Public Act 097-0333
 
HB2853 EnrolledLRB097 02957 AMC 42981 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 2011 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 In certain cases in which a repealed Act or Section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incorporate amendments to the repealed Act or Section into the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 96-857 through 96-1479 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
Section 4.31 as follows:
 
    (5 ILCS 80/4.31)
    Sec. 4.31. Acts Act repealed on January 1, 2021. The
following Acts are Act is repealed on January 1, 2021:
    The Crematory Regulation Act.
    The Cemetery Oversight Act.
    The Illinois Health Information Exchange and Technology
Act.
    The Radiation Protection Act of 1990.
(Source: P.A. 96-1041, eff. 7-14-10; 96-1331, eff. 7-27-10;
incorporates P.A. 96-863, eff. 3-1-10; revised 9-9-10.)
 
    (5 ILCS 80/8.31 rep.)
    Section 10. The Regulatory Sunset Act is amended by
repealing Section 8.31.
 
    Section 15. The Open Meetings Act is amended by changing
Section 2 as follows:
 
    (5 ILCS 120/2)  (from Ch. 102, par. 42)
    Sec. 2. Open meetings.
    (a) Openness required. All meetings of public bodies shall
be open to the public unless excepted in subsection (c) and
closed in accordance with Section 2a.
    (b) Construction of exceptions. The exceptions contained
in subsection (c) are in derogation of the requirement that
public bodies meet in the open, and therefore, the exceptions
are to be strictly construed, extending only to subjects
clearly within their scope. The exceptions authorize but do not
require the holding of a closed meeting to discuss a subject
included within an enumerated exception.
    (c) Exceptions. A public body may hold closed meetings to
consider the following subjects:
        (1) The appointment, employment, compensation,
    discipline, performance, or dismissal of specific
    employees of the public body or legal counsel for the
    public body, including hearing testimony on a complaint
    lodged against an employee of the public body or against
    legal counsel for the public body to determine its
    validity.
        (2) Collective negotiating matters between the public
    body and its employees or their representatives, or
    deliberations concerning salary schedules for one or more
    classes of employees.
        (3) The selection of a person to fill a public office,
    as defined in this Act, including a vacancy in a public
    office, when the public body is given power to appoint
    under law or ordinance, or the discipline, performance or
    removal of the occupant of a public office, when the public
    body is given power to remove the occupant under law or
    ordinance.
        (4) Evidence or testimony presented in open hearing, or
    in closed hearing where specifically authorized by law, to
    a quasi-adjudicative body, as defined in this Act, provided
    that the body prepares and makes available for public
    inspection a written decision setting forth its
    determinative reasoning.
        (5) The purchase or lease of real property for the use
    of the public body, including meetings held for the purpose
    of discussing whether a particular parcel should be
    acquired.
        (6) The setting of a price for sale or lease of
    property owned by the public body.
        (7) The sale or purchase of securities, investments, or
    investment contracts.
        (8) Security procedures and the use of personnel and
    equipment to respond to an actual, a threatened, or a
    reasonably potential danger to the safety of employees,
    students, staff, the public, or public property.
        (9) Student disciplinary cases.
        (10) The placement of individual students in special
    education programs and other matters relating to
    individual students.
        (11) Litigation, when an action against, affecting or
    on behalf of the particular public body has been filed and
    is pending before a court or administrative tribunal, or
    when the public body finds that an action is probable or
    imminent, in which case the basis for the finding shall be
    recorded and entered into the minutes of the closed
    meeting.
        (12) The establishment of reserves or settlement of
    claims as provided in the Local Governmental and
    Governmental Employees Tort Immunity Act, if otherwise the
    disposition of a claim or potential claim might be
    prejudiced, or the review or discussion of claims, loss or
    risk management information, records, data, advice or
    communications from or with respect to any insurer of the
    public body or any intergovernmental risk management
    association or self insurance pool of which the public body
    is a member.
        (13) Conciliation of complaints of discrimination in
    the sale or rental of housing, when closed meetings are
    authorized by the law or ordinance prescribing fair housing
    practices and creating a commission or administrative
    agency for their enforcement.
        (14) Informant sources, the hiring or assignment of
    undercover personnel or equipment, or ongoing, prior or
    future criminal investigations, when discussed by a public
    body with criminal investigatory responsibilities.
        (15) Professional ethics or performance when
    considered by an advisory body appointed to advise a
    licensing or regulatory agency on matters germane to the
    advisory body's field of competence.
        (16) Self evaluation, practices and procedures or
    professional ethics, when meeting with a representative of
    a statewide association of which the public body is a
    member.
        (17) The recruitment, credentialing, discipline or
    formal peer review of physicians or other health care
    professionals for a hospital, or other institution
    providing medical care, that is operated by the public
    body.
        (18) Deliberations for decisions of the Prisoner
    Review Board.
        (19) Review or discussion of applications received
    under the Experimental Organ Transplantation Procedures
    Act.
        (20) The classification and discussion of matters
    classified as confidential or continued confidential by
    the State Government Suggestion Award Board.
        (21) Discussion of minutes of meetings lawfully closed
    under this Act, whether for purposes of approval by the
    body of the minutes or semi-annual review of the minutes as
    mandated by Section 2.06.
        (22) Deliberations for decisions of the State
    Emergency Medical Services Disciplinary Review Board.
        (23) The operation by a municipality of a municipal
    utility or the operation of a municipal power agency or
    municipal natural gas agency when the discussion involves
    (i) contracts relating to the purchase, sale, or delivery
    of electricity or natural gas or (ii) the results or
    conclusions of load forecast studies.
        (24) Meetings of a residential health care facility
    resident sexual assault and death review team or the
    Executive Council under the Abuse Prevention Review Team
    Act.
        (25) Meetings of an independent team of experts under
    Brian's Law.
        (26) (25) Meetings of a mortality review team appointed
    under the Department of Juvenile Justice Mortality Review
    Team Act.
        (27) (25) Confidential information, when discussed by
    one or more members of an elder abuse fatality review team,
    designated under Section 15 of the Elder Abuse and Neglect
    Act, while participating in a review conducted by that team
    of the death of an elderly person in which abuse or neglect
    is suspected, alleged, or substantiated; provided that
    before the review team holds a closed meeting, or closes an
    open meeting, to discuss the confidential information,
    each participating review team member seeking to disclose
    the confidential information in the closed meeting or
    closed portion of the meeting must state on the record
    during an open meeting or the open portion of a meeting the
    nature of the information to be disclosed and the legal
    basis for otherwise holding that information confidential.
    (d) Definitions. For purposes of this Section:
    "Employee" means a person employed by a public body whose
relationship with the public body constitutes an
employer-employee relationship under the usual common law
rules, and who is not an independent contractor.
    "Public office" means a position created by or under the
Constitution or laws of this State, the occupant of which is
charged with the exercise of some portion of the sovereign
power of this State. The term "public office" shall include
members of the public body, but it shall not include
organizational positions filled by members thereof, whether
established by law or by a public body itself, that exist to
assist the body in the conduct of its business.
    "Quasi-adjudicative body" means an administrative body
charged by law or ordinance with the responsibility to conduct
hearings, receive evidence or testimony and make
determinations based thereon, but does not include local
electoral boards when such bodies are considering petition
challenges.
    (e) Final action. No final action may be taken at a closed
meeting. Final action shall be preceded by a public recital of
the nature of the matter being considered and other information
that will inform the public of the business being conducted.
(Source: P.A. 95-185, eff. 1-1-08; 96-1235, eff. 1-1-11;
96-1378, eff. 7-29-10; 96-1428, eff. 8-11-10; revised 9-2-10.)
 
    Section 20. The Freedom of Information Act is amended by
changing Sections 7 and 7.5 as follows:
 
