropriate program or none agrees to accept the ward, the
Department shall create an appropriate individualized,
program-oriented plan for such ward. The plan may be developed
within the Department or through purchase of services by the
Department to the extent that it is within its statutory
authority to do.
    (i) Service programs shall be available throughout the
State and shall include but not be limited to the following
services:
        (1) case management;
        (2) homemakers;
        (3) counseling;
        (4) parent education;
        (5) day care; and
        (6) emergency assistance and advocacy.
    In addition, the following services may be made available
to assess and meet the needs of children and families:
        (1) comprehensive family-based services;
        (2) assessments;
        (3) respite care; and
        (4) in-home health services.
    The Department shall provide transportation for any of the
services it makes available to children or families or for
which it refers children or families.
    (j) The Department may provide categories of financial
assistance and education assistance grants, and shall
establish rules and regulations concerning the assistance and
grants, to persons who adopt physically or mentally
handicapped, older and other hard-to-place children who (i)
immediately prior to their adoption were legal wards of the
Department or (ii) were determined eligible for financial
assistance with respect to a prior adoption and who become
available for adoption because the prior adoption has been
dissolved and the parental rights of the adoptive parents have
been terminated or because the child's adoptive parents have
died. The Department may continue to provide financial
assistance and education assistance grants for a child who was
determined eligible for financial assistance under this
subsection (j) in the interim period beginning when the child's
adoptive parents died and ending with the finalization of the
new adoption of the child by another adoptive parent or
parents. The Department may also provide categories of
financial assistance and education assistance grants, and
shall establish rules and regulations for the assistance and
grants, to persons appointed guardian of the person under
Section 5-7 of the Juvenile Court Act or Section 2-27, 3-28,
4-25 or 5-740 of the Juvenile Court Act of 1987 for children
who were wards of the Department for 12 months immediately
prior to the appointment of the guardian.
    The amount of assistance may vary, depending upon the needs
of the child and the adoptive parents, as set forth in the
annual assistance agreement. Special purpose grants are
allowed where the child requires special service but such costs
may not exceed the amounts which similar services would cost
the Department if it were to provide or secure them as guardian
of the child.
    Any financial assistance provided under this subsection is
inalienable by assignment, sale, execution, attachment,
garnishment, or any other remedy for recovery or collection of
a judgment or debt.
    (j-5) The Department shall not deny or delay the placement
of a child for adoption if an approved family is available
either outside of the Department region handling the case, or
outside of the State of Illinois.
    (k) The Department shall accept for care and training any
child who has been adjudicated neglected or abused, or
dependent committed to it pursuant to the Juvenile Court Act or
the Juvenile Court Act of 1987.
    (l) Before July 1, 2000, the Department may provide, and
beginning July 1, 2000, the Department shall offer family
preservation services, as defined in Section 8.2 of the Abused
and Neglected Child Reporting Act, to help families, including
adoptive and extended families. Family preservation services
shall be offered (i) to prevent the placement of children in
substitute care when the children can be cared for at home or
in the custody of the person responsible for the children's
welfare, (ii) to reunite children with their families, or (iii)
to maintain an adoptive placement. Family preservation
services shall only be offered when doing so will not endanger
the children's health or safety. With respect to children who
are in substitute care pursuant to the Juvenile Court Act of
1987, family preservation services shall not be offered if a
goal other than those of subdivisions (A), (B), or (B-1) of
subsection (2) of Section 2-28 of that Act has been set.
Nothing in this paragraph shall be construed to create a
private right of action or claim on the part of any individual
or child welfare agency.
    The Department shall notify the child and his family of the
Department's responsibility to offer and provide family
preservation services as identified in the service plan. The
child and his family shall be eligible for services as soon as
the report is determined to be "indicated". The Department may
offer services to any child or family with respect to whom a
report of suspected child abuse or neglect has been filed,
prior to concluding its investigation under Section 7.12 of the
Abused and Neglected Child Reporting Act. However, the child's
or family's willingness to accept services shall not be
considered in the investigation. The Department may also
provide services to any child or family who is the subject of
any report of suspected child abuse or neglect or may refer
such child or family to services available from other agencies
in the community, even if the report is determined to be
unfounded, if the conditions in the child's or family's home
are reasonably likely to subject the child or family to future
reports of suspected child abuse or neglect. Acceptance of such
services shall be voluntary.
    The Department may, at its discretion except for those
children also adjudicated neglected or dependent, accept for
care and training any child who has been adjudicated addicted,
as a truant minor in need of supervision or as a minor
requiring authoritative intervention, under the Juvenile Court
Act or the Juvenile Court Act of 1987, but no such child shall
be committed to the Department by any court without the
approval of the Department. A minor charged with a criminal
offense under the Criminal Code of 1961 or adjudicated
delinquent shall not be placed in the custody of or committed
to the Department by any court, except a minor less than 15
years of age committed to the Department under Section 5-710 of
the Juvenile Court Act of 1987 or a minor for whom an
independent basis of abuse, neglect, or dependency exists,
which must be defined by departmental rule. An independent
basis exists when the allegations or adjudication of abuse,
neglect, or dependency do not arise from the same facts,
incident, or circumstances which give rise to a charge or
adjudication of delinquency.
    (l-1) The legislature recognizes that the best interests of
the child require that the child be placed in the most
permanent living arrangement as soon as is practically
possible. To achieve this goal, the legislature directs the
Department of Children and Family Services to conduct
concurrent planning so that permanency may occur at the
earliest opportunity. Permanent living arrangements may
include prevention of placement of a child outside the home of
the family when the child can be cared for at home without
endangering the child's health or safety; reunification with
the family, when safe and appropriate, if temporary placement
is necessary; or movement of the child toward the most
permanent living arrangement and permanent legal status.
    When determining reasonable efforts to be made with respect
to a child, as described in this subsection, and in making such
reasonable efforts, the child's health and safety shall be the
paramount concern.
    When a child is placed in foster care, the Department shall
ensure and document that reasonable efforts were made to
prevent or eliminate the need to remove the child from the
child's home. The Department must make reasonable efforts to
reunify the family when temporary placement of the child occurs
unless otherwise required, pursuant to the Juvenile Court Act
of 1987. At any time after the dispositional hearing where the
Department believes that further reunification services would
be ineffective, it may request a finding from the court that
reasonable efforts are no longer appropriate. The Department is
not required to provide further reunification services after
such a finding.
    A decision to place a child in substitute care shall be
made with considerations of the child's health, safety, and
best interests. At the time of placement, consideration should
also be given so that if reunification fails or is delayed, the
placement made is the best available placement to provide
permanency for the child.
    The Department shall adopt rules addressing concurrent
planning for reunification and permanency. The Department
shall consider the following factors when determining
appropriateness of concurrent planning:
        (1) the likelihood of prompt reunification;
        (2) the past history of the family;
        (3) the barriers to reunification being addressed by
    the family;
        (4) the level of cooperation of the family;
        (5) the foster parents' willingness to work with the
    family to reunite;
        (6) the willingness and ability of the foster family to
    provide an adoptive home or long-term placement;
        (7) the age of the child;
        (8) placement of siblings.
    (m) The Department may assume temporary custody of any
child if:
        (1) it has received a written consent to such temporary
    custody signed by the parents of the child or by the parent
    having custody of the child if the parents are not living
    together or by the guardian or custodian of the child if
    the child is not in the custody of either parent, or
        (2) the child is found in the State and neither a
    parent, guardian nor custodian of the child can be located.
If the child is found in his or her residence without a parent,
guardian, custodian or responsible caretaker, the Department
may, instead of removing the child and assuming temporary
custody, place an authorized representative of the Department
in that residence until such time as a parent, guardian or
custodian enters the home and expresses a willingness and
apparent ability to ensure the child's health and safety and
resume permanent charge of the child, or until a relative
enters the home and is willing and able to ensure the child's
health and safety and assume charge of the child until a
parent, guardian or custodian enters the home and expresses
such willingness and ability to ensure the child's safety and
resume permanent charge. After a caretaker has remained in the
home for a period not to exceed 12 hours, the Department must
follow those procedures outlined in Section 2-9, 3-11, 4-8, or
5-415 of the Juvenile Court Act of 1987.
    The Department shall have the authority, responsibilities
and duties that a legal custodian of the child would have
pursuant to subsection (9) of Section 1-3 of the Juvenile Court
Act of 1987. Whenever a child is taken into temporary custody
pursuant to an investigation under the Abused and Neglected
Child Reporting Act, or pursuant to a referral and acceptance
under the Juvenile Court Act of 1987 of a minor in limited
custody, the Department, during the period of temporary custody
and before the child is brought before a judicial officer as
required by Section 2-9, 3-11, 4-8, or 5-415 of the Juvenile
Court Act of 1987, shall have the authority, responsibilities
and duties that a legal custodian of the child would have under
subsection (9) of Section 1-3 of the Juvenile Court Act of
1987.
    The Department shall ensure that any child taken into
custody is scheduled for an appointment for a medical
examination.
    A parent, guardian or custodian of a child in the temporary
custody of the Department who would have custody of the child
if he were not in the temporary custody of the Department may
deliver to the Department a signed request that the Department
surrender the temporary custody of the child. The Department
may retain temporary custody of the child for 10 days after the
receipt of the request, during which period the Department may
cause to be filed a petition pursuant to the Juvenile Court Act
of 1987. If a petition is so filed, the Department shall retain
temporary custody of the child until the court orders
otherwise. If a petition is not filed within the 10 day period,
the child shall be surrendered to the custody of the requesting
parent, guardian or custodian not later than the expiration of
the 10 day period, at which time the authority and duties of
the Department with respect to the temporary custody of the
child shall terminate.
    (m-1) The Department may place children under 18 years of
age in a secure child care facility licensed by the Department
that cares for children who are in need of secure living
arrangements for their health, safety, and well-being after a
determination is made by the facility director and the Director
or the Director's designate prior to admission to the facility
subject to Section 2-27.1 of the Juvenile Court Act of 1987.
This subsection (m-1) does not apply to a child who is subject
to placement in a correctional facility operated pursuant to
Section 3-15-2 of the Unified Code of Corrections, unless the
child is a ward who was placed under the care of the Department
before being subject to placement in a correctional facility
and a court of competent jurisdiction has ordered placement of
the child in a secure care facility.
    (n) The Department may place children under 18 years of age
in licensed child care facilities when in the opinion of the
Department, appropriate services aimed at family preservation
have been unsuccessful and cannot ensure the child's health and
safety or are unavailable and such placement would be for their
best interest. Payment for board, clothing, care, training and
supervision of any child placed in a licensed child care
facility may be made by the Department, by the parents or
guardians of the estates of those children, or by both the
Department and the parents or guardians, except that no
payments shall be made by the Department for any child placed
in a licensed child care facility for board, clothing, care,
training and supervision of such a child that exceed the
average per capita cost of maintaining and of caring for a
child in institutions for dependent or neglected children
operated by the Department. However, such restriction on
payments does not apply in cases where children require
specialized care and treatment for problems of severe emotional
disturbance, physical disability, social adjustment, or any
combination thereof and suitable facilities for the placement
of such children are not available at payment rates within the
limitations set forth in this Section. All reimbursements for
services delivered shall be absolutely inalienable by
assignment, sale, attachment, garnishment or otherwise.
    (o) The Department shall establish an administrative
review and appeal process for children and families who request
or receive child welfare services from the Department. Children
who are wards of the Department and are placed by private child
welfare agencies, and foster families with whom those children
are placed, shall be afforded the same procedural and appeal
rights as children and families in the case of placement by the
Department, including the right to an initial review of a
private agency decision by that agency. The Department shall
insure that any private child welfare agency, which accepts
wards of the Department for placement, affords those rights to
children and foster families. The Department shall accept for
administrative review and an appeal hearing a complaint made by
(i) a child or foster family concerning a decision following an
initial review by a private child welfare agency or (ii) a
prospective adoptive parent who alleges a violation of
subsection (j-5) of this Section. An appeal of a decision
concerning a change in the placement of a child shall be
conducted in an expedited manner.
    (p) There is hereby created the Department of Children and
Family Services Emergency Assistance Fund from which the
Department may provide special financial assistance to
families which are in economic crisis when such assistance is
not available through other public or private sources and the
assistance is deemed necessary to prevent dissolution of the
family unit or to reunite families which have been separated
due to child abuse and neglect. The Department shall establish
administrative rules specifying the criteria for determining
eligibility for and the amount and nature of assistance to be
provided. The Department may also enter into written agreements
with private and public social service agencies to provide
emergency financial services to families referred by the
Department. Special financial assistance payments shall be
available to a family no more than once during each fiscal year
and the total payments to a family may not exceed $500 during a
fiscal year.
    (q) The Department may receive and use, in their entirety,
for the benefit of children any gift, donation or bequest of
money or other property which is received on behalf of such
children, or any financial benefits to which such children are
or may become entitled while under the jurisdiction or care of
the Department.
    The Department shall set up and administer no-cost,
interest-bearing accounts in appropriate financial
institutions for children for whom the Department is legally
responsible and who have been determined eligible for Veterans'
Benefits, Social Security benefits, assistance allotments from
the armed forces, court ordered payments, parental voluntary
payments, Supplemental Security Income, Railroad Retirement
payments, Black Lung benefits, or other miscellaneous
payments. Interest earned by each account shall be credited to
the account, unless disbursed in accordance with this
subsection.
    In disbursing funds from children's accounts, the
Department shall:
        (1) Establish standards in accordance with State and
    federal laws for disbursing money from children's
    accounts. In all circumstances, the Department's
    "Guardianship Administrator" or his or her designee must
    approve disbursements from children's accounts. The
    Department shall be responsible for keeping complete
    records of all disbursements for each account for any
    purpose.
        (2) Calculate on a monthly basis the amounts paid from
    State funds for the child's board and care, medical care
    not covered under Medicaid, and social services; and
    utilize funds from the child's account, as covered by
    regulation, to reimburse those costs. Monthly,
    disbursements from all children's accounts, up to 1/12 of
    $13,000,000, shall be deposited by the Department into the
    General Revenue Fund and the balance over 1/12 of
    $13,000,000 into the DCFS Children's Services Fund.
        (3) Maintain any balance remaining after reimbursing
    for the child's costs of care, as specified in item (2).
    The balance shall accumulate in accordance with relevant
    State and federal laws and shall be disbursed to the child
    or his or her guardian, or to the issuing agency.
    (r) The Department shall promulgate regulations
encouraging all adoption agencies to voluntarily forward to the
Department or its agent names and addresses of all persons who
have applied for and have been approved for adoption of a
hard-to-place or handicapped child and the names of such
children who have not been placed for adoption. A list of such
names and addresses shall be maintained by the Department or
its agent, and coded lists which maintain the confidentiality
of the person seeking to adopt the child and of the child shall
be made available, without charge, to every adoption agency in
the State to assist the agencies in placing such children for
adoption. The Department may delegate to an agent its duty to
maintain and make available such lists. The Department shall
ensure that such agent maintains the confidentiality of the
person seeking to adopt the child and of the child.
    (s) The Department of Children and Family Services may
establish and implement a program to reimburse Department and
private child welfare agency foster parents licensed by the
Department of Children and Family Services for damages
sustained by the foster parents as a result of the malicious or
negligent acts of foster children, as well as providing third
party coverage for such foster parents with regard to actions
of foster children to other individuals. Such coverage will be
secondary to the foster parent liability insurance policy, if
applicable. The program shall be funded through appropriations
from the General Revenue Fund, specifically designated for such
purposes.
    (t) The Department shall perform home studies and
investigations and shall exercise supervision over visitation
as ordered by a court pursuant to the Illinois Marriage and
Dissolution of Marriage Act or the Adoption Act only if:
        (1) an order entered by an Illinois court specifically
    directs the Department to perform such services; and
        (2) the court has ordered one or both of the parties to
    the proceeding to reimburse the Department for its
    reasonable costs for providing such services in accordance
    with Department rules, or has determined that neither party
    is financially able to pay.
    The Department shall provide written notification to the
court of the specific arrangements for supervised visitation
and projected monthly costs within 60 days of the court order.
The Department shall send to the court information related to
the costs incurred except in cases where the court has
determined the parties are financially unable to pay. The court
may order additional periodic reports as appropriate.
    (u) In addition to other information that must be provided,
whenever the Department places a child with a prospective
adoptive parent or parents or in a licensed foster home, group
home, child care institution, or in a relative home, the
Department shall provide to the prospective adoptive parent or
parents or other caretaker:
        (1) available detailed information concerning the
    child's educational and health history, copies of
    immunization records (including insurance and medical card
    information), a history of the child's previous
    placements, if any, and reasons for placement changes
    excluding any information that identifies or reveals the
    location of any previous caretaker;
        (2) a copy of the child's portion of the client service
    plan, including any visitation arrangement, and all
    amendments or revisions to it as related to the child; and
        (3) information containing details of the child's
    individualized educational plan when the child is
    receiving special education services.
    The caretaker shall be informed of any known social or
behavioral information (including, but not limited to,
criminal background, fire setting, perpetuation of sexual
abuse, destructive behavior, and substance abuse) necessary to
care for and safeguard the children to be placed or currently
in the home. The Department may prepare a written summary of
the information required by this paragraph, which may be
provided to the foster or prospective adoptive parent in
advance of a placement. The foster or prospective adoptive
parent may review the supporting documents in the child's file
in the presence of casework staff. In the case of an emergency
placement, casework staff shall at least provide known
information verbally, if necessary, and must subsequently
provide the information in writing as required by this
subsection.
    The information described in this subsection shall be
provided in writing. In the case of emergency placements when
time does not allow prior review, preparation, and collection
of written information, the Department shall provide such
information as it becomes available. Within 10 business days
after placement, the Department shall obtain from the
prospective adoptive parent or parents or other caretaker a
signed verification of receipt of the information provided.
Within 10 business days after placement, the Department shall
provide to the child's guardian ad litem a copy of the
information provided to the prospective adoptive parent or
parents or other caretaker. The information provided to the
prospective adoptive parent or parents or other caretaker shall
be reviewed and approved regarding accuracy at the supervisory
level.
    (u-5) Effective July 1, 1995, only foster care placements
licensed as foster family homes pursuant to the Child Care Act
of 1969 shall be eligible to receive foster care payments from
the Department. Relative caregivers who, as of July 1, 1995,
were approved pursuant to approved relative placement rules
previously promulgated by the Department at 89 Ill. Adm. Code
335 and had submitted an application for licensure as a foster
family home may continue to receive foster care payments only
until the Department determines that they may be licensed as a
foster family home or that their application for licensure is
denied or until September 30, 1995, whichever occurs first.
    (v) The Department shall access criminal history record
information as defined in the Illinois Uniform Conviction
Information Act and information maintained in the adjudicatory
and dispositional record system as defined in Section 2605-355
of the Department of State Police Law (20 ILCS 2605/2605-355)
if the Department determines the information is necessary to
perform its duties under the Abused and Neglected Child
Reporting Act, the Child Care Act of 1969, and the Children and
Family Services Act. The Department shall provide for
interactive computerized communication and processing
equipment that permits direct on-line communication with the
Department of State Police's central criminal history data
repository. The Department shall comply with all certification
requirements and provide certified operators who have been
trained by personnel from the Department of State Police. In
addition, one Office of the Inspector General investigator
shall have training in the use of the criminal history
information access system and have access to the terminal. The
Department of Children and Family Services and its employees
shall abide by rules and regulations established by the
Department of State Police relating to the access and
dissemination of this information.
    (v-1) Prior to final approval for placement of a child, the
Department shall conduct a criminal records background check of
the prospective foster or adoptive parent, including
fingerprint-based checks of national crime information
databases. Final approval for placement shall not be granted if
the record check reveals a felony conviction for child abuse or
neglect, for spousal abuse, for a crime against children, or
for a crime involving violence, including rape, sexual assault,
or homicide, but not including other physical assault or
battery, or if there is a felony conviction for physical
assault, battery, or a drug-related offense committed within
the past 5 years.
    (v-2) Prior to final approval for placement of a child, the
Department shall check its child abuse and neglect registry for
information concerning prospective foster and adoptive
parents, and any adult living in the home. If any prospective
foster or adoptive parent or other adult living in the home has
resided in another state in the preceding 5 years, the
Department shall request a check of that other state's child
abuse and neglect registry.
    (w) Within 120 days of August 20, 1995 (the effective date
of Public Act 89-392), the Department shall prepare and submit
to the Governor and the General Assembly, a written plan for
the development of in-state licensed secure child care
facilities that care for children who are in need of secure
living arrangements for their health, safety, and well-being.
For purposes of this subsection, secure care facility shall
mean a facility that is designed and operated to ensure that
all entrances and exits from the facility, a building or a
distinct part of the building, are under the exclusive control
of the staff of the facility, whether or not the child has the
freedom of movement within the perimeter of the facility,
building, or distinct part of the building. The plan shall
include descriptions of the types of facilities that are needed
in Illinois; the cost of developing these secure care
facilities; the estimated number of placements; the potential
cost savings resulting from the movement of children currently
out-of-state who are projected to be returned to Illinois; the
necessary geographic distribution of these facilities in
Illinois; and a proposed timetable for development of such
facilities.
(Source: P.A. 94-215, eff. 1-1-06; 94-1010, eff. 10-1-06;
95-10, eff. 6-30-07; 95-601, eff. 9-11-07; 95-642, eff. 6-1-08;
revised 10-30-07.)
 
    Section 40. The Child Death Review Team Act is amended by
changing Sections 20 and 40 as follows:
 
    (20 ILCS 515/20)
    (Text of Section before amendment by P.A. 95-405 and
95-527)
    Sec. 20. Reviews of child deaths.
    (a) Every child death shall be reviewed by the team in the
subregion which has primary case management responsibility.
The deceased child must be one of the following:
        (1) A ward of the Department.
        (2) The subject of an open service case maintained by
    the Department.
        (3) The subject of a pending child abuse or neglect
    investigation.
        (4) A child who was the subject of an abuse or neglect
    investigation at any time during the 12 months preceding
    the child's death.
        (5) Any other child whose death is reported to the
    State central register as a result of alleged child abuse
    or neglect which report is subsequently indicated.
    A child death review team may, at its discretion, review
other sudden, unexpected, or unexplained child deaths.
    (b) A child death review team's purpose in conducting
reviews of child deaths is to do the following:
        (1) Assist in determining the cause and manner of the
    child's death, when requested.
        (2) Evaluate means by which the death might have been
    prevented.
        (3) Report its findings to appropriate agencies and
    make recommendations that may help to reduce the number of
    child deaths caused by abuse or neglect.
        (4) Promote continuing education for professionals
    involved in investigating, treating, and preventing child
    abuse and neglect as a means of preventing child deaths due
    to abuse or neglect.
        (5) Make specific recommendations to the Director and
    the Inspector General of the Department concerning the
    prevention of child deaths due to abuse or neglect and the
    establishment of protocols for investigating child deaths.
    (c) A child death review team shall review a child death as
soon as practical and not later than 90 days following the
completion by the Department of the investigation of the death
under the Abused and Neglected Child Reporting Act. When there
has been no investigation by the Department, the child death
review team shall review a child's death within 90 days after
obtaining the information necessary to complete the review from
the coroner, pathologist, medical examiner, or law enforcement
agency, depending on the nature of the case. A child death
review team shall meet at least once in each calendar quarter.
    (d) The Director shall, within 90 days, review and reply to
recommendations made by a team under item (5) of subsection
(b). The Director shall implement recommendations as feasible
and appropriate and shall respond in writing to explain the
implementation or nonimplementation of the recommendations.
(Source: P.A. 90-239, eff. 7-28-97; 90-608, eff. 6-30-98.)
 
    (Text of Section after amendment by P.A. 95-405 and 95-527)
    Sec. 20. Reviews of child deaths.
    (a) Every child death shall be reviewed by the team in the
subregion which has primary case management responsibility.
The deceased child must be one of the following:
        (1) A ward of the Department.
        (2) The subject of an open service case maintained by
    the Department.
        (3) The subject of a pending child abuse or neglect
    investigation.
        (4) A child who was the subject of an abuse or neglect
    investigation at any time during the 12 months preceding
    the child's death.
        (5) Any other child whose death is reported to the
    State central register as a result of alleged child abuse
    or neglect which report is subsequently indicated.
    A child death review team may, at its discretion, review
other sudden, unexpected, or unexplained child deaths, and
cases of serious or fatal injuries to a child identified under
the Child Advocacy Center Act.
    (b) A child death review team's purpose in conducting
reviews of child deaths is to do the following:
        (1) Assist in determining the cause and manner of the
    child's death, when requested.
        (2) Evaluate means by which the death might have been
    prevented.
        (3) Report its findings to appropriate agencies and
    make recommendations that may help to reduce the number of
    child deaths caused by abuse or neglect.
        (4) Promote continuing education for professionals
    involved in investigating, treating, and preventing child
    abuse and neglect as a means of preventing child deaths due
    to abuse or neglect.
        (5) Make specific recommendations to the Director and
    the Inspector General of the Department concerning the
    prevention of child deaths due to abuse or neglect and the
    establishment of protocols for investigating child deaths.
    (c) A child death review team shall review a child death as
soon as practical and not later than 90 days following the
completion by the Department of the investigation of the death
under the Abused and Neglected Child Reporting Act. When there
has been no investigation by the Department, the child death
review team shall review a child's death within 90 days after
obtaining the information necessary to complete the review from
the coroner, pathologist, medical examiner, or law enforcement
agency, depending on the nature of the case. A child death
review team shall meet at least once in each calendar quarter.
    (d) The Director shall, within 90 days, review and reply to
recommendations made by a team under item (5) of subsection
(b). With respect to each recommendation made by a team, the
Director shall submit his or her reply both to the chairperson
of that team and to the chairperson of the Executive Council.
The Director's reply to each recommendation must include a
statement as to whether the Director intends to implement the
recommendation.
    The Director shall implement recommendations as feasible
and appropriate and shall respond in writing to explain the
implementation or nonimplementation of the recommendations.
    (e) Within 90 days after the Director submits a reply with
respect to a recommendation as required by subsection (d), the
Director must submit an additional report that sets forth in
detail the way, if any, in which the Director will implement
the recommendation and the schedule for implementing the
recommendation. The Director shall submit this report to the
chairperson of the team that made the recommendation and to the
chairperson of the Executive Council.
    (f) Within 180 days after the Director submits a report
under subsection (e) concerning the implementation of a
recommendation, the Director shall submit a further report to
the chairperson of the team that made the recommendation and to
the chairperson of the Executive Council. This report shall set
forth the specific changes in the Department's policies and
procedures that have been made in response to the
recommendation.
(Source: P.A. 95-405, eff. 6-1-08; 95-527, eff. 6-1-08; revised
10-30-07.)
 
    (20 ILCS 515/40)
    (Text of Section before amendment by P.A. 95-405 and
95-527)
    Sec. 40. Illinois Child Death Review Teams Executive
Council.
    (a) The Illinois Child Death Review Teams Executive
Council, consisting of the chairpersons of the 9 child death
review teams in Illinois, is the coordinating and oversight
body for child death review teams and activities in Illinois.
The vice-chairperson of a child death review team, as
designated by the chairperson, may serve as a back-up member or
an alternate member of the Executive Council, if the
chairperson of the child death review team is unavailable to
serve on the Executive Council. The Inspector General of the
Department, ex officio, is a non-voting member of the Executive
Council. The Director may appoint to the Executive Council any
ex-officio members deemed necessary. Persons with expertise
needed by the Executive Council may be invited to meetings. The
Executive Council must select from its members a chairperson
and a vice-chairperson, each to serve a 2-year, renewable term.
    The Executive Council must meet at least 4 times during
each calendar year.
    (b) The Department must provide or arrange for the staff
support necessary for the Executive Council to carry out its
duties. The Director, in cooperation and consultation with the
Executive Council, shall appoint, reappoint, and remove team
members.
    (c) The Executive Council has, but is not limited to, the
following duties:
        (1) To serve as the voice of child death review teams
    in Illinois.
        (2) To oversee the regional teams in order to ensure
    that the teams' work is coordinated and in compliance with
    the statutes and the operating protocol.
        (3) To ensure that the data, results, findings, and
    recommendations of the teams are adequately used to make
    any necessary changes in the policies, procedures, and
    statutes in order to protect children in a timely manner.
        (4) To collaborate with the General Assembly, the
    Department, and others in order to develop any legislation
    needed to prevent child fatalities and to protect children.
        (5) To assist in the development of quarterly and
    annual reports based on the work and the findings of the
    teams.
        (6) To ensure that the regional teams' review processes
    are standardized in order to convey data, findings, and
    recommendations in a usable format.
        (7) To serve as a link with child death review teams
    throughout the country and to participate in national child
    death review team activities.
        (8) To develop an annual statewide symposium to update
    the knowledge and skills of child death review team members
    and to promote the exchange of information between teams.
        (9) To provide the child death review teams with the
    most current information and practices concerning child
    death review and related topics.
        (10) To perform any other functions necessary to
    enhance the capability of the child death review teams to
    reduce and prevent child injuries and fatalities.
    (d) In any instance when a child death review team does not
operate in accordance with established protocol, the Director,
in consultation and cooperation with the Executive Council,
must take any necessary actions to bring the team into
compliance with the protocol.
(Source: P.A. 92-468, eff. 8-22-01.)
 