    (5 ILCS 140/7)  (from Ch. 116, par. 207)
    Sec. 7. Exemptions.
    (1) When a request is made to inspect or copy a public
record that contains information that is exempt from disclosure
under this Section, but also contains information that is not
exempt from disclosure, the public body may elect to redact the
information that is exempt. The public body shall make the
remaining information available for inspection and copying.
Subject to this requirement, the following shall be exempt from
inspection and copying:
        (a) Information specifically prohibited from
    disclosure by federal or State law or rules and regulations
    implementing federal or State law.
        (b) Private information, unless disclosure is required
    by another provision of this Act, a State or federal law or
    a court order.
        (b-5) Files, documents, and other data or databases
    maintained by one or more law enforcement agencies and
    specifically designed to provide information to one or more
    law enforcement agencies regarding the physical or mental
    status of one or more individual subjects.
        (c) Personal information contained within public
    records, the disclosure of which would constitute a clearly
    unwarranted invasion of personal privacy, unless the
    disclosure is consented to in writing by the individual
    subjects of the information. "Unwarranted invasion of
    personal privacy" means the disclosure of information that
    is highly personal or objectionable to a reasonable person
    and in which the subject's right to privacy outweighs any
    legitimate public interest in obtaining the information.
    The disclosure of information that bears on the public
    duties of public employees and officials shall not be
    considered an invasion of personal privacy.
        (d) Records in the possession of any public body
    created in the course of administrative enforcement
    proceedings, and any law enforcement or correctional
    agency for law enforcement purposes, but only to the extent
    that disclosure would:
            (i) interfere with pending or actually and
        reasonably contemplated law enforcement proceedings
        conducted by any law enforcement or correctional
        agency that is the recipient of the request;
            (ii) interfere with active administrative
        enforcement proceedings conducted by the public body
        that is the recipient of the request;
            (iii) create a substantial likelihood that a
        person will be deprived of a fair trial or an impartial
        hearing;
            (iv) unavoidably disclose the identity of a
        confidential source, confidential information
        furnished only by the confidential source, or persons
        who file complaints with or provide information to
        administrative, investigative, law enforcement, or
        penal agencies; except that the identities of
        witnesses to traffic accidents, traffic accident
        reports, and rescue reports shall be provided by
        agencies of local government, except when disclosure
        would interfere with an active criminal investigation
        conducted by the agency that is the recipient of the
        request;
            (v) disclose unique or specialized investigative
        techniques other than those generally used and known or
        disclose internal documents of correctional agencies
        related to detection, observation or investigation of
        incidents of crime or misconduct, and disclosure would
        result in demonstrable harm to the agency or public
        body that is the recipient of the request;
            (vi) endanger the life or physical safety of law
        enforcement personnel or any other person; or
            (vii) obstruct an ongoing criminal investigation
        by the agency that is the recipient of the request.
        (e) Records that relate to or affect the security of
    correctional institutions and detention facilities.
        (f) Preliminary drafts, notes, recommendations,
    memoranda and other records in which opinions are
    expressed, or policies or actions are formulated, except
    that a specific record or relevant portion of a record
    shall not be exempt when the record is publicly cited and
    identified by the head of the public body. The exemption
    provided in this paragraph (f) extends to all those records
    of officers and agencies of the General Assembly that
    pertain to the preparation of legislative documents.
        (g) Trade secrets and commercial or financial
    information obtained from a person or business where the
    trade secrets or commercial or financial information are
    furnished under a claim that they are proprietary,
    privileged or confidential, and that disclosure of the
    trade secrets or commercial or financial information would
    cause competitive harm to the person or business, and only
    insofar as the claim directly applies to the records
    requested.
        The information included under this exemption includes
    all trade secrets and commercial or financial information
    obtained by a public body, including a public pension fund,
    from a private equity fund or a privately held company
    within the investment portfolio of a private equity fund as
    a result of either investing or evaluating a potential
    investment of public funds in a private equity fund. The
    exemption contained in this item does not apply to the
    aggregate financial performance information of a private
    equity fund, nor to the identity of the fund's managers or
    general partners. The exemption contained in this item does
    not apply to the identity of a privately held company
    within the investment portfolio of a private equity fund,
    unless the disclosure of the identity of a privately held
    company may cause competitive harm.
        Nothing contained in this paragraph (g) shall be
    construed to prevent a person or business from consenting
    to disclosure.
        (h) Proposals and bids for any contract, grant, or
    agreement, including information which if it were
    disclosed would frustrate procurement or give an advantage
    to any person proposing to enter into a contractor
    agreement with the body, until an award or final selection
    is made. Information prepared by or for the body in
    preparation of a bid solicitation shall be exempt until an
    award or final selection is made.
        (i) Valuable formulae, computer geographic systems,
    designs, drawings and research data obtained or produced by
    any public body when disclosure could reasonably be
    expected to produce private gain or public loss. The
    exemption for "computer geographic systems" provided in
    this paragraph (i) does not extend to requests made by news
    media as defined in Section 2 of this Act when the
    requested information is not otherwise exempt and the only
    purpose of the request is to access and disseminate
    information regarding the health, safety, welfare, or
    legal rights of the general public.
        (j) The following information pertaining to
    educational matters:
            (i) test questions, scoring keys and other
        examination data used to administer an academic
        examination;
            (ii) information received by a primary or
        secondary school, college, or university under its
        procedures for the evaluation of faculty members by
        their academic peers;
            (iii) information concerning a school or
        university's adjudication of student disciplinary
        cases, but only to the extent that disclosure would
        unavoidably reveal the identity of the student; and
            (iv) course materials or research materials used
        by faculty members.
        (k) Architects' plans, engineers' technical
    submissions, and other construction related technical
    documents for projects not constructed or developed in
    whole or in part with public funds and the same for
    projects constructed or developed with public funds,
    including but not limited to power generating and
    distribution stations and other transmission and
    distribution facilities, water treatment facilities,
    airport facilities, sport stadiums, convention centers,
    and all government owned, operated, or occupied buildings,
    but only to the extent that disclosure would compromise
    security.
        (l) Minutes of meetings of public bodies closed to the
    public as provided in the Open Meetings Act until the
    public body makes the minutes available to the public under
    Section 2.06 of the Open Meetings Act.
        (m) Communications between a public body and an
    attorney or auditor representing the public body that would
    not be subject to discovery in litigation, and materials
    prepared or compiled by or for a public body in
    anticipation of a criminal, civil or administrative
    proceeding upon the request of an attorney advising the
    public body, and materials prepared or compiled with
    respect to internal audits of public bodies.
        (n) Records relating to a public body's adjudication of
    employee grievances or disciplinary cases; however, this
    exemption shall not extend to the final outcome of cases in
    which discipline is imposed.
        (o) Administrative or technical information associated
    with automated data processing operations, including but
    not limited to software, operating protocols, computer
    program abstracts, file layouts, source listings, object
    modules, load modules, user guides, documentation
    pertaining to all logical and physical design of
    computerized systems, employee manuals, and any other
    information that, if disclosed, would jeopardize the
    security of the system or its data or the security of
    materials exempt under this Section.
        (p) Records relating to collective negotiating matters
    between public bodies and their employees or
    representatives, except that any final contract or
    agreement shall be subject to inspection and copying.
        (q) Test questions, scoring keys, and other
    examination data used to determine the qualifications of an
    applicant for a license or employment.
        (r) The records, documents, and information relating
    to real estate purchase negotiations until those
    negotiations have been completed or otherwise terminated.
    With regard to a parcel involved in a pending or actually
    and reasonably contemplated eminent domain proceeding
    under the Eminent Domain Act, records, documents and
    information relating to that parcel shall be exempt except
    as may be allowed under discovery rules adopted by the
    Illinois Supreme Court. The records, documents and
    information relating to a real estate sale shall be exempt
    until a sale is consummated.
        (s) Any and all proprietary information and records
    related to the operation of an intergovernmental risk
    management association or self-insurance pool or jointly
    self-administered health and accident cooperative or pool.
    Insurance or self insurance (including any
    intergovernmental risk management association or self
    insurance pool) claims, loss or risk management
    information, records, data, advice or communications.
        (t) Information contained in or related to
    examination, operating, or condition reports prepared by,
    on behalf of, or for the use of a public body responsible
    for the regulation or supervision of financial
    institutions or insurance companies, unless disclosure is
    otherwise required by State law.
        (u) Information that would disclose or might lead to
    the disclosure of secret or confidential information,
    codes, algorithms, programs, or private keys intended to be
    used to create electronic or digital signatures under the
    Electronic Commerce Security Act.
        (v) Vulnerability assessments, security measures, and
    response policies or plans that are designed to identify,
    prevent, or respond to potential attacks upon a community's
    population or systems, facilities, or installations, the
    destruction or contamination of which would constitute a
    clear and present danger to the health or safety of the
    community, but only to the extent that disclosure could
    reasonably be expected to jeopardize the effectiveness of
    the measures or the safety of the personnel who implement
    them or the public. Information exempt under this item may
    include such things as details pertaining to the
    mobilization or deployment of personnel or equipment, to
    the operation of communication systems or protocols, or to
    tactical operations.
        (w) (Blank).
        (x) Maps and other records regarding the location or
    security of generation, transmission, distribution,
    storage, gathering, treatment, or switching facilities
    owned by a utility, by a power generator, or by the
    Illinois Power Agency.
        (y) Information contained in or related to proposals,
    bids, or negotiations related to electric power
    procurement under Section 1-75 of the Illinois Power Agency
    Act and Section 16-111.5 of the Public Utilities Act that
    is determined to be confidential and proprietary by the
    Illinois Power Agency or by the Illinois Commerce
    Commission.
        (z) Information about students exempted from
    disclosure under Sections 10-20.38 or 34-18.29 of the
    School Code, and information about undergraduate students
    enrolled at an institution of higher education exempted
    from disclosure under Section 25 of the Illinois Credit
    Card Marketing Act of 2009.
        (aa) Information the disclosure of which is exempted
    under the Viatical Settlements Act of 2009.
        (bb) Records and information provided to a mortality
    review team and records maintained by a mortality review
    team appointed under the Department of Juvenile Justice
    Mortality Review Team Act.
        (cc) (bb) Information regarding interments,
    entombments, or inurnments of human remains that are
    submitted to the Cemetery Oversight Database under the
    Cemetery Care Act or the Cemetery Oversight Act, whichever
    is applicable.
    (2) A public record that is not in the possession of a
public body but is in the possession of a party with whom the
agency has contracted to perform a governmental function on
behalf of the public body, and that directly relates to the
governmental function and is not otherwise exempt under this
Act, shall be considered a public record of the public body,
for purposes of this Act.
    (3) This Section does not authorize withholding of
information or limit the availability of records to the public,
except as stated in this Section or otherwise provided in this
Act.
(Source: P.A. 95-331, eff. 8-21-07; 95-481, eff. 8-28-07;
95-941, eff. 8-29-08; 95-988, eff. 6-1-09; 96-261, eff. 1-1-10;
96-328, eff. 8-11-09; 96-542, eff. 1-1-10; 96-558, eff. 1-1-10;
96-736, eff. 7-1-10; 96-863, eff. 3-1-10; 96-1378, eff.
7-29-10; revised 9-2-10.)
 