    (Text of Section after amendment by P.A. 95-405 and 95-527)
    Sec. 40. Illinois Child Death Review Teams Executive
Council.
    (a) The Illinois Child Death Review Teams Executive
Council, consisting of the chairpersons of the 9 child death
review teams in Illinois, is the coordinating and oversight
body for child death review teams and activities in Illinois.
The vice-chairperson of a child death review team, as
designated by the chairperson, may serve as a back-up member or
an alternate member of the Executive Council, if the
chairperson of the child death review team is unavailable to
serve on the Executive Council. The Inspector General of the
Department, ex officio, is a non-voting member of the Executive
Council. The Director may appoint to the Executive Council any
ex-officio members deemed necessary. Persons with expertise
needed by the Executive Council may be invited to meetings. The
Executive Council must select from its members a chairperson
and a vice-chairperson, each to serve a 2-year, renewable term.
    The Executive Council must meet at least 4 times during
each calendar year. At each such meeting, in addition to any
other matters under consideration, the Executive Council shall
review all replies and reports received from the Director
pursuant to subsections (d), (e), and (f) of Section 20 since
the Executive Council's previous meeting. The Executive
Council's review must include consideration of the Director's
proposed manner of and schedule for implementing each
recommendation made by a child death review team.
    (b) The Department must provide or arrange for the staff
support necessary for the Executive Council to carry out its
duties. The Director, in cooperation and consultation with the
Executive Council, shall appoint, reappoint, and remove team
members. From funds available, the Director may select from a
list of 2 or more candidates recommended by the Executive
Council to serve as the Child Death Review Teams Executive
Director. The Child Death Review Teams Executive Director shall
oversee the operations of the child death review teams and
shall report directly to the Executive Council.
    (c) The Executive Council has, but is not limited to, the
following duties:
        (1) To serve as the voice of child death review teams
    in Illinois.
        (2) To oversee the regional teams in order to ensure
    that the teams' work is coordinated and in compliance with
    the statutes and the operating protocol.
        (3) To ensure that the data, results, findings, and
    recommendations of the teams are adequately used to make
    any necessary changes in the policies, procedures, and
    statutes in order to protect children in a timely manner.
        (4) To collaborate with the General Assembly, the
    Department, and others in order to develop any legislation
    needed to prevent child fatalities and to protect children.
        (5) To assist in the development of quarterly and
    annual reports based on the work and the findings of the
    teams.
        (6) To ensure that the regional teams' review processes
    are standardized in order to convey data, findings, and
    recommendations in a usable format.
        (7) To serve as a link with child death review teams
    throughout the country and to participate in national child
    death review team activities.
        (8) To develop an annual statewide symposium to update
    the knowledge and skills of child death review team members
    and to promote the exchange of information between teams.
        (9) To provide the child death review teams with the
    most current information and practices concerning child
    death review and related topics.
        (10) To perform any other functions necessary to
    enhance the capability of the child death review teams to
    reduce and prevent child injuries and fatalities.
    (c-5) The Executive Council shall prepare an annual report.
The report must include, but need not be limited to, (i) each
recommendation made by a child death review team pursuant to
item (5) of subsection (b) of Section 20 during the period
covered by the report, (ii) the Director's proposed schedule
for implementing each such recommendation, and (iii) a
description of the specific changes in the Department's
policies and procedures that have been made in response to the
recommendation. The Executive Council shall send a copy of its
annual report to each of the following:
        (1) The Governor.
        (2) Each member of the Senate or the House of
    Representatives whose legislative district lies wholly or
    partly within the region covered by any child death review
    team whose recommendation is addressed in the annual
    report.
        (3) Each member of each child death review team in the
    State.
    (d) In any instance when a child death review team does not
operate in accordance with established protocol, the Director,
in consultation and cooperation with the Executive Council,
must take any necessary actions to bring the team into
compliance with the protocol.
(Source: P.A. 95-405, eff. 6-1-08; 95-527, eff. 6-1-08; revised
10-30-07.)
 
    Section 45. The Illinois Lottery Law is amended by changing
Sections 2 and 20 and by setting forth and renumbering multiple
versions of Section 21.7 as follows:
 
    (20 ILCS 1605/2)  (from Ch. 120, par. 1152)
    Sec. 2. This Act is enacted to implement and establish
within the State a lottery to be operated by the State, the
entire net proceeds of which are to be used for the support of
the State's Common School Fund, except as provided in Sections
21.2, 21.5, 21.6, and 21.7, and 21.8 21.7.
(Source: P.A. 94-120, eff. 7-6-05; 94-585, eff. 8-15-05;
95-331, eff. 8-21-07; 95-673, eff. 10-11-07; 95-674, eff.
10-11-07; revised 12-5-07.)
 
    (20 ILCS 1605/20)  (from Ch. 120, par. 1170)
    Sec. 20. State Lottery Fund.
    (a) There is created in the State Treasury a special fund
to be known as the "State Lottery Fund". Such fund shall
consist of all revenues received from (1) the sale of lottery
tickets or shares, (net of commissions, fees representing those
expenses that are directly proportionate to the sale of tickets
or shares at the agent location, and prizes of less than $600
which have been validly paid at the agent level), (2)
application fees, and (3) all other sources including moneys
credited or transferred thereto from any other fund or source
pursuant to law. Interest earnings of the State Lottery Fund
shall be credited to the Common School Fund.
    (b) The receipt and distribution of moneys under Section
21.5 of this Act shall be in accordance with Section 21.5.
    (c) The receipt and distribution of moneys under Section
21.6 of this Act shall be in accordance with Section 21.6.
    (d) The receipt and distribution of moneys under Section
21.7 of this Act shall be in accordance with Section 21.7.
    (e) (d) The receipt and distribution of moneys under
Section 21.8 21.7 of this Act shall be in accordance with
Section 21.8 21.7.
(Source: P.A. 94-120, eff. 7-6-05; 94-585, eff. 8-15-05;
95-331, eff. 8-21-07; 95-673, eff. 10-11-07; 95-674, eff.
10-11-07; revised 12-5-07.)
 
    (20 ILCS 1605/21.7)
    Sec. 21.7. Scratch-out Multiple Sclerosis scratch-off
game.
    (a) The Department shall offer a special instant
scratch-off game for the benefit of research pertaining to
multiple sclerosis. The game shall commence on July 1, 2008 or
as soon thereafter, in the discretion of the Director, as is
reasonably practical. The operation of the game shall be
governed by this Act and any rules adopted by the Department.
If any provision of this Section is inconsistent with any other
provision of this Act, then this Section governs.
    (b) The Multiple Sclerosis Research Fund is created as a
special fund in the State treasury. The net revenue from the
scratch-out multiple sclerosis scratch-off game created under
this Section shall be deposited into the Fund for appropriation
by the General Assembly to the Department of Public Health for
the purpose of making grants to organizations in Illinois that
conduct research pertaining to the repair of damage caused by
an acquired demyelinating disease of the central nervous
system.
    Moneys received for the purposes of this Section,
including, without limitation, net revenue from the special
instant scratch-off game and from gifts, grants, and awards
from any public or private entity, must be deposited into the
Fund. Any interest earned on moneys in the Fund must be
deposited into the Fund.
    For purposes of this Section, the term "research" includes,
without limitation, expenditures to develop and advance the
understanding, techniques, and modalities effective for
maintaining function, mobility, and strength through
preventive physical therapy or other treatments and to develop
and advance the repair of myelin, neuron, and axon damage
caused by an acquired demyelinating disease of the central
nervous system and the restoration of function, including but
not limited to, nervous system repair or neuroregeneration.
    The grant funds may not be used for institutional,
organizational, or community-based overhead costs, indirect
costs, or levies.
    For purposes of this subsection, "net revenue" means the
total amount for which tickets have been sold less the sum of
the amount paid out in the prizes and the actual administrative
expenses of the Department solely related to the scratch-off
game under this Section.
    (c) During the time that tickets are sold for the
scratch-out multiple sclerosis scratch-off game, the
Department shall not unreasonably diminish the efforts devoted
to marketing any other instant scratch-off lottery game.
    (d) The Department may adopt any rules necessary to
implement and administer the provisions of this Section.
(Source: P.A. 95-673, eff. 10-11-07.)
 
    (20 ILCS 1605/21.8)
    Sec. 21.8 21.7. Quality of Life scratch-off game.
    (a) The Department shall offer a special instant
scratch-off game with the title of "Quality of Life". The game
shall commence on July 1, 2007 or as soon thereafter, in the
discretion of the Director, as is reasonably practical, and
shall be discontinued on December 31, 2012. The operation of
the game is governed by this Act and by any rules adopted by
the Department. The Department must consult with the Quality of
Life Board, which is established under Section 2310-348 of the
Department of Public Health Powers and Duties Law of the Civil
Administrative Code of Illinois, regarding the design and
promotion of the game. If any provision of this Section is
inconsistent with any other provision of this Act, then this
Section governs.
    (b) The Quality of Life Endowment Fund is created as a
special fund in the State treasury. The net revenue from the
Quality of Life special instant scratch-off game must be
deposited into the Fund for appropriation by the General
Assembly solely to the Department of Public Health for the
purpose of HIV/AIDS-prevention education and for making grants
to public or private entities in Illinois for the purpose of
funding organizations that serve the highest at-risk
categories for contracting HIV or developing AIDS. Grants shall
be targeted to serve at-risk populations in proportion to the
distribution of recent reported Illinois HIV/AIDS cases among
risk groups as reported by the Illinois Department of Public
Health. The recipient organizations must be engaged in
HIV/AIDS-prevention education and HIV/AIDS healthcare
treatment. The Department must, before grants are awarded,
provide copies of all grant applications to the Quality of Life
Board, receive and review the Board's recommendations and
comments, and consult with the Board regarding the grants.
Organizational size will determine an organization's
competitive slot in the "Request for Proposal" process.
Organizations with an annual budget of $300,000 or less will
compete with like size organizations for 50% of the Quality of
Life annual fund. Organizations with an annual budget of
$300,001 to $700,000 will compete with like organizations for
25% of the Quality of Life annual fund, and organizations with
an annual budget of $700,001 and upward will compete with like
organizations for 25% of the Quality of Life annual fund. The
lottery may designate a percentage of proceeds for marketing
purpose. The grant funds may not be used for institutional,
organizational, or community-based overhead costs, indirect
costs, or levies.
    Grants awarded from the Fund are intended to augment the
current and future State funding for the prevention and
treatment of HIV/AIDS and are not intended to replace that
funding.
    Moneys received for the purposes of this Section,
including, without limitation, net revenue from the special
instant scratch-off game and gifts, grants, and awards from any
public or private entity, must be deposited into the Fund. Any
interest earned on moneys in the Fund must be deposited into
the Fund.
    For purposes of this subsection, "net revenue" means the
total amount for which tickets have been sold less the sum of
the amount paid out in prizes and the actual administrative
expenses of the Department solely related to the Quality of
Life game.
    (c) During the time that tickets are sold for the Quality
of Life game, the Department shall not unreasonably diminish
the efforts devoted to marketing any other instant scratch-off
lottery game.
    (d) The Department may adopt any rules necessary to
implement and administer the provisions of this Section in
consultation with the Quality of Life Board.
(Source: P.A. 95-674, eff. 10-11-07; revised 12-5-07.)
 
    Section 50. The Mental Health and Developmental
Disabilities Administrative Act is amended by changing Section
56 as follows:
 
    (20 ILCS 1705/56)  (from Ch. 91 1/2, par. 100-56)
    Sec. 56. The Secretary, upon making a determination based
upon information in the possession of the Department, that
continuation in practice of a licensed health care professional
would constitute an immediate danger to the public, shall
submit a written communication to the Director of Professional
Regulation indicating such determination and additionally
providing a complete summary of the information upon which such
determination is based, and recommending that the Director of
Professional Regulation immediately suspend such person's
license. All relevant evidence, or copies thereof, in the
Department's possession may also be submitted in conjunction
with the written communication. A copy of such written
communication, which is exempt from the copying and inspection
provisions of the Freedom of Information Act, shall at the time
of submittal to the Director of Professional Regulation be
simultaneously mailed to the last known business address of
such licensed health care professional by certified or
registered postage, United States Mail, return receipt
requested. Any evidence, or copies thereof, which is submitted
in conjunction with the written communication is also exempt
from the copying and inspection provisions of the Freedom of
Information Act.
    For the purposes of this Section, "licensed health care
professional" means any person licensed under the Illinois
Dental Practice Act, the Nurse Practice Act, the Medical
Practice Act of 1987, the Pharmacy Practice Act, the Podiatric
Medical Practice Act of 1987, and the Illinois Optometric
Practice Act of 1987.
(Source: P.A. 95-639, eff. 10-5-07; 95-689, eff. 10-29-07;
revised 12-5-07.)
 
    Section 55. The Department of Human Services (Mental Health
and Developmental Disabilities) Law of the Civil
Administrative Code of Illinois is amended by changing Section
1710-100 as follows:
 
    (20 ILCS 1710/1710-100)  (was 20 ILCS 1710/53d)
    (Text of Section before amendment by P.A. 95-523)
    Sec. 1710-100. Grants to Illinois Special Olympics. The
Department shall make grants to the Illinois Special Olympics
for area and statewide athletic competitions from
appropriations to the Department from the Illinois Special
Olympics Checkoff Fund, a special fund created in the State
treasury.
(Source: P.A. 91-239, eff. 1-1-00.)
 
    (Text of Section after amendment by P.A. 95-523)
    Sec. 1710-100. Grants to Special Olympics Illinois. The
Department shall make grants to the Special Olympics Illinois
for area and statewide athletic competitions from
appropriations to the Department from the Special Olympics
Illinois Fund, a special fund created in the State treasury.
(Source: P.A. 95-523, eff. 6-1-08; revised 11-13-07.)
 
    Section 60. The Department of Public Health Powers and
Duties Law of the Civil Administrative Code of Illinois is
amended by changing Section 2310-140, by renumbering Section
216, and by setting forth and renumbering multiple versions of
Section 2310-361 as follows:
 
    (20 ILCS 2310/2310-140)  (was 20 ILCS 2310/55.37a)
    Sec. 2310-140. Recommending suspension of licensed health
care professional. The Director, upon making a determination
based upon information in the possession of the Department that
continuation in practice of a licensed health care professional
would constitute an immediate danger to the public, shall
submit a written communication to the Director of Professional
Regulation indicating that determination and additionally (i)
providing a complete summary of the information upon which the
determination is based and (ii) recommending that the Director
of Professional Regulation immediately suspend the person's
license. All relevant evidence, or copies thereof, in the
Department's possession may also be submitted in conjunction
with the written communication. A copy of the written
communication, which is exempt from the copying and inspection
provisions of the Freedom of Information Act, shall at the time
of submittal to the Director of Professional Regulation be
simultaneously mailed to the last known business address of the
licensed health care professional by certified or registered
postage, United States Mail, return receipt requested. Any
evidence, or copies thereof, that is submitted in conjunction
with the written communication is also exempt from the copying
and inspection provisions of the Freedom of Information Act.
    For the purposes of this Section, "licensed health care
professional" means any person licensed under the Illinois
Dental Practice Act, the Nurse Practice Act, the Medical
Practice Act of 1987, the Pharmacy Practice Act, the Podiatric
Medical Practice Act of 1987, or the Illinois Optometric
Practice Act of 1987.
(Source: P.A. 95-639, eff. 10-5-07; 95-689, eff. 10-29-07;
revised 12-5-07.)
 
    (20 ILCS 2310/2310-216)
    Sec. 2310-216 216. Culturally Competent Healthcare
Demonstration Program.
    (a) Research demonstrates that racial and ethnic
minorities generally receive health care that is of a lesser
quality than the majority population and have poorer health
outcomes on a number of measures. The 2007 State Health
Improvement Plan calls for increased cultural competence in
Illinois health care settings, based on national standards that
indicate cultural competence is an important aspect of the
quality of health care delivered to racial, ethnic, religious,
and other minorities. Based on the research and national
standards, the General Assembly finds that increasing cultural
competence among health care providers will improve the quality
of health care delivered to minorities in Illinois.
    (b) Subject to appropriation for this purpose, the
Department shall establish the Culturally Competent Health
Care Demonstration Program. For purposes of this Section,
"culturally competent health care" means the ability of health
care providers to understand and respond to the cultural and
linguistic needs brought by patients to the health care
encounter. The Program shall establish models that reflect best
practices in culturally competent health care and that expand
the delivery of culturally competent health care in Illinois.
    (c) The Program shall consist of (i) demonstration grants
awarded by the Department to public or private health care
entities geographically distributed around the State; (ii) an
ongoing collaborative learning project among the grantees; and
(iii) an evaluation of the effect of the demonstration grants
in improving the quality of health care for racial and ethnic
minorities. The Department may contract with a vendor with
experience in racial and ethnic health disparities and cultural
competency to conduct the evaluation and provide support for
the collaborative learning project. The vendor shall be a
not-for-profit organization that represents a partnership of
public, private, and voluntary health organizations that
focuses on prevention, development of the public health system,
and the reduction of racial and ethnic health disparities, and
that engages health disparities stakeholders in its efforts.
(Source: P.A. 95-630, eff. 9-25-07; revised 12-5-07.)
 
    (20 ILCS 2310/2310-361)
    Sec. 2310-361. The Lung Cancer Research Fund. The Lung
Cancer Research Fund is created as a special fund in the State
treasury. From appropriations to the Department from the Fund,
the Department shall make grants to public or private
not-for-profit entities for the purpose of lung cancer
research.
(Source: P.A. 95-434, eff. 8-27-07.)
 
    (20 ILCS 2310/2310-362)
    Sec. 2310-362 2310-361. The Autoimmune Disease Research
Fund.
    (a) The Autoimmune Disease Research Fund is created as a
special fund in the State treasury. From appropriations to the
Department from the Fund, the Department shall make grants to
public and private entities in the State for the purpose of
funding research for the treatment and cure of autoimmune
diseases.
    (b) For the purposes of this Section:
    "Autoimmune disease" means any disease that results from an
aberrant immune response, including, without limitation,
rheumatoid arthritis, systemic lupus erythematosus, and
scleroderma.
    "Research" includes, without limitation, expenditures to
develop and advance the understanding, techniques, and
modalities effective in the detection, prevention, screening,
and treatment of autoimmune disease and may include clinical
trials. "Research" does not include institutional overhead
costs, indirect costs, other organizational levies, or costs of
community-based support services.
    (c) Moneys received for the purposes of this Section,
including, without limitation, income tax checkoff receipts
and gifts, grants, and awards from any public or private
entity, must be deposited into the Fund. Any interest earnings
that are attributable to moneys in the Fund must be deposited
into the Fund.
(Source: P.A. 95-435, eff. 8-27-07; revised 12-5-07.)
 
    Section 65. The Disabilities Services Act of 2003 is
amended by adding a heading to Article 99 immediately before
Section 90 of the Act as follows:
 
    (20 ILCS 2407/Art. 99 heading new)
ARTICLE 99. AMENDATORY PROVISIONS; EFFECTIVE DATE

 
    Section 70. The Department of Veterans Affairs Act is
amended by changing Section 2.07 and by setting forth and
renumbering multiple versions of Section 20 as follows:
 
    (20 ILCS 2805/2.07)  (from Ch. 126 1/2, par. 67.07)
    Sec. 2.07. The Department shall employ and maintain
sufficient and qualified staff at the veterans' homes to
fulfill the requirements of this Act. The Department shall
report to the General Assembly, by January 1 and July 1 of each
year, the number of staff employed in providing direct patient
care at their veterans' homes, the compliance or noncompliance
with staffing standards established by the United States
Department of Veterans Affairs for such care, and in the event
of noncompliance with such standards, the number of staff
required for compliance. For purposes of this Section, a nurse
who has a license application pending with the State shall not
be deemed unqualified by the Department if the nurse is in
compliance with Section 50-15 of the Nurse Practice Act
65/5-15(i).
    All contracts between the State and outside contractors to
provide workers to staff and service the Anna Veterans Home
shall be canceled in accordance with the terms of those
contracts. Upon cancellation, each worker or staff member shall
be offered certified employment status under the Illinois
Personnel Code with the State of Illinois. To the extent it is
reasonably practicable, the position offered to each person
shall be at the same facility and shall consist of the same
duties and hours as previously existed under the canceled
contract or contracts.
(Source: P.A. 94-703, eff. 6-1-06; 95-331, eff. 8-21-07;
95-639, eff. 10-5-07; revised 12-6-07.)
 
    (20 ILCS 2805/20)
    Sec. 20. Illinois Discharged Servicemember Task Force. The
Illinois Discharged Servicemember Task Force is hereby created
within the Department of Veterans Affairs. The Task Force shall
investigate the re-entry process for service members who return
to civilian life after being engaged in an active theater. The
investigation shall include the effects of post-traumatic
stress disorder, homelessness, disabilities, and other issues
the Task Force finds relevant to the re-entry process. The Task
Force shall include the following members:
        (a) a representative of the Department of Veterans
    Affairs, who shall chair the committee;
        (b) a representative from the Department of Military
    Affairs;
        (c) a representative from the Office of the Illinois
    Attorney General;
        (d) a member of the General Assembly appointed by the
    Speaker of the House;
        (e) a member of the General Assembly appointed by the
    House Minority Leader;
        (f) a member of the General Assembly appointed by the
    President of the Senate;
        (g) a member of the General Assembly appointed by the
    Senate Minority Leader;
        (h) 4 members chosen by the Department of Veterans
    Affairs, who shall represent statewide veterans'
    organizations or veterans' homeless shelters;
        (i) one member appointed by the Lieutenant Governor;
    and
        (j) a representative of the United States Department of
    Veterans Affairs shall be invited to participate.
Vacancies in the Task Force shall be filled by the initial
appointing authority. Task Force members shall serve without
compensation, but may be reimbursed for necessary expenses
incurred in performing duties associated with the Task Force.
    By July 1, 2008 and by July 1 of each year thereafter, the
Task Force shall present an annual report of its findings to
the Governor, the Attorney General, the Director of Veterans'
Affairs, the Lieutenant Governor, and the Secretary of the
United States Department of Veterans Affairs.
    If the Task Force becomes inactive because active theaters
cease, the Director of Veterans Affairs may reactivate the Task
Force if active theaters are reestablished.
(Source: P.A. 95-294, eff. 8-20-07.)
 
    (20 ILCS 2805/25)
    Sec. 25 20. Payments to veterans service organizations.
    (a) In this Section:
    "Veterans service officer" means an individual employed by
a veterans service organization and accredited by the United
States Department of Veterans Affairs to process claims and
other benefits for veterans and their spouses and
beneficiaries.
    "Veterans service organization" means an organization that
meets all of the following criteria:
        (1) It is formed by and for United States military
    veterans.
        (2) It is chartered by the United States Congress and
    incorporated in the State of Illinois.
        (3) It maintained a state headquarters office in
    Illinois for the 10-year period immediately preceding July
    1, 2006.
        (4) It maintains at least one office in this State
    staffed by a veterans service officer.
        (5) It is capable of preparing a power of attorney for
    a veteran and processing claims for veterans services.
        (6) It is not funded by the State of Illinois or by any
    county in this State.
    "Veterans services" means the representation of veterans
in federal hearings to secure benefits for veterans and their
spouses and beneficiaries:
        (1) Disability compensation benefits.
        (2) Disability pension benefits.
        (3) Dependents' indemnity compensation.
        (4) Widow's death pension.
        (5) Burial benefits.
        (6) Confirmed and continued claims.
        (7) Vocational rehabilitation and education.
        (8) Waivers of indebtedness.
        (9) Miscellaneous.
    (b) The Veterans Service Organization Reimbursement Fund
is created as a special fund in the State treasury. Subject to
appropriation, the Department shall use moneys appropriated
from the Fund to make payments to a veterans service
organization for veterans services rendered on behalf of
veterans and their spouses and beneficiaries by a veterans
service officer employed by the organization. The payment shall
be computed at the rate of $0.010 for each dollar of benefits
obtained for veterans or their spouses or beneficiaries
residing in Illinois as a result of the efforts of the veterans
service officer. There shall be no payment under this Section
for the value of health care received in a health care facility
under the jurisdiction of the United States Veterans
Administration. A veterans service organization may receive
compensation under this Fund or it may apply for grants from
the Illinois Veterans Assistance Fund, but in no event may a
veterans service organization receive moneys from both funds
during the same fiscal year. Funding for each applicant is
subject to renewal by the Department on an annual basis.
    (c) To be eligible for a payment under this Section, a
veterans service organization must document the amount of
moneys obtained for veterans and their spouses and
beneficiaries in the form and manner required by the
Department. The documentation must include the submission to
the Department of a copy of the organization's report or
reports to the United States Department of Veterans Affairs
stating the amount of moneys obtained by the organization for
veterans and their spouses and beneficiaries in the State
fiscal year for which payment under this Section is requested.
The organization must submit the copy of the report or reports
to the Department no later than July 31 following the end of
the State fiscal year for which payment is requested.
    (d) The Department shall make the payment under this
Section to a veterans service organization in a single annual
payment for each State fiscal year, beginning with the State
fiscal year that begins on July 1, 2007. The Department must
make the payment for a State fiscal year on or before December
31 of the succeeding State fiscal year.
    (e) A veterans service organization shall use moneys
received under this Section only for the purpose of paying the
salary and expenses of one or more veterans service officers
and the organization's related expenses incurred in employing
the officer or officers for the processing of claims and other
benefits for veterans and their spouses and beneficiaries.
(Source: P.A. 95-629, eff. 9-25-07; revised 12-6-07.)
 
    Section 75. The Building Authority Act is amended by
changing Section 5 as follows:
 
    (20 ILCS 3110/5)  (from Ch. 127, par. 213.5)
    Sec. 5. Powers. To accomplish projects of the kind listed
in Section 3 above, the Authority shall possess the following
powers:
    (a) Acquire by purchase or otherwise (including the power
of condemnation in the manner provided for the exercise of the
right of eminent domain under the Eminent Domain Act),
construct, complete, remodel and install fixed equipment in any
and all buildings and other facilities as the General Assembly
by law declares to be in the public interest.
    Whenever the General Assembly has by law declared it to be
in the public interest for the Authority to acquire any real
estate, construct, complete, remodel and install fixed
equipment in buildings and other facilities for public
community college districts, the Director of the Department of
Central Management Services shall, when requested by any such
public community college district board, enter into a lease by
and on behalf of and for the use of such public community
college district board to the extent appropriations have been
made by the General Assembly to pay the rents under the terms
of such lease.
    In the course of such activities, acquire property of any
and every kind and description, whether real, personal or
mixed, by gift, purchase or otherwise. It may also acquire real
estate of the State of Illinois controlled by any officer,
department, board, commission, or other agency of the State, or
the Board of Trustees of the University of Illinois, the Board
of Trustees of Southern Illinois University, the Board of
Trustees of Chicago State University, the Board of Trustees of
Eastern Illinois University, the Board of Trustees of Governors
State University, the Board of Trustees of Illinois State
University, the Board of Trustees of Northeastern Illinois
University, the Board of Trustees of Northern Illinois
University, the Board of Trustees of Western Illinois
University, or any public community college district board, the
jurisdiction of which is transferred by such officer,
department, board, commission, or other agency or the Board of
Trustees of Southern Illinois University, the Board of Trustees
of Chicago State University, the Board of Trustees of Eastern
Illinois University, the Board of Trustees of Governors State
University, the Board of Trustees of Illinois State University,
the Board of Trustees of Northeastern Illinois University, the
Board of Trustees of Northern Illinois University, the Board of
Trustees of Western Illinois University, or any public
community college district board to the Authority. The Board of
Trustees of the University of Illinois, the Board of Trustees
of Southern Illinois University, the Board of Trustees of
Chicago State University, the Board of Trustees of Eastern
Illinois University, the Board of Trustees of Governors State
University, the Board of Trustees of Illinois State University,
the Board of Trustees of Northeastern Illinois University, the
Board of Trustees of Northern Illinois University, the Board of
Trustees of Western Illinois University, and any public
community college district board, respectively, shall prepare
plans and specifications for and have supervision over any
project to be undertaken by the Authority for their use. Before
any other particular construction is undertaken, plans and
specifications shall be approved by the lessee provided for
under (b) below, except as indicated above.
    (b) Execute leases of facilities and sites to, and charge
for the use of any such facilities and sites by, any officer,
department, board, commission or other agency of the State of
Illinois, or the Director of the Department of Central
Management Services when the Director is requested to, by and
on behalf of, or for the use of, any officer, department,
board, commission or other agency of the State of Illinois, or
by the Board of Trustees of the University of Illinois, the
Board of Trustees of Southern Illinois University, the Board of
Trustees of Chicago State University, the Board of Trustees of
Eastern Illinois University, the Board of Trustees of Governors
State University, the Board of Trustees of Illinois State
University, the Board of Trustees of Northeastern Illinois
University, the Board of Trustees of Northern Illinois
University, the Board of Trustees of Western Illinois
University, or any public community college district board.
Such leases may be entered into contemporaneously with any
financing to be done by the Authority and payments under the
terms of the lease shall begin at any time after execution of
any such lease.
    (c) In the event of non-payment of rents reserved in such
leases, maintain and operate such facilities and sites or
execute leases thereof to others for any suitable purposes.
Such leases to the officers, departments, boards, commissions,
other agencies, the respective Boards of Trustees, or any
public community college district board shall contain the
provision that rents under such leases shall be payable solely
from appropriations to be made by the General Assembly for the
payment of such rent and any revenues derived from the
operation of the leased premises.
    (d) Borrow money and issue and sell bonds in such amount or
amounts as the Authority may determine for the purpose of
acquiring, constructing, completing or remodeling, or putting
fixed equipment in any such facility; refund and refinance the
same from time to time as often as advantageous and in the
public interest to do so; and pledge any and all income of such
Authority, and any revenues derived from such facilities, or
any combination thereof, to secure the payment of such bonds
and to redeem such bonds. All such bonds are subject to the
provisions of Section 6 of this Act.
    In addition to the permanent financing authorized by
Sections 5 and 6 of this Act, the Illinois Building Authority
may borrow money and issue interim notes in evidence thereof
for any of the projects, or to perform any of the duties
authorized under this Act, and in addition may borrow money and
issue interim notes for planning, architectural and
engineering, acquisition of land, and purchase of fixed
equipment as follows:
        1. Whenever the Authority considers it advisable and in
    the interests of the Authority to borrow funds temporarily
    for any of the purposes enumerated in this Section, the
    Authority may from time to time, and pursuant to
    appropriate resolution, issue interim notes to evidence
    such borrowings including funds for the payment of interest
    on such borrowings and funds for all necessary and
    incidental expenses in connection with any of the purposes
    provided for by this Section and this Act until the date of
    the permanent financing. Any resolution authorizing the
    issuance of such notes shall describe the project to be
    undertaken and shall specify the principal amount, rate of
    interest (not exceeding the maximum rate authorized by the
    Bond Authorization Act, as amended at the time of the
    making of the contract,) and maturity date, but not to
    exceed 5 years from date of issue, and such other terms as
    may be specified in such resolution; however, time of
    payment of any such notes may be extended for a period of
    not exceeding 3 years from the maturity date thereof.
        The Authority may provide for the registration of the
    notes in the name of the owner either as to principal
    alone, or as to both principal and interest, on such terms
    and conditions as the Authority may determine by the
    resolution authorizing their issue. The notes shall be
    issued from time to time by the Authority as funds are
    borrowed, in the manner the Authority may determine.
    Interest on the notes may be made payable semiannually,
    annually or at maturity. The notes may be made redeemable,
    prior to maturity, at the option of the Authority, in the
    manner and upon the terms fixed by the resolution
    authorizing their issuance. The notes may be executed in
    the name of the Authority by the Chairman of the Authority
    or by any other officer or officers of the Authority as the
    Authority by resolution may direct, shall be attested by
    the Secretary or such other officer or officers of the
    Authority as the Authority may by resolution direct, and be
    sealed with the Authority's corporate seal. All such notes
    and the interest thereon may be secured by a pledge of any
    income and revenue derived by the Authority from the
    project to be undertaken with the proceeds of the notes and
    shall be payable solely from such income and revenue and
    from the proceeds to be derived from the sale of any
    revenue bonds for permanent financing authorized to be
    issued under Sections 5 and 6 of this Act, and from the
    property acquired with the proceeds of the notes.
        Contemporaneously with the issue of revenue bonds as
    provided by this Act, all interim notes, even though they
    may not then have matured, shall be paid, both principal
    and interest to date of payment, from the funds derived
    from the sale of revenue bonds for the permanent financing
    and such interim notes shall be surrendered and canceled.
        2. The Authority, in order further to secure the
    payment of the interim notes, is, in addition to the
    foregoing, authorized and empowered to make any other or
    additional covenants, terms and conditions not
    inconsistent with the provisions of subparagraph (a) of
    this Section, and do any and all acts and things as may be
    necessary or convenient or desirable in order to secure
    payment of its interim notes, or in the discretion of the
    Authority, as will tend to make the interim notes more
    acceptable to lenders, notwithstanding that the covenants,
    acts or things may not be enumerated herein; however,
    nothing contained in this subparagraph shall authorize the
    Authority to secure the payment of the interim notes out of
    property or facilities, other than the facilities acquired
    with the proceeds of the interim notes, and any net income
    and revenue derived from the facilities and the proceeds of
    revenue bonds as hereinabove provided.
    (e) Convey property, without charge, to the State or to the
appropriate corporate agency of the State or to any public
community college district board if and when all debts which
have been secured by the income from such property have been
paid.
    (f) Enter into contracts regarding any matter connected
with any corporate purpose within the objects and purposes of
this Act.
    (g) Employ agents and employees necessary to carry out the
duties and purposes of the Authority.
    (h) Adopt all necessary by-laws, rules and regulations for
the conduct of the business and affairs of the Authority, and
for the management and use of facilities and sites acquired
under the powers granted by this Act.
    (i) Have and use a common seal and alter the same at
pleasure.
    The Interim notes shall constitute State debt of the State
of Illinois within the meaning of any of the provisions of the
Constitution and statutes of the State of Illinois.
    No member, officer, agent or employee of the Authority, nor
any other person who executes interim notes, shall be liable
personally by reason of the issuance thereof.
    With respect to instruments for the payment of money issued
under this Section either before, on, or after the effective
date of this amendatory Act of 1989, it is and always has been
the intention of the General Assembly (i) that the Omnibus Bond
Acts are and always have been supplementary grants of power to
issue instruments in accordance with the Omnibus Bond Acts,
regardless of any provision of this Act that may appear to be
or to have been more restrictive than those Acts, (ii) that the
provisions of this Section are not a limitation on the
supplementary authority granted by the Omnibus Bond Acts, and
(iii) that instruments issued under this Section within the
supplementary authority granted by the Omnibus Bond Acts are
not invalid because of any provision of this Act that may
appear to be or to have been more restrictive than those Acts.
(Source: P.A. 94-1055, eff. 1-1-07; 94-1105, eff. 6-1-07;
revised 12-26-07.)
 
    Section 80. The Illinois Finance Authority Act is amended
by changing Sections 801-40 and 845-5 and by setting forth and
renumbering multiple versions of Section 825-90 as follows:
 
    (20 ILCS 3501/801-40)
    Sec. 801-40. In addition to the powers otherwise authorized
by law and in addition to the foregoing general corporate
powers, the Authority shall also have the following additional
specific powers to be exercised in furtherance of the purposes
of this Act.
    (a) The Authority shall have power (i) to accept grants,
loans or appropriations from the federal government or the
State, or any agency or instrumentality thereof, to be used for
the operating expenses of the Authority, or for any purposes of
the Authority, including the making of direct loans of such
funds with respect to projects, and (ii) to enter into any
agreement with the federal government or the State, or any
agency or instrumentality thereof, in relationship to such
grants, loans or appropriations.
    (b) The Authority shall have power to procure and enter
into contracts for any type of insurance and indemnity
agreements covering loss or damage to property from any cause,
including loss of use and occupancy, or covering any other
insurable risk.
    (c) The Authority shall have the continuing power to issue
bonds for its corporate purposes. Bonds may be issued by the
Authority in one or more series and may provide for the payment
of any interest deemed necessary on such bonds, of the costs of
issuance of such bonds, of any premium on any insurance, or of
the cost of any guarantees, letters of credit or other similar
documents, may provide for the funding of the reserves deemed
necessary in connection with such bonds, and may provide for
the refunding or advance refunding of any bonds or for accounts
deemed necessary in connection with any purpose of the
Authority. The bonds may bear interest payable at any time or
times and at any rate or rates, notwithstanding any other
provision of law to the contrary, and such rate or rates may be
established by an index or formula which may be implemented or
established by persons appointed or retained therefor by the
Authority, or may bear no interest or may bear interest payable
at maturity or upon redemption prior to maturity, may bear such
date or dates, may be payable at such time or times and at such
place or places, may mature at any time or times not later than
40 years from the date of issuance, may be sold at public or
private sale at such time or times and at such price or prices,
may be secured by such pledges, reserves, guarantees, letters
of credit, insurance contracts or other similar credit support
or liquidity instruments, may be executed in such manner, may
be subject to redemption prior to maturity, may provide for the
registration of the bonds, and may be subject to such other
terms and conditions all as may be provided by the resolution
or indenture authorizing the issuance of such bonds. The holder
or holders of any bonds issued by the Authority may bring suits
at law or proceedings in equity to compel the performance and
observance by any person or by the Authority or any of its
agents or employees of any contract or covenant made with the
holders of such bonds and to compel such person or the
Authority and any of its agents or employees to perform any
duties required to be performed for the benefit of the holders
of any such bonds by the provision of the resolution
authorizing their issuance, and to enjoin such person or the
Authority and any of its agents or employees from taking any
action in conflict with any such contract or covenant.
Notwithstanding the form and tenor of any such bonds and in the
absence of any express recital on the face thereof that it is
non-negotiable, all such bonds shall be negotiable
instruments. Pending the preparation and execution of any such
bonds, temporary bonds may be issued as provided by the
resolution. The bonds shall be sold by the Authority in such
manner as it shall determine. The bonds may be secured as
provided in the authorizing resolution by the receipts,
revenues, income and other available funds of the Authority and
by any amounts derived by the Authority from the loan agreement
or lease agreement with respect to the project or projects; and
bonds may be issued as general obligations of the Authority
payable from such revenues, funds and obligations of the
Authority as the bond resolution shall provide, or may be
issued as limited obligations with a claim for payment solely
from such revenues, funds and obligations as the bond
resolution shall provide. The Authority may grant a specific
pledge or assignment of and lien on or security interest in
such rights, revenues, income, or amounts and may grant a
specific pledge or assignment of and lien on or security
interest in any reserves, funds or accounts established in the
resolution authorizing the issuance of bonds. Any such pledge,
assignment, lien or security interest for the benefit of the
holders of the Authority's bonds shall be valid and binding
from the time the bonds are issued without any physical
delivery or further act, and shall be valid and binding as
against and prior to the claims of all other parties having
claims against the Authority or any other person irrespective
of whether the other parties have notice of the pledge,
assignment, lien or security interest. As evidence of such
pledge, assignment, lien and security interest, the Authority
may execute and deliver a mortgage, trust agreement, indenture
or security agreement or an assignment thereof. A remedy for
any breach or default of the terms of any such agreement by the
Authority may be by mandamus proceedings in any court of
competent jurisdiction to compel the performance and
compliance therewith, but the agreement may prescribe by whom
or on whose behalf such action may be instituted. It is
expressly understood that the Authority may, but need not,
acquire title to any project with respect to which it exercises
its authority.
    (d) With respect to the powers granted by this Act, the
Authority may adopt rules and regulations prescribing the
procedures by which persons may apply for assistance under this
Act. Nothing herein shall be deemed to preclude the Authority,
prior to the filing of any formal application, from conducting
preliminary discussions and investigations with respect to the
subject matter of any prospective application.
    (e) The Authority shall have power to acquire by purchase,
lease, gift or otherwise any property or rights therein from
any person useful for its purposes, whether improved for the
purposes of any prospective project, or unimproved. The
Authority may also accept any donation of funds for its
purposes from any such source. The Authority shall have no
independent power of condemnation but may acquire any property
or rights therein obtained upon condemnation by any other
authority, governmental entity or unit of local government with
such power.
    (f) The Authority shall have power to develop, construct
and improve either under its own direction, or through
collaboration with any approved applicant, or to acquire
through purchase or otherwise, any project, using for such
purpose the proceeds derived from the sale of its bonds or from
governmental loans or grants, and to hold title in the name of
the Authority to such projects.
    (g) The Authority shall have power to lease pursuant to a
lease agreement any project so developed and constructed or
acquired to the approved tenant on such terms and conditions as
may be appropriate to further the purposes of this Act and to
maintain the credit of the Authority. Any such lease may
provide for either the Authority or the approved tenant to
assume initially, in whole or in part, the costs of
maintenance, repair and improvements during the leasehold
period. In no case, however, shall the total rentals from any
project during any initial leasehold period or the total loan
repayments to be made pursuant to any loan agreement, be less
than an amount necessary to return over such lease or loan
period (1) all costs incurred in connection with the
development, construction, acquisition or improvement of the
project and for repair, maintenance and improvements thereto
during the period of the lease or loan; provided, however, that
the rentals or loan repayments need not include costs met
through the use of funds other than those obtained by the
Authority through the issuance of its bonds or governmental
loans; (2) a reasonable percentage additive to be agreed upon
by the Authority and the borrower or tenant to cover a properly
allocable portion of the Authority's general expenses,
including, but not limited to, administrative expenses,
salaries and general insurance, and (3) an amount sufficient to
pay when due all principal of, interest and premium, if any on,
any bonds issued by the Authority with respect to the project.
The portion of total rentals payable under clause (3) of this
subsection (g) shall be deposited in such special accounts,
including all sinking funds, acquisition or construction
funds, debt service and other funds as provided by any
resolution, mortgage or trust agreement of the Authority
pursuant to which any bond is issued.
    (h) The Authority has the power, upon the termination of
any leasehold period of any project, to sell or lease for a
further term or terms such project on such terms and conditions
as the Authority shall deem reasonable and consistent with the
purposes of the Act. The net proceeds from all such sales and
the revenues or income from such leases shall be used to
satisfy any indebtedness of the Authority with respect to such
project and any balance may be used to pay any expenses of the
Authority or be used for the further development, construction,
acquisition or improvement of projects. In the event any
project is vacated by a tenant prior to the termination of the
initial leasehold period, the Authority shall sell or lease the
facilities of the project on the most advantageous terms
available. The net proceeds of any such disposition shall be
treated in the same manner as the proceeds from sales or the
revenues or income from leases subsequent to the termination of
any initial leasehold period.
    (i) The Authority shall have the power to make loans to
persons to finance a project, to enter into loan agreements
with respect thereto, and to accept guarantees from persons of
its loans or the resultant evidences of obligations of the
Authority.
    (j) The Authority may fix, determine, charge and collect
any premiums, fees, charges, costs and expenses, including,
without limitation, any application fees, commitment fees,
program fees, financing charges or publication fees from any
person in connection with its activities under this Act.
    (k) In addition to the funds established as provided
herein, the Authority shall have the power to create and
establish such reserve funds and accounts as may be necessary
or desirable to accomplish its purposes under this Act and to
deposit its available monies into the funds and accounts.
    (l) At the request of the governing body of any unit of
local government, the Authority is authorized to market such
local government's revenue bond offerings by preparing bond
issues for sale, advertising for sealed bids, receiving bids at
its offices, making the award to the bidder that offers the
most favorable terms or arranging for negotiated placements or
underwritings of such securities. The Authority may, at its
discretion, offer for concurrent sale the revenue bonds of
several local governments. Sales by the Authority of revenue
bonds under this Section shall in no way imply State guarantee
of such debt issue. The Authority may require such financial
information from participating local governments as it deems
necessary in order to carry out the purposes of this subsection
(1).
    (m) The Authority may make grants to any county to which
Division 5-37 of the Counties Code is applicable to assist in
the financing of capital development, construction and
renovation of new or existing facilities for hospitals and
health care facilities under that Act. Such grants may only be
made from funds appropriated for such purposes from the Build
Illinois Bond Fund.
    (n) The Authority may establish an urban development action
grant program for the purpose of assisting municipalities in
Illinois which are experiencing severe economic distress to
help stimulate economic development activities needed to aid in
economic recovery. The Authority shall determine the types of
activities and projects for which the urban development action
grants may be used, provided that such projects and activities
are broadly defined to include all reasonable projects and
activities the primary objectives of which are the development
of viable urban communities, including decent housing and a
suitable living environment, and expansion of economic
opportunity, principally for persons of low and moderate
incomes. The Authority shall enter into grant agreements from
monies appropriated for such purposes from the Build Illinois
Bond Fund. The Authority shall monitor the use of the grants,
and shall provide for audits of the funds as well as recovery
by the Authority of any funds determined to have been spent in
violation of this subsection (n) or any rule or regulation
promulgated hereunder. The Authority shall provide technical
assistance with regard to the effective use of the urban
development action grants. The Authority shall file an annual
report to the General Assembly concerning the progress of the
grant program.
    (o) The Authority may establish a Housing Partnership
Program whereby the Authority provides zero-interest loans to
municipalities for the purpose of assisting in the financing of
projects for the rehabilitation of affordable multi-family
housing for low and moderate income residents. The Authority
may provide such loans only upon a municipality's providing
evidence that it has obtained private funding for the
rehabilitation project. The Authority shall provide 3 State
dollars for every 7 dollars obtained by the municipality from
sources other than the State of Illinois. The loans shall be
made from monies appropriated for such purpose from the Build
Illinois Bond Fund. The total amount of loans available under
the Housing Partnership Program shall not exceed $30,000,000.
State loan monies under this subsection shall be used only for
the acquisition and rehabilitation of existing buildings
containing 4 or more dwelling units. The terms of any loan made
by the municipality under this subsection shall require
repayment of the loan to the municipality upon any sale or
other transfer of the project.
    (p) The Authority may award grants to universities and
research institutions, research consortiums and other
not-for-profit entities for the purposes of: remodeling or
otherwise physically altering existing laboratory or research
facilities, expansion or physical additions to existing
laboratory or research facilities, construction of new
laboratory or research facilities or acquisition of modern
equipment to support laboratory or research operations
provided that such grants (i) be used solely in support of
project and equipment acquisitions which enhance technology
transfer, and (ii) not constitute more than 60 percent of the
total project or acquisition cost.
    (q) Grants may be awarded by the Authority to units of
local government for the purpose of developing the appropriate
infrastructure or defraying other costs to the local government
in support of laboratory or research facilities provided that
such grants may not exceed 40% of the cost to the unit of local
government.
    (r) The Authority may establish a Direct Loan Program to
make loans to individuals, partnerships or corporations for the
purpose of an industrial project, as defined in Section 801-10
of this Act. For the purposes of such program and not by way of
limitation on any other program of the Authority, the Authority
shall have the power to issue bonds, notes, or other evidences
of indebtedness including commercial paper for purposes of
providing a fund of capital from which it may make such loans.
The Authority shall have the power to use any appropriations
from the State made especially for the Authority's Direct Loan
Program for additional capital to make such loans or for the
purposes of reserve funds or pledged funds which secure the
Authority's obligations of repayment of any bond, note or other
form of indebtedness established for the purpose of providing
capital for which it intends to make such loans under the
Direct Loan Program. For the purpose of obtaining such capital,
the Authority may also enter into agreements with financial
institutions and other persons for the purpose of selling loans
and developing a secondary market for such loans. Loans made
under the Direct Loan Program may be in an amount not to exceed
$300,000 and shall be made for a portion of an industrial
project which does not exceed 50% of the total project. No loan
may be made by the Authority unless approved by the affirmative
vote of at least 8 members of the board. The Authority shall
establish procedures and publish rules which shall provide for
the submission, review, and analysis of each direct loan
application and which shall preserve the ability of each board
member to reach an individual business judgment regarding the
propriety of making each direct loan. The collective discretion
of the board to approve or disapprove each loan shall be
unencumbered. The Authority may establish and collect such fees
and charges, determine and enforce such terms and conditions,
and charge such interest rates as it determines to be necessary
and appropriate to the successful administration of the Direct
Loan Program. The Authority may require such interests in
collateral and such guarantees as it determines are necessary
to project the Authority's interest in the repayment of the
principal and interest of each loan made under the Direct Loan
Program.
    (s) The Authority may guarantee private loans to third
parties up to a specified dollar amount in order to promote
economic development in this State.
    (t) The Authority may adopt rules and regulations as may be
necessary or advisable to implement the powers conferred by
this Act.
    (u) The Authority shall have the power to issue bonds,
notes or other evidences of indebtedness, which may be used to
make loans to units of local government which are authorized to
enter into loan agreements and other documents and to issue
bonds, notes and other evidences of indebtedness for the
purpose of financing the protection of storm sewer outfalls,
the construction of adequate storm sewer outfalls, and the
provision for flood protection of sanitary sewage treatment
plans, in counties that have established a stormwater
management planning committee in accordance with Section
5-1062 of the Counties Code. Any such loan shall be made by the
Authority pursuant to the provisions of Section 820-5 to 820-60
of this Act. The unit of local government shall pay back to the
Authority the principal amount of the loan, plus annual
interest as determined by the Authority. The Authority shall
have the power, subject to appropriations by the General
Assembly, to subsidize or buy down a portion of the interest on
such loans, up to 4% per annum.
    (v) The Authority may accept security interests as provided
in Sections 11-3 and 11-3.3 of the Illinois Public Aid Code.
    (w) Moral Obligation. In the event that the Authority
determines that monies of the Authority will not be sufficient
for the payment of the principal of and interest on its bonds
during the next State fiscal year, the Chairperson, as soon as
practicable, shall certify to the Governor the amount required
by the Authority to enable it to pay such principal of and
interest on the bonds. The Governor shall submit the amount so
certified to the General Assembly as soon as practicable, but
no later than the end of the current State fiscal year. This
subsection shall apply only to any bonds or notes as to which
the Authority shall have determined, in the resolution
authorizing the issuance of the bonds or notes, that this
subsection shall apply. Whenever the Authority makes such a
determination, that fact shall be plainly stated on the face of
the bonds or notes and that fact shall also be reported to the
Governor. In the event of a withdrawal of moneys from a reserve
fund established with respect to any issue or issues of bonds
of the Authority to pay principal or interest on those bonds,
the Chairperson of the Authority, as soon as practicable, shall
certify to the Governor the amount required to restore the
reserve fund to the level required in the resolution or
indenture securing those bonds. The Governor shall submit the
amount so certified to the General Assembly as soon as
practicable, but no later than the end of the current State
fiscal year. The Authority shall obtain written approval from
the Governor for any bonds and notes to be issued under this
Section. In addition to any other bonds authorized to be issued
under Sections 825-60, 825-65(e), 830-25 and 845-5, the
principal amount of Authority bonds outstanding issued under
this Section 801-40(w) or under 20 ILCS 3850/1-80 or 30 ILCS
360/2-6(c), which have been assumed by the Authority, shall not
exceed $150,000,000. This subsection (w) shall in no way be
applied to any bonds issued by the Authority on behalf of the
Illinois Power Agency under Section 825-90 of this Act.
    (x) The Authority may enter into agreements or contracts
with any person necessary or appropriate to place the payment
obligations of the Authority under any of its bonds in whole or
in part on any interest rate basis, cash flow basis, or other
basis desired by the Authority, including without limitation
agreements or contracts commonly known as "interest rate swap
agreements", "forward payment conversion agreements", and
"futures", or agreements or contracts to exchange cash flows or
a series of payments, or agreements or contracts, including
without limitation agreements or contracts commonly known as
"options", "puts", or "calls", to hedge payment, rate spread,
or similar exposure; provided that any such agreement or
contract shall not constitute an obligation for borrowed money
and shall not be taken into account under Section 845-5 of this
Act or any other debt limit of the Authority or the State of
Illinois.
(Source: P.A. 94-91, eff. 7-1-05; 95-470, eff. 8-27-07; 95-481,
eff. 8-28-07; revised 10-30-07.)
 
    (20 ILCS 3501/825-90)
    Sec. 825-90. Illinois Power Agency Bonds.
    (a) In this Section:
    "Agency" means the Illinois Power Agency.
    "Agency loan agreement" means any agreement pursuant to
which the Illinois Finance Authority agrees to loan the
proceeds of its revenue bonds issued with respect to a specific
Illinois Power Agency project to the Illinois Power Agency upon
terms providing for loan repayment installments at least
sufficient to pay when due all principal of, interest and
premium, if any, on any revenue bonds of the Authority, if any,
issued with respect to the Illinois Power Agency project, and
providing for maintenance, insurance, and other matters as may
be deemed desirable by the Authority.
    "Authority" means the Illinois Finance Authority.
    "Director" means the Director of the Illinois Power Agency.
    "Facility" means an electric generating unit or a
co-generating unit that produces electricity along with
related equipment necessary to connect the facility to an
electric transmission or distribution system.
    "Governmental aggregator" means one or more units of local
government that individually or collectively procures
electricity to serve residential retail electrical loads
located within its or their jurisdiction.
    "Local government" means a unit of local government as
defined in Section 1 of Article VII of the Illinois
Constitution of 1970.
    "Project" means any project as defined in the Illinois
Power Agency Act.
    "Real property" means any interest in land, together with
all structures, fixtures, and improvements thereon, including
lands under water and riparian rights, any easements,
covenants, licenses, leases, rights-of-way, uses, and other
interests, together with any liens, judgments, mortgages, or
other claims or security interests related to real property.
    "Revenue bond" means any bond, note, or other evidence of
indebtedness issued by the Illinois Finance Authority on behalf
of the Illinois Power Agency, the principal and interest of
which is payable solely from revenues or income derived from
any project or activity of the Agency.
    (b) Powers and duties; Illinois Power Agency Program. The
Authority has the power:
        (1) To accept from time to time pursuant to an Agency
    loan agreement any pledge or a pledge agreement by the
    Agency subject to the requirements and limitations of the
    Illinois Power Agency Act.
        (2) To issue revenue bonds in one or more series
    pursuant to one or more resolutions of the Authority to
    loan funds to the Agency pursuant to one or more Agency
    loan agreements meeting the requirements of the Illinois
    Power Agency Act and providing for the payment of any
    interest deemed necessary on those revenue bonds, paying
    for the cost of issuance of those revenue bonds, providing
    for the payment of the cost of any guarantees, letters of
    credit, insurance contracts or other similar credit
    support or liquidity instruments, or providing for the
    funding of any reserves deemed necessary in connection with
    those revenue bonds and refunding or advance refunding of
    any such revenue bonds and the interest and any premium
    thereon, pursuant to this Act. Authority for the agreements
    shall conform to the requirements of the Illinois Power
    Agency Act. The Authority may issue up to $4,000,000,000
    aggregate principal amount of revenue bonds, the net
    proceeds of which shall be loaned to the Agency pursuant to
    one or more Agency loan agreements. No revenue bonds issued
    to refund or advance refund revenue bonds issued under this
    Section may mature later than the longest maturity date of
    the series of bonds being refunded. After the aggregate
    original principal amount of revenue bonds authorized in
    this Section has been issued, the payment of any principal
    amount of those revenue bonds does not authorize the
    issuance of additional revenue bonds (except refunding
    revenue bonds). Such revenue bond authorization is in
    addition to any other bonds authorized in this Act. All
    bonds issued on behalf of the Agency must be issued by the
    Authority and must be revenue bonds. These revenue bonds
    may be taxable or tax-exempt.
        (3) To provide for the funding of any reserves or other
    funds or accounts deemed necessary by the Authority on
    behalf of the Agency in connection with its issuance of
    Agency revenue bonds.
        (4) To accept the pledge of any Agency revenue,
    including any payments thereon, and any other property or
    funds of the Agency or funds made available to the
    Authority through the applicable Agency loan agreement
    with the Agency that may be applied to such purpose, as
    security for any revenue bonds or any guarantees, letters
    of credit, insurance contracts, or similar credit support
    or liquidity instruments securing the revenue bonds.
        (5) To enter into agreements or contracts with third
    parties, whether public or private, including without
    limitation the United States of America, the State, or any
    department or agency thereof, to obtain any grants, loans,
    or guarantees that are deemed necessary or desirable by the
    Authority. Any such guarantee, agreement, or contract may
    contain terms and provisions necessary or desirable in
    connection with the program, subject to the requirements
    established by this Article.
        (6) To charge reasonable fees to defray the cost of
    obtaining letters of credit, insurance contracts, or other
    similar documents, and to charge such other reasonable fees
    to defray the cost of trustees, depositories, paying
    agents, legal counsel, bond registrars, escrow agents, and
    other administrative expenses. Any such fees shall be
    payable by the Agency, in such amounts and at such times as
    the Authority shall determine.
        (7) To obtain and maintain guarantees, letters of
    credit, insurance contracts, or similar credit support or
    liquidity instruments that are deemed necessary or
    desirable in connection with any revenue bonds or other
    obligations of the Authority for any Agency revenue bonds.
        (8) To provide technical assistance, at the request of
    the Agency, with respect to the financing or refinancing
    for any public purpose.
        (9) To sell, transfer, or otherwise defease revenue
    bonds issued on behalf of the Agency at the request and
    authorization of the Agency.
        (10) To enter into agreements or contracts with any
    person necessary or appropriate to place the payment
    obligations of the Agency relating to revenue bonds in
    whole or in part on any interest rate basis, cash flow
    basis, or other basis desired by the Authority, including
    without limitation agreements or contracts commonly known
    as "interest rate swap agreements", "forward payment
    conversion agreements", and "futures", or agreements or
    contracts to exchange cash flows or a series of payments,
    or agreements or contracts, including without limitation
    agreements or contracts commonly known as "options",
    "puts" or "calls", to hedge payment, rate spread, or
    similar exposure; provided, that any such agreement or
    contract shall not constitute an obligation for borrowed
    money, and shall not be taken into account under Section
    845-5 of this Act or any other debt limit of the Authority
    or the State of Illinois.
        (11) To make and enter into all other agreements and
    contracts and execute all instruments necessary or
    incidental to performance of its duties and the execution
    of its powers under this Article.
        (12) To contract for and finance the costs of audits
    and to contract for and finance the cost of project
    monitoring. Any such contract shall be executed only after
    it has been jointly negotiated by the Authority and the
    Agency.
        (13) To exercise such other powers as are necessary or
    incidental to the foregoing.
    (c) Illinois Power Agency participation. The Agency is
authorized to voluntarily participate in this program as
described in the Illinois Power Agency Act. The Authority may
issue revenue bonds on behalf of the Agency pursuant to an
Agency loan agreement entered into by the parties as set forth
in the Illinois Power Agency Act. Any proceeds from the sale of
those revenue bonds shall be deposited into the Illinois Power
Agency Facilities Fund to be used by the Agency for the
purposes set forth in the Illinois Power Agency Act.
    (d) Pledge of revenues by the Agency. Any pledge of
revenues or other moneys made by the Agency shall be binding
from the time the pledge is made. Revenues and other moneys so
pledged shall be held in the Illinois Power Agency Facilities
Fund, Illinois Power Agency Debt Service Fund, or other funds
as directed by the Agency loan agreement. Revenues or other
moneys so pledged and thereafter received by the State
Treasurer shall immediately be subject to the lien of the
pledge without any physical delivery thereof or further act,
and the lien of any pledge shall be binding against all parties
having claims of any kind of tort, contract, or otherwise
against the Authority, irrespective of whether the parties have
notice thereof. Neither the resolution nor any other instrument
by which a pledge is created need be filed or recorded except
in the records of the Authority. The State pledges to and
agrees with the holders of revenue bonds, and the beneficial
owners of the revenue bonds issued on behalf of the Agency,
that the State shall not limit or restrict the rights hereby
vested in the Authority to purchase, acquire, hold, sell, or
defease revenue bonds or other investments or to establish and
collect such fees or other charges as may be convenient or
necessary to produce sufficient revenues to meet the expenses
of operation of the Authority, and to fulfill the terms of any
agreement made with the holders of the revenue bonds issued by
the Authority on behalf of the Agency or in any way impair the
rights or remedies of the holders of those revenue bonds or the
beneficial owners of the revenue bonds until those revenue
bonds are fully paid and discharged or provision for their
payment has been made. The revenue bonds shall not be a debt of
the State, the Authority, any political subdivision thereof
(other than the Agency to the extent provided therein), any
governmental aggregator as defined in the Illinois Power Agency
Act, or any local government, and neither the State, the
Authority, any political subdivision thereof (other than the
Agency to the extent provided therein), any governmental
aggregator, nor any local government shall be liable thereon.
The Authority shall not have the power to pledge the credit,
the revenues, or the taxing power of the State, any political
subdivision thereof (other than the Agency to the extent
provided in the Agency loan agreement relating to the revenue
bonds in question), any governmental aggregator, or of any
local government, and neither the credit, the revenues, nor the
taxing power of the State, any political subdivision thereof
(other than the Agency to the extent provided in the Agency
loan agreement relating to the revenue bonds in question), any
governmental aggregator, or of any local government shall be,
or shall be deemed to be, pledged to the payment of any revenue
bonds, or obligations of the Agency.
    (e) Exemption from taxation. The creation of the Illinois
Power Agency is in all respects for the benefit of the people
of Illinois and for the improvement of their health, safety,
welfare, comfort, and security, and its purposes are public
purposes. In consideration thereof, the revenue bonds issued on
behalf of the Agency pursuant to this Act and the income from
these revenue bonds may be free from all taxation by the State
or its political subdivisions, except for estate, transfer, and
inheritance taxes. The exemption from taxation provided by the
preceding sentence shall apply to the income on any revenue
bonds issued on behalf of the Agency only if the Authority with
concurrence of the Agency in its sole judgment determines that
the exemption enhances the marketability of the revenue bonds
or reduces the interest rates that would otherwise be borne by
the revenue bonds and that the project for which the revenue
bonds will be issued will be owned by the Agency or another
governmental entity and that the project is used for public
consumption. For purposes of Section 250 of the Illinois Income
Tax Act, the exemption of the Agency shall terminate after all
of the revenue bonds have been paid. The amount of the income
that shall be added and then subtracted on the Illinois income
tax return of a taxpayer, subject to Section 203 of the
Illinois Income Tax Act, from federal adjusted gross income or
federal taxable income in computing Illinois base income shall
be the interest net of any bond premium amortization.
(Source: P.A. 95-481, eff. 8-28-07.)
 