    (5 ILCS 140/7.5)
    Sec. 7.5. Statutory Exemptions. To the extent provided for
by the statutes referenced below, the following shall be exempt
from inspection and copying:
    (a) All information determined to be confidential under
Section 4002 of the Technology Advancement and Development Act.
    (b) Library circulation and order records identifying
library users with specific materials under the Library Records
Confidentiality Act.
    (c) Applications, related documents, and medical records
received by the Experimental Organ Transplantation Procedures
Board and any and all documents or other records prepared by
the Experimental Organ Transplantation Procedures Board or its
staff relating to applications it has received.
    (d) Information and records held by the Department of
Public Health and its authorized representatives relating to
known or suspected cases of sexually transmissible disease or
any information the disclosure of which is restricted under the
Illinois Sexually Transmissible Disease Control Act.
    (e) Information the disclosure of which is exempted under
Section 30 of the Radon Industry Licensing Act.
    (f) Firm performance evaluations under Section 55 of the
Architectural, Engineering, and Land Surveying Qualifications
Based Selection Act.
    (g) Information the disclosure of which is restricted and
exempted under Section 50 of the Illinois Prepaid Tuition Act.
    (h) Information the disclosure of which is exempted under
the State Officials and Employees Ethics Act, and records of
any lawfully created State or local inspector general's office
that would be exempt if created or obtained by an Executive
Inspector General's office under that Act.
    (i) Information contained in a local emergency energy plan
submitted to a municipality in accordance with a local
emergency energy plan ordinance that is adopted under Section
11-21.5-5 of the Illinois Municipal Code.
    (j) Information and data concerning the distribution of
surcharge moneys collected and remitted by wireless carriers
under the Wireless Emergency Telephone Safety Act.
    (k) Law enforcement officer identification information or
driver identification information compiled by a law
enforcement agency or the Department of Transportation under
Section 11-212 of the Illinois Vehicle Code.
    (l) Records and information provided to a residential
health care facility resident sexual assault and death review
team or the Executive Council under the Abuse Prevention Review
Team Act.
    (m) Information provided to the predatory lending database
created pursuant to Article 3 of the Residential Real Property
Disclosure Act, except to the extent authorized under that
Article.
    (n) Defense budgets and petitions for certification of
compensation and expenses for court appointed trial counsel as
provided under Sections 10 and 15 of the Capital Crimes
Litigation Act. This subsection (n) shall apply until the
conclusion of the trial of the case, even if the prosecution
chooses not to pursue the death penalty prior to trial or
sentencing.
    (o) Information that is prohibited from being disclosed
under Section 4 of the Illinois Health and Hazardous Substances
Registry Act.
    (p) Security portions of system safety program plans,
investigation reports, surveys, schedules, lists, data, or
information compiled, collected, or prepared by or for the
Regional Transportation Authority under Section 2.11 of the
Regional Transportation Authority Act or the St. Clair County
Transit District under the Bi-State Transit Safety Act.
    (q) Information prohibited from being disclosed by the
Personnel Records Review Act.
    (r) Information prohibited from being disclosed by the
Illinois School Student Records Act.
    (s) Information the disclosure of which is restricted under
Section 5-108 of the Public Utilities Act.
    (t) All identified or deidentified health information in
the form of health data or medical records contained in, stored
in, submitted to, transferred by, or released from the Illinois
Health Information Exchange, and identified or deidentified
health information in the form of health data and medical
records of the Illinois Health Information Exchange in the
possession of the Illinois Health Information Exchange
Authority due to its administration of the Illinois Health
Information Exchange. The terms "identified" and
"deidentified" shall be given the same meaning as in the Health
Insurance Accountability and Portability Act of 1996, Public
Law 104-191, or any subsequent amendments thereto, and any
regulations promulgated thereunder.
    (u) (t) Records and information provided to an independent
team of experts under Brian's Law.
(Source: P.A. 96-542, eff. 1-1-10; 96-1235, eff. 1-1-11;
96-1331, eff. 7-27-10; revised 9-2-10.)
 
    Section 25. The Identity Protection Act is amended by
changing Section 10 as follows:
 
    (5 ILCS 179/10)
    Sec. 10. Prohibited Activities.
    (a) Beginning July 1, 2010, no person or State or local
government agency may do any of the following:
        (1) Publicly post or publicly display in any manner an
    individual's social security number.
        (2) Print an individual's social security number on any
    card required for the individual to access products or
    services provided by the person or entity.
        (3) Require an individual to transmit his or her social
    security number over the Internet, unless the connection is
    secure or the social security number is encrypted.
        (4) Print an individual's social security number on any
    materials that are mailed to the individual, through the
    U.S. Postal Service, any private mail service, electronic
    mail, or any similar method of delivery, unless State or
    federal law requires the social security number to be on
    the document to be mailed. Notwithstanding any provision in
    this Section to the contrary, social security numbers may
    be included in applications and forms sent by mail,
    including, but not limited to, any material mailed in
    connection with the administration of the Unemployment
    Insurance Act, any material mailed in connection with any
    tax administered by the Department of Revenue, and
    documents sent as part of an application or enrollment
    process or to establish, amend, or terminate an account,
    contract, or policy or to confirm the accuracy of the
    social security number. A social security number that may
    permissibly be mailed under this Section may not be
    printed, in whole or in part, on a postcard or other mailer
    that does not require an envelope or be visible on an
    envelope without the envelope having been opened.
    (b) Except as otherwise provided in this Act, beginning
July 1, 2010, no person or State or local government agency may
do any of the following:
        (1) Collect, use, or disclose a social security number
    from an individual, unless (i) required to do so under
    State or federal law, rules, or regulations, or the
    collection, use, or disclosure of the social security
    number is otherwise necessary for the performance of that
    agency's duties and responsibilities; (ii) the need and
    purpose for the social security number is documented before
    collection of the social security number; and (iii) the
    social security number collected is relevant to the
    documented need and purpose.
        (2) Require an individual to use his or her social
    security number to access an Internet website.
        (3) Use the social security number for any purpose
    other than the purpose for which it was collected.
    (c) The prohibitions in subsection (b) do not apply in the
following circumstances:
        (1) The disclosure of social security numbers to
    agents, employees, contractors, or subcontractors of a
    governmental entity or disclosure by a governmental entity
    to another governmental entity or its agents, employees,
    contractors, or subcontractors if disclosure is necessary
    in order for the entity to perform its duties and
    responsibilities; and, if disclosing to a contractor or
    subcontractor, prior to such disclosure, the governmental
    entity must first receive from the contractor or
    subcontractor a copy of the contractor's or
    subcontractor's policy that sets forth how the
    requirements imposed under this Act on a governmental
    entity to protect an individual's social security number
    will be achieved.
        (2) The disclosure of social security numbers pursuant
    to a court order, warrant, or subpoena.
        (3) The collection, use, or disclosure of social
    security numbers in order to ensure the safety of: State
    and local government employees; persons committed to
    correctional facilities, local jails, and other
    law-enforcement facilities or retention centers; wards of
    the State; and all persons working in or visiting a State
    or local government agency facility.
        (4) The collection, use, or disclosure of social
    security numbers for internal verification or
    administrative purposes.
        (5) The disclosure of social security numbers by a
    State agency to any entity for the collection of delinquent
    child support or of any State debt or to a governmental
    agency to assist with an investigation or the prevention of
    fraud.
        (6) The collection or use of social security numbers to
    investigate or prevent fraud, to conduct background
    checks, to collect a debt, to obtain a credit report from a
    consumer reporting agency under the federal Fair Credit
    Reporting Act, to undertake any permissible purpose that is
    enumerated under the federal Gramm-Leach-Bliley Gramm
    Leach Bliley Act, or to locate a missing person, a lost
    relative, or a person who is due a benefit, such as a
    pension benefit or an unclaimed property benefit.
    (d) If any State or local government agency has adopted
standards for the collection, use, or disclosure of social
security numbers that are stricter than the standards under
this Act with respect to the protection of those social
security numbers, then, in the event of any conflict with the
provisions of this Act, the stricter standards adopted by the
State or local government agency shall control.
(Source: P.A. 96-874, eff. 6-1-10; revised 10-4-10.)
 
    Section 30. The State Commemorative Dates Act is amended by
setting forth and renumbering multiple versions of Section 155
as follows:
 
    (5 ILCS 490/155)
    Sec. 155. Day of Remembrance of the Victims of Slavery and
the Transatlantic Slave Trade. March 25 of each year is
designated as the Day of Remembrance of the Victims of Slavery
and the Transatlantic Slave Trade, a day for the people of the
State to commemorate and reflect upon the contributions of
African American slaves to Illinois and to the United States,
in concert with the United Nations' International Day of
Remembrance of the Victims of Slavery and the Transatlantic
Slave Trade.
(Source: P.A. 96-930, eff. 6-18-10.)
 
    (5 ILCS 490/160)
    Sec. 160 155. Emancipation Proclamation Week. The first
full week of January of each year is designated as Emancipation
Proclamation Week, to be observed throughout the State as a
week for holding appropriate educational and celebratory
events and observances in the public schools and elsewhere to
honor and remember the work of Abraham Lincoln and others in
emancipating Americans from slavery and in leading to the end
of slavery in America.
(Source: P.A. 96-1238, eff. 1-1-11; revised 9-7-10.)
 
    Section 35. The War on Terrorism Veterans Act is amended by
changing Section 5 as follows:
 
    (5 ILCS 635/5)
    Sec. 5. War on Terrorism Veterans Memorial. A memorial
honoring persons who earned (i) the Southwest Asia Service
Medal, (ii) the Afghanistan Campaign Medal for service in
Operation Enduring Freedom, (iii) the Iraq Iraqi Campaign Medal
for service in Operation Iraqi Freedom, or (iv) the Global War
on Terrorism Expeditionary Medal for service in either
Operation Enduring Freedom or Operation Iraqi Freedom may be
constructed by a private entity on a portion of the State
property in Oak Ridge Cemetery in Springfield, Illinois.
(Source: P.A. 95-797, eff. 8-11-08; revised 9-16-10.)
 
    Section 40. The Election Code is amended by changing
Sections 7-52 and 8-17.1 as follows:
 
    (10 ILCS 5/7-52)  (from Ch. 46, par. 7-52)
    Sec. 7-52. Immediately upon closing the polls, the primary
judges shall proceed to canvass the votes in the manner
following:
    (1) They shall separate and count the ballots of each
political party.
    (2) They shall then proceed to ascertain the number of
names entered on the applications for ballot under each party
affiliation.
    (3) If the primary ballots of any political party exceed
the number of applications for ballot by voters of such
political party, the primary ballots of such political party
shall be folded and replaced in the ballot box, the box closed,
well shaken and again opened and one of the primary judges, who
shall be blindfolded, shall draw out so many of the primary
ballots of such political party as shall be equal to such
excess. Such excess ballots shall be marked "Excess-Not
Counted" and signed by a majority of the judges and shall be
placed in the "After 6:00 p.m. Defective Ballots Envelope". The
number of excess ballots shall be noted in the remarks section
of the Certificate of Results. "Excess" ballots shall not be
counted in the total of "defective" ballots. ;
    (4) The primary judges shall then proceed to count the
primary ballots of each political party separately; and as the
primary judges shall open and read the primary ballots, 3 of
the judges shall carefully and correctly mark upon separate
tally sheets the votes which each candidate of the party whose
name is written or printed on the primary ballot has received,
in a separate column for that purpose, with the name of such
candidate, the name of his political party and the name of the
office for which he is a candidate for nomination at the head
of such column. The same column, however, shall be used for
both names of the same team of candidates for Governor and
Lieutenant Governor.
    Where voting machines or electronic voting systems are
used, the provisions of this section may be modified as
required or authorized by Article 24 or Article 24A, whichever
is applicable.
(Source: P.A. 96-1018, eff. 1-1-11; revised 9-16-10.)
 