    (20 ILCS 3501/825-95)
    Sec. 825-95 825-90. Emerald ash borer revolving loan
program.
    (a) The Illinois Finance Authority shall administer an
emerald ash borer revolving loan program. The program shall
provide low-interest or zero-interest loans to units of local
government for the replanting of trees on public lands that are
within emerald ash borer quarantine areas as established by the
Illinois Department of Agriculture. The Authority shall make
loans based on the recommendation of the Department of
Agriculture.
    (b) The loan funds, subject to appropriation, must be paid
out of the Emerald Ash Borer Revolving Loan Fund, a special
fund created in the State treasury. The moneys in the Fund
consist of any moneys transferred or appropriated into the Fund
as well as all repayments of loans made under this program.
Moneys in the Fund may be used only for loans to units of local
government for the replanting of trees within emerald ash borer
quarantine areas established by the Department of Agriculture
and for no other purpose. All interest earned on moneys in the
Fund must be deposited into the Fund.
    (c) A loan for the replanting of trees on public lands
within emerald ash borer quarantine areas established by the
Department of Agriculture may not exceed $5,000,000 to any one
unit of local government. The repayment period for the loan may
not exceed 20 years. The unit of local government shall repay,
each year, at least 5% of the principal amount borrowed or the
remaining balance of the loan, whichever is less. All
repayments of loans must be deposited into the Emerald Ash
Borer Revolving Loan Fund.
    (d) Any loan under this Section to a unit of local
government may not exceed the moneys that the unit of local
government expends or dedicates for the reforestation project
for which the loan is made.
    (e) The Department of Agriculture may enter into agreements
with a unit of local government under which the unit of local
government is authorized to assist the Department in carrying
out its duties in a quarantined area, including inspection and
eradication of any dangerous insect or dangerous plant disease,
and including the transportation, processing, and disposal of
diseased material. The Department is authorized to provide
compensation or financial assistance to the unit of local
government for its costs.
    (f) The Authority, with the assistance of the Department of
Agriculture and the Department of Natural Resources, shall
adopt rules to administer the program under this Section.
(Source: P.A. 95-588, eff. 9-4-07; revised 12-6-07.)
 
    (20 ILCS 3501/845-5)
    Sec. 845-5. Bond limitations.
    (a) The Authority may not have outstanding at any one time
bonds for any of its corporate purposes in an aggregate
principal amount exceeding $26,650,000,000, excluding bonds
issued to refund the bonds of the Authority or bonds of the
Predecessor Authorities.
    (b) The Authority may not have outstanding at any one time
revenue bonds in an aggregate principal amount exceeding
$4,000,000,000 on behalf of the Illinois Power Agency as set
forth in Section 825-90. Any such revenue bonds issued on
behalf of the Illinois Power Agency pursuant to this Act shall
not be counted against the bond authorization limit set forth
in subsection (a).
(Source: P.A. 94-1068, eff. 8-1-06; 95-481, eff. 8-28-07;
95-697, eff. 11-6-07; revised 12-6-07.)
 
    Section 85. The Illinois Power Agency Act is amended by
changing Section 1-65 as follows:
 
    (20 ILCS 3855/1-65)
    Sec. 1-65. Appropriations for operations. (a) The General
Assembly may appropriate moneys from the General Revenue Fund
for the operation of the Illinois Power Agency in Fiscal Year
2008 not to exceed $1,250,000 and in Fiscal Year 2009 not to
exceed $1,500,000. These appropriated funds shall constitute
an advance that the Agency shall repay without interest to the
State in Fiscal Year 2010 and in Fiscal Year 2011. Beginning
with Fiscal Year 2010, the operation of the Agency shall be
funded solely from moneys in the Illinois Power Agency
Operations Fund with no liability or obligation imposed on the
State by those operations.
(Source: P.A. 95-481, eff. 8-28-07; revised 11-9-07.)
 
    Section 90. The Illinois Health Facilities Planning Act is
amended by changing Section 3 as follows:
 
    (20 ILCS 3960/3)  (from Ch. 111 1/2, par. 1153)
    (Section scheduled to be repealed on August 31, 2008)
    Sec. 3. Definitions. As used in this Act:
    "Health care facilities" means and includes the following
facilities and organizations:
        1. An ambulatory surgical treatment center required to
    be licensed pursuant to the Ambulatory Surgical Treatment
    Center Act;
        2. An institution, place, building, or agency required
    to be licensed pursuant to the Hospital Licensing Act;
        3. Skilled and intermediate long term care facilities
    licensed under the Nursing Home Care Act;
        4. Hospitals, nursing homes, ambulatory surgical
    treatment centers, or kidney disease treatment centers
    maintained by the State or any department or agency
    thereof;
        5. Kidney disease treatment centers, including a
    free-standing hemodialysis unit required to be licensed
    under the End Stage Renal Disease Facility Act; and
        6. An institution, place, building, or room used for
    the performance of outpatient surgical procedures that is
    leased, owned, or operated by or on behalf of an
    out-of-state facility.
    No federally owned facility shall be subject to the
provisions of this Act, nor facilities used solely for healing
by prayer or spiritual means.
    No facility licensed under the Supportive Residences
Licensing Act or the Assisted Living and Shared Housing Act
shall be subject to the provisions of this Act.
    A facility designated as a supportive living facility that
is in good standing with the program established under Section
5-5.01a of the Illinois Public Aid Code shall not be subject to
the provisions of this Act.
    This Act does not apply to facilities granted waivers under
Section 3-102.2 of the Nursing Home Care Act. However, if a
demonstration project under that Act applies for a certificate
of need to convert to a nursing facility, it shall meet the
licensure and certificate of need requirements in effect as of
the date of application.
    This Act does not apply to a dialysis facility that
provides only dialysis training, support, and related services
to individuals with end stage renal disease who have elected to
receive home dialysis. This Act does not apply to a dialysis
unit located in a licensed nursing home that offers or provides
dialysis-related services to residents with end stage renal
disease who have elected to receive home dialysis within the
nursing home. The Board, however, may require these dialysis
facilities and licensed nursing homes to report statistical
information on a quarterly basis to the Board to be used by the
Board to conduct analyses on the need for proposed kidney
disease treatment centers.
    This Act shall not apply to the closure of an entity or a
portion of an entity licensed under the Nursing Home Care Act,
with the exceptions of facilities operated by a county or
Illinois Veterans Homes, that elects to convert, in whole or in
part, to an assisted living or shared housing establishment
licensed under the Assisted Living and Shared Housing Act.
    This Act does not apply to any change of ownership of a
healthcare facility that is licensed under the Nursing Home
Care Act, with the exceptions of facilities operated by a
county or Illinois Veterans Homes. Changes of ownership of
facilities licensed under the Nursing Home Care Act must meet
the requirements set forth in Sections 3-101 through 3-119 of
the Nursing Home Care Act.
    With the exception of those health care facilities
specifically included in this Section, nothing in this Act
shall be intended to include facilities operated as a part of
the practice of a physician or other licensed health care
professional, whether practicing in his individual capacity or
within the legal structure of any partnership, medical or
professional corporation, or unincorporated medical or
professional group. Further, this Act shall not apply to
physicians or other licensed health care professional's
practices where such practices are carried out in a portion of
a health care facility under contract with such health care
facility by a physician or by other licensed health care
professionals, whether practicing in his individual capacity
or within the legal structure of any partnership, medical or
professional corporation, or unincorporated medical or
professional groups. This Act shall apply to construction or
modification and to establishment by such health care facility
of such contracted portion which is subject to facility
licensing requirements, irrespective of the party responsible
for such action or attendant financial obligation.
    "Person" means any one or more natural persons, legal
entities, governmental bodies other than federal, or any
combination thereof.
    "Consumer" means any person other than a person (a) whose
major occupation currently involves or whose official capacity
within the last 12 months has involved the providing,
administering or financing of any type of health care facility,
(b) who is engaged in health research or the teaching of
health, (c) who has a material financial interest in any
activity which involves the providing, administering or
financing of any type of health care facility, or (d) who is or
ever has been a member of the immediate family of the person
defined by (a), (b), or (c).
    "State Board" means the Health Facilities Planning Board.
    "Construction or modification" means the establishment,
erection, building, alteration, reconstruction, modernization,
improvement, extension, discontinuation, change of ownership,
of or by a health care facility, or the purchase or acquisition
by or through a health care facility of equipment or service
for diagnostic or therapeutic purposes or for facility
administration or operation, or any capital expenditure made by
or on behalf of a health care facility which exceeds the
capital expenditure minimum; however, any capital expenditure
made by or on behalf of a health care facility for (i) the
construction or modification of a facility licensed under the
Assisted Living and Shared Housing Act or (ii) a conversion
project undertaken in accordance with Section 30 of the Older
Adult Services Act shall be excluded from any obligations under
this Act.
    "Establish" means the construction of a health care
facility or the replacement of an existing facility on another
site.
    "Major medical equipment" means medical equipment which is
used for the provision of medical and other health services and
which costs in excess of the capital expenditure minimum,
except that such term does not include medical equipment
acquired by or on behalf of a clinical laboratory to provide
clinical laboratory services if the clinical laboratory is
independent of a physician's office and a hospital and it has
been determined under Title XVIII of the Social Security Act to
meet the requirements of paragraphs (10) and (11) of Section
1861(s) of such Act. In determining whether medical equipment
has a value in excess of the capital expenditure minimum, the
value of studies, surveys, designs, plans, working drawings,
specifications, and other activities essential to the
acquisition of such equipment shall be included.
    "Capital Expenditure" means an expenditure: (A) made by or
on behalf of a health care facility (as such a facility is
defined in this Act); and (B) which under generally accepted
accounting principles is not properly chargeable as an expense
of operation and maintenance, or is made to obtain by lease or
comparable arrangement any facility or part thereof or any
equipment for a facility or part; and which exceeds the capital
expenditure minimum.
    For the purpose of this paragraph, the cost of any studies,
surveys, designs, plans, working drawings, specifications, and
other activities essential to the acquisition, improvement,
expansion, or replacement of any plant or equipment with
respect to which an expenditure is made shall be included in
determining if such expenditure exceeds the capital
expenditures minimum. Donations of equipment or facilities to a
health care facility which if acquired directly by such
facility would be subject to review under this Act shall be
considered capital expenditures, and a transfer of equipment or
facilities for less than fair market value shall be considered
a capital expenditure for purposes of this Act if a transfer of
the equipment or facilities at fair market value would be
subject to review.
    "Capital expenditure minimum" means $6,000,000, which
shall be annually adjusted to reflect the increase in
construction costs due to inflation, for major medical
equipment and for all other capital expenditures; provided,
however, that when a capital expenditure is for the
construction or modification of a health and fitness center,
"capital expenditure minimum" means the capital expenditure
minimum for all other capital expenditures in effect on March
1, 2000, which shall be annually adjusted to reflect the
increase in construction costs due to inflation.
    "Non-clinical service area" means an area (i) for the
benefit of the patients, visitors, staff, or employees of a
health care facility and (ii) not directly related to the
diagnosis, treatment, or rehabilitation of persons receiving
services from the health care facility. "Non-clinical service
areas" include, but are not limited to, chapels; gift shops;
news stands; computer systems; tunnels, walkways, and
elevators; telephone systems; projects to comply with life
safety codes; educational facilities; student housing;
patient, employee, staff, and visitor dining areas;
administration and volunteer offices; modernization of
structural components (such as roof replacement and masonry
work); boiler repair or replacement; vehicle maintenance and
storage facilities; parking facilities; mechanical systems for
heating, ventilation, and air conditioning; loading docks; and
repair or replacement of carpeting, tile, wall coverings,
window coverings or treatments, or furniture. Solely for the
purpose of this definition, "non-clinical service area" does
not include health and fitness centers.
    "Areawide" means a major area of the State delineated on a
geographic, demographic, and functional basis for health
planning and for health service and having within it one or
more local areas for health planning and health service. The
term "region", as contrasted with the term "subregion", and the
word "area" may be used synonymously with the term "areawide".
    "Local" means a subarea of a delineated major area that on
a geographic, demographic, and functional basis may be
considered to be part of such major area. The term "subregion"
may be used synonymously with the term "local".
    "Areawide health planning organization" or "Comprehensive
health planning organization" means the health systems agency
designated by the Secretary, Department of Health and Human
Services or any successor agency.
    "Local health planning organization" means those local
health planning organizations that are designated as such by
the areawide health planning organization of the appropriate
area.
    "Physician" means a person licensed to practice in
accordance with the Medical Practice Act of 1987, as amended.
    "Licensed health care professional" means a person
licensed to practice a health profession under pertinent
licensing statutes of the State of Illinois.
    "Director" means the Director of the Illinois Department of
Public Health.
    "Agency" means the Illinois Department of Public Health.
    "Comprehensive health planning" means health planning
concerned with the total population and all health and
associated problems that affect the well-being of people and
that encompasses health services, health manpower, and health
facilities; and the coordination among these and with those
social, economic, and environmental factors that affect
health.
    "Alternative health care model" means a facility or program
authorized under the Alternative Health Care Delivery Act.
    "Out-of-state facility" means a person that is both (i)
licensed as a hospital or as an ambulatory surgery center under
the laws of another state or that qualifies as a hospital or an
ambulatory surgery center under regulations adopted pursuant
to the Social Security Act and (ii) not licensed under the
Ambulatory Surgical Treatment Center Act, the Hospital
Licensing Act, or the Nursing Home Care Act. Affiliates of
out-of-state facilities shall be considered out-of-state
facilities. Affiliates of Illinois licensed health care
facilities 100% owned by an Illinois licensed health care
facility, its parent, or Illinois physicians licensed to
practice medicine in all its branches shall not be considered
out-of-state facilities. Nothing in this definition shall be
construed to include an office or any part of an office of a
physician licensed to practice medicine in all its branches in
Illinois that is not required to be licensed under the
Ambulatory Surgical Treatment Center Act.
    "Change of ownership of a health care facility" means a
change in the person who has ownership or control of a health
care facility's physical plant and capital assets. A change in
ownership is indicated by the following transactions: sale,
transfer, acquisition, lease, change of sponsorship, or other
means of transferring control.
    "Related person" means any person that: (i) is at least 50%
owned, directly or indirectly, by either the health care
facility or a person owning, directly or indirectly, at least
50% of the health care facility; or (ii) owns, directly or
indirectly, at least 50% of the health care facility.
    "Charity care" means care provided by a health care
facility for which the provider does not expect to receive
payment from the patient or a third-party payer.
    "Freestanding emergency center" means a facility subject
to licensure under Section 32.5 of the Emergency Medical
Services (EMS) Systems Act.
(Source: P.A. 94-342, eff. 7-26-05; 95-331, eff. 8-21-07;
95-543, eff. 8-28-07; 95-584, eff. 8-31-07; revised 10-30-07.)
 
    Section 95. The Illinois Latino Family Commission Act is
amended by changing Section 15 as follows:
 
    (20 ILCS 3983/15)
    Sec. 15. Purpose and objectives. (a) The purpose of the
Illinois Latino Family Commission is to advise the Governor and
General Assembly, as well as work directly with State agencies
to improve and expand existing policies, services, programs,
and opportunities for Latino families. Subject to
appropriation, the Illinois Latino Family Commission shall
guide the efforts of and collaborate with State agencies,
including: the Department on Aging, the Department of Children
and Family Services, the Department of Commerce and Economic
Opportunity, the Department of Corrections, the Department of
Human Services, the Department of Public Aid, the Department of
Public Health, the Department of Transportation, the
Department of Employment Security, and others. This shall be
achieved primarily by:
        (1) monitoring and commenting on existing and proposed
    legislation and programs designed to address the needs of
    Latinos in Illinois;
        (2) assisting State agencies in developing programs,
    services, public policies, and research strategies that
    will expand and enhance the social and economic well-being
    of Latino children and families;
        (3) facilitating the participation and representation
    of Latinos in the development, implementation, and
    planning of policies, programs, and services; and
        (4) promoting research efforts to document the impact
    of policies and programs on Latino families.
    The work of the Illinois Latino Family Commission shall
include the use of existing reports, research, and planning
efforts, procedures, and programs.
(Source: P.A. 95-619, eff. 9-14-07; revised 10-30-07.)
 
    Section 100. The State Finance Act is amended by setting
forth and renumbering multiple versions of Sections 5.663 and
5.675 and by changing Section 8h as follows:
 
    (30 ILCS 105/5.663)
    Sec. 5.663. The Pension Stabilization Fund.
(Source: P.A. 94-839, eff. 6-6-06; 95-331, eff. 8-21-07.)
 
    (30 ILCS 105/5.675)
    Sec. 5.675. The Employee Classification Fund.
(Source: P.A. 95-26, eff. 1-1-08.)
 
    (30 ILCS 105/5.677)
    Sec. 5.677 5.663. The Sheet Metal Workers International
Association of Illinois Fund.
(Source: P.A. 95-531, eff. 1-1-08; revised 12-6-07.)
 
    (30 ILCS 105/5.678)
    Sec. 5.678 5.675. The Agriculture in the Classroom Fund.
(Source: P.A. 95-94, eff. 8-13-07; revised 12-18-07.)
 
    (30 ILCS 105/5.679)
    Sec. 5.679 5.675. The Autism Awareness Fund.
(Source: P.A. 95-226, eff. 1-1-08; revised 12-18-07.)
 
    (30 ILCS 105/5.684)
    Sec. 5.684 5.675. The Boy Scout and Girl Scout Fund.
(Source: P.A. 95-320, eff. 1-1-08; revised 12-18-07.)
 
    (30 ILCS 105/5.685)
    (This Section may contain text from a Public Act with a
delayed effective date)
    Sec. 5.685 5.675. The Indigent BAIID Fund.
(Source: P.A. 95-400, eff. 1-1-09; revised 12-18-07.)
 
    (30 ILCS 105/5.686)
    Sec. 5.686 5.675. The Supreme Court Historic Preservation
Fund.
(Source: P.A. 95-410, eff. 8-24-07; revised 12-18-07.)
 
    (30 ILCS 105/5.687)
    Sec. 5.687 5.675. The Lung Cancer Research Fund.
(Source: P.A. 95-434, eff. 8-27-07; revised 12-18-07.)
 
    (30 ILCS 105/5.688)
    Sec. 5.688 5.675. The Autoimmune Disease Research Fund.
(Source: P.A. 95-435, eff. 8-27-07; revised 12-18-07.)
 
    (30 ILCS 105/5.689)
    Sec. 5.689 5.675. The Illinois Professional Golfers
Association Foundation Junior Golf Fund.
(Source: P.A. 95-444, eff. 8-27-07; revised 12-18-07.)
 
    (30 ILCS 105/5.690)
    (This Section may contain text from a Public Act with a
delayed effective date)
    Sec. 5.690 5.675. The Rotary Club Fund.
(Source: P.A. 95-523, eff. 6-1-08; revised 12-18-07.)
 
    (30 ILCS 105/5.691)
    Sec. 5.691 5.675. The Support Our Troops Fund.
(Source: P.A. 95-534, eff. 8-28-07; revised 12-18-07.)
 
    (30 ILCS 105/5.692)
    Sec. 5.692 5.675. The Ovarian Cancer Awareness Fund.
(Source: P.A. 95-552, eff. 8-30-07; revised 12-18-07.)
 
    (30 ILCS 105/5.693)
    Sec. 5.693 5.675. The Emerald Ash Borer Revolving Loan
Fund.
(Source: P.A. 95-588, eff. 9-4-07; revised 12-18-07.)
 
    (30 ILCS 105/5.694)
    (This Section may contain text from a Public Act with a
delayed effective date)
    Sec. 5.694 5.675. The Sex Offender Investigation Fund.
(Source: P.A. 95-600, eff. 6-1-08; revised 12-18-07.)
 
    (30 ILCS 105/5.695)
    Sec. 5.695 5.675. The Interpreters for the Deaf Fund.
(Source: P.A. 95-617, eff. 9-12-07; revised 12-18-07.)
 
    (30 ILCS 105/5.696)
    Sec. 5.696 5.675. The Veterans Service Organization
Reimbursement Fund.
(Source: P.A. 95-629, eff. 9-25-07; revised 12-18-07.)
 
    (30 ILCS 105/5.697)
    (This Section may contain text from a Public Act with a
delayed effective date)
    Sec. 5.697 5.675. The Charitable Trust Stabilization Fund.
(Source: P.A. 95-655, eff. 6-1-08; revised 12-18-07.)
 
    (30 ILCS 105/5.698)
    Sec. 5.698 5.675. The Multiple Sclerosis Research Fund.
(Source: P.A. 95-673, eff. 10-11-07; revised 12-18-07.)
 
    (30 ILCS 105/5.699)
    Sec. 5.699 5.675. The Quality of Life Endowment Fund.
(Source: P.A. 95-674, eff. 10-11-07; revised 12-18-07.)
 
    (30 ILCS 105/5.701)
    Sec. 5.701 5.675. Comprehensive Regional Planning Fund.
(Source: P.A. 95-677, eff. 10-11-07; revised 12-18-07.)
 
    (30 ILCS 105/5.702)
    Sec. 5.702 5.675. The High Speed Internet Services and
Information Technology Fund.
(Source: P.A. 95-684, eff. 10-19-07; revised 12-18-07.)
 
    (30 ILCS 105/8h)
    Sec. 8h. Transfers to General Revenue Fund.
    (a) Except as otherwise provided in this Section and
Section 8n of this Act, and notwithstanding any other State law
to the contrary, the Governor may, through June 30, 2007, 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 (i) 8% of the revenues to be
deposited into the fund during that fiscal year or (ii) an
amount that leaves a remaining fund balance of 25% of the July
1 fund balance of that fiscal year. In fiscal year 2005 only,
prior to calculating the July 1, 2004 final balances, the
Governor may calculate and direct the State Treasurer with the
Comptroller to transfer additional amounts determined by
applying the formula authorized in Public Act 93-839 to the
funds balances on July 1, 2003. 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 estimated to be expended for that
fiscal year. This Section does not apply to any funds that are
restricted by federal law to a specific use, to any funds in
the Motor Fuel Tax Fund, the Intercity Passenger Rail Fund, the
Hospital Provider Fund, the Medicaid Provider Relief Fund, the
Teacher Health Insurance Security Fund, the Reviewing Court
Alternative Dispute Resolution Fund, the Voters' Guide Fund,
the Foreign Language Interpreter Fund, the Lawyers' Assistance
Program Fund, the Supreme Court Federal Projects Fund, the
Supreme Court Special State Projects Fund, the Supplemental
Low-Income Energy Assistance Fund, the Good Samaritan Energy
Trust Fund, the Low-Level Radioactive Waste Facility
Development and Operation Fund, the Horse Racing Equity Trust
Fund, the Metabolic Screening and Treatment Fund, or the
Hospital Basic Services Preservation Fund, or to any funds to
which Section 70-50 of the Nurse Practice Act applies. No
transfers may be made under this Section from the Pet
Population Control Fund. Notwithstanding any other provision
of this Section, for fiscal year 2004, the total transfer under
this Section from the Road Fund or the State Construction
Account Fund shall not exceed the lesser of (i) 5% of the
revenues to be deposited into the fund during that fiscal year
or (ii) 25% of the beginning balance in the fund. For fiscal
year 2005 through fiscal year 2007, no amounts may be
transferred under this Section from the Road Fund, the State
Construction Account Fund, the Criminal Justice Information
Systems Trust Fund, the Wireless Service Emergency Fund, or the
Mandatory Arbitration Fund.
    In determining the available balance in a fund, the
Governor 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
Governor.
    (a-5) Transfers directed to be made under this Section on
or before February 28, 2006 that are still pending on May 19,
2006 (the effective date of Public Act 94-774) shall be
redirected as provided in Section 8n of this Act.
    (b) This Section does not apply to: (i) the Ticket For The
Cure Fund; (ii) any fund established under the Community Senior
Services and Resources Act; or (iii) on or after January 1,
2006 (the effective date of Public Act 94-511), the Child Labor
and Day and Temporary Labor Enforcement Fund.
    (c) This Section does not apply to the Demutualization
Trust Fund established under the Uniform Disposition of
Unclaimed Property Act.
    (d) This Section does not apply to moneys set aside in the
Illinois State Podiatric Disciplinary Fund for podiatric
scholarships and residency programs under the Podiatric
Scholarship and Residency Act.
    (e) Subsection (a) does not apply to, and no transfer may
be made under this Section from, the Pension Stabilization
Fund.
    (f) Subsection (a) does not apply to, and no transfer may
be made under this Section from, the Illinois Power Agency
Operations Fund, the Illinois Power Agency Facilities Fund, the
Illinois Power Agency Debt Service Fund, and the Illinois Power
Agency Trust Fund.
    (g) (f) This Section does not apply to the Veterans Service
Organization Reimbursement Fund.
    (h) (f) This Section does not apply to the Supreme Court
Historic Preservation Fund.
(Source: P.A. 94-91, eff. 7-1-05; 94-120, eff. 7-6-05; 94-511,
eff. 1-1-06; 94-535, eff. 8-10-05; 94-639, eff. 8-22-05;
94-645, eff. 8-22-05; 94-648, eff. 1-1-06; 94-686, eff.
11-2-05; 94-691, eff. 11-2-05; 94-726, eff. 1-20-06; 94-773,
eff. 5-18-06; 94-774, eff. 5-19-06; 94-804, eff. 5-26-06;
94-839, eff. 6-6-06; 95-331, eff. 8-21-07; 95-410, eff.
8-24-07; 95-481, eff. 8-28-07; 95-629, eff. 9-25-07; 95-639,
eff. 10-5-07; 95-695, eff. 11-5-07; revised 11-2-07.)
 
    Section 105. The Illinois Procurement Code is amended by
changing Sections 1-10 and 50-70 and by setting forth and
renumbering multiple versions of Section 45-75 as follows:
 
    (30 ILCS 500/1-10)
    Sec. 1-10. Application.
    (a) This Code applies only to procurements for which
contractors were first solicited on or after July 1, 1998. This
Code shall not be construed to affect or impair any contract,
or any provision of a contract, entered into based on a
solicitation prior to the implementation date of this Code as
described in Article 99, including but not limited to any
covenant entered into with respect to any revenue bonds or
similar instruments. All procurements for which contracts are
solicited between the effective date of Articles 50 and 99 and
July 1, 1998 shall be substantially in accordance with this
Code and its intent.
    (b) This Code shall apply regardless of the source of the
funds with which the contracts are paid, including federal
assistance moneys. This Code shall not apply to:
        (1) Contracts between the State and its political
    subdivisions or other governments, or between State
    governmental bodies except as specifically provided in
    this Code.
        (2) Grants, except for the filing requirements of
    Section 20-80.
        (3) Purchase of care.
        (4) Hiring of an individual as employee and not as an
    independent contractor, whether pursuant to an employment
    code or policy or by contract directly with that
    individual.
        (5) Collective bargaining contracts.
        (6) Purchase of real estate, except that notice of this
    type of contract with a value of more than $25,000 must be
    published in the Procurement Bulletin within 7 days after
    the deed is recorded in the county of jurisdiction. The
    notice shall identify the real estate purchased, the names
    of all parties to the contract, the value of the contract,
    and the effective date of the contract.
        (7) Contracts necessary to prepare for anticipated
    litigation, enforcement actions, or investigations,
    provided that the chief legal counsel to the Governor shall
    give his or her prior approval when the procuring agency is
    one subject to the jurisdiction of the Governor, and
    provided that the chief legal counsel of any other
    procuring entity subject to this Code shall give his or her
    prior approval when the procuring entity is not one subject
    to the jurisdiction of the Governor.
        (8) Contracts for services to Northern Illinois
    University by a person, acting as an independent
    contractor, who is qualified by education, experience, and
    technical ability and is selected by negotiation for the
    purpose of providing non-credit educational service
    activities or products by means of specialized programs
    offered by the university.
        (9) Procurement expenditures by the Illinois
    Conservation Foundation when only private funds are used.
    (c) This Code does not apply to the electric power
procurement process provided for under Section 1-75 of the
Illinois Power Agency Act and Section 16-111.5 of the Public
Utilities Act.
(Source: P.A. 95-481, eff. 8-28-07; 95-615, eff. 9-11-07;
revised 11-2-07.)
 
    (30 ILCS 500/45-75)
    Sec. 45-75. Biobased products. When a State contract is to
be awarded to the lowest responsible bidder, an otherwise
qualified bidder who will fulfill the contract through the use
of biobased products may be given preference over other bidders
unable to do so, provided that the cost included in the bid of
biobased products is not more than 5% greater than the cost of
products that are not biobased.
    For the purpose of this Section, a biobased product is
defined as in the federal Biobased Products Preferred
Procurement Program.
    This Section does not apply to contracts for construction
projects awarded by the Capital Development Board or the
Department of Transportation.
(Source: P.A. 95-71, eff. 1-1-08.)
 
    (30 ILCS 500/45-80)
    Sec. 45-80 45-75. Historic area preference. State agencies
with responsibilities for leasing, acquiring, or maintaining
State facilities shall take all reasonable steps to minimize
any regulations, policies, and procedures that impede the goals
of Section 17 of the Capital Development Board Act.
(Source: P.A. 95-101, eff. 8-13-07; revised 12-6-07.)
 
    (30 ILCS 500/50-70)
    Sec. 50-70. Additional provisions. This Code is subject to
applicable provisions of the following Acts:
        (1) Article 33E of the Criminal Code of 1961;
        (2) the Illinois Human Rights Act;
        (3) the Discriminatory Club Act;
        (4) the Illinois Governmental Ethics Act;
        (5) the State Prompt Payment Act;
        (6) the Public Officer Prohibited Activities Act;
        (7) the Drug Free Workplace Act; and
        (8) the Illinois Power Agency Act; and .
        (9) (8) the Employee Classification Act.
(Source: P.A. 95-26, eff. 1-1-08; 95-481, eff. 8-28-07; revised
11-2-07.)
 
    Section 110. The State Mandates Act is amended by changing
Sections 8.30 and 8.31 as follows:
 
    (30 ILCS 805/8.30)
    Sec. 8.30. Exempt mandate.
    (a) Notwithstanding Sections 6 and 8 of this Act, no
reimbursement by the State is required for the implementation
of any mandate created by Public Act 94-750, 94-792, 94-794,
94-806, 94-823, 94-834, 94-856, 94-875, 94-933, or 94-1055,
94-1074, or 94-1111.
    (b) Notwithstanding Sections 6 and 8 of this Act, no
reimbursement by the State is required for the implementation
of any mandate created by the Volunteer Emergency Worker Higher
Education Protection Act.
(Source: P.A. 94-750, eff. 5-9-06; 94-792, eff. 5-19-06;
94-794, eff. 5-22-06; 94-806, eff. 1-1-07; 94-823, eff. 1-1-07;
94-834, eff. 6-6-06; 94-856, eff. 6-15-06; 94-875, eff. 7-1-06;
94-933, eff. 6-26-06; 94-957, eff. 7-1-06; 94-1055, eff.
1-1-07; 94-1074, eff. 12-26-06; 94-1111, eff. 2-27-07; 95-331,
eff. 8-21-07; revised 12-6-07.)
 
    (30 ILCS 805/8.31)
    Sec. 8.31. Exempt mandate.
    (a) Notwithstanding Sections 6 and 8 of this Act, no
reimbursement by the State is required for the implementation
of any mandate created by Public Act 95-9, 95-17, 95-148,
95-151, 95-194, 95-232, 95-241, 95-279, 95-349, 95-369,
95-483, 95-486, 95-504, 95-521, 95-530, 95-586, 95-644,
95-654, 95-671, 95-677, or 95-681 this amendatory Act of the
95th General Assembly.
    (b) Notwithstanding Sections 6 and 8 of this Act, no
reimbursement by the State is required for the implementation
of any mandate created by the Green Cleaning Schools Act.
(Source: P.A. 95-9, eff. 6-30-07; 95-17, eff. 1-1-08; 95-84,
eff. 8-13-07; 95-148, eff. 8-14-07; 95-151, eff. 8-14-07;
95-194, eff. 1-1-08; 95-232, eff. 8-16-07; 95-241, eff.
8-17-07; 95-279, eff. 1-1-08; 95-349, eff. 8-23-07; 95-369,
eff. 8-23-07; 95-483, eff. 8-28-07; 95-486, eff. 8-28-07;
95-504, eff. 8-28-07; 95-521, eff. 8-28-07; 95-530, eff.
8-28-07; 95-586, eff. 8-31-07; 95-644, eff. 10-12-07; 95-654,
eff. 1-1-08; 95-671, eff. 1-1-08; 95-677, eff. 10-11-07;
95-681, eff. 10-11-07; revised 12-18-07.)
 
    Section 115. The Illinois Income Tax Act is amended by
changing Section 203 and by renumbering multiple versions of
Section 507OO as follows:
 
    (35 ILCS 5/203)  (from Ch. 120, par. 2-203)
    Sec. 203. Base income defined.
    (a) Individuals.
        (1) In general. In the case of an individual, base
    income means an amount equal to the taxpayer's adjusted
    gross income for the taxable year as modified by paragraph
    (2).
        (2) Modifications. The adjusted gross income referred
    to in paragraph (1) shall be modified by adding thereto the
    sum of the following amounts:
            (A) An amount equal to all amounts paid or accrued
        to the taxpayer as interest or dividends during the
        taxable year to the extent excluded from gross income
        in the computation of adjusted gross income, except
        stock dividends of qualified public utilities
        described in Section 305(e) of the Internal Revenue
        Code;
            (B) An amount equal to the amount of tax imposed by
        this Act to the extent deducted from gross income in
        the computation of adjusted gross income for the
        taxable year;
            (C) An amount equal to the amount received during
        the taxable year as a recovery or refund of real
        property taxes paid with respect to the taxpayer's
        principal residence under the Revenue Act of 1939 and
        for which a deduction was previously taken under
        subparagraph (L) of this paragraph (2) prior to July 1,
        1991, the retrospective application date of Article 4
        of Public Act 87-17. In the case of multi-unit or
        multi-use structures and farm dwellings, the taxes on
        the taxpayer's principal residence shall be that
        portion of the total taxes for the entire property
        which is attributable to such principal residence;
            (D) An amount equal to the amount of the capital
        gain deduction allowable under the Internal Revenue
        Code, to the extent deducted from gross income in the
        computation of adjusted gross income;
            (D-5) An amount, to the extent not included in
        adjusted gross income, equal to the amount of money
        withdrawn by the taxpayer in the taxable year from a
        medical care savings account and the interest earned on
        the account in the taxable year of a withdrawal
        pursuant to subsection (b) of Section 20 of the Medical
        Care Savings Account Act or subsection (b) of Section
        20 of the Medical Care Savings Account Act of 2000;
            (D-10) For taxable years ending after December 31,
        1997, an amount equal to any eligible remediation costs
        that the individual deducted in computing adjusted
        gross income and for which the individual claims a
        credit under subsection (l) of Section 201;
            (D-15) For taxable years 2001 and thereafter, an
        amount equal to the bonus depreciation deduction taken
        on the taxpayer's federal income tax return for the
        taxable year under subsection (k) of Section 168 of the
        Internal Revenue Code;
            (D-16) If the taxpayer sells, transfers, abandons,
        or otherwise disposes of property for which the
        taxpayer was required in any taxable year to make an
        addition modification under subparagraph (D-15), then
        an amount equal to the aggregate amount of the
        deductions taken in all taxable years under
        subparagraph (Z) with respect to that property.
            If the taxpayer continues to own property through
        the last day of the last tax year for which the
        taxpayer may claim a depreciation deduction for
        federal income tax purposes and for which the taxpayer
        was allowed in any taxable year to make a subtraction
        modification under subparagraph (Z), then an amount
        equal to that subtraction modification.
            The taxpayer is required to make the addition
        modification under this subparagraph only once with
        respect to any one piece of property;
            (D-17) An amount equal to the amount otherwise
        allowed as a deduction in computing base income for
        interest paid, accrued, or incurred, directly or
        indirectly, (i) for taxable years ending on or after
        December 31, 2004, to a foreign person who would be a
        member of the same unitary business group but for the
        fact that foreign person's business activity outside
        the United States is 80% or more of the foreign
        person's total business activity and (ii) for taxable
        years ending on or after December 31, 2008, to a person
        who would be a member of the same unitary business
        group but for the fact that the person is prohibited
        under Section 1501(a)(27) from being included in the
        unitary business group because he or she is ordinarily
        required to apportion business income under different
        subsections of Section 304. The addition modification
        required by this subparagraph shall be reduced to the
        extent that dividends were included in base income of
        the unitary group for the same taxable year and
        received by the taxpayer or by a member of the
        taxpayer's unitary business group (including amounts
        included in gross income under Sections 951 through 964
        of the Internal Revenue Code and amounts included in
        gross income under Section 78 of the Internal Revenue
        Code) with respect to the stock of the same person to
        whom the interest was paid, accrued, or incurred.
            This paragraph shall not apply to the following:
                (i) an item of interest paid, accrued, or
            incurred, directly or indirectly, to a foreign
            person who is subject in a foreign country or
            state, other than a state which requires mandatory
            unitary reporting, to a tax on or measured by net
            income with respect to such interest; or
                (ii) an item of interest paid, accrued, or
            incurred, directly or indirectly, to a foreign
            person if the taxpayer can establish, based on a
            preponderance of the evidence, both of the
            following:
                    (a) the foreign person, during the same
                taxable year, paid, accrued, or incurred, the
                interest to a person that is not a related
                member, and
                    (b) the transaction giving rise to the
                interest expense between the taxpayer and the
                foreign person did not have as a principal
                purpose the avoidance of Illinois income tax,
                and is paid pursuant to a contract or agreement
                that reflects an arm's-length interest rate
                and terms; or
                (iii) the taxpayer can establish, based on
            clear and convincing evidence, that the interest
            paid, accrued, or incurred relates to a contract or
            agreement entered into at arm's-length rates and
            terms and the principal purpose for the payment is
            not federal or Illinois tax avoidance; or
                (iv) an item of interest paid, accrued, or
            incurred, directly or indirectly, to a foreign
            person if the taxpayer establishes by clear and
            convincing evidence that the adjustments are
            unreasonable; or if the taxpayer and the Director
            agree in writing to the application or use of an
            alternative method of apportionment under Section
            304(f).
                Nothing in this subsection shall preclude the
            Director from making any other adjustment
            otherwise allowed under Section 404 of this Act for
            any tax year beginning after the effective date of
            this amendment provided such adjustment is made
            pursuant to regulation adopted by the Department
            and such regulations provide methods and standards
            by which the Department will utilize its authority
            under Section 404 of this Act;
            (D-18) An amount equal to the amount of intangible
        expenses and costs otherwise allowed as a deduction in
        computing base income, and that were paid, accrued, or
        incurred, directly or indirectly, (i) for taxable
        years ending on or after December 31, 2004, to a
        foreign person who would be a member of the same
        unitary business group but for the fact that the
        foreign person's business activity outside the United
        States is 80% or more of that person's total business
        activity and (ii) for taxable years ending on or after
        December 31, 2008, to a person who would be a member of
        the same unitary business group but for the fact that
        the person is prohibited under Section 1501(a)(27)
        from being included in the unitary business group
        because he or she is ordinarily required to apportion
        business income under different subsections of Section
        304. The addition modification required by this
        subparagraph shall be reduced to the extent that
        dividends were included in base income of the unitary
        group for the same taxable year and received by the
        taxpayer or by a member of the taxpayer's unitary
        business group (including amounts included in gross
        income under Sections 951 through 964 of the Internal
        Revenue Code and amounts included in gross income under
        Section 78 of the Internal Revenue Code) with respect
        to the stock of the same person to whom the intangible
        expenses and costs were directly or indirectly paid,
        incurred, or accrued. The preceding sentence does not
        apply to the extent that the same dividends caused a
        reduction to the addition modification required under
        Section 203(a)(2)(D-17) of this Act. As used in this
        subparagraph, the term "intangible expenses and costs"
        includes (1) expenses, losses, and costs for, or
        related to, the direct or indirect acquisition, use,
        maintenance or management, ownership, sale, exchange,
        or any other disposition of intangible property; (2)
        losses incurred, directly or indirectly, from
        factoring transactions or discounting transactions;
        (3) royalty, patent, technical, and copyright fees;
        (4) licensing fees; and (5) other similar expenses and
        costs. For purposes of this subparagraph, "intangible
        property" includes patents, patent applications, trade
        names, trademarks, service marks, copyrights, mask
        works, trade secrets, and similar types of intangible
        assets.
            This paragraph shall not apply to the following:
                (i) any item of intangible expenses or costs
            paid, accrued, or incurred, directly or
            indirectly, from a transaction with a foreign
            person who is subject in a foreign country or
            state, other than a state which requires mandatory
            unitary reporting, to a tax on or measured by net
            income with respect to such item; or
                (ii) any item of intangible expense or cost
            paid, accrued, or incurred, directly or
            indirectly, if the taxpayer can establish, based
            on a preponderance of the evidence, both of the
            following:
                    (a) the foreign person during the same
                taxable year paid, accrued, or incurred, the
                intangible expense or cost to a person that is
                not a related member, and
                    (b) the transaction giving rise to the
                intangible expense or cost between the
                taxpayer and the foreign person did not have as
                a principal purpose the avoidance of Illinois
                income tax, and is paid pursuant to a contract
                or agreement that reflects arm's-length terms;
                or
                (iii) any item of intangible expense or cost
            paid, accrued, or incurred, directly or
            indirectly, from a transaction with a foreign
            person if the taxpayer establishes by clear and
            convincing evidence, that the adjustments are
            unreasonable; or if the taxpayer and the Director
            agree in writing to the application or use of an
            alternative method of apportionment under Section
            304(f);
                Nothing in this subsection shall preclude the
            Director from making any other adjustment
            otherwise allowed under Section 404 of this Act for
            any tax year beginning after the effective date of
            this amendment provided such adjustment is made
            pursuant to regulation adopted by the Department
            and such regulations provide methods and standards
            by which the Department will utilize its authority
            under Section 404 of this Act;
            (D-19) For taxable years ending on or after
        December 31, 2008, an amount equal to the amount of
        insurance premium expenses and costs otherwise allowed
        as a deduction in computing base income, and that were
        paid, accrued, or incurred, directly or indirectly, to
        a person who would be a member of the same unitary
        business group but for the fact that the person is
        prohibited under Section 1501(a)(27) from being
        included in the unitary business group because he or
        she is ordinarily required to apportion business
        income under different subsections of Section 304. The
        addition modification required by this subparagraph
        shall be reduced to the extent that dividends were
        included in base income of the unitary group for the
        same taxable year and received by the taxpayer or by a
        member of the taxpayer's unitary business group
        (including amounts included in gross income under
        Sections 951 through 964 of the Internal Revenue Code
        and amounts included in gross income under Section 78
        of the Internal Revenue Code) with respect to the stock
        of the same person to whom the intangible expenses and
        costs were directly or indirectly paid, incurred, or
        accrued. The preceding sentence does not apply to the
        extent that the same dividends caused a reduction to
        the addition modification required under Section
        203(a)(2)(D-17) of this Act.
            (D-20) For taxable years beginning on or after
        January 1, 2002 and ending on or before December 31,
        2006, in the case of a distribution from a qualified
        tuition program under Section 529 of the Internal
        Revenue Code, other than (i) a distribution from a
        College Savings Pool created under Section 16.5 of the
        State Treasurer Act or (ii) a distribution from the
        Illinois Prepaid Tuition Trust Fund, an amount equal to
        the amount excluded from gross income under Section
        529(c)(3)(B). For taxable years beginning on or after
        January 1, 2007, in the case of a distribution from a
        qualified tuition program under Section 529 of the
        Internal Revenue Code, other than (i) a distribution
        from a College Savings Pool created under Section 16.5
        of the State Treasurer Act, (ii) a distribution from
        the Illinois Prepaid Tuition Trust Fund, or (iii) a
        distribution from a qualified tuition program under
        Section 529 of the Internal Revenue Code that (I)
        adopts and determines that its offering materials
        comply with the College Savings Plans Network's
        disclosure principles and (II) has made reasonable
        efforts to inform in-state residents of the existence
        of in-state qualified tuition programs by informing
        Illinois residents directly and, where applicable, to
        inform financial intermediaries distributing the
        program to inform in-state residents of the existence
        of in-state qualified tuition programs at least
        annually, an amount equal to the amount excluded from
        gross income under Section 529(c)(3)(B).
            For the purposes of this subparagraph (D-20), a
        qualified tuition program has made reasonable efforts
        if it makes disclosures (which may use the term
        "in-state program" or "in-state plan" and need not
        specifically refer to Illinois or its qualified
        programs by name) (i) directly to prospective
        participants in its offering materials or makes a
        public disclosure, such as a website posting; and (ii)
        where applicable, to intermediaries selling the
        out-of-state program in the same manner that the
        out-of-state program distributes its offering
        materials;
                (D-21) For taxable years beginning on or after
        January 1, 2007, in the case of transfer of moneys from
        a qualified tuition program under Section 529 of the
        Internal Revenue Code that is administered by the State
        to an out-of-state program, an amount equal to the
        amount of moneys previously deducted from base income
        under subsection (a)(2)(Y) of this Section.
    and by deducting from the total so obtained the sum of the
    following amounts:
            (E) For taxable years ending before December 31,
        2001, any amount included in such total in respect of
        any compensation (including but not limited to any
        compensation paid or accrued to a serviceman while a
        prisoner of war or missing in action) paid to a
        resident by reason of being on active duty in the Armed
        Forces of the United States and in respect of any
        compensation paid or accrued to a resident who as a
        governmental employee was a prisoner of war or missing
        in action, and in respect of any compensation paid to a
        resident in 1971 or thereafter for annual training
        performed pursuant to Sections 502 and 503, Title 32,
        United States Code as a member of the Illinois National
        Guard or, beginning with taxable years ending on or
        after December 31, 2007, the National Guard of any
        other state. For taxable years ending on or after
        December 31, 2001, any amount included in such total in
        respect of any compensation (including but not limited
        to any compensation paid or accrued to a serviceman
        while a prisoner of war or missing in action) paid to a
        resident by reason of being a member of any component
        of the Armed Forces of the United States and in respect
        of any compensation paid or accrued to a resident who
        as a governmental employee was a prisoner of war or
        missing in action, and in respect of any compensation
        paid to a resident in 2001 or thereafter by reason of
        being a member of the Illinois National Guard or,
        beginning with taxable years ending on or after
        December 31, 2007, the National Guard of any other
        state. The provisions of this amendatory Act of the
        92nd General Assembly are exempt from the provisions of
        Section 250;
            (F) An amount equal to all amounts included in such
        total pursuant to the provisions of Sections 402(a),
        402(c), 403(a), 403(b), 406(a), 407(a), and 408 of the
        Internal Revenue Code, or included in such total as
        distributions under the provisions of any retirement
        or disability plan for employees of any governmental
        agency or unit, or retirement payments to retired
        partners, which payments are excluded in computing net
        earnings from self employment by Section 1402 of the
        Internal Revenue Code and regulations adopted pursuant
        thereto;
            (G) The valuation limitation amount;
            (H) An amount equal to the amount of any tax
        imposed by this Act which was refunded to the taxpayer
        and included in such total for the taxable year;
            (I) An amount equal to all amounts included in such
        total pursuant to the provisions of Section 111 of the
        Internal Revenue Code as a recovery of items previously
        deducted from adjusted gross income in the computation
        of taxable income;
            (J) An amount equal to those dividends included in
        such total which were paid by a corporation which
        conducts business operations in an Enterprise Zone or
        zones created under the Illinois Enterprise Zone Act or
        a River Edge Redevelopment Zone or zones created under
        the River Edge Redevelopment Zone Act, and conducts
        substantially all of its operations in an Enterprise
        Zone or zones or a River Edge Redevelopment Zone or
        zones. This subparagraph (J) is exempt from the
        provisions of Section 250;
            (K) An amount equal to those dividends included in
        such total that were paid by a corporation that
        conducts business operations in a federally designated
        Foreign Trade Zone or Sub-Zone and that is designated a
        High Impact Business located in Illinois; provided
        that dividends eligible for the deduction provided in
        subparagraph (J) of paragraph (2) of this subsection
        shall not be eligible for the deduction provided under
        this subparagraph (K);
            (L) For taxable years ending after December 31,
        1983, an amount equal to all social security benefits
        and railroad retirement benefits included in such
        total pursuant to Sections 72(r) and 86 of the Internal
        Revenue Code;
            (M) With the exception of any amounts subtracted
        under subparagraph (N), an amount equal to the sum of
        all amounts disallowed as deductions by (i) Sections
        171(a) (2), and 265(2) of the Internal Revenue Code of
        1954, as now or hereafter amended, and all amounts of
        expenses allocable to interest and disallowed as
        deductions by Section 265(1) of the Internal Revenue
        Code of 1954, as now or hereafter amended; and (ii) for
        taxable years ending on or after August 13, 1999,
        Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of
        the Internal Revenue Code; the provisions of this
        subparagraph are exempt from the provisions of Section
        250;
            (N) An amount equal to all amounts included in such
        total which are exempt from taxation by this State
        either by reason of its statutes or Constitution or by
        reason of the Constitution, treaties or statutes of the
        United States; provided that, in the case of any
        statute of this State or, for taxable years ending on
        or after December 31, 2008, of the United States, any
        treaty of the United States, the Illinois
        Constitution, or the United States Constitution that
        exempts income derived from bonds or other obligations
        from the tax imposed under this Act, the amount
        exempted shall be the income net of bond premium
        amortization, and, for taxable years ending on or after
        December 31, 2008, interest expense incurred on
        indebtedness to carry the bond or other obligation,
        expenses incurred in producing the income to be
        deducted, and all other related expenses. The amount of
        expenses to be taken into account under this provision
        may not exceed the amount of income that is exempted;
            (O) An amount equal to any contribution made to a
        job training project established pursuant to the Tax
        Increment Allocation Redevelopment Act;
            (P) An amount equal to the amount of the deduction
        used to compute the federal income tax credit for
        restoration of substantial amounts held under claim of
        right for the taxable year pursuant to Section 1341 of
        the Internal Revenue Code of 1986;
            (Q) An amount equal to any amounts included in such
        total, received by the taxpayer as an acceleration in
        the payment of life, endowment or annuity benefits in
        advance of the time they would otherwise be payable as
        an indemnity for a terminal illness;
            (R) An amount equal to the amount of any federal or
        State bonus paid to veterans of the Persian Gulf War;
            (S) An amount, to the extent included in adjusted
        gross income, equal to the amount of a contribution
        made in the taxable year on behalf of the taxpayer to a
        medical care savings account established under the
        Medical Care Savings Account Act or the Medical Care
        Savings Account Act of 2000 to the extent the
        contribution is accepted by the account administrator
        as provided in that Act;
            (T) An amount, to the extent included in adjusted
        gross income, equal to the amount of interest earned in
        the taxable year on a medical care savings account
        established under the Medical Care Savings Account Act
        or the Medical Care Savings Account Act of 2000 on
        behalf of the taxpayer, other than interest added
        pursuant to item (D-5) of this paragraph (2);
            (U) For one taxable year beginning on or after
        January 1, 1994, an amount equal to the total amount of
        tax imposed and paid under subsections (a) and (b) of
        Section 201 of this Act on grant amounts received by
        the taxpayer under the Nursing Home Grant Assistance
        Act during the taxpayer's taxable years 1992 and 1993;
            (V) Beginning with tax years ending on or after
        December 31, 1995 and ending with tax years ending on
        or before December 31, 2004, an amount equal to the
        amount paid by a taxpayer who is a self-employed
        taxpayer, a partner of a partnership, or a shareholder
        in a Subchapter S corporation for health insurance or
        long-term care insurance for that taxpayer or that
        taxpayer's spouse or dependents, to the extent that the
        amount paid for that health insurance or long-term care
        insurance may be deducted under Section 213 of the
        Internal Revenue Code of 1986, has not been deducted on
        the federal income tax return of the taxpayer, and does
        not exceed the taxable income attributable to that
        taxpayer's income, self-employment income, or
        Subchapter S corporation income; except that no
        deduction shall be allowed under this item (V) if the
        taxpayer is eligible to participate in any health
        insurance or long-term care insurance plan of an
        employer of the taxpayer or the taxpayer's spouse. The
        amount of the health insurance and long-term care
        insurance subtracted under this item (V) shall be
        determined by multiplying total health insurance and
        long-term care insurance premiums paid by the taxpayer
        times a number that represents the fractional
        percentage of eligible medical expenses under Section
        213 of the Internal Revenue Code of 1986 not actually
        deducted on the taxpayer's federal income tax return;
            (W) For taxable years beginning on or after January
        1, 1998, all amounts included in the taxpayer's federal
        gross income in the taxable year from amounts converted
        from a regular IRA to a Roth IRA. This paragraph is
        exempt from the provisions of Section 250;
            (X) For taxable year 1999 and thereafter, an amount
        equal to the amount of any (i) distributions, to the
        extent includible in gross income for federal income
        tax purposes, made to the taxpayer because of his or
        her status as a victim of persecution for racial or
        religious reasons by Nazi Germany or any other Axis
        regime or as an heir of the victim and (ii) items of
        income, to the extent includible in gross income for
        federal income tax purposes, attributable to, derived
        from or in any way related to assets stolen from,
        hidden from, or otherwise lost to a victim of
        persecution for racial or religious reasons by Nazi
        Germany or any other Axis regime immediately prior to,
        during, and immediately after World War II, including,
        but not limited to, interest on the proceeds receivable
        as insurance under policies issued to a victim of
        persecution for racial or religious reasons by Nazi
        Germany or any other Axis regime by European insurance
        companies immediately prior to and during World War II;
        provided, however, this subtraction from federal
        adjusted gross income does not apply to assets acquired
        with such assets or with the proceeds from the sale of
        such assets; provided, further, this paragraph shall
        only apply to a taxpayer who was the first recipient of
        such assets after their recovery and who is a victim of
        persecution for racial or religious reasons by Nazi
        Germany or any other Axis regime or as an heir of the
        victim. The amount of and the eligibility for any
        public assistance, benefit, or similar entitlement is
        not affected by the inclusion of items (i) and (ii) of
        this paragraph in gross income for federal income tax
        purposes. This paragraph is exempt from the provisions
        of Section 250;
            (Y) For taxable years beginning on or after January
        1, 2002 and ending on or before December 31, 2004,
        moneys contributed in the taxable year to a College
        Savings Pool account under Section 16.5 of the State
        Treasurer Act, except that amounts excluded from gross
        income under Section 529(c)(3)(C)(i) of the Internal
        Revenue Code shall not be considered moneys
        contributed under this subparagraph (Y). For taxable
        years beginning on or after January 1, 2005, a maximum
        of $10,000 contributed in the taxable year to (i) a
        College Savings Pool account under Section 16.5 of the
        State Treasurer Act or (ii) the Illinois Prepaid
        Tuition Trust Fund, except that amounts excluded from
        gross income under Section 529(c)(3)(C)(i) of the
        Internal Revenue Code shall not be considered moneys
        contributed under this subparagraph (Y). This
        subparagraph (Y) is exempt from the provisions of
        Section 250;
            (Z) For taxable years 2001 and thereafter, for the
        taxable year in which the bonus depreciation deduction
        is taken on the taxpayer's federal income tax return
        under subsection (k) of Section 168 of the Internal
        Revenue Code and for each applicable taxable year
        thereafter, an amount equal to "x", where:
                (1) "y" equals the amount of the depreciation
            deduction taken for the taxable year on the
            taxpayer's federal income tax return on property
            for which the bonus depreciation deduction was
            taken in any year under subsection (k) of Section
            168 of the Internal Revenue Code, but not including
            the bonus depreciation deduction;
                (2) for taxable years ending on or before
            December 31, 2005, "x" equals "y" multiplied by 30
            and then divided by 70 (or "y" multiplied by
            0.429); and
                (3) for taxable years ending after December
            31, 2005:
                    (i) for property on which a bonus
                depreciation deduction of 30% of the adjusted
                basis was taken, "x" equals "y" multiplied by
                30 and then divided by 70 (or "y" multiplied by
                0.429); and
                    (ii) for property on which a bonus
                depreciation deduction of 50% of the adjusted
                basis was taken, "x" equals "y" multiplied by
                1.0.
            The aggregate amount deducted under this
        subparagraph in all taxable years for any one piece of
        property may not exceed the amount of the bonus
        depreciation deduction taken on that property on the
        taxpayer's federal income tax return under subsection
        (k) of Section 168 of the Internal Revenue Code. This
        subparagraph (Z) is exempt from the provisions of
        Section 250;
            (AA) If the taxpayer sells, transfers, abandons,
        or otherwise disposes of property for which the
        taxpayer was required in any taxable year to make an
        addition modification under subparagraph (D-15), then
        an amount equal to that addition modification.
            If the taxpayer continues to own property through
        the last day of the last tax year for which the
        taxpayer may claim a depreciation deduction for
        federal income tax purposes and for which the taxpayer
        was required in any taxable year to make an addition
        modification under subparagraph (D-15), then an amount
        equal to that addition modification.
            The taxpayer is allowed to take the deduction under
        this subparagraph only once with respect to any one
        piece of property.
            This subparagraph (AA) is exempt from the
        provisions of Section 250;
            (BB) Any amount included in adjusted gross income,
        other than salary, received by a driver in a
        ridesharing arrangement using a motor vehicle;
            (CC) The amount of (i) any interest income (net of
        the deductions allocable thereto) taken into account
        for the taxable year with respect to a transaction with
        a taxpayer that is required to make an addition
        modification with respect to such transaction under
        Section 203(a)(2)(D-17), 203(b)(2)(E-12),
        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
        the amount of that addition modification, and (ii) any
        income from intangible property (net of the deductions
        allocable thereto) taken into account for the taxable
        year with respect to a transaction with a taxpayer that
        is required to make an addition modification with
        respect to such transaction under Section
        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
        203(d)(2)(D-8), but not to exceed the amount of that
        addition modification;
            (DD) An amount equal to the interest income taken
        into account for the taxable year (net of the
        deductions allocable thereto) with respect to
        transactions with (i) a foreign person who would be a
        member of the taxpayer's unitary business group but for
        the fact that the foreign person's business activity
        outside the United States is 80% or more of that
        person's total business activity and (ii) for taxable
        years ending on or after December 31, 2008, to a person
        who would be a member of the same unitary business
        group but for the fact that the person is prohibited
        under Section 1501(a)(27) from being included in the
        unitary business group because he or she is ordinarily
        required to apportion business income under different
        subsections of Section 304, but not to exceed the
        addition modification required to be made for the same
        taxable year under Section 203(a)(2)(D-17) for
        interest paid, accrued, or incurred, directly or
        indirectly, to the same person;
            (EE) An amount equal to the income from intangible
        property taken into account for the taxable year (net
        of the deductions allocable thereto) with respect to
        transactions with (i) a foreign person who would be a
        member of the taxpayer's unitary business group but for
        the fact that the foreign person's business activity
        outside the United States is 80% or more of that
        person's total business activity and (ii) for taxable
        years ending on or after December 31, 2008, to a person
        who would be a member of the same unitary business
        group but for the fact that the person is prohibited
        under Section 1501(a)(27) from being included in the
        unitary business group because he or she is ordinarily
        required to apportion business income under different
        subsections of Section 304, but not to exceed the
        addition modification required to be made for the same
        taxable year under Section 203(a)(2)(D-18) for
        intangible expenses and costs paid, accrued, or
        incurred, directly or indirectly, to the same foreign
        person; and
            (FF) An amount equal to the income from insurance
        premiums taken into account for the taxable year (net
        of the deductions allocable thereto) with respect to
        transactions with a person who would be a member of the
        same unitary business group but for the fact that the
        person is prohibited under Section 1501(a)(27) from
        being included in the unitary business group because he
        or she is ordinarily required to apportion business
        income under different subsections of Section 304, but
        not to exceed the addition modification required to be
        made for the same taxable year under Section
        203(a)(2)(D-18) for intangible expenses and costs
        paid, accrued, or incurred, directly or indirectly, to
        the same person.
 