    (10 ILCS 5/8-17.1)  (from Ch. 46, par. 8-17.1)
    Sec. 8-17.1. Whenever a vacancy in the office of State
Senator is to be filled by election pursuant to Article IV,
Section 2(d) of the Constitution and Section 25-6 of this Code,
nominations shall be made and any vacancy in nomination shall
be filled pursuant to this Section:
        (1) If the vacancy in office occurs before the first
    date provided in Section 8-9 for filing nomination papers
    for the primary in the next even-numbered year following
    the commencement of the term, the nominations for the
    election for filling such vacancy shall be made as
    otherwise provided in Article 8.
        (2) If the vacancy in office occurs during the time
    provided in Section 8-9 for filing nomination papers for
    the office of State Senator for the primary in the next
    even-numbered year following commencement of the term of
    office in which such vacancy occurs, the time for filing
    nomination papers for such office for the primary shall be
    not more than 105 days and not less than 99 days prior to
    the date of the primary election.
        (3) If the vacancy in office occurs after the last day
    provided in Section 8-9 for filing nomination papers for
    the office of State Senator, a vacancy in nomination shall
    be deemed to have occurred and the legislative committee of
    each established political party shall nominate, by
    resolution, a candidate to fill such vacancy in nomination
    for the election to such office at such general election.
    In the proceedings to fill the vacancy in nomination the
    voting strength of the members of the legislative committee
    shall be as provided in Section 8-6. The name of the
    candidate so nominated shall not appear on the ballot at
    the general primary election. Such vacancy in nomination
    shall be filled prior to the date of certification of
    candidates for the general election.
        (4) The resolution to fill the vacancy shall be duly
    acknowledged before an officer qualified to take
    acknowledgments of deeds and shall include, upon its face,
    the following information: ;
            (a) the names of the original nominee and the
        office vacated;
            (b) the date on which the vacancy occurred;
            (c) the name and address of the nominee selected to
        fill the vacancy and the date of selection.
        The resolution to fill the vacancy shall be accompanied
    by a Statement of Candidacy, as prescribed in Section 7-10,
    completed by the selected nominee and a receipt indicating
    that such nominee has filed a statement of economic
    interests as required by the Illinois Governmental Ethics
    Act.
    The provisions of Sections 10-8 through 10-10.1 relating to
objections to nomination papers, hearings on objections and
judicial review, shall also apply to and govern objections to
nomination papers and resolutions for filling vacancies in
nomination filed pursuant to this Section.
    Unless otherwise specified herein, the nomination and
election provided for in this Section shall be governed by this
Code.
(Source: P.A. 96-1008, eff. 7-6-10; revised 9-16-10.)
 
    Section 45. The Illinois Identification Card Act is amended
by changing Section 12 as follows:
 
    (15 ILCS 335/12)  (from Ch. 124, par. 32)
    Sec. 12. Fees concerning Standard Illinois Identification
Cards. The fees required under this Act for standard Illinois
Identification Cards must accompany any application provided
for in this Act, and the Secretary shall collect such fees as
follows:
    a. Original card issued on or before
        December 31, 2004...........................$4
        Original card issued on or after
        January 1, 2005.............................$20
    b. Renewal card issued on or before
        December 31, 2004...........................4
        Renewal card issued on or after
        January 1, 2005.............................20
    c. Corrected card issued on or before
        December 31, 2004...........................2
        Corrected card issued on or after
        January 1, 2005.............................10
    d. Duplicate card issued on or before
        December 31, 2004...........................4
        Duplicate card issued on or after
        January 1, 2005.............................20
    e. Certified copy with seal ...................5
    f. Search .....................................2
    g. Applicant 65 years of age or over ..........No Fee
    h. Disabled applicant .........................No Fee
    i. Individual living in Veterans
        Home or Hospital ...........................No Fee
    j. Original card issued on or after July 1, 2007
        under 18 years of age.......................$10
    k. Renewal card issued on or after July 1, 2007
        under 18 years of age.......................$10
    l. Corrected card issued on or after July 1, 2007
        under 18 years of age.......................$5
    m. Duplicate card issued on or after July 1, 2007
        under 18 years of age.......................$10
    n. Homeless person..............................No Fee
    n. (Blank).
    o. Duplicate card issued to an active-duty
        member of the United States Armed Forces, the
        member's spouse, or dependent children
        living with the member......................No Fee
    All fees collected under this Act shall be paid into the
Road Fund of the State treasury, except that the following
amounts shall be paid into the General Revenue Fund: (i) 80% of
the fee for an original, renewal, or duplicate Illinois
Identification Card issued on or after January 1, 2005; and
(ii) 80% of the fee for a corrected Illinois Identification
Card issued on or after January 1, 2005.
    Any disabled person making an application for a standard
Illinois Identification Card for no fee must, along with the
application, submit an affirmation by the applicant on a form
to be provided by the Secretary of State, attesting that such
person is a disabled person as defined in Section 4A of this
Act.
    An individual, who resides in a veterans home or veterans
hospital operated by the state or federal government, who makes
an application for an Illinois Identification Card to be issued
at no fee, must submit, along with the application, an
affirmation by the applicant on a form provided by the
Secretary of State, that such person resides in a veterans home
or veterans hospital operated by the state or federal
government.
    The application of a homeless individual for an Illinois
Identification Card to be issued at no fee must be accompanied
by an affirmation by a qualified person, as defined in Section
4C of this Act, on a form provided by the Secretary of State,
that the applicant is currently homeless as defined in Section
1A of this Act.
    The fee for any duplicate identification card shall be
waived for any person who presents the Secretary of State's
Office with a police report showing that his or her
identification card was stolen.
    The fee for any duplicate identification card shall be
waived for any person age 60 or older whose identification card
has been lost or stolen.
    As used in this Section, "active-duty member of the United
States Armed Forces" means a member of the Armed Services or
Reserve Forces of the United States or a member of the Illinois
National Guard who is called to active duty pursuant to an
executive order of the President of the United States, an act
of the Congress of the United States, or an order of the
Governor.
(Source: P.A. 95-55, eff. 8-10-07; 96-183, eff. 7-1-10;
96-1231, eff. 7-23-10; revised 9-7-10.)
 
    Section 50. The State Comptroller Act is amended by
changing Sections 16.1 and 21 as follows:
 
    (15 ILCS 405/16.1)  (from Ch. 15, par. 216.1)
    Sec. 16.1. All reports filed by local governmental units
with the Comptroller together with any accompanying comment or
explanation immediately becomes part of his public records and
shall be open to public inspection. The Comptroller shall make
the information contained in such reports available to State
agencies and units of local government governments upon
request.
(Source: P.A. 83-395; revised 6-23-10.)
 
    (15 ILCS 405/21)  (from Ch. 15, par. 221)
    Sec. 21. Rules and Regulations - Imprest accounts. The
Comptroller shall promulgate rules and regulations to
implement the exercise of his powers and performance of his
duties under this Act and to guide and assist State agencies in
complying with this Act. Any rule or regulation specifically
requiring the approval of the State Treasurer under this Act
for adoption by the Comptroller shall require the approval of
the State Treasurer for modification or repeal.
    The Comptroller may provide in his rules and regulations
for periodic transfers, with the approval of the State
Treasurer, for use in accordance with the imprest system,
subject to the rules and regulations of the Comptroller as
respects vouchers, controls and reports, as follows:
        (a) To the University of Illinois, Southern Illinois
    University, Chicago State University, Eastern Illinois
    University, Governors State University, Illinois State
    University, Northeastern Illinois University, Northern
    Illinois University, Western Illinois University, and
    State Community College of East St. Louis under the
    jurisdiction of the Illinois Community College Board
    (abolished under Section 2-12.1 of the Public Community
    College Act), not to exceed $200,000 for each campus.
        (b) To the Department of Agriculture and the Department
    of Commerce and Economic Opportunity for the operation of
    overseas offices, not to exceed $200,000 for each
    Department for each overseas office.
        (c) To the Department of Agriculture for the purpose of
    making change for activities at each State Fair, not to
    exceed $200,000, to be returned within 5 days of the
    termination of such activity.
        (d) To the Department of Agriculture to pay (i) State
    Fair premiums and awards and State Fair entertainment
    contracts at each State Fair, and (ii) ticket refunds for
    cancelled events. The amount transferred from any fund
    shall not exceed the appropriation for each specific
    purpose. This authorization shall terminate each year
    within 60 days of the close of each State Fair. The
    Department shall be responsible for withholding State
    income tax, where necessary, as required by Section 709 of
    the Illinois Income Tax Act.
        (e) To the State Treasurer to pay for securities'
    safekeeping charges assessed by the Board of Governors of
    the Federal Reserve System as a consequence of the
    Treasurer's use of the government securities' book-entry
    system. This account shall not exceed $25,000.
        (f) To the Illinois Mathematics and Science Academy,
    not to exceed $100,000.
        (g) To the Department of Natural Resources to pay out
    cash prizes associated with competitions held at the World
    Shooting and Recreational Complex, to purchase awards
    associated with competitions held at the World Shooting and
    Recreational Complex, to pay State and national membership
    dues associated with competitions held at the World
    Shooting and Recreational Complex, and to pay State and
    national membership target fees associated with
    competitions held at the World Shooting and Recreational
    Complex. The amount of funds advanced to the account
    created by this subsection (g) must not exceed $250,000 in
    any fiscal year.
(Source: P.A. 95-220, eff. 8-16-07; 96-785, eff. 8-28-09;
96-1118, eff. 7-20-10; revised 9-16-10.)
 