    (b) Corporations.
        (1) In general. In the case of a corporation, base
    income means an amount equal to the taxpayer's taxable
    income for the taxable year as modified by paragraph (2).
        (2) Modifications. The taxable income referred to in
    paragraph (1) shall be modified by adding thereto the sum
    of the following amounts:
            (A) An amount equal to all amounts paid or accrued
        to the taxpayer as interest and all distributions
        received from regulated investment companies during
        the taxable year to the extent excluded from gross
        income in the computation of taxable income;
            (B) An amount equal to the amount of tax imposed by
        this Act to the extent deducted from gross income in
        the computation of taxable income for the taxable year;
            (C) In the case of a regulated investment company,
        an amount equal to the excess of (i) the net long-term
        capital gain for the taxable year, over (ii) the amount
        of the capital gain dividends designated as such in
        accordance with Section 852(b)(3)(C) of the Internal
        Revenue Code and any amount designated under Section
        852(b)(3)(D) of the Internal Revenue Code,
        attributable to the taxable year (this amendatory Act
        of 1995 (Public Act 89-89) is declarative of existing
        law and is not a new enactment);
            (D) The amount of any net operating loss deduction
        taken in arriving at taxable income, other than a net
        operating loss carried forward from a taxable year
        ending prior to December 31, 1986;
            (E) For taxable years in which a net operating loss
        carryback or carryforward from a taxable year ending
        prior to December 31, 1986 is an element of taxable
        income under paragraph (1) of subsection (e) or
        subparagraph (E) of paragraph (2) of subsection (e),
        the amount by which addition modifications other than
        those provided by this subparagraph (E) exceeded
        subtraction modifications in such earlier taxable
        year, with the following limitations applied in the
        order that they are listed:
                (i) the addition modification relating to the
            net operating loss carried back or forward to the
            taxable year from any taxable year ending prior to
            December 31, 1986 shall be reduced by the amount of
            addition modification under this subparagraph (E)
            which related to that net operating loss and which
            was taken into account in calculating the base
            income of an earlier taxable year, and
                (ii) the addition modification relating to the
            net operating loss carried back or forward to the
            taxable year from any taxable year ending prior to
            December 31, 1986 shall not exceed the amount of
            such carryback or carryforward;
            For taxable years in which there is a net operating
        loss carryback or carryforward from more than one other
        taxable year ending prior to December 31, 1986, the
        addition modification provided in this subparagraph
        (E) shall be the sum of the amounts computed
        independently under the preceding provisions of this
        subparagraph (E) for each such taxable year;
            (E-5) For taxable years ending after December 31,
        1997, an amount equal to any eligible remediation costs
        that the corporation deducted in computing adjusted
        gross income and for which the corporation claims a
        credit under subsection (l) of Section 201;
            (E-10) For taxable years 2001 and thereafter, an
        amount equal to the bonus depreciation deduction taken
        on the taxpayer's federal income tax return for the
        taxable year under subsection (k) of Section 168 of the
        Internal Revenue Code; and
            (E-11) If the taxpayer sells, transfers, abandons,
        or otherwise disposes of property for which the
        taxpayer was required in any taxable year to make an
        addition modification under subparagraph (E-10), then
        an amount equal to the aggregate amount of the
        deductions taken in all taxable years under
        subparagraph (T) with respect to that property.
            If the taxpayer continues to own property through
        the last day of the last tax year for which the
        taxpayer may claim a depreciation deduction for
        federal income tax purposes and for which the taxpayer
        was allowed in any taxable year to make a subtraction
        modification under subparagraph (T), then an amount
        equal to that subtraction modification.
            The taxpayer is required to make the addition
        modification under this subparagraph only once with
        respect to any one piece of property;
            (E-12) An amount equal to the amount otherwise
        allowed as a deduction in computing base income for
        interest paid, accrued, or incurred, directly or
        indirectly, (i) for taxable years ending on or after
        December 31, 2004, to a foreign person who would be a
        member of the same unitary business group but for the
        fact the foreign person's business activity outside
        the United States is 80% or more of the foreign
        person's total business activity and (ii) for taxable
        years ending on or after December 31, 2008, to a person
        who would be a member of the same unitary business
        group but for the fact that the person is prohibited
        under Section 1501(a)(27) from being included in the
        unitary business group because he or she is ordinarily
        required to apportion business income under different
        subsections of Section 304. The addition modification
        required by this subparagraph shall be reduced to the
        extent that dividends were included in base income of
        the unitary group for the same taxable year and
        received by the taxpayer or by a member of the
        taxpayer's unitary business group (including amounts
        included in gross income pursuant to Sections 951
        through 964 of the Internal Revenue Code and amounts
        included in gross income under Section 78 of the
        Internal Revenue Code) with respect to the stock of the
        same person to whom the interest was paid, accrued, or
        incurred.
            This paragraph shall not apply to the following:
                (i) an item of interest paid, accrued, or
            incurred, directly or indirectly, to a foreign
            person who is subject in a foreign country or
            state, other than a state which requires mandatory
            unitary reporting, to a tax on or measured by net
            income with respect to such interest; or
                (ii) an item of interest paid, accrued, or
            incurred, directly or indirectly, to a foreign
            person if the taxpayer can establish, based on a
            preponderance of the evidence, both of the
            following:
                    (a) the foreign person, during the same
                taxable year, paid, accrued, or incurred, the
                interest to a person that is not a related
                member, and
                    (b) the transaction giving rise to the
                interest expense between the taxpayer and the
                foreign person did not have as a principal
                purpose the avoidance of Illinois income tax,
                and is paid pursuant to a contract or agreement
                that reflects an arm's-length interest rate
                and terms; or
                (iii) the taxpayer can establish, based on
            clear and convincing evidence, that the interest
            paid, accrued, or incurred relates to a contract or
            agreement entered into at arm's-length rates and
            terms and the principal purpose for the payment is
            not federal or Illinois tax avoidance; or
                (iv) an item of interest paid, accrued, or
            incurred, directly or indirectly, to a foreign
            person if the taxpayer establishes by clear and
            convincing evidence that the adjustments are
            unreasonable; or if the taxpayer and the Director
            agree in writing to the application or use of an
            alternative method of apportionment under Section
            304(f).
                Nothing in this subsection shall preclude the
            Director from making any other adjustment
            otherwise allowed under Section 404 of this Act for
            any tax year beginning after the effective date of
            this amendment provided such adjustment is made
            pursuant to regulation adopted by the Department
            and such regulations provide methods and standards
            by which the Department will utilize its authority
            under Section 404 of this Act;
            (E-13) An amount equal to the amount of intangible
        expenses and costs otherwise allowed as a deduction in
        computing base income, and that were paid, accrued, or
        incurred, directly or indirectly, (i) for taxable
        years ending on or after December 31, 2004, to a
        foreign person who would be a member of the same
        unitary business group but for the fact that the
        foreign person's business activity outside the United
        States is 80% or more of that person's total business
        activity and (ii) for taxable years ending on or after
        December 31, 2008, to a person who would be a member of
        the same unitary business group but for the fact that
        the person is prohibited under Section 1501(a)(27)
        from being included in the unitary business group
        because he or she is ordinarily required to apportion
        business income under different subsections of Section
        304. The addition modification required by this
        subparagraph shall be reduced to the extent that
        dividends were included in base income of the unitary
        group for the same taxable year and received by the
        taxpayer or by a member of the taxpayer's unitary
        business group (including amounts included in gross
        income pursuant to Sections 951 through 964 of the
        Internal Revenue Code and amounts included in gross
        income under Section 78 of the Internal Revenue Code)
        with respect to the stock of the same person to whom
        the intangible expenses and costs were directly or
        indirectly paid, incurred, or accrued. The preceding
        sentence shall not apply to the extent that the same
        dividends caused a reduction to the addition
        modification required under Section 203(b)(2)(E-12) of
        this Act. As used in this subparagraph, the term
        "intangible expenses and costs" includes (1) expenses,
        losses, and costs for, or related to, the direct or
        indirect acquisition, use, maintenance or management,
        ownership, sale, exchange, or any other disposition of
        intangible property; (2) losses incurred, directly or
        indirectly, from factoring transactions or discounting
        transactions; (3) royalty, patent, technical, and
        copyright fees; (4) licensing fees; and (5) other
        similar expenses and costs. For purposes of this
        subparagraph, "intangible property" includes patents,
        patent applications, trade names, trademarks, service
        marks, copyrights, mask works, trade secrets, and
        similar types of intangible assets.
            This paragraph shall not apply to the following:
                (i) any item of intangible expenses or costs
            paid, accrued, or incurred, directly or
            indirectly, from a transaction with a foreign
            person who is subject in a foreign country or
            state, other than a state which requires mandatory
            unitary reporting, to a tax on or measured by net
            income with respect to such item; or
                (ii) any item of intangible expense or cost
            paid, accrued, or incurred, directly or
            indirectly, if the taxpayer can establish, based
            on a preponderance of the evidence, both of the
            following:
                    (a) the foreign person during the same
                taxable year paid, accrued, or incurred, the
                intangible expense or cost to a person that is
                not a related member, and
                    (b) the transaction giving rise to the
                intangible expense or cost between the
                taxpayer and the foreign person did not have as
                a principal purpose the avoidance of Illinois
                income tax, and is paid pursuant to a contract
                or agreement that reflects arm's-length terms;
                or
                (iii) any item of intangible expense or cost
            paid, accrued, or incurred, directly or
            indirectly, from a transaction with a foreign
            person if the taxpayer establishes by clear and
            convincing evidence, that the adjustments are
            unreasonable; or if the taxpayer and the Director
            agree in writing to the application or use of an
            alternative method of apportionment under Section
            304(f);
                Nothing in this subsection shall preclude the
            Director from making any other adjustment
            otherwise allowed under Section 404 of this Act for
            any tax year beginning after the effective date of
            this amendment provided such adjustment is made
            pursuant to regulation adopted by the Department
            and such regulations provide methods and standards
            by which the Department will utilize its authority
            under Section 404 of this Act;
            (E-14) For taxable years ending on or after
        December 31, 2008, an amount equal to the amount of
        insurance premium expenses and costs otherwise allowed
        as a deduction in computing base income, and that were
        paid, accrued, or incurred, directly or indirectly, to
        a person who would be a member of the same unitary
        business group but for the fact that the person is
        prohibited under Section 1501(a)(27) from being
        included in the unitary business group because he or
        she is ordinarily required to apportion business
        income under different subsections of Section 304. The
        addition modification required by this subparagraph
        shall be reduced to the extent that dividends were
        included in base income of the unitary group for the
        same taxable year and received by the taxpayer or by a
        member of the taxpayer's unitary business group
        (including amounts included in gross income under
        Sections 951 through 964 of the Internal Revenue Code
        and amounts included in gross income under Section 78
        of the Internal Revenue Code) with respect to the stock
        of the same person to whom the intangible expenses and
        costs were directly or indirectly paid, incurred, or
        accrued. The preceding sentence does not apply to the
        extent that the same dividends caused a reduction to
        the addition modification required under Section
        203(a)(2)(D-17) of this Act;
            (E-15) For taxable years beginning after December
        31, 2008, any deduction for dividends paid to a
        corporation by a captive real estate trust that is
        allowed to a real estate investment trust under Section
        857(b)(2)(B) of the Internal Revenue Code for
        dividends paid;
    and by deducting from the total so obtained the sum of the
    following amounts:
            (F) An amount equal to the amount of any tax
        imposed by this Act which was refunded to the taxpayer
        and included in such total for the taxable year;
            (G) An amount equal to any amount included in such
        total under Section 78 of the Internal Revenue Code;
            (H) In the case of a regulated investment company,
        an amount equal to the amount of exempt interest
        dividends as defined in subsection (b) (5) of Section
        852 of the Internal Revenue Code, paid to shareholders
        for the taxable year;
            (I) With the exception of any amounts subtracted
        under subparagraph (J), an amount equal to the sum of
        all amounts disallowed as deductions by (i) Sections
        171(a) (2), and 265(a)(2) and amounts disallowed as
        interest expense by Section 291(a)(3) of the Internal
        Revenue Code, as now or hereafter amended, and all
        amounts of expenses allocable to interest and
        disallowed as deductions by Section 265(a)(1) of the
        Internal Revenue Code, as now or hereafter amended; and
        (ii) for taxable years ending on or after August 13,
        1999, Sections 171(a)(2), 265, 280C, 291(a)(3), and
        832(b)(5)(B)(i) of the Internal Revenue Code; the
        provisions of this subparagraph are exempt from the
        provisions of Section 250;
            (J) An amount equal to all amounts included in such
        total which are exempt from taxation by this State
        either by reason of its statutes or Constitution or by
        reason of the Constitution, treaties or statutes of the
        United States; provided that, in the case of any
        statute of this State or, for taxable years ending on
        or after December 31, 2008, of the United States, any
        treaty of the United States, the Illinois
        Constitution, or the United States Constitution that
        exempts income derived from bonds or other obligations
        from the tax imposed under this Act, the amount
        exempted shall be the income net of bond premium
        amortization, and, for taxable years ending on or after
        December 31, 2008, interest expense incurred on
        indebtedness to carry the bond or other obligation,
        expenses incurred in producing the income to be
        deducted, and all other related expenses. The amount of
        expenses to be taken into account under this provision
        may not exceed the amount of income that is exempted;
            (K) An amount equal to those dividends included in
        such total which were paid by a corporation which
        conducts business operations in an Enterprise Zone or
        zones created under the Illinois Enterprise Zone Act or
        a River Edge Redevelopment Zone or zones created under
        the River Edge Redevelopment Zone Act and conducts
        substantially all of its operations in an Enterprise
        Zone or zones or a River Edge Redevelopment Zone or
        zones. This subparagraph (K) is exempt from the
        provisions of Section 250;
            (L) An amount equal to those dividends included in
        such total that were paid by a corporation that
        conducts business operations in a federally designated
        Foreign Trade Zone or Sub-Zone and that is designated a
        High Impact Business located in Illinois; provided
        that dividends eligible for the deduction provided in
        subparagraph (K) of paragraph 2 of this subsection
        shall not be eligible for the deduction provided under
        this subparagraph (L);
            (M) For any taxpayer that is a financial
        organization within the meaning of Section 304(c) of
        this Act, an amount included in such total as interest
        income from a loan or loans made by such taxpayer to a
        borrower, to the extent that such a loan is secured by
        property which is eligible for the Enterprise Zone
        Investment Credit or the River Edge Redevelopment Zone
        Investment Credit. To determine the portion of a loan
        or loans that is secured by property eligible for a
        Section 201(f) investment credit to the borrower, the
        entire principal amount of the loan or loans between
        the taxpayer and the borrower should be divided into
        the basis of the Section 201(f) investment credit
        property which secures the loan or loans, using for
        this purpose the original basis of such property on the
        date that it was placed in service in the Enterprise
        Zone or the River Edge Redevelopment Zone. The
        subtraction modification available to taxpayer in any
        year under this subsection shall be that portion of the
        total interest paid by the borrower with respect to
        such loan attributable to the eligible property as
        calculated under the previous sentence. This
        subparagraph (M) is exempt from the provisions of
        Section 250;
            (M-1) For any taxpayer that is a financial
        organization within the meaning of Section 304(c) of
        this Act, an amount included in such total as interest
        income from a loan or loans made by such taxpayer to a
        borrower, to the extent that such a loan is secured by
        property which is eligible for the High Impact Business
        Investment Credit. To determine the portion of a loan
        or loans that is secured by property eligible for a
        Section 201(h) investment credit to the borrower, the
        entire principal amount of the loan or loans between
        the taxpayer and the borrower should be divided into
        the basis of the Section 201(h) investment credit
        property which secures the loan or loans, using for
        this purpose the original basis of such property on the
        date that it was placed in service in a federally
        designated Foreign Trade Zone or Sub-Zone located in
        Illinois. No taxpayer that is eligible for the
        deduction provided in subparagraph (M) of paragraph
        (2) of this subsection shall be eligible for the
        deduction provided under this subparagraph (M-1). The
        subtraction modification available to taxpayers in any
        year under this subsection shall be that portion of the
        total interest paid by the borrower with respect to
        such loan attributable to the eligible property as
        calculated under the previous sentence;
            (N) Two times any contribution made during the
        taxable year to a designated zone organization to the
        extent that the contribution (i) qualifies as a
        charitable contribution under subsection (c) of
        Section 170 of the Internal Revenue Code and (ii) must,
        by its terms, be used for a project approved by the
        Department of Commerce and Economic Opportunity under
        Section 11 of the Illinois Enterprise Zone Act or under
        Section 10-10 of the River Edge Redevelopment Zone Act.
        This subparagraph (N) is exempt from the provisions of
        Section 250;
            (O) An amount equal to: (i) 85% for taxable years
        ending on or before December 31, 1992, or, a percentage
        equal to the percentage allowable under Section
        243(a)(1) of the Internal Revenue Code of 1986 for
        taxable years ending after December 31, 1992, of the
        amount by which dividends included in taxable income
        and received from a corporation that is not created or
        organized under the laws of the United States or any
        state or political subdivision thereof, including, for
        taxable years ending on or after December 31, 1988,
        dividends received or deemed received or paid or deemed
        paid under Sections 951 through 964 of the Internal
        Revenue Code, exceed the amount of the modification
        provided under subparagraph (G) of paragraph (2) of
        this subsection (b) which is related to such dividends,
        and including, for taxable years ending on or after
        December 31, 2008, dividends received from a real
        estate investment trust; plus (ii) 100% of the amount
        by which dividends, included in taxable income and
        received, including, for taxable years ending on or
        after December 31, 1988, dividends received or deemed
        received or paid or deemed paid under Sections 951
        through 964 of the Internal Revenue Code and including,
        for taxable years ending on or after December 31, 2008,
        dividends received from a real estate investment
        trust, from any such corporation specified in clause
        (i) that would but for the provisions of Section 1504
        (b) (3) of the Internal Revenue Code be treated as a
        member of the affiliated group which includes the
        dividend recipient, exceed the amount of the
        modification provided under subparagraph (G) of
        paragraph (2) of this subsection (b) which is related
        to such dividends;
            (P) An amount equal to any contribution made to a
        job training project established pursuant to the Tax
        Increment Allocation Redevelopment Act;
            (Q) An amount equal to the amount of the deduction
        used to compute the federal income tax credit for
        restoration of substantial amounts held under claim of
        right for the taxable year pursuant to Section 1341 of
        the Internal Revenue Code of 1986;
            (R) On and after July 20, 1999, in the case of an
        attorney-in-fact with respect to whom an interinsurer
        or a reciprocal insurer has made the election under
        Section 835 of the Internal Revenue Code, 26 U.S.C.
        835, an amount equal to the excess, if any, of the
        amounts paid or incurred by that interinsurer or
        reciprocal insurer in the taxable year to the
        attorney-in-fact over the deduction allowed to that
        interinsurer or reciprocal insurer with respect to the
        attorney-in-fact under Section 835(b) of the Internal
        Revenue Code for the taxable year; the provisions of
        this subparagraph are exempt from the provisions of
        Section 250;
            (S) For taxable years ending on or after December
        31, 1997, in the case of a Subchapter S corporation, an
        amount equal to all amounts of income allocable to a
        shareholder subject to the Personal Property Tax
        Replacement Income Tax imposed by subsections (c) and
        (d) of Section 201 of this Act, including amounts
        allocable to organizations exempt from federal income
        tax by reason of Section 501(a) of the Internal Revenue
        Code. This subparagraph (S) is exempt from the
        provisions of Section 250;
            (T) For taxable years 2001 and thereafter, for the
        taxable year in which the bonus depreciation deduction
        is taken on the taxpayer's federal income tax return
        under subsection (k) of Section 168 of the Internal
        Revenue Code and for each applicable taxable year
        thereafter, an amount equal to "x", where:
                (1) "y" equals the amount of the depreciation
            deduction taken for the taxable year on the
            taxpayer's federal income tax return on property
            for which the bonus depreciation deduction was
            taken in any year under subsection (k) of Section
            168 of the Internal Revenue Code, but not including
            the bonus depreciation deduction;
                (2) for taxable years ending on or before
            December 31, 2005, "x" equals "y" multiplied by 30
            and then divided by 70 (or "y" multiplied by
            0.429); and
                (3) for taxable years ending after December
            31, 2005:
                    (i) for property on which a bonus
                depreciation deduction of 30% of the adjusted
                basis was taken, "x" equals "y" multiplied by
                30 and then divided by 70 (or "y" multiplied by
                0.429); and
                    (ii) for property on which a bonus
                depreciation deduction of 50% of the adjusted
                basis was taken, "x" equals "y" multiplied by
                1.0.
            The aggregate amount deducted under this
        subparagraph in all taxable years for any one piece of
        property may not exceed the amount of the bonus
        depreciation deduction taken on that property on the
        taxpayer's federal income tax return under subsection
        (k) of Section 168 of the Internal Revenue Code. This
        subparagraph (T) is exempt from the provisions of
        Section 250;
            (U) If the taxpayer sells, transfers, abandons, or
        otherwise disposes of property for which the taxpayer
        was required in any taxable year to make an addition
        modification under subparagraph (E-10), then an amount
        equal to that addition modification.
            If the taxpayer continues to own property through
        the last day of the last tax year for which the
        taxpayer may claim a depreciation deduction for
        federal income tax purposes and for which the taxpayer
        was required in any taxable year to make an addition
        modification under subparagraph (E-10), then an amount
        equal to that addition modification.
            The taxpayer is allowed to take the deduction under
        this subparagraph only once with respect to any one
        piece of property.
            This subparagraph (U) is exempt from the
        provisions of Section 250;
            (V) The amount of: (i) any interest income (net of
        the deductions allocable thereto) taken into account
        for the taxable year with respect to a transaction with
        a taxpayer that is required to make an addition
        modification with respect to such transaction under
        Section 203(a)(2)(D-17), 203(b)(2)(E-12),
        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
        the amount of such addition modification and (ii) any
        income from intangible property (net of the deductions
        allocable thereto) taken into account for the taxable
        year with respect to a transaction with a taxpayer that
        is required to make an addition modification with
        respect to such transaction under Section
        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
        203(d)(2)(D-8), but not to exceed the amount of such
        addition modification;
            (W) An amount equal to the interest income taken
        into account for the taxable year (net of the
        deductions allocable thereto) with respect to
        transactions with (i) a foreign person who would be a
        member of the taxpayer's unitary business group but for
        the fact that the foreign person's business activity
        outside the United States is 80% or more of that
        person's total business activity and (ii) for taxable
        years ending on or after December 31, 2008, to a person
        who would be a member of the same unitary business
        group but for the fact that the person is prohibited
        under Section 1501(a)(27) from being included in the
        unitary business group because he or she is ordinarily
        required to apportion business income under different
        subsections of Section 304, but not to exceed the
        addition modification required to be made for the same
        taxable year under Section 203(b)(2)(E-12) for
        interest paid, accrued, or incurred, directly or
        indirectly, to the same person;
            (X) An amount equal to the income from intangible
        property taken into account for the taxable year (net
        of the deductions allocable thereto) with respect to
        transactions with (i) a foreign person who would be a
        member of the taxpayer's unitary business group but for
        the fact that the foreign person's business activity
        outside the United States is 80% or more of that
        person's total business activity and (ii) for taxable
        years ending on or after December 31, 2008, to a person
        who would be a member of the same unitary business
        group but for the fact that the person is prohibited
        under Section 1501(a)(27) from being included in the
        unitary business group because he or she is ordinarily
        required to apportion business income under different
        subsections of Section 304, but not to exceed the
        addition modification required to be made for the same
        taxable year under Section 203(b)(2)(E-13) for
        intangible expenses and costs paid, accrued, or
        incurred, directly or indirectly, to the same foreign
        person; and
            (Y) (FF) An amount equal to the income from
        insurance premiums taken into account for the taxable
        year (net of the deductions allocable thereto) with
        respect to transactions with a person who would be a
        member of the same unitary business group but for the
        fact that the person is prohibited under Section
        1501(a)(27) from being included in the unitary
        business group because he or she is ordinarily required
        to apportion business income under different
        subsections of Section 304, but not to exceed the
        addition modification required to be made for the same
        taxable year under Section 203(a)(2)(D-18) for
        intangible expenses and costs paid, accrued, or
        incurred, directly or indirectly, to the same person.
        (3) Special rule. For purposes of paragraph (2) (A),
    "gross income" in the case of a life insurance company, for
    tax years ending on and after December 31, 1994, shall mean
    the gross investment income for the taxable year.
 
    (c) Trusts and estates.
        (1) In general. In the case of a trust or estate, base
    income means an amount equal to the taxpayer's taxable
    income for the taxable year as modified by paragraph (2).
        (2) Modifications. Subject to the provisions of
    paragraph (3), the taxable income referred to in paragraph
    (1) shall be modified by adding thereto the sum of the
    following amounts:
            (A) An amount equal to all amounts paid or accrued
        to the taxpayer as interest or dividends during the
        taxable year to the extent excluded from gross income
        in the computation of taxable income;
            (B) In the case of (i) an estate, $600; (ii) a
        trust which, under its governing instrument, is
        required to distribute all of its income currently,
        $300; and (iii) any other trust, $100, but in each such
        case, only to the extent such amount was deducted in
        the computation of taxable income;
            (C) An amount equal to the amount of tax imposed by
        this Act to the extent deducted from gross income in
        the computation of taxable income for the taxable year;
            (D) The amount of any net operating loss deduction
        taken in arriving at taxable income, other than a net
        operating loss carried forward from a taxable year
        ending prior to December 31, 1986;
            (E) For taxable years in which a net operating loss
        carryback or carryforward from a taxable year ending
        prior to December 31, 1986 is an element of taxable
        income under paragraph (1) of subsection (e) or
        subparagraph (E) of paragraph (2) of subsection (e),
        the amount by which addition modifications other than
        those provided by this subparagraph (E) exceeded
        subtraction modifications in such taxable year, with
        the following limitations applied in the order that
        they are listed:
                (i) the addition modification relating to the
            net operating loss carried back or forward to the
            taxable year from any taxable year ending prior to
            December 31, 1986 shall be reduced by the amount of
            addition modification under this subparagraph (E)
            which related to that net operating loss and which
            was taken into account in calculating the base
            income of an earlier taxable year, and
                (ii) the addition modification relating to the
            net operating loss carried back or forward to the
            taxable year from any taxable year ending prior to
            December 31, 1986 shall not exceed the amount of
            such carryback or carryforward;
            For taxable years in which there is a net operating
        loss carryback or carryforward from more than one other
        taxable year ending prior to December 31, 1986, the
        addition modification provided in this subparagraph
        (E) shall be the sum of the amounts computed
        independently under the preceding provisions of this
        subparagraph (E) for each such taxable year;
            (F) For taxable years ending on or after January 1,
        1989, an amount equal to the tax deducted pursuant to
        Section 164 of the Internal Revenue Code if the trust
        or estate is claiming the same tax for purposes of the
        Illinois foreign tax credit under Section 601 of this
        Act;
            (G) An amount equal to the amount of the capital
        gain deduction allowable under the Internal Revenue
        Code, to the extent deducted from gross income in the
        computation of taxable income;
            (G-5) For taxable years ending after December 31,
        1997, an amount equal to any eligible remediation costs
        that the trust or estate deducted in computing adjusted
        gross income and for which the trust or estate claims a
        credit under subsection (l) of Section 201;
            (G-10) For taxable years 2001 and thereafter, an
        amount equal to the bonus depreciation deduction taken
        on the taxpayer's federal income tax return for the
        taxable year under subsection (k) of Section 168 of the
        Internal Revenue Code; and
            (G-11) If the taxpayer sells, transfers, abandons,
        or otherwise disposes of property for which the
        taxpayer was required in any taxable year to make an
        addition modification under subparagraph (G-10), then
        an amount equal to the aggregate amount of the
        deductions taken in all taxable years under
        subparagraph (R) with respect to that property.
            If the taxpayer continues to own property through
        the last day of the last tax year for which the
        taxpayer may claim a depreciation deduction for
        federal income tax purposes and for which the taxpayer
        was allowed in any taxable year to make a subtraction
        modification under subparagraph (R), then an amount
        equal to that subtraction modification.
            The taxpayer is required to make the addition
        modification under this subparagraph only once with
        respect to any one piece of property;
            (G-12) An amount equal to the amount otherwise
        allowed as a deduction in computing base income for
        interest paid, accrued, or incurred, directly or
        indirectly, (i) for taxable years ending on or after
        December 31, 2004, to a foreign person who would be a
        member of the same unitary business group but for the
        fact that the foreign person's business activity
        outside the United States is 80% or more of the foreign
        person's total business activity and (ii) for taxable
        years ending on or after December 31, 2008, to a person
        who would be a member of the same unitary business
        group but for the fact that the person is prohibited
        under Section 1501(a)(27) from being included in the
        unitary business group because he or she is ordinarily
        required to apportion business income under different
        subsections of Section 304. The addition modification
        required by this subparagraph shall be reduced to the
        extent that dividends were included in base income of
        the unitary group for the same taxable year and
        received by the taxpayer or by a member of the
        taxpayer's unitary business group (including amounts
        included in gross income pursuant to Sections 951
        through 964 of the Internal Revenue Code and amounts
        included in gross income under Section 78 of the
        Internal Revenue Code) with respect to the stock of the
        same person to whom the interest was paid, accrued, or
        incurred.
            This paragraph shall not apply to the following:
                (i) an item of interest paid, accrued, or
            incurred, directly or indirectly, to a foreign
            person who is subject in a foreign country or
            state, other than a state which requires mandatory
            unitary reporting, to a tax on or measured by net
            income with respect to such interest; or
                (ii) an item of interest paid, accrued, or
            incurred, directly or indirectly, to a foreign
            person if the taxpayer can establish, based on a
            preponderance of the evidence, both of the
            following:
                    (a) the foreign person, during the same
                taxable year, paid, accrued, or incurred, the
                interest to a person that is not a related
                member, and
                    (b) the transaction giving rise to the
                interest expense between the taxpayer and the
                foreign person did not have as a principal
                purpose the avoidance of Illinois income tax,
                and is paid pursuant to a contract or agreement
                that reflects an arm's-length interest rate
                and terms; or
                (iii) the taxpayer can establish, based on
            clear and convincing evidence, that the interest
            paid, accrued, or incurred relates to a contract or
            agreement entered into at arm's-length rates and
            terms and the principal purpose for the payment is
            not federal or Illinois tax avoidance; or
                (iv) an item of interest paid, accrued, or
            incurred, directly or indirectly, to a foreign
            person if the taxpayer establishes by clear and
            convincing evidence that the adjustments are
            unreasonable; or if the taxpayer and the Director
            agree in writing to the application or use of an
            alternative method of apportionment under Section
            304(f).
                Nothing in this subsection shall preclude the
            Director from making any other adjustment
            otherwise allowed under Section 404 of this Act for
            any tax year beginning after the effective date of
            this amendment provided such adjustment is made
            pursuant to regulation adopted by the Department
            and such regulations provide methods and standards
            by which the Department will utilize its authority
            under Section 404 of this Act;
            (G-13) An amount equal to the amount of intangible
        expenses and costs otherwise allowed as a deduction in
        computing base income, and that were paid, accrued, or
        incurred, directly or indirectly, (i) for taxable
        years ending on or after December 31, 2004, to a
        foreign person who would be a member of the same
        unitary business group but for the fact that the
        foreign person's business activity outside the United
        States is 80% or more of that person's total business
        activity and (ii) for taxable years ending on or after
        December 31, 2008, to a person who would be a member of
        the same unitary business group but for the fact that
        the person is prohibited under Section 1501(a)(27)
        from being included in the unitary business group
        because he or she is ordinarily required to apportion
        business income under different subsections of Section
        304. The addition modification required by this
        subparagraph shall be reduced to the extent that
        dividends were included in base income of the unitary
        group for the same taxable year and received by the
        taxpayer or by a member of the taxpayer's unitary
        business group (including amounts included in gross
        income pursuant to Sections 951 through 964 of the
        Internal Revenue Code and amounts included in gross
        income under Section 78 of the Internal Revenue Code)
        with respect to the stock of the same person to whom
        the intangible expenses and costs were directly or
        indirectly paid, incurred, or accrued. The preceding
        sentence shall not apply to the extent that the same
        dividends caused a reduction to the addition
        modification required under Section 203(c)(2)(G-12) of
        this Act. As used in this subparagraph, the term
        "intangible expenses and costs" includes: (1)
        expenses, losses, and costs for or related to the
        direct or indirect acquisition, use, maintenance or
        management, ownership, sale, exchange, or any other
        disposition of intangible property; (2) losses
        incurred, directly or indirectly, from factoring
        transactions or discounting transactions; (3) royalty,
        patent, technical, and copyright fees; (4) licensing
        fees; and (5) other similar expenses and costs. For
        purposes of this subparagraph, "intangible property"
        includes patents, patent applications, trade names,
        trademarks, service marks, copyrights, mask works,
        trade secrets, and similar types of intangible assets.
            This paragraph shall not apply to the following:
                (i) any item of intangible expenses or costs
            paid, accrued, or incurred, directly or
            indirectly, from a transaction with a foreign
            person who is subject in a foreign country or
            state, other than a state which requires mandatory
            unitary reporting, to a tax on or measured by net
            income with respect to such item; or
                (ii) any item of intangible expense or cost
            paid, accrued, or incurred, directly or
            indirectly, if the taxpayer can establish, based
            on a preponderance of the evidence, both of the
            following:
                    (a) the foreign person during the same
                taxable year paid, accrued, or incurred, the
                intangible expense or cost to a person that is
                not a related member, and
                    (b) the transaction giving rise to the
                intangible expense or cost between the
                taxpayer and the foreign person did not have as
                a principal purpose the avoidance of Illinois
                income tax, and is paid pursuant to a contract
                or agreement that reflects arm's-length terms;
                or
                (iii) any item of intangible expense or cost
            paid, accrued, or incurred, directly or
            indirectly, from a transaction with a foreign
            person if the taxpayer establishes by clear and
            convincing evidence, that the adjustments are
            unreasonable; or if the taxpayer and the Director
            agree in writing to the application or use of an
            alternative method of apportionment under Section
            304(f);
                Nothing in this subsection shall preclude the
            Director from making any other adjustment
            otherwise allowed under Section 404 of this Act for
            any tax year beginning after the effective date of
            this amendment provided such adjustment is made
            pursuant to regulation adopted by the Department
            and such regulations provide methods and standards
            by which the Department will utilize its authority
            under Section 404 of this Act;
            (G-14) For taxable years ending on or after
        December 31, 2008, an amount equal to the amount of
        insurance premium expenses and costs otherwise allowed
        as a deduction in computing base income, and that were
        paid, accrued, or incurred, directly or indirectly, to
        a person who would be a member of the same unitary
        business group but for the fact that the person is
        prohibited under Section 1501(a)(27) from being
        included in the unitary business group because he or
        she is ordinarily required to apportion business
        income under different subsections of Section 304. The
        addition modification required by this subparagraph
        shall be reduced to the extent that dividends were
        included in base income of the unitary group for the
        same taxable year and received by the taxpayer or by a
        member of the taxpayer's unitary business group
        (including amounts included in gross income under
        Sections 951 through 964 of the Internal Revenue Code
        and amounts included in gross income under Section 78
        of the Internal Revenue Code) with respect to the stock
        of the same person to whom the intangible expenses and
        costs were directly or indirectly paid, incurred, or
        accrued. The preceding sentence does not apply to the
        extent that the same dividends caused a reduction to
        the addition modification required under Section
        203(a)(2)(D-17) of this Act.
    and by deducting from the total so obtained the sum of the
    following amounts:
            (H) An amount equal to all amounts included in such
        total pursuant to the provisions of Sections 402(a),
        402(c), 403(a), 403(b), 406(a), 407(a) and 408 of the
        Internal Revenue Code or included in such total as
        distributions under the provisions of any retirement
        or disability plan for employees of any governmental
        agency or unit, or retirement payments to retired
        partners, which payments are excluded in computing net
        earnings from self employment by Section 1402 of the
        Internal Revenue Code and regulations adopted pursuant
        thereto;
            (I) The valuation limitation amount;
            (J) An amount equal to the amount of any tax
        imposed by this Act which was refunded to the taxpayer
        and included in such total for the taxable year;
            (K) An amount equal to all amounts included in
        taxable income as modified by subparagraphs (A), (B),
        (C), (D), (E), (F) and (G) which are exempt from
        taxation by this State either by reason of its statutes
        or Constitution or by reason of the Constitution,
        treaties or statutes of the United States; provided
        that, in the case of any statute of this State or, for
        taxable years ending on or after December 31, 2008, of
        the United States, any treaty of the United States, the
        Illinois Constitution, or the United States
        Constitution that exempts income derived from bonds or
        other obligations from the tax imposed under this Act,
        the amount exempted shall be the income net of bond
        premium amortization, and, for taxable years ending on
        or after December 31, 2008, interest expense incurred
        on indebtedness to carry the bond or other obligation,
        expenses incurred in producing the income to be
        deducted, and all other related expenses. The amount of
        expenses to be taken into account under this provision
        may not exceed the amount of income that is exempted;
            (L) With the exception of any amounts subtracted
        under subparagraph (K), an amount equal to the sum of
        all amounts disallowed as deductions by (i) Sections
        171(a) (2) and 265(a)(2) of the Internal Revenue Code,
        as now or hereafter amended, and all amounts of
        expenses allocable to interest and disallowed as
        deductions by Section 265(1) of the Internal Revenue
        Code of 1954, as now or hereafter amended; and (ii) for
        taxable years ending on or after August 13, 1999,
        Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of
        the Internal Revenue Code; the provisions of this
        subparagraph are exempt from the provisions of Section
        250;
            (M) An amount equal to those dividends included in
        such total which were paid by a corporation which
        conducts business operations in an Enterprise Zone or
        zones created under the Illinois Enterprise Zone Act or
        a River Edge Redevelopment Zone or zones created under
        the River Edge Redevelopment Zone Act and conducts
        substantially all of its operations in an Enterprise
        Zone or Zones or a River Edge Redevelopment Zone or
        zones. This subparagraph (M) is exempt from the
        provisions of Section 250;
            (N) An amount equal to any contribution made to a
        job training project established pursuant to the Tax
        Increment Allocation Redevelopment Act;
            (O) An amount equal to those dividends included in
        such total that were paid by a corporation that
        conducts business operations in a federally designated
        Foreign Trade Zone or Sub-Zone and that is designated a
        High Impact Business located in Illinois; provided
        that dividends eligible for the deduction provided in
        subparagraph (M) of paragraph (2) of this subsection
        shall not be eligible for the deduction provided under
        this subparagraph (O);
            (P) An amount equal to the amount of the deduction
        used to compute the federal income tax credit for
        restoration of substantial amounts held under claim of
        right for the taxable year pursuant to Section 1341 of
        the Internal Revenue Code of 1986;
            (Q) For taxable year 1999 and thereafter, an amount
        equal to the amount of any (i) distributions, to the
        extent includible in gross income for federal income
        tax purposes, made to the taxpayer because of his or
        her status as a victim of persecution for racial or
        religious reasons by Nazi Germany or any other Axis
        regime or as an heir of the victim and (ii) items of
        income, to the extent includible in gross income for
        federal income tax purposes, attributable to, derived
        from or in any way related to assets stolen from,
        hidden from, or otherwise lost to a victim of
        persecution for racial or religious reasons by Nazi
        Germany or any other Axis regime immediately prior to,
        during, and immediately after World War II, including,
        but not limited to, interest on the proceeds receivable
        as insurance under policies issued to a victim of
        persecution for racial or religious reasons by Nazi
        Germany or any other Axis regime by European insurance
        companies immediately prior to and during World War II;
        provided, however, this subtraction from federal
        adjusted gross income does not apply to assets acquired
        with such assets or with the proceeds from the sale of
        such assets; provided, further, this paragraph shall
        only apply to a taxpayer who was the first recipient of
        such assets after their recovery and who is a victim of
        persecution for racial or religious reasons by Nazi
        Germany or any other Axis regime or as an heir of the
        victim. The amount of and the eligibility for any
        public assistance, benefit, or similar entitlement is
        not affected by the inclusion of items (i) and (ii) of
        this paragraph in gross income for federal income tax
        purposes. This paragraph is exempt from the provisions
        of Section 250;
            (R) For taxable years 2001 and thereafter, for the
        taxable year in which the bonus depreciation deduction
        is taken on the taxpayer's federal income tax return
        under subsection (k) of Section 168 of the Internal
        Revenue Code and for each applicable taxable year
        thereafter, an amount equal to "x", where:
                (1) "y" equals the amount of the depreciation
            deduction taken for the taxable year on the
            taxpayer's federal income tax return on property
            for which the bonus depreciation deduction was
            taken in any year under subsection (k) of Section
            168 of the Internal Revenue Code, but not including
            the bonus depreciation deduction;
                (2) for taxable years ending on or before
            December 31, 2005, "x" equals "y" multiplied by 30
            and then divided by 70 (or "y" multiplied by
            0.429); and
                (3) for taxable years ending after December
            31, 2005:
                    (i) for property on which a bonus
                depreciation deduction of 30% of the adjusted
                basis was taken, "x" equals "y" multiplied by
                30 and then divided by 70 (or "y" multiplied by
                0.429); and
                    (ii) for property on which a bonus
                depreciation deduction of 50% of the adjusted
                basis was taken, "x" equals "y" multiplied by
                1.0.
            The aggregate amount deducted under this
        subparagraph in all taxable years for any one piece of
        property may not exceed the amount of the bonus
        depreciation deduction taken on that property on the
        taxpayer's federal income tax return under subsection
        (k) of Section 168 of the Internal Revenue Code. This
        subparagraph (R) is exempt from the provisions of
        Section 250;
            (S) If the taxpayer sells, transfers, abandons, or
        otherwise disposes of property for which the taxpayer
        was required in any taxable year to make an addition
        modification under subparagraph (G-10), then an amount
        equal to that addition modification.
            If the taxpayer continues to own property through
        the last day of the last tax year for which the
        taxpayer may claim a depreciation deduction for
        federal income tax purposes and for which the taxpayer
        was required in any taxable year to make an addition
        modification under subparagraph (G-10), then an amount
        equal to that addition modification.
            The taxpayer is allowed to take the deduction under
        this subparagraph only once with respect to any one
        piece of property.
            This subparagraph (S) is exempt from the
        provisions of Section 250;
            (T) The amount of (i) any interest income (net of
        the deductions allocable thereto) taken into account
        for the taxable year with respect to a transaction with
        a taxpayer that is required to make an addition
        modification with respect to such transaction under
        Section 203(a)(2)(D-17), 203(b)(2)(E-12),
        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
        the amount of such addition modification and (ii) any
        income from intangible property (net of the deductions
        allocable thereto) taken into account for the taxable
        year with respect to a transaction with a taxpayer that
        is required to make an addition modification with
        respect to such transaction under Section
        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
        203(d)(2)(D-8), but not to exceed the amount of such
        addition modification;
            (U) An amount equal to the interest income taken
        into account for the taxable year (net of the
        deductions allocable thereto) with respect to
        transactions with (i) a foreign person who would be a
        member of the taxpayer's unitary business group but for
        the fact the foreign person's business activity
        outside the United States is 80% or more of that
        person's total business activity and (ii) for taxable
        years ending on or after December 31, 2008, to a person
        who would be a member of the same unitary business
        group but for the fact that the person is prohibited
        under Section 1501(a)(27) from being included in the
        unitary business group because he or she is ordinarily
        required to apportion business income under different
        subsections of Section 304, but not to exceed the
        addition modification required to be made for the same
        taxable year under Section 203(c)(2)(G-12) for
        interest paid, accrued, or incurred, directly or
        indirectly, to the same person;
            (V) An amount equal to the income from intangible
        property taken into account for the taxable year (net
        of the deductions allocable thereto) with respect to
        transactions with a foreign person who would be a
        member of the taxpayer's unitary business group but for
        the fact that the foreign person's business activity
        outside the United States is 80% or more of that
        person's total business activity, but not to exceed the
        addition modification required to be made for the same
        taxable year under Section 203(c)(2)(G-13) for
        intangible expenses and costs paid, accrued, or
        incurred, directly or indirectly, to the same foreign
        person; and
            (W) (FF) An amount equal to the income from
        insurance premiums taken into account for the taxable
        year (net of the deductions allocable thereto) with
        respect to transactions with a person who would be a
        member of the same unitary business group but for the
        fact that the person is prohibited under Section
        1501(a)(27) from being included in the unitary
        business group because he or she is ordinarily required
        to apportion business income under different
        subsections of Section 304, but not to exceed the
        addition modification required to be made for the same
        taxable year under Section 203(a)(2)(D-18) for
        intangible expenses and costs paid, accrued, or
        incurred, directly or indirectly, to the same person.
        (3) Limitation. The amount of any modification
    otherwise required under this subsection shall, under
    regulations prescribed by the Department, be adjusted by
    any amounts included therein which were properly paid,
    credited, or required to be distributed, or permanently set
    aside for charitable purposes pursuant to Internal Revenue
    Code Section 642(c) during the taxable year.
 
    (d) Partnerships.
        (1) In general. In the case of a partnership, base
    income means an amount equal to the taxpayer's taxable
    income for the taxable year as modified by paragraph (2).
        (2) Modifications. The taxable income referred to in
    paragraph (1) shall be modified by adding thereto the sum
    of the following amounts:
            (A) An amount equal to all amounts paid or accrued
        to the taxpayer as interest or dividends during the
        taxable year to the extent excluded from gross income
        in the computation of taxable income;
            (B) An amount equal to the amount of tax imposed by
        this Act to the extent deducted from gross income for
        the taxable year;
            (C) The amount of deductions allowed to the
        partnership pursuant to Section 707 (c) of the Internal
        Revenue Code in calculating its taxable income;
            (D) An amount equal to the amount of the capital
        gain deduction allowable under the Internal Revenue
        Code, to the extent deducted from gross income in the
        computation of taxable income;
            (D-5) For taxable years 2001 and thereafter, an
        amount equal to the bonus depreciation deduction taken
        on the taxpayer's federal income tax return for the
        taxable year under subsection (k) of Section 168 of the
        Internal Revenue Code;
            (D-6) If the taxpayer sells, transfers, abandons,
        or otherwise disposes of property for which the
        taxpayer was required in any taxable year to make an
        addition modification under subparagraph (D-5), then
        an amount equal to the aggregate amount of the
        deductions taken in all taxable years under
        subparagraph (O) with respect to that property.
            If the taxpayer continues to own property through
        the last day of the last tax year for which the
        taxpayer may claim a depreciation deduction for
        federal income tax purposes and for which the taxpayer
        was allowed in any taxable year to make a subtraction
        modification under subparagraph (O), then an amount
        equal to that subtraction modification.
            The taxpayer is required to make the addition
        modification under this subparagraph only once with
        respect to any one piece of property;
            (D-7) An amount equal to the amount otherwise
        allowed as a deduction in computing base income for
        interest paid, accrued, or incurred, directly or
        indirectly, (i) for taxable years ending on or after
        December 31, 2004, to a foreign person who would be a
        member of the same unitary business group but for the
        fact the foreign person's business activity outside
        the United States is 80% or more of the foreign
        person's total business activity and (ii) for taxable
        years ending on or after December 31, 2008, to a person
        who would be a member of the same unitary business
        group but for the fact that the person is prohibited
        under Section 1501(a)(27) from being included in the
        unitary business group because he or she is ordinarily
        required to apportion business income under different
        subsections of Section 304. The addition modification
        required by this subparagraph shall be reduced to the
        extent that dividends were included in base income of
        the unitary group for the same taxable year and
        received by the taxpayer or by a member of the
        taxpayer's unitary business group (including amounts
        included in gross income pursuant to Sections 951
        through 964 of the Internal Revenue Code and amounts
        included in gross income under Section 78 of the
        Internal Revenue Code) with respect to the stock of the
        same person to whom the interest was paid, accrued, or
        incurred.
            This paragraph shall not apply to the following:
                (i) an item of interest paid, accrued, or
            incurred, directly or indirectly, to a foreign
            person who is subject in a foreign country or
            state, other than a state which requires mandatory
            unitary reporting, to a tax on or measured by net
            income with respect to such interest; or
                (ii) an item of interest paid, accrued, or
            incurred, directly or indirectly, to a foreign
            person if the taxpayer can establish, based on a
            preponderance of the evidence, both of the
            following:
                    (a) the foreign person, during the same
                taxable year, paid, accrued, or incurred, the
                interest to a person that is not a related
                member, and
                    (b) the transaction giving rise to the
                interest expense between the taxpayer and the
                foreign person did not have as a principal
                purpose the avoidance of Illinois income tax,
                and is paid pursuant to a contract or agreement
                that reflects an arm's-length interest rate
                and terms; or
                (iii) the taxpayer can establish, based on
            clear and convincing evidence, that the interest
            paid, accrued, or incurred relates to a contract or
            agreement entered into at arm's-length rates and
            terms and the principal purpose for the payment is
            not federal or Illinois tax avoidance; or
                (iv) an item of interest paid, accrued, or
            incurred, directly or indirectly, to a foreign
            person if the taxpayer establishes by clear and
            convincing evidence that the adjustments are
            unreasonable; or if the taxpayer and the Director
            agree in writing to the application or use of an
            alternative method of apportionment under Section
            304(f).
                Nothing in this subsection shall preclude the
            Director from making any other adjustment
            otherwise allowed under Section 404 of this Act for
            any tax year beginning after the effective date of
            this amendment provided such adjustment is made
            pursuant to regulation adopted by the Department
            and such regulations provide methods and standards
            by which the Department will utilize its authority
            under Section 404 of this Act; and
            (D-8) An amount equal to the amount of intangible
        expenses and costs otherwise allowed as a deduction in
        computing base income, and that were paid, accrued, or
        incurred, directly or indirectly, (i) for taxable
        years ending on or after December 31, 2004, to a
        foreign person who would be a member of the same
        unitary business group but for the fact that the
        foreign person's business activity outside the United
        States is 80% or more of that person's total business
        activity and (ii) for taxable years ending on or after
        December 31, 2008, to a person who would be a member of
        the same unitary business group but for the fact that
        the person is prohibited under Section 1501(a)(27)
        from being included in the unitary business group
        because he or she is ordinarily required to apportion
        business income under different subsections of Section
        304. The addition modification required by this
        subparagraph shall be reduced to the extent that
        dividends were included in base income of the unitary
        group for the same taxable year and received by the
        taxpayer or by a member of the taxpayer's unitary
        business group (including amounts included in gross
        income pursuant to Sections 951 through 964 of the
        Internal Revenue Code and amounts included in gross
        income under Section 78 of the Internal Revenue Code)
        with respect to the stock of the same person to whom
        the intangible expenses and costs were directly or
        indirectly paid, incurred or accrued. The preceding
        sentence shall not apply to the extent that the same
        dividends caused a reduction to the addition
        modification required under Section 203(d)(2)(D-7) of
        this Act. As used in this subparagraph, the term
        "intangible expenses and costs" includes (1) expenses,
        losses, and costs for, or related to, the direct or
        indirect acquisition, use, maintenance or management,
        ownership, sale, exchange, or any other disposition of
        intangible property; (2) losses incurred, directly or
        indirectly, from factoring transactions or discounting
        transactions; (3) royalty, patent, technical, and
        copyright fees; (4) licensing fees; and (5) other
        similar expenses and costs. For purposes of this
        subparagraph, "intangible property" includes patents,
        patent applications, trade names, trademarks, service
        marks, copyrights, mask works, trade secrets, and
        similar types of intangible assets;
            This paragraph shall not apply to the following:
                (i) any item of intangible expenses or costs
            paid, accrued, or incurred, directly or
            indirectly, from a transaction with a foreign
            person who is subject in a foreign country or
            state, other than a state which requires mandatory
            unitary reporting, to a tax on or measured by net
            income with respect to such item; or
                (ii) any item of intangible expense or cost
            paid, accrued, or incurred, directly or
            indirectly, if the taxpayer can establish, based
            on a preponderance of the evidence, both of the
            following:
                    (a) the foreign person during the same
                taxable year paid, accrued, or incurred, the
                intangible expense or cost to a person that is
                not a related member, and
                    (b) the transaction giving rise to the
                intangible expense or cost between the
                taxpayer and the foreign person did not have as
                a principal purpose the avoidance of Illinois
                income tax, and is paid pursuant to a contract
                or agreement that reflects arm's-length terms;
                or
                (iii) any item of intangible expense or cost
            paid, accrued, or incurred, directly or
            indirectly, from a transaction with a foreign
            person if the taxpayer establishes by clear and
            convincing evidence, that the adjustments are
            unreasonable; or if the taxpayer and the Director
            agree in writing to the application or use of an
            alternative method of apportionment under Section
            304(f);
                Nothing in this subsection shall preclude the
            Director from making any other adjustment
            otherwise allowed under Section 404 of this Act for
            any tax year beginning after the effective date of
            this amendment provided such adjustment is made
            pursuant to regulation adopted by the Department
            and such regulations provide methods and standards
            by which the Department will utilize its authority
            under Section 404 of this Act;
            (D-9) For taxable years ending on or after December
        31, 2008, an amount equal to the amount of insurance
        premium expenses and costs otherwise allowed as a
        deduction in computing base income, and that were paid,
        accrued, or incurred, directly or indirectly, to a
        person who would be a member of the same unitary
        business group but for the fact that the person is
        prohibited under Section 1501(a)(27) from being
        included in the unitary business group because he or
        she is ordinarily required to apportion business
        income under different subsections of Section 304. The
        addition modification required by this subparagraph
        shall be reduced to the extent that dividends were
        included in base income of the unitary group for the
        same taxable year and received by the taxpayer or by a
        member of the taxpayer's unitary business group
        (including amounts included in gross income under
        Sections 951 through 964 of the Internal Revenue Code
        and amounts included in gross income under Section 78
        of the Internal Revenue Code) with respect to the stock
        of the same person to whom the intangible expenses and
        costs were directly or indirectly paid, incurred, or
        accrued. The preceding sentence does not apply to the
        extent that the same dividends caused a reduction to
        the addition modification required under Section
        203(a)(2)(D-17) of this Act.
    and by deducting from the total so obtained the following
    amounts:
            (E) The valuation limitation amount;
            (F) An amount equal to the amount of any tax
        imposed by this Act which was refunded to the taxpayer
        and included in such total for the taxable year;
            (G) An amount equal to all amounts included in
        taxable income as modified by subparagraphs (A), (B),
        (C) and (D) which are exempt from taxation by this
        State either by reason of its statutes or Constitution
        or by reason of the Constitution, treaties or statutes
        of the United States; provided that, in the case of any
        statute of this State or, for taxable years ending on
        or after December 31, 2008, of the United States, any
        treaty of the United States, the Illinois
        Constitution, or the United States Constitution that
        exempts income derived from bonds or other obligations
        from the tax imposed under this Act, the amount
        exempted shall be the income net of bond premium
        amortization, and, for taxable years ending on or after
        December 31, 2008, interest expense incurred on
        indebtedness to carry the bond or other obligation,
        expenses incurred in producing the income to be
        deducted, and all other related expenses. The amount of
        expenses to be taken into account under this provision
        may not exceed the amount of income that is exempted;
            (H) Any income of the partnership which
        constitutes personal service income as defined in
        Section 1348 (b) (1) of the Internal Revenue Code (as
        in effect December 31, 1981) or a reasonable allowance
        for compensation paid or accrued for services rendered
        by partners to the partnership, whichever is greater;
            (I) An amount equal to all amounts of income
        distributable to an entity subject to the Personal
        Property Tax Replacement Income Tax imposed by
        subsections (c) and (d) of Section 201 of this Act
        including amounts distributable to organizations
        exempt from federal income tax by reason of Section
        501(a) of the Internal Revenue Code;
            (J) With the exception of any amounts subtracted
        under subparagraph (G), an amount equal to the sum of
        all amounts disallowed as deductions by (i) Sections
        171(a) (2), and 265(2) of the Internal Revenue Code of
        1954, as now or hereafter amended, and all amounts of
        expenses allocable to interest and disallowed as
        deductions by Section 265(1) of the Internal Revenue
        Code, as now or hereafter amended; and (ii) for taxable
        years ending on or after August 13, 1999, Sections
        171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
        Internal Revenue Code; the provisions of this
        subparagraph are exempt from the provisions of Section
        250;
            (K) An amount equal to those dividends included in
        such total which were paid by a corporation which
        conducts business operations in an Enterprise Zone or
        zones created under the Illinois Enterprise Zone Act,
        enacted by the 82nd General Assembly, or a River Edge
        Redevelopment Zone or zones created under the River
        Edge Redevelopment Zone Act and conducts substantially
        all of its operations in an Enterprise Zone or Zones or
        from a River Edge Redevelopment Zone or zones. This
        subparagraph (K) is exempt from the provisions of
        Section 250;
            (L) An amount equal to any contribution made to a
        job training project established pursuant to the Real
        Property Tax Increment Allocation Redevelopment Act;
            (M) An amount equal to those dividends included in
        such total that were paid by a corporation that
        conducts business operations in a federally designated
        Foreign Trade Zone or Sub-Zone and that is designated a
        High Impact Business located in Illinois; provided
        that dividends eligible for the deduction provided in
        subparagraph (K) of paragraph (2) of this subsection
        shall not be eligible for the deduction provided under
        this subparagraph (M);
            (N) An amount equal to the amount of the deduction
        used to compute the federal income tax credit for
        restoration of substantial amounts held under claim of
        right for the taxable year pursuant to Section 1341 of
        the Internal Revenue Code of 1986;
            (O) For taxable years 2001 and thereafter, for the
        taxable year in which the bonus depreciation deduction
        is taken on the taxpayer's federal income tax return
        under subsection (k) of Section 168 of the Internal
        Revenue Code and for each applicable taxable year
        thereafter, an amount equal to "x", where:
                (1) "y" equals the amount of the depreciation
            deduction taken for the taxable year on the
            taxpayer's federal income tax return on property
            for which the bonus depreciation deduction was
            taken in any year under subsection (k) of Section
            168 of the Internal Revenue Code, but not including
            the bonus depreciation deduction;
                (2) for taxable years ending on or before
            December 31, 2005, "x" equals "y" multiplied by 30
            and then divided by 70 (or "y" multiplied by
            0.429); and
                (3) for taxable years ending after December
            31, 2005:
                    (i) for property on which a bonus
                depreciation deduction of 30% of the adjusted
                basis was taken, "x" equals "y" multiplied by
                30 and then divided by 70 (or "y" multiplied by
                0.429); and
                    (ii) for property on which a bonus
                depreciation deduction of 50% of the adjusted
                basis was taken, "x" equals "y" multiplied by
                1.0.
            The aggregate amount deducted under this
        subparagraph in all taxable years for any one piece of
        property may not exceed the amount of the bonus
        depreciation deduction taken on that property on the
        taxpayer's federal income tax return under subsection
        (k) of Section 168 of the Internal Revenue Code. This
        subparagraph (O) is exempt from the provisions of
        Section 250;
            (P) If the taxpayer sells, transfers, abandons, or
        otherwise disposes of property for which the taxpayer
        was required in any taxable year to make an addition
        modification under subparagraph (D-5), then an amount
        equal to that addition modification.
            If the taxpayer continues to own property through
        the last day of the last tax year for which the
        taxpayer may claim a depreciation deduction for
        federal income tax purposes and for which the taxpayer
        was required in any taxable year to make an addition
        modification under subparagraph (D-5), then an amount
        equal to that addition modification.
            The taxpayer is allowed to take the deduction under
        this subparagraph only once with respect to any one
        piece of property.
            This subparagraph (P) is exempt from the
        provisions of Section 250;
            (Q) The amount of (i) any interest income (net of
        the deductions allocable thereto) taken into account
        for the taxable year with respect to a transaction with
        a taxpayer that is required to make an addition
        modification with respect to such transaction under
        Section 203(a)(2)(D-17), 203(b)(2)(E-12),
        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
        the amount of such addition modification and (ii) any
        income from intangible property (net of the deductions
        allocable thereto) taken into account for the taxable
        year with respect to a transaction with a taxpayer that
        is required to make an addition modification with
        respect to such transaction under Section
        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
        203(d)(2)(D-8), but not to exceed the amount of such
        addition modification;
            (R) An amount equal to the interest income taken
        into account for the taxable year (net of the
        deductions allocable thereto) with respect to
        transactions with (i) a foreign person who would be a
        member of the taxpayer's unitary business group but for
        the fact that the foreign person's business activity
        outside the United States is 80% or more of that
        person's total business activity and (ii) for taxable
        years ending on or after December 31, 2008, to a person
        who would be a member of the same unitary business
        group but for the fact that the person is prohibited
        under Section 1501(a)(27) from being included in the
        unitary business group because he or she is ordinarily
        required to apportion business income under different
        subsections of Section 304, but not to exceed the
        addition modification required to be made for the same
        taxable year under Section 203(d)(2)(D-7) for interest
        paid, accrued, or incurred, directly or indirectly, to
        the same person;
            (S) An amount equal to the income from intangible
        property taken into account for the taxable year (net
        of the deductions allocable thereto) with respect to
        transactions with (i) a foreign person who would be a
        member of the taxpayer's unitary business group but for
        the fact that the foreign person's business activity
        outside the United States is 80% or more of that
        person's total business activity and (ii) for taxable
        years ending on or after December 31, 2008, to a person
        who would be a member of the same unitary business
        group but for the fact that the person is prohibited
        under Section 1501(a)(27) from being included in the
        unitary business group because he or she is ordinarily
        required to apportion business income under different
        subsections of Section 304, but not to exceed the
        addition modification required to be made for the same
        taxable year under Section 203(d)(2)(D-8) for
        intangible expenses and costs paid, accrued, or
        incurred, directly or indirectly, to the same foreign
        person; and
            (T) (FF) An amount equal to the income from
        insurance premiums taken into account for the taxable
        year (net of the deductions allocable thereto) with
        respect to transactions with a person who would be a
        member of the same unitary business group but for the
        fact that the person is prohibited under Section
        1501(a)(27) from being included in the unitary
        business group because he or she is ordinarily required
        to apportion business income under different
        subsections of Section 304, but not to exceed the
        addition modification required to be made for the same
        taxable year under Section 203(a)(2)(D-18) for
        intangible expenses and costs paid, accrued, or
        incurred, directly or indirectly, to the same person.
 