    Section 55. The Illinois Act on the Aging is amended by
changing Section 4.02 as follows:
 
    (20 ILCS 105/4.02)  (from Ch. 23, par. 6104.02)
    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. 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 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 45 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 45 day notice period. 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 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, may 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 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 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;
        (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; and
        (8) ensuring that the determination of need tool
    accurately reflects the service needs of individuals with
    Alzheimer's disease and related dementia disorders.
    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
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. An employer that cannot ensure that
the minimum wage increase is being given to home care aides and
personal assistants 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 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. 95-298, eff. 8-20-07; 95-473, eff. 8-27-07;
95-565, eff. 6-1-08; 95-876, eff. 8-21-08; 96-918, eff. 6-9-10;
96-1129, eff. 7-20-10; revised 9-2-10.)
 
    Section 60. The Department of Human Services Act is amended
by setting forth and renumbering multiple versions of Section
10-65 as follows:
 
    (20 ILCS 1305/10-65)
    Sec. 10-65. Hunger Relief Fund; grants.
    (a) The Hunger Relief 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 food banks for
the purpose of purchasing food and related supplies. In this
Section, "food bank" means a public or charitable institution
that maintains an established operation involving the
provision of food or edible commodities, or the products of
food or edible commodities, to food pantries, soup kitchens,
hunger relief centers, or other food or feeding centers that,
as an integral part of their normal activities, provide meals
or food to feed needy persons on a regular basis.
    (b) Moneys received for the purposes of this Section,
including, without limitation, appropriations, gifts,
donations, 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.
(Source: P.A. 96-604, eff. 8-24-09.)
 
    (20 ILCS 1305/10-70)
    Sec. 10-70 10-65. Gateways to Opportunity.
    (a) Subject to the availability of funds, the Department of
Human Services shall operate a Gateways to Opportunity program,
a comprehensive professional development system. The goal of
Gateways to Opportunity is to support a diverse, stable, and
quality workforce for settings serving children and youth,
specifically to:
        (1) enhance the quality of services;
        (2) increase positive outcomes for children and youth;
    and
        (3) advance the availability of coursework and
    training related to quality services for children and
    youth.
    (b) The Department shall award Gateways to Opportunity
credentials to early care and education, school-age, and youth
development practitioners. The credentials shall validate an
individual's qualifications and shall be issued based on a
variety of professional achievements in field experience,
knowledge and skills, educational attainment, and training
accomplishments. The Department shall adopt rules outlining
the framework for awarding credentials.
    (c) The Gateways to Opportunity program shall identify
professional knowledge guidelines for practitioners serving
children and youth. The professional knowledge guidelines
shall define what all adults who work with children and youth
need to know, understand, and be able to demonstrate to support
children's and youth's development, school readiness, and
school success. The Department shall adopt rules to identify
content areas, alignment with other professional standards,
and competency levels.
(Source: P.A. 96-864, eff. 1-21-10; revised 1-25-10.)
 
    Section 65. The Department of Insurance Law of the Civil
Administrative Code of Illinois is amended by changing Section
1405-35 as follows:
 
    (20 ILCS 1405/1405-35)
    Sec. 1405-35. The Department of Insurance.
    (a) Executive Order No. 2004-6 is hereby superseded by this
amendatory Act of the 96th General Assembly to the extent that
Executive Order No. 2004-6 transfers the powers, duties,
rights, and responsibilities of the Department of Insurance to
the Division of Insurance within the Department of Financial
and Professional Regulation.
    (b) The Division of Insurance within the Department of
Financial and Professional Regulation is hereby abolished and
the Department of Insurance is created as an independent
department. On July 1, 2009, all powers, duties, rights, and
responsibilities of the Division of Insurance within the
Department of Financial and Professional Regulation shall be
transferred to the Department of Insurance.
    (c) The personnel of the Division of Insurance within the
Department of Financial and Professional Regulation shall be
transferred to the Department of Insurance. The status and
rights of such employees under the Personnel Code shall not be
affected by the transfer. The rights of the employees and the
State of Illinois and its agencies under the Personnel Code and
applicable collective bargaining agreements or under any
pension, retirement, or annuity plan shall not be affected by
this amendatory Act. To the extent that an employee performs
duties for the Division of Insurance within the Department of
Financial and Professional Regulation and the Department of
Financial and Professional Regulation itself or any other
division or agency within the Department of Financial and
Professional Regulation, that employee shall be transferred at
the Governor's discretion.
    (d) All books, records, papers, documents, property (real
and personal), contracts, causes of action, and pending
business pertaining to the powers, duties, rights, and
responsibilities transferred by this amendatory Act from the
Division of Insurance within the Department of Financial and
Professional Regulation to the Department of Insurance,
including, but not limited to, material in electronic or
magnetic format and necessary computer hardware and software,
shall be transferred to the Department of Insurance.
    (e) All unexpended appropriations and balances and other
funds available for use by the Division of Insurance within the
Department of Financial and Professional Regulation shall be
transferred for use by the Department of Insurance pursuant to
the direction of the Governor. Unexpended balances so
transferred shall be expended only for the purpose for which
the appropriations were originally made.
    (f) The powers, duties, rights, and responsibilities
transferred from the Division of Insurance within the
Department of Financial and Professional Regulation by this
amendatory Act shall be vested in and shall be exercised by the
Department of Insurance.
    (g) Whenever reports or notices are now required to be made
or given or papers or documents furnished or served by any
person to or upon the Division of Insurance within the
Department of Financial and Professional Regulation in
connection with any of the powers, duties, rights, and
responsibilities transferred by this amendatory Act, the same
shall be made, given, furnished, or served in the same manner
to or upon the Department of Insurance.
    (h) This amendatory Act does not affect any act done,
ratified, or canceled or any right occurring or established or
any action or proceeding had or commenced in an administrative,
civil, or criminal cause by the Division of Insurance within
the Department of Financial and Professional Regulation before
this amendatory Act takes effect; such actions or proceedings
may be prosecuted and continued by the Department of Insurance.
    (i) Any rules of the Division of Insurance within the
Department of Financial and Professional Regulation, including
any rules of its predecessor Department of Insurance, that
relate to its powers, duties, rights, and responsibilities and
are in full force on the effective date of this amendatory Act
shall become the rules of the recreated Department of
Insurance. This amendatory Act does not affect the legality of
any such rules in the Illinois Administrative Code.
    Any proposed rules filed with the Secretary of State by the
Division of Insurance within the Department of Financial and
Professional Regulation that are pending in the rulemaking
process on the effective date of this amendatory Act and
pertain to the powers, duties, rights, and responsibilities
transferred, shall be deemed to have been filed by the
Department of Insurance. As soon as practicable hereafter, the
Department of Insurance shall revise and clarify the rules
transferred to it under this amendatory Act to reflect the
reorganization of powers, duties, rights, and responsibilities
affected by this amendatory Act, using the procedures for
recodification of rules available under the Illinois
Administrative Procedure Procedures Act, except that existing
title, part, and section numbering for the affected rules may
be retained. The Department of Insurance may propose and adopt
under the Illinois Administrative Procedure Procedures Act
such other rules of the Division of Insurance within the
Department of Financial and Professional Regulation that will
now be administered by the Department of Insurance.
    To the extent that, prior to July 1, 2009, the Director of
the Division of Insurance within the Department of Financial
and Professional Regulation had been empowered to prescribe
rules or had other rulemaking authority jointly with the
Secretary of the Department of Financial and Professional
Regulation with regard to the powers, duties, rights, and
responsibilities of the Division of Insurance within the
Department of Financial and Professional Regulation, such
duties shall be exercised from and after July 1, 2009 solely by
the Director of the Department of Insurance.
(Source: P.A. 96-811, eff. 10-30-09; revised 9-16-10.)
 
    Section 70. The Mental Health and Developmental
Disabilities Administrative Act is amended by changing Section
18.4 as follows:
 
    (20 ILCS 1705/18.4)
    (Text of Section before amendment by P.A. 96-868)
    Sec. 18.4. Community Mental Health Medicaid Trust Fund;
reimbursement.
    (a) The Community Mental Health Medicaid Trust Fund is
hereby created in the State Treasury.
    (b) Amounts paid to the State during each State fiscal year
by the federal government under Title XIX or Title XXI of the
Social Security Act for services delivered by community mental
health providers, and any interest earned thereon, shall be
deposited as follows:
        (1) The first $75,000,000 shall be deposited directly
    into the Community Mental Health Medicaid Trust Fund to be
    used for the purchase of community mental health services;
        (2) The next $4,500,000 shall be deposited directly
    into the Community Mental Health Medicaid Trust Fund to be
    used by the Department of Human Services' Division of
    Mental Health for the oversight and administration of
    community mental health services and up to $1,000,000 of
    this amount may be used for support of community mental
    health service initiatives;
        (3) The next $3,500,000 shall be deposited directly
    into the General Revenue Fund;
        (4) Any additional amounts shall be deposited into the
    Community Mental Health Medicaid Trust Fund to be used for
    the purchase of community mental health services.
    (b-5) Whenever a State mental health facility operated by
the Department is closed and the real estate on which the
facility is located is sold by the State, the net proceeds of
the sale of the real estate shall be deposited into the
Community Mental Health Medicaid Trust Fund.
    (c) The Department shall reimburse community mental health
providers for services provided to eligible individuals.
Moneys in the Community Mental Health Medicaid Trust Fund may
be used for that purpose.
    (d) As used in this Section:
    "Community mental health provider" means a community
agency that is funded by the Department to provide a service.
    "Service" means a mental health service provided pursuant
to the provisions of administrative rules adopted by the
Department and funded by or claimed through the Department of
Human Services' Division of Mental Health.
(Source: P.A. 95-707, eff. 1-11-08; 96-660, eff. 8-25-09;
96-820, eff. 11-18-09.)
 