    (e) Gross income; adjusted gross income; taxable income.
        (1) In general. Subject to the provisions of paragraph
    (2) and subsection (b) (3), for purposes of this Section
    and Section 803(e), a taxpayer's gross income, adjusted
    gross income, or taxable income for the taxable year shall
    mean the amount of gross income, adjusted gross income or
    taxable income properly reportable for federal income tax
    purposes for the taxable year under the provisions of the
    Internal Revenue Code. Taxable income may be less than
    zero. However, for taxable years ending on or after
    December 31, 1986, net operating loss carryforwards from
    taxable years ending prior to December 31, 1986, may not
    exceed the sum of federal taxable income for the taxable
    year before net operating loss deduction, plus the excess
    of addition modifications over subtraction modifications
    for the taxable year. For taxable years ending prior to
    December 31, 1986, taxable income may never be an amount in
    excess of the net operating loss for the taxable year as
    defined in subsections (c) and (d) of Section 172 of the
    Internal Revenue Code, provided that when taxable income of
    a corporation (other than a Subchapter S corporation),
    trust, or estate is less than zero and addition
    modifications, other than those provided by subparagraph
    (E) of paragraph (2) of subsection (b) for corporations or
    subparagraph (E) of paragraph (2) of subsection (c) for
    trusts and estates, exceed subtraction modifications, an
    addition modification must be made under those
    subparagraphs for any other taxable year to which the
    taxable income less than zero (net operating loss) is
    applied under Section 172 of the Internal Revenue Code or
    under subparagraph (E) of paragraph (2) of this subsection
    (e) applied in conjunction with Section 172 of the Internal
    Revenue Code.
        (2) Special rule. For purposes of paragraph (1) of this
    subsection, the taxable income properly reportable for
    federal income tax purposes shall mean:
            (A) Certain life insurance companies. In the case
        of a life insurance company subject to the tax imposed
        by Section 801 of the Internal Revenue Code, life
        insurance company taxable income, plus the amount of
        distribution from pre-1984 policyholder surplus
        accounts as calculated under Section 815a of the
        Internal Revenue Code;
            (B) Certain other insurance companies. In the case
        of mutual insurance companies subject to the tax
        imposed by Section 831 of the Internal Revenue Code,
        insurance company taxable income;
            (C) Regulated investment companies. In the case of
        a regulated investment company subject to the tax
        imposed by Section 852 of the Internal Revenue Code,
        investment company taxable income;
            (D) Real estate investment trusts. In the case of a
        real estate investment trust subject to the tax imposed
        by Section 857 of the Internal Revenue Code, real
        estate investment trust taxable income;
            (E) Consolidated corporations. In the case of a
        corporation which is a member of an affiliated group of
        corporations filing a consolidated income tax return
        for the taxable year for federal income tax purposes,
        taxable income determined as if such corporation had
        filed a separate return for federal income tax purposes
        for the taxable year and each preceding taxable year
        for which it was a member of an affiliated group. For
        purposes of this subparagraph, the taxpayer's separate
        taxable income shall be determined as if the election
        provided by Section 243(b) (2) of the Internal Revenue
        Code had been in effect for all such years;
            (F) Cooperatives. In the case of a cooperative
        corporation or association, the taxable income of such
        organization determined in accordance with the
        provisions of Section 1381 through 1388 of the Internal
        Revenue Code;
            (G) Subchapter S corporations. In the case of: (i)
        a Subchapter S corporation for which there is in effect
        an election for the taxable year under Section 1362 of
        the Internal Revenue Code, the taxable income of such
        corporation determined in accordance with Section
        1363(b) of the Internal Revenue Code, except that
        taxable income shall take into account those items
        which are required by Section 1363(b)(1) of the
        Internal Revenue Code to be separately stated; and (ii)
        a Subchapter S corporation for which there is in effect
        a federal election to opt out of the provisions of the
        Subchapter S Revision Act of 1982 and have applied
        instead the prior federal Subchapter S rules as in
        effect on July 1, 1982, the taxable income of such
        corporation determined in accordance with the federal
        Subchapter S rules as in effect on July 1, 1982; and
            (H) Partnerships. In the case of a partnership,
        taxable income determined in accordance with Section
        703 of the Internal Revenue Code, except that taxable
        income shall take into account those items which are
        required by Section 703(a)(1) to be separately stated
        but which would be taken into account by an individual
        in calculating his taxable income.
        (3) Recapture of business expenses on disposition of
    asset or business. Notwithstanding any other law to the
    contrary, if in prior years income from an asset or
    business has been classified as business income and in a
    later year is demonstrated to be non-business income, then
    all expenses, without limitation, deducted in such later
    year and in the 2 immediately preceding taxable years
    related to that asset or business that generated the
    non-business income shall be added back and recaptured as
    business income in the year of the disposition of the asset
    or business. Such amount shall be apportioned to Illinois
    using the greater of the apportionment fraction computed
    for the business under Section 304 of this Act for the
    taxable year or the average of the apportionment fractions
    computed for the business under Section 304 of this Act for
    the taxable year and for the 2 immediately preceding
    taxable years.
    (f) Valuation limitation amount.
        (1) In general. The valuation limitation amount
    referred to in subsections (a) (2) (G), (c) (2) (I) and
    (d)(2) (E) is an amount equal to:
            (A) The sum of the pre-August 1, 1969 appreciation
        amounts (to the extent consisting of gain reportable
        under the provisions of Section 1245 or 1250 of the
        Internal Revenue Code) for all property in respect of
        which such gain was reported for the taxable year; plus
            (B) The lesser of (i) the sum of the pre-August 1,
        1969 appreciation amounts (to the extent consisting of
        capital gain) for all property in respect of which such
        gain was reported for federal income tax purposes for
        the taxable year, or (ii) the net capital gain for the
        taxable year, reduced in either case by any amount of
        such gain included in the amount determined under
        subsection (a) (2) (F) or (c) (2) (H).
        (2) Pre-August 1, 1969 appreciation amount.
            (A) If the fair market value of property referred
        to in paragraph (1) was readily ascertainable on August
        1, 1969, the pre-August 1, 1969 appreciation amount for
        such property is the lesser of (i) the excess of such
        fair market value over the taxpayer's basis (for
        determining gain) for such property on that date
        (determined under the Internal Revenue Code as in
        effect on that date), or (ii) the total gain realized
        and reportable for federal income tax purposes in
        respect of the sale, exchange or other disposition of
        such property.
            (B) If the fair market value of property referred
        to in paragraph (1) was not readily ascertainable on
        August 1, 1969, the pre-August 1, 1969 appreciation
        amount for such property is that amount which bears the
        same ratio to the total gain reported in respect of the
        property for federal income tax purposes for the
        taxable year, as the number of full calendar months in
        that part of the taxpayer's holding period for the
        property ending July 31, 1969 bears to the number of
        full calendar months in the taxpayer's entire holding
        period for the property.
            (C) The Department shall prescribe such
        regulations as may be necessary to carry out the
        purposes of this paragraph.
 
    (g) Double deductions. Unless specifically provided
otherwise, nothing in this Section shall permit the same item
to be deducted more than once.
 
    (h) Legislative intention. Except as expressly provided by
this Section there shall be no modifications or limitations on
the amounts of income, gain, loss or deduction taken into
account in determining gross income, adjusted gross income or
taxable income for federal income tax purposes for the taxable
year, or in the amount of such items entering into the
computation of base income and net income under this Act for
such taxable year, whether in respect of property values as of
August 1, 1969 or otherwise.
(Source: P.A. 94-776, eff. 5-19-06; 94-789, eff. 5-19-06;
94-1021, eff. 7-12-06; 94-1074, eff. 12-26-06; 95-23, eff.
8-3-07; 95-233, eff. 8-16-07; 95-286, eff. 8-20-07; 95-331,
eff. 8-21-07; revised 10-31-07.)
 
    (35 ILCS 5/507PP)
    Sec. 507PP 507OO. The lung cancer research checkoff. For
taxable years ending on or after December 31, 2007, the
Department shall print, on its standard individual income tax
form, a provision indicating that, if the taxpayer wishes to
contribute to the Lung Cancer Research Fund, as authorized by
this amendatory Act of the 95th General Assembly, then he or
she may do so by stating the amount of the contribution (not
less than $1) on the return and indicating that the
contribution will reduce the taxpayer's refund or increase the
amount of payment to accompany the return. The taxpayer's
failure to remit any amount of the increased payment reduces
the contribution accordingly. This Section does not apply to
any amended return.
(Source: P.A. 95-434, eff. 8-27-07; revised 12-6-07.)
 
    (35 ILCS 5/507QQ)
    Sec. 507QQ 507OO. The autoimmune disease research
checkoff. For taxable years ending on or after December 31,
2007, the Department shall print, on its standard individual
income tax form, a provision indicating that, if the taxpayer
wishes to contribute to the Autoimmune Disease Research Fund,
as authorized by this amendatory Act of the 95th General
Assembly, then he or she may do so by stating the amount of the
contribution (not less than $1) on the return and indicating
that the contribution will reduce the taxpayer's refund or
increase the amount of payment to accompany the return. The
taxpayer's failure to remit any amount of the increased payment
reduces the contribution accordingly. This Section does not
apply to any amended return.
(Source: P.A. 95-435, eff. 8-27-07; revised 12-6-07.)
 
    Section 120. The Use Tax Act is amended by changing Section
3-5 as follows:
 
    (35 ILCS 105/3-5)  (from Ch. 120, par. 439.3-5)
    Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
    (1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
    (2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.
    (3) Personal property purchased by a not-for-profit arts or
cultural organization that establishes, by proof required by
the Department by rule, that it has received an exemption under
Section 501(c)(3) of the Internal Revenue Code and that is
organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after the effective date
of this amendatory Act of the 92nd General Assembly, however,
an entity otherwise eligible for this exemption shall not make
tax-free purchases unless it has an active identification
number issued by the Department.
    (4) Personal property purchased by a governmental body, by
a corporation, society, association, foundation, or
institution organized and operated exclusively for charitable,
religious, or educational purposes, or by a not-for-profit
corporation, society, association, foundation, institution, or
organization that has no compensated officers or employees and
that is organized and operated primarily for the recreation of
persons 55 years of age or older. A limited liability company
may qualify for the exemption under this paragraph only if the
limited liability company is organized and operated
exclusively for educational purposes. On and after July 1,
1987, however, no entity otherwise eligible for this exemption
shall make tax-free purchases unless it has an active exemption
identification number issued by the Department.
    (5) Until July 1, 2003, a passenger car that is a
replacement vehicle to the extent that the purchase price of
the car is subject to the Replacement Vehicle Tax.
    (6) Until July 1, 2003 and beginning again on September 1,
2004, graphic arts machinery and equipment, including repair
and replacement parts, both new and used, and including that
manufactured on special order, certified by the purchaser to be
used primarily for graphic arts production, and including
machinery and equipment purchased for lease. Equipment
includes chemicals or chemicals acting as catalysts but only if
the chemicals or chemicals acting as catalysts effect a direct
and immediate change upon a graphic arts product.
    (7) Farm chemicals.
    (8) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
    (9) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
    (10) A motor vehicle of the first division, a motor vehicle
of the second division that is a self-contained motor vehicle
designed or permanently converted to provide living quarters
for recreational, camping, or travel use, with direct walk
through to the living quarters from the driver's seat, or a
motor vehicle of the second division that is of the van
configuration designed for the transportation of not less than
7 nor more than 16 passengers, as defined in Section 1-146 of
the Illinois Vehicle Code, that is used for automobile renting,
as defined in the Automobile Renting Occupation and Use Tax
Act.
    (11) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required to
be registered under Section 3-809 of the Illinois Vehicle Code,
but excluding other motor vehicles required to be registered
under the Illinois Vehicle Code. Horticultural polyhouses or
hoop houses used for propagating, growing, or overwintering
plants shall be considered farm machinery and equipment under
this item (11). Agricultural chemical tender tanks and dry
boxes shall include units sold separately from a motor vehicle
required to be licensed and units sold mounted on a motor
vehicle required to be licensed if the selling price of the
tender is separately stated.
    Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
    Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (11) is exempt from the
provisions of Section 3-90.
    (12) Fuel and petroleum products sold to or used by an air
common carrier, certified by the carrier to be used for
consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight destined for or
returning from a location or locations outside the United
States without regard to previous or subsequent domestic
stopovers.
    (13) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages purchased at retail from a retailer, to the
extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the
employees who participate directly in preparing, serving,
hosting or cleaning up the food or beverage function with
respect to which the service charge is imposed.
    (14) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of rigs,
rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
tubular goods, including casing and drill strings, (iii) pumps
and pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
    (15) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including that
manufactured on special order, certified by the purchaser to be
used primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
    (16) Until July 1, 2003, coal exploration, mining,
offhighway hauling, processing, maintenance, and reclamation
equipment, including replacement parts and equipment, and
including equipment purchased for lease, but excluding motor
vehicles required to be registered under the Illinois Vehicle
Code.
    (17) Until July 1, 2003, distillation machinery and
equipment, sold as a unit or kit, assembled or installed by the
retailer, certified by the user to be used only for the
production of ethyl alcohol that will be used for consumption
as motor fuel or as a component of motor fuel for the personal
use of the user, and not subject to sale or resale.
    (18) Manufacturing and assembling machinery and equipment
used primarily in the process of manufacturing or assembling
tangible personal property for wholesale or retail sale or
lease, whether that sale or lease is made directly by the
manufacturer or by some other person, whether the materials
used in the process are owned by the manufacturer or some other
person, or whether that sale or lease is made apart from or as
an incident to the seller's engaging in the service occupation
of producing machines, tools, dies, jigs, patterns, gauges, or
other similar items of no commercial value on special order for
a particular purchaser.
    (19) Personal property delivered to a purchaser or
purchaser's donee inside Illinois when the purchase order for
that personal property was received by a florist located
outside Illinois who has a florist located inside Illinois
deliver the personal property.
    (20) Semen used for artificial insemination of livestock
for direct agricultural production.
    (21) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (21) is exempt from the provisions
of Section 3-90, and the exemption provided for under this item
(21) applies for all periods beginning May 30, 1995, but no
claim for credit or refund is allowed on or after January 1,
2008 the effective date of this amendatory Act of the 95th
General Assembly for such taxes paid during the period
beginning May 30, 2000 and ending on January 1, 2008 the
effective date of this amendatory Act of the 95th General
Assembly.
    (22) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the equipment is leased in a
manner that does not qualify for this exemption or is used in
any other non-exempt manner, the lessor shall be liable for the
tax imposed under this Act or the Service Use Tax Act, as the
case may be, based on the fair market value of the property at
the time the non-qualifying use occurs. No lessor shall collect
or attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax
has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall have
a legal right to claim a refund of that amount from the lessor.
If, however, that amount is not refunded to the lessee for any
reason, the lessor is liable to pay that amount to the
Department.
    (23) Personal property purchased by a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time the lessor would otherwise be subject to the
tax imposed by this Act, to a governmental body that has been
issued an active sales tax exemption identification number by
the Department under Section 1g of the Retailers' Occupation
Tax Act. If the property is leased in a manner that does not
qualify for this exemption or used in any other non-exempt
manner, the lessor shall be liable for the tax imposed under
this Act or the Service Use Tax Act, as the case may be, based
on the fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt
to collect an amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or the
Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such
amount from the lessee, the lessee shall have a legal right to
claim a refund of that amount from the lessor. If, however,
that amount is not refunded to the lessee for any reason, the
lessor is liable to pay that amount to the Department.
    (24) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated for
disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
    (25) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in the
performance of infrastructure repairs in this State, including
but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer
line extensions, water distribution and purification
facilities, storm water drainage and retention facilities, and
sewage treatment facilities, resulting from a State or
federally declared disaster in Illinois or bordering Illinois
when such repairs are initiated on facilities located in the
declared disaster area within 6 months after the disaster.
    (26) Beginning July 1, 1999, game or game birds purchased
at a "game breeding and hunting preserve area" or an "exotic
game hunting area" as those terms are used in the Wildlife Code
or at a hunting enclosure approved through rules adopted by the
Department of Natural Resources. This paragraph is exempt from
the provisions of Section 3-90.
    (27) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the Department
to be organized and operated exclusively for educational
purposes. For purposes of this exemption, "a corporation,
limited liability company, society, association, foundation,
or institution organized and operated exclusively for
educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful
branches of learning by methods common to public schools and
that compare favorably in their scope and intensity with the
course of study presented in tax-supported schools, and
vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less
than 6 weeks duration and designed to prepare individuals to
follow a trade or to pursue a manual, technical, mechanical,
industrial, business, or commercial occupation.
    (28) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-90.
    (29) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and other
items, and replacement parts for these machines. Beginning
January 1, 2002 and through June 30, 2003, machines and parts
for machines used in commercial, coin-operated amusement and
vending business if a use or occupation tax is paid on the
gross receipts derived from the use of the commercial,
coin-operated amusement and vending machines. This paragraph
is exempt from the provisions of Section 3-90.
    (30) Beginning January 1, 2001 and through June 30, 2011,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks, and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article 5 of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act.
    (31) Beginning on the effective date of this amendatory Act
of the 92nd General Assembly, computers and communications
equipment utilized for any hospital purpose and equipment used
in the diagnosis, analysis, or treatment of hospital patients
purchased by a lessor who leases the equipment, under a lease
of one year or longer executed or in effect at the time the
lessor would otherwise be subject to the tax imposed by this
Act, to a hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the equipment is leased in a
manner that does not qualify for this exemption or is used in
any other nonexempt manner, the lessor shall be liable for the
tax imposed under this Act or the Service Use Tax Act, as the
case may be, based on the fair market value of the property at
the time the nonqualifying use occurs. No lessor shall collect
or attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax
has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall have
a legal right to claim a refund of that amount from the lessor.
If, however, that amount is not refunded to the lessee for any
reason, the lessor is liable to pay that amount to the
Department. This paragraph is exempt from the provisions of
Section 3-90.
    (32) Beginning on the effective date of this amendatory Act
of the 92nd General Assembly, personal property purchased by a
lessor who leases the property, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
governmental body that has been issued an active sales tax
exemption identification number by the Department under
Section 1g of the Retailers' Occupation Tax Act. If the
property is leased in a manner that does not qualify for this
exemption or used in any other nonexempt manner, the lessor
shall be liable for the tax imposed under this Act or the
Service Use Tax Act, as the case may be, based on the fair
market value of the property at the time the nonqualifying use
occurs. No lessor shall collect or attempt to collect an amount
(however designated) that purports to reimburse that lessor for
the tax imposed by this Act or the Service Use Tax Act, as the
case may be, if the tax has not been paid by the lessor. If a
lessor improperly collects any such amount from the lessee, the
lessee shall have a legal right to claim a refund of that
amount from the lessor. If, however, that amount is not
refunded to the lessee for any reason, the lessor is liable to
pay that amount to the Department. This paragraph is exempt
from the provisions of Section 3-90.
    (33) On and after July 1, 2003 and through June 30, 2004,
the use in this State of motor vehicles of the second division
with a gross vehicle weight in excess of 8,000 pounds and that
are subject to the commercial distribution fee imposed under
Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
1, 2004 and through June 30, 2005, the use in this State of
motor vehicles of the second division: (i) with a gross vehicle
weight rating in excess of 8,000 pounds; (ii) that are subject
to the commercial distribution fee imposed under Section
3-815.1 of the Illinois Vehicle Code; and (iii) that are
primarily used for commercial purposes. Through June 30, 2005,
this exemption applies to repair and replacement parts added
after the initial purchase of such a motor vehicle if that
motor vehicle is used in a manner that would qualify for the
rolling stock exemption otherwise provided for in this Act. For
purposes of this paragraph, the term "used for commercial
purposes" means the transportation of persons or property in
furtherance of any commercial or industrial enterprise,
whether for-hire or not.
    (34) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued under
Title IV of the Environmental Protection Act. This paragraph is
exempt from the provisions of Section 3-90.
(Source: P.A. 94-1002, eff. 7-3-06; 95-88, eff. 1-1-08; 95-538,
eff. 1-1-08; revised 10-31-07.)
 
    Section 125. The Service Use Tax Act is amended by changing
Section 3-5 as follows:
 
    (35 ILCS 110/3-5)  (from Ch. 120, par. 439.33-5)
    Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
    (1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
    (2) Personal property purchased by a non-profit Illinois
county fair association for use in conducting, operating, or
promoting the county fair.
    (3) Personal property purchased by a not-for-profit arts or
cultural organization that establishes, by proof required by
the Department by rule, that it has received an exemption under
Section 501(c)(3) of the Internal Revenue Code and that is
organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after the effective date
of this amendatory Act of the 92nd General Assembly, however,
an entity otherwise eligible for this exemption shall not make
tax-free purchases unless it has an active identification
number issued by the Department.
    (4) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
    (5) Until July 1, 2003 and beginning again on September 1,
2004, graphic arts machinery and equipment, including repair
and replacement parts, both new and used, and including that
manufactured on special order or purchased for lease, certified
by the purchaser to be used primarily for graphic arts
production. Equipment includes chemicals or chemicals acting
as catalysts but only if the chemicals or chemicals acting as
catalysts effect a direct and immediate change upon a graphic
arts product.
    (6) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
    (7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required to
be registered under Section 3-809 of the Illinois Vehicle Code,
but excluding other motor vehicles required to be registered
under the Illinois Vehicle Code. Horticultural polyhouses or
hoop houses used for propagating, growing, or overwintering
plants shall be considered farm machinery and equipment under
this item (7). Agricultural chemical tender tanks and dry boxes
shall include units sold separately from a motor vehicle
required to be licensed and units sold mounted on a motor
vehicle required to be licensed if the selling price of the
tender is separately stated.
    Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
    Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (7) is exempt from the
provisions of Section 3-75.
    (8) Fuel and petroleum products sold to or used by an air
common carrier, certified by the carrier to be used for
consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight destined for or
returning from a location or locations outside the United
States without regard to previous or subsequent domestic
stopovers.
    (9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages acquired as an incident to the purchase of a
service from a serviceman, to the extent that the proceeds of
the service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
    (10) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of rigs,
rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
tubular goods, including casing and drill strings, (iii) pumps
and pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
    (11) Proceeds from the sale of photoprocessing machinery
and equipment, including repair and replacement parts, both new
and used, including that manufactured on special order,
certified by the purchaser to be used primarily for
photoprocessing, and including photoprocessing machinery and
equipment purchased for lease.
    (12) Until July 1, 2003, coal exploration, mining,
offhighway hauling, processing, maintenance, and reclamation
equipment, including replacement parts and equipment, and
including equipment purchased for lease, but excluding motor
vehicles required to be registered under the Illinois Vehicle
Code.
    (13) Semen used for artificial insemination of livestock
for direct agricultural production.
    (14) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (14) is exempt from the provisions
of Section 3-75, and the exemption provided for under this item
(14) applies for all periods beginning May 30, 1995, but no
claim for credit or refund is allowed on or after the effective
date of this amendatory Act of the 95th General Assembly for
such taxes paid during the period beginning May 30, 2000 and
ending on the effective date of this amendatory Act of the 95th
General Assembly.
    (15) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the equipment is leased in a
manner that does not qualify for this exemption or is used in
any other non-exempt manner, the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case may
be, based on the fair market value of the property at the time
the non-qualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that purports
to reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid by
the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that amount
is not refunded to the lessee for any reason, the lessor is
liable to pay that amount to the Department.
    (16) Personal property purchased by a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time the lessor would otherwise be subject to the
tax imposed by this Act, to a governmental body that has been
issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax
Act. If the property is leased in a manner that does not
qualify for this exemption or is used in any other non-exempt
manner, the lessor shall be liable for the tax imposed under
this Act or the Use Tax Act, as the case may be, based on the
fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt
to collect an amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid by
the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that amount
is not refunded to the lessee for any reason, the lessor is
liable to pay that amount to the Department.
    (17) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated for
disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
    (18) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in the
performance of infrastructure repairs in this State, including
but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer
line extensions, water distribution and purification
facilities, storm water drainage and retention facilities, and
sewage treatment facilities, resulting from a State or
federally declared disaster in Illinois or bordering Illinois
when such repairs are initiated on facilities located in the
declared disaster area within 6 months after the disaster.
    (19) Beginning July 1, 1999, game or game birds purchased
at a "game breeding and hunting preserve area" or an "exotic
game hunting area" as those terms are used in the Wildlife Code
or at a hunting enclosure approved through rules adopted by the
Department of Natural Resources. This paragraph is exempt from
the provisions of Section 3-75.
    (20) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the Department
to be organized and operated exclusively for educational
purposes. For purposes of this exemption, "a corporation,
limited liability company, society, association, foundation,
or institution organized and operated exclusively for
educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful
branches of learning by methods common to public schools and
that compare favorably in their scope and intensity with the
course of study presented in tax-supported schools, and
vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less
than 6 weeks duration and designed to prepare individuals to
follow a trade or to pursue a manual, technical, mechanical,
industrial, business, or commercial occupation.
    (21) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children