    (Text of Section after amendment by P.A. 96-868)
    Sec. 18.4. Community Mental Health Medicaid Trust Fund;
reimbursement.
    (a) The Community Mental Health Medicaid Trust Fund is
hereby created in the State Treasury.
    (b) Amounts paid to the State during each State fiscal year
by the federal government under Title XIX or Title XXI of the
Social Security Act for services delivered by community mental
health providers, and any interest earned thereon, shall be
deposited 100% into the Community Mental Health Medicaid Trust
Fund. Not more than $4,500,000 of the Community Mental Health
Medicaid Trust Fund may be used by the Department of Human
Services' Division of Mental Health for oversight and
administration of community mental health services, and of that
amount no more than $1,000,000 may be used for the support of
community mental health service initiatives. The remainder
shall be used for the purchase of community mental health
services.
    (b-5) Whenever a State mental health facility operated by
the Department is closed and the real estate on which the
facility is located is sold by the State, the net proceeds of
the sale of the real estate shall be deposited into the
Community Mental Health Medicaid Trust Fund.
    (c) The Department shall reimburse community mental health
providers for services provided to eligible individuals.
Moneys in the Trust Fund may be used for that purpose.
    (c-5) The Community Mental Health Medicaid Trust Fund is
not subject to administrative charge-backs.
    (c-10) The Department of Human Services shall annually
report to the Governor and the General Assembly, by September
1, on both the total revenue deposited into the Trust Fund and
the total expenditures made from the Trust Fund for the
previous fiscal year. This report shall include detailed
descriptions of both revenues and expenditures regarding the
Trust Fund from the previous fiscal year. This report shall be
presented by the Secretary of Human Services to the appropriate
Appropriations Committee in the House of Representatives, as
determined by the Speaker of the House, and in the Senate, as
determined by the President of the Senate. This report shall be
made available to the public and shall be published on the
Department of Human Services' website in an appropriate
location, a minimum of one week prior to presentation of the
report to the General Assembly.
    (d) As used in this Section:
    "Trust Fund" means the Community Mental Health Medicaid
Trust Fund.
    "Community mental health provider" means a community
agency that is funded by the Department to provide a service.
    "Service" means a mental health service provided pursuant
to the provisions of administrative rules adopted by the
Department and funded by or claimed through the Department of
Human Services' Division of Mental Health.
(Source: P.A. 95-707, eff. 1-11-08; 96-660, eff. 8-25-09;
96-820, eff. 11-18-09; 96-868, eff. 7-1-12; revised 1-25-10.)
 
    Section 75. The Division of Banking Act is amended by
changing the title of the Act as follows:
 
    (20 ILCS 3205/Act title)
An Act concerning State government to provide for the
administration of the Office of Banks and Real Estate.
 
    Section 80. The Illinois Bank Examiners' Education
Foundation Act is amended by changing Sections 3.01, 4, and 5
as follows:
 
    (20 ILCS 3210/3.01)
    Sec. 3.01. "Board" means the State Banking Board of
Illinois as established under the provisions of the Illinois
Banking Act.
(Source: P.A. 96-1163, eff. 1-1-11; 96-1365, eff. 7-28-10;
revised 9-16-10.)
 
    (20 ILCS 3210/4)  (from Ch. 17, par. 404)
    Sec. 4. The Foundation shall establish an endowment fund
with the monies in the Illinois Bank Examiners' Education Fund.
The income from such Fund shall be used to pay for continuing
education and professional training activity for the
examination employees of the Division of Banking whose
responsibilities include the supervision and regulation of
commercial banks, foreign banking offices, trust companies,
and their information technology service providers and to pay
for reasonable expenses incurred by the Board in the course of
administering its official duties under this Act. The
continuing education and professional training activity to be
funded by the Foundation shall be a supplement to the education
and training expenditures regularly being made from the Bank &
Trust Company Fund for such purposes.
(Source: P.A. 96-1163, eff. 1-1-11; 96-1365, eff. 7-28-10;
revised 9-16-10.)
 
    (20 ILCS 3210/5)
    Sec. 5. The Foundation shall be governed by the State
Banking Board of Illinois. For carrying out their official
duties under this Act, the Board members said
(Source: P.A. 96-1163, eff. 1-1-11; 96-1365, eff. 7-28-10;
revised 9-16-10.)
 
    Section 85. The Illinois Finance Authority Act is amended
by changing Sections 805-20 and 820-5 and by setting forth and
renumbering multiple versions of Section 825-105 as follows:
 
    (20 ILCS 3501/805-20)
    Sec. 805-20. Powers and Duties; Industrial Project
Insurance Program. The Authority has the power:
    (a) to insure and make advance commitments to insure all or
any part of the payments required on the bonds issued or a loan
made to finance any environmental facility under the Illinois
Environmental Facilities Financing Act or for any industrial
project upon such terms and conditions as the Authority may
prescribe in accordance with this Article. The insurance
provided by the Authority shall be payable solely from the Fund
created by Section 805-15 and shall not constitute a debt or
pledge of the full faith and credit of the State, the
Authority, or any political subdivision thereof;
    (b) to enter into insurance contracts, letters of credit or
any other agreements or contracts with financial institutions
with respect to the Fund and any bonds or loans insured
thereunder. Any such agreement or contract may contain terms
and provisions necessary or desirable in connection with the
program, subject to the requirements established by this Act,
including without limitation terms and provisions relating to
loan documentation, review and approval procedures,
origination and servicing rights and responsibilities, default
conditions, procedures and obligations with respect to
insurance contracts made under this Act. The agreements or
contracts may be executed on an individual, group or master
contract basis with financial institutions;
    (c) to charge reasonable fees to defray the cost of
obtaining letters of credit or other similar documents, other
than insurance contracts under paragraph (b). Any such fees
shall be payable by such person, in such amounts and at such
times as the Authority shall determine, and the amount of the
fees need not be uniform among the various bonds or loans
insured;
    (d) to fix insurance premiums for the insurance of payments
under the provisions of this Article. Such premiums shall be
computed as determined by the Authority. Any premiums for the
insurance of loan payments under the provisions of this Act
shall be payable by such person, in such amounts and at such
times as the Authority shall determine, and the amount of the
premiums need not be uniform among the various bonds or loans
insured;
    (e) to establish application fees and prescribe
application, notification, contract and insurance forms, rules
and regulations it deems necessary or appropriate;
    (f) to make loans and to issue bonds secured by insurance
or other agreements authorized by paragraphs (a) and (b) of
this Section 805-20 and to issue bonds secured by loans that
are guaranteed by the federal government or agencies thereof;
    (g) to issue a single bond issue, or a series of bond
issues, for a group of industrial projects, a group of
corporations, or a group of business entities or any
combination thereof insured by insurance or backed by any other
agreement authorized by paragraphs (a) and (b) of this Section
or secured by loans that are guaranteed by the federal
government or agencies thereof;
    (h) to enter into trust agreements for the management of
the Fund created under Section 805-15 of this Act; and
    (i) to exercise such other powers as are necessary or
incidental to the powers granted in this Section and to the
issuance of State Guarantees under Article 830 of this Act; and
.
    (j) at the discretion of the Authority, to insure and make
advance commitments to insure, and issue State Guarantees for,
all or any part of the payments required on the bonds issued or
loans made to finance any agricultural facility, project,
farmer, producer, agribusiness, or program under Article 830 of
this Act upon such terms and conditions as the Authority may
prescribe in accordance with this Article. The insurance and
State Guarantees provided by the Authority may be payable from
the Fund created by Section 805-15 and is in addition to and
not in replacement of the Illinois Agricultural Loan Guarantee
Fund and the Illinois Farmer and Agribusiness Loan Guarantee
Fund created under Article 830 of this Act.
(Source: P.A. 96-897, eff. 5-24-10; revised 6-23-10.)
 
    (20 ILCS 3501/820-5)
    Sec. 820-5. Findings and Declaration of Policy. It is
hereby found and declared that there exists an urgent need to
upgrade and expand the capital facilities, infrastructure and
public purpose projects of units of local government and to
promote other public purposes to be carried out by units of
local government; that federal funding reductions combined
with shifting economic conditions have impeded efforts by units
of local government governments to provide the necessary
improvements to their capital facilities, infrastructure
systems and public purpose projects and to accomplish other
public purposes in recent years; that adequate and
well-maintained capital facilities, infrastructure systems and
public purpose projects throughout this State and the
performance of other public purposes by units of local
government throughout this State can offer significant
economic benefits and an improved quality of life for all
citizens of this State; that the exercise by the Authority of
the powers granted in this Article will promote economic
development by enhancing the capital stock of units of local
government governments and will facilitate the accomplishment
of other public purposes by units of local government; that
authorizing the Authority to borrow money in the public and
private capital markets in order to provide money to purchase
or otherwise acquire obligations of units of local government
will assist such units of local government in borrowing money
to finance and refinance the public purpose projects, capital
facilities and infrastructure of the units and to finance other
public purposes of such units of local government, in providing
access to adequate capital markets and facilities for borrowing
money by such units of local government, in encouraging
continued investor interest in the obligations of such units of
local government, in providing for the orderly marketing of the
obligations of such units of local government, and in achieving
lower overall borrowing cost and more favorable terms for such
borrowing; and that the provisions of this Article are hereby
declared to be in the public interest and for the public
benefit.
(Source: P.A. 93-205, eff. 1-1-04; revised 6-24-10.)
 
    (20 ILCS 3501/825-105)
    Sec. 825-105. Illiana Expressway financing. For the
purpose of financing the Illiana Expressway under the Public
Private Agreements for the Illiana Expressway Act, the
Authority is authorized to apply for an allocation of
tax-exempt bond financing authorization provided by Section
142(m) of the United States Internal Revenue Code, as well as
financing available under any other federal law or program.
(Source: P.A. 96-913, eff. 6-9-10.)
 
    (20 ILCS 3501/825-107)
    Sec. 825-107 825-105. Implementation of ARRA provisions
regarding recovery zone bonds.
 
(a) Findings.
    Recovery zone bonds authorized by the American Recovery and
Reinvestment Act of 2009 are an important economic development
tool for the State. All counties in the State and
municipalities in the State with a population of 100,000 or
more have received an allocation of recovery zone bond
authorization. Under federal law, those allocations must be
used on or before December 31, 2010. The State strongly
encourages counties and municipalities to issue recovery zone
bonds to spur economic development in the State. Under federal
law, the allocations may be voluntarily waived to the State for
reallocation by the State to other jurisdictions and other
projects in the State. This Section sets forth the process by
which the Authority, on behalf of the State, will receive
otherwise unused allocations and ensure that this valuable
economic development incentive will be used to the fullest
extent feasible for the benefit of the citizens of the State of
Illinois.
 
(b) Definitions.
        (i) "Affected local government" means either any
    county in the State or a municipality within the State if
    the municipality has a population of 100,000 or more.
        (ii) "Allocation amount" means the $666,972,000 amount
    of recovery zone economic development bonds and
    $1,000,457,000 amount of recovery zone facility bonds
    authorized under ARRA for the financing of qualifying
    projects located within the State and the sub-allocation of
    those amounts among each affected local government.
        (iii) "ARRA" means, collectively, the American
    Recovery and Reinvestment Act of 2009, including, without
    limitation, Sections 1400U-1, 1400U-2, and 1400U-3 of the
    Code; the guidance provided by the Internal Revenue Service
    applicable to recovery zone bonds; and any legislation
    subsequently adopted by the United States Congress to
    extend or expand the economic development bond financing
    incentives authorized by ARRA.
        (iv) "ARRA implementing regulations" means the
    regulations promulgated by the Authority as further
    described in subdivision (d)(iv) of this Section to
    implement the provisions of this Section.
        (v) "Code" means the Internal Revenue Code of 1986, as
    amended.
        (vi) "Recovery zone" means any area designated
    pursuant to Section 1400U-1 of the Code.
        (vii) "Recovery zone bond" means any recovery zone
    economic development bond or recovery zone facility bond
    issued pursuant to Sections 1400U-2 and 1400U-3,
    respectively, of the Code.
        (viii) "Recovery zone bond allocation" means an
    allocation of authority to issue recovery zone bonds
    granted pursuant to Section 1400U-1 of the Code.
        (ix) "Regional authority" means the Central Illinois
    Economic Development Authority, Eastern Illinois Economic
    Development Authority, Joliet Arsenal Development
    Authority, Quad Cities Regional Economic Development
    Authority, Riverdale Development Authority, Southeastern
    Illinois Economic Development Authority, Southern Illinois
    Development Authority, Southwestern Illinois Development
    Authority, Tri-County River Valley Development Authority,
    Upper Illinois River Valley Development Authority,
    Illinois Urban Development Authority, Western Illinois
    Economic Development Authority, or Will-Kankakee Regional
    Development Authority.
        (x) "Sub-allocation" means the portion of the
    allocation amount allocated to each affected local
    government.
        (xi) "Waived recovery zone bond allocation" means the
    amount of the recovery zone bond allocation voluntarily
    waived by an affected local government.
        (xii) "Waiver agreement" means an agreement between
    the Authority and an affected local government providing
    for the voluntary waiver, in whole or in part, of that
    affected local government's sub-allocation to the
    Authority. The waiver agreement may provide for the payment
    of an affected local government's reasonable fees and costs
    as determined by the Authority in connection with the
    affected local government's voluntary waiver of its
    sub-allocation.
 
(c) Additional findings.
    It is found and declared that:
        (i) it is in the public interest and for the benefit of
    the State to maximize the use of economic development
    incentives authorized by ARRA;
        (ii) those incentives include the maximum use of the
    allocation amount for the issuance of recovery zone bonds
    to promote job creation and economic development in any
    area that has been designated as a recovery zone by an
    affected local government under the applicable provisions
    of ARRA;
        (iii) those incentives also include the issuance by the
    Authority of recovery zone bonds for the purposes of
    financing qualifying projects to be financed with proceeds
    of recovery zone bonds; and
        (iv) the provisions of this Section reflect the State's
    determination in good faith and in its discretion of the
    reasonable manner in which waived recovery zone bond
    allocations should be reallocated by the Authority.
 
(d) Powers of Authority.
        (i) In order to carry out the provisions of ARRA and
    further the purposes of this Section, the Authority has:
            (A) the power to receive from any affected local
        government its sub-allocation that it voluntarily
        waives to the Authority, in whole or in part, for
        reallocation by the Authority to a regional authority
        specifically designated by that affected local
        government, and the Authority shall reallocate that
        waived recovery zone bond allocation to the regional
        authority specifically designated by that affected
        local government; provided that (1) the affected local
        government must take official action by resolution or
        ordinance, as applicable, to waive the sub-allocation
        to the Authority and specifically designate that its
        waived recovery zone bond allocation should be
        reallocated to a regional authority; (2) the regional
        authority must use the sub-allocation to issue
        recovery zone bonds on or before August 16, 2010 and,
        if recovery zone bonds are not issued on or before
        August 16, 2010, the sub-allocation shall be deemed
        waived to the Authority for reallocation by the
        Authority to qualifying projects; and (3) the proceeds
        of the recovery zone bonds must be used for qualified
        projects within the jurisdiction of the applicable
        regional authority;
            (B) at the Authority's sole discretion, the power
        to reallocate any sub-allocation deemed waived to the
        Authority pursuant to subsection (d)(i)(A)(2) back to
        the regional authority that had the sub-allocation;
            (C) the power to enter into waiver agreements with
        affected local governments to provide for their
        voluntary waivers, in whole or in part, of their
        sub-allocations, to receive waived recovery zone bond
        allocations from those affected local governments, and
        to use those waived recovery zone bond allocations, in
        whole or in part, to issue recovery zone bonds of the
        Authority for qualifying projects or to reallocate
        those waived recovery zone bond allocations, in whole
        or in part, to a county or municipality to issue its
        own recovery zone bonds for qualifying projects;
            (D) the power to designate areas within the State
        as recovery zones or all of the State as a recovery
        zone; and
            (E) the power to issue recovery zone bonds for any
        project authorized to be financed with proceeds
        thereof under the applicable provisions of ARRA.
        (ii) In addition to the powers set forth in item (i),
    the Authority shall be the sole recipient, on behalf of the
    State, of any waived recovery zone bond allocations.
    Recovery zone bond allocations can be waived to the
    Authority only by voluntary waiver as provided in this
    Section.
        (iii) In addition to the powers set forth in items (i)
    and (ii), the Authority has any powers otherwise enjoyed by
    the Authority in connection with the issuance of its bonds
    if those powers are not in conflict with any provisions
    with respect to recovery zone bonds set forth in ARRA.
        (iv) The Authority has the power to adopt regulations
    providing for the implementation of any of the provisions
    contained in this Section, including provisions regarding
    waiver agreements and the reallocation of all or any
    portion of the allocation amount and sub-allocations and
    the issuance of recovery zone bonds; except that those
    regulations shall not (1) apply to or affect any
    designation of a recovery zone by a county or municipality,
    (2) provide for any waiver or reallocation of an affected
    local government's sub-allocation other than a voluntary
    waiver as described in subsection (d), or (3) be
    inconsistent with the provisions of subsection (d)(i).
    Regulations adopted by the Authority for determining
    reallocation of all or any portion of a waived recovery
    zone bond allocation may include, but are not limited to,
    (1) the ability of the county or municipality to issue
    recovery zone bonds on or before December 31, 2010, (2) the
    amount of jobs that will be retained or created, or both,
    by the qualifying project to be financed by recovery zone
    bonds, and (3) the geographical proximity of the qualifying
    project to be financed by recovery zone bonds to a county
    or municipality that voluntarily waived its sub-allocation
    to the Authority.
        (v) Unless extended by an act of the United States
    Congress, no recovery zone bonds may be issued after
    December 31, 2010.
 
(e) Established dates for notice.
    Any affected local government or any regional authority
that has issued recovery zone bonds on or before the effective
date of this Section must report its issuance of recovery zone
bonds to the Authority within 30 days after the effective date
of this Section. After the effective date of this Section, any
affected local government or any regional authority must report
its issuance of recovery zone bonds to the Authority not less
than 30 days after those bonds are issued.
 
(f) Reports to the General Assembly.
    Starting 60 days after the effective date of this Section
and ending on January 15, 2011, the Authority shall file a
report before the 15th day of each month with the General
Assembly detailing its implementation of this Section,
including but not limited to the dollar amount of the
allocation amount that has been reallocated by the Authority
pursuant to this Section, the recovery zone bonds issued in the
State as of the date of the report, and descriptions of the
qualifying projects financed by those recovery zone bonds.
(Source: P.A. 96-1020, eff. 7-12-10; revised 8-16-10.)
 
    Section 90. The State Finance Act is amended by setting
forth and renumbering multiple versions of Sections 5.719,
5.755, 5.756, 5.777, 5.778, and 6z-82 and by changing Sections
6z-18, 6z-20, 12-1, and 25 as follows:
 
    (30 ILCS 105/5.719)
    Sec. 5.719. The Private College Academic Quality Assurance
Fund.
(Source: P.A. 95-1046, eff. 3-27-09; 96-1000, eff. 7-2-10.)
 
    (30 ILCS 105/5.753)
    Sec. 5.753 5.719. The Pre-need Funeral Consumer Protection
Fund.
(Source: P.A. 96-879, eff. 2-2-10; revised 2-3-10.)
 
    (30 ILCS 105/5.754)
    Sec. 5.754 5.755. The Illiana Expressway Proceeds Fund.
(Source: P.A. 96-913, eff. 6-9-10; revised 9-23-10.)
 
    (30 ILCS 105/5.755)
    Sec. 5.755. The Healthcare Provider Relief Fund.
(Source: P.A. 96-820, eff. 11-18-09.)
 
    (30 ILCS 105/5.756)
    Sec. 5.756. The STAR Bonds Revenue Fund.
(Source: P.A. 96-939, eff. 6-24-10.)
 
    (30 ILCS 105/5.757)
    Sec. 5.757 5.755. The Employment of Illinois Workers on
Public Works Projects Fund.
(Source: P.A. 96-929, eff. 6-16-10; revised 9-23-10.)
 
    (30 ILCS 105/5.759)
    Sec. 5.759 5.755. The Court of Claims Federal Recovery
Victim Compensation Grant Fund.
(Source: P.A. 96-959, eff. 7-1-10; revised 9-23-10.)
 
    (30 ILCS 105/5.760)
    Sec. 5.760 5.755. The Share the Road Fund.
(Source: P.A. 96-1006, eff. 1-1-11; revised 9-23-10.)
 
    (30 ILCS 105/5.761)
    Sec. 5.761 5.755. The State's Attorneys Appellate
Prosecutor Anti-Corruption Fund.
(Source: P.A. 96-1019, eff. 1-1-11; revised 9-23-10.)
 
    (30 ILCS 105/5.762)
    Sec. 5.762 5.755. The Farmers' Market Technology
Improvement Fund.
(Source: P.A. 96-1088, eff. 7-19-10; revised 9-23-10.)
 
    (30 ILCS 105/5.763)
    Sec. 5.763 5.755. The Attorney General Sex Offender
Awareness, Training, and Education Fund.
(Source: P.A. 96-1096, eff. 1-1-11; revised 9-23-10.)
 
    (30 ILCS 105/5.764)
    Sec. 5.764 5.755. The Fraternal Order of Police Fund.
(Source: P.A. 96-1240, eff. 7-23-10; revised 9-23-10.)
 
    (30 ILCS 105/5.765)
    Sec. 5.765 5.755. The Soil and Water Conservation District
Fund.
(Source: P.A. 96-1377, eff. 1-1-11; revised 9-23-10.)
 
    (30 ILCS 105/5.766)
    Sec. 5.766 5.755. The Wage Theft Enforcement Fund.
(Source: P.A. 96-1407, eff. 1-1-11; revised 9-23-10.)
 
    (30 ILCS 105/5.767)
    Sec. 5.767 5.755. The Green Manufacturing Grant Fund.
(Source: P.A. 96-1413, eff. 1-1-11; revised 9-23-10.)
 
    (30 ILCS 105/5.768)
    Sec. 5.768 5.755. The Foreclosure Prevention Program Fund.
(Source: P.A. 96-1419, eff. 10-1-10; revised 9-23-10.)
 
    (30 ILCS 105/5.769)
    Sec. 5.769 5.755. The Debt Management Service Consumer
Protection Fund.
(Source: P.A. 96-1420, eff. 8-3-10; revised 9-23-10.)
 
    (30 ILCS 105/5.770)
    Sec. 5.770 5.755. The 4-H Fund.
(Source: P.A. 96-1449, eff. 1-1-11; revised 9-23-10.)
 
    (30 ILCS 105/5.771)
    Sec. 5.771 5.756. The Money Laundering Asset Recovery Fund.
(Source: P.A. 96-1234, eff. 7-23-10; revised 9-23-10.)
 
    (30 ILCS 105/5.772)
    Sec. 5.772 5.756. The St. Jude Children's Research Fund.
(Source: P.A. 96-1377, eff. 1-1-11; revised 9-23-10.)
 
    (30 ILCS 105/5.773)
    Sec. 5.773 5.756. The Attorney General's State Projects and
Court Ordered Distribution Fund.
(Source: P.A. 96-1379, eff. 7-29-10; revised 9-23-10.)
 
    (30 ILCS 105/5.774)
    Sec. 5.774 5.756. The Reciprocal Tax Collection Fund.
(Source: P.A. 96-1383, eff. 1-1-11; revised 9-23-10.)
 
    (30 ILCS 105/5.777)
    Sec. 5.777. The Convention Center Support Fund.
(Source: P.A. 96-898, eff. 5-27-10.)
 
    (30 ILCS 105/5.778)
    Sec. 5.778. The State Police Operations Assistance Fund.
(Source: P.A. 96-1029, eff. 7-13-10.)
 
    (30 ILCS 105/5.780)
    Sec. 5.780 5.756. The Abandoned Residential Property
Municipality Relief Fund.
(Source: P.A. 96-1419, eff. 10-1-10; revised 9-23-10.)
 
    (30 ILCS 105/5.781)
    Sec. 5.781 5.756. The Debt Settlement Consumer Protection
Fund.
(Source: P.A. 96-1420, eff. 8-3-10; revised 9-23-10.)
 
    (30 ILCS 105/5.782)
    Sec. 5.782 5.756. The Ducks Unlimited Fund.
(Source: P.A. 96-1449, eff. 1-1-11; revised 9-23-10.)
 
    (30 ILCS 105/5.783)
    Sec. 5.783 5.777. The State Police Streetgang-Related
Crime Fund.
(Source: P.A. 96-1029, eff. 7-13-10; revised 9-23-10.)
 
    (30 ILCS 105/5.784)
    Sec. 5.784 5.777. The Illinois Route 66 Fund.
(Source: P.A. 96-1424, eff. 8-3-10; revised 9-23-10.)
 
    (30 ILCS 105/5.785)
    Sec. 5.785 5.778. The Habitat for Humanity Fund.
(Source: P.A. 96-1424, eff. 8-3-10; revised 9-23-10.)
 
    (30 ILCS 105/6z-18)  (from Ch. 127, par. 142z-18)
    Sec. 6z-18. A portion of the money paid into the Local
Government Tax Fund from sales of food for human consumption
which is to be consumed off the premises where it is sold
(other than alcoholic beverages, soft drinks and food which 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, which occurred in municipalities, shall be
distributed to each municipality based upon the sales which
occurred in that municipality. The remainder shall be
distributed to each county based upon the sales which occurred
in the unincorporated area of that county.
    A portion of the money paid into the Local Government Tax
Fund from the 6.25% general use tax rate on the selling price
of tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by any agency of this State's government shall be
distributed to municipalities as provided in this paragraph.
Each municipality shall receive the amount attributable to
sales for which Illinois addresses for titling or registration
purposes are given as being in such municipality. The remainder
of the money paid into the Local Government Tax Fund from such
sales shall be distributed to counties. Each county shall
receive the amount attributable to sales for which Illinois
addresses for titling or registration purposes are given as
being located in the unincorporated area of such county.
    A portion of the money paid into the Local Government Tax
Fund from the 6.25% general rate (and, beginning July 1, 2000
and through December 31, 2000, the 1.25% rate on motor fuel and
gasohol, and beginning on August 6, 2010 through August 15,
2010, the 1.25% rate on sales tax holiday items) on sales
subject to taxation under the Retailers' Occupation Tax Act and
the Service Occupation Tax Act, which occurred in
municipalities, shall be distributed to each municipality,
based upon the sales which occurred in that municipality. The
remainder shall be distributed to each county, based upon the
sales which occurred in the unincorporated area of such county.
    For the purpose of determining allocation to the local
government unit, a retail sale by a producer of coal or other
mineral mined in Illinois is a sale at retail at the place
where the coal or other mineral mined in Illinois is extracted
from the earth. This paragraph does not apply to coal or other
mineral when it is delivered or shipped by the seller to the
purchaser at a point outside Illinois so that the sale is
exempt under the United States Constitution as a sale in
interstate or foreign commerce.
    Whenever the Department determines that a refund of money
paid into the Local Government Tax Fund should be made to a
claimant instead of issuing a credit memorandum, the Department
shall notify the State Comptroller, who shall cause the order
to be drawn for the amount specified, and to the person named,
in such notification from the Department. Such refund shall be
paid by the State Treasurer out of the Local Government Tax
Fund.
    As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected during the second
preceding calendar month for sales within a STAR bond district
and deposited into the Local Government Tax Fund, less 3% of
that amount, which shall be transferred into the Tax Compliance
and Administration Fund and shall be used by the Department,
subject to appropriation, to cover the costs of the Department
in administering the Innovation Development and Economy Act.
    After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities
and counties, the municipalities and counties to be those
entitled to distribution of taxes or penalties paid to the
Department during the second preceding calendar month. The
amount to be paid to each municipality or county shall be the
amount (not including credit memoranda) collected during the
second preceding calendar month by the Department and paid into
the Local Government Tax Fund, plus an amount the Department
determines is necessary to offset any amounts which were
erroneously paid to a different taxing body, and not including
an amount equal to the amount of refunds made during the second
preceding calendar month by the Department, and not including
any amount which the Department determines is necessary to
offset any amounts which are payable to a different taxing body
but were erroneously paid to the municipality or county, and
not including any amounts that are transferred to the STAR
Bonds Revenue Fund. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities and counties, provided for in this Section to be
given to the Comptroller by the Department, the Comptroller
shall cause the orders to be drawn for the respective amounts
in accordance with the directions contained in such
certification.
    When certifying the amount of monthly disbursement to a
municipality or county under this Section, the Department shall
increase or decrease that amount by an amount necessary to
offset any misallocation of previous disbursements. The offset
amount shall be the amount erroneously disbursed within the 6
months preceding the time a misallocation is discovered.
    The provisions directing the distributions from the
special fund in the State Treasury provided for in this Section
shall constitute an irrevocable and continuing appropriation
of all amounts as provided herein. The State Treasurer and
State Comptroller are hereby authorized to make distributions
as provided in this Section.
    In construing any development, redevelopment, annexation,
preannexation or other lawful agreement in effect prior to
September 1, 1990, which describes or refers to receipts from a
county or municipal retailers' occupation tax, use tax or
service occupation tax which now cannot be imposed, such
description or reference shall be deemed to include the
replacement revenue for such abolished taxes, distributed from
the Local Government Tax Fund.
(Source: P.A. 96-939, eff. 6-24-10; 96-1012, eff. 7-7-10;
revised 7-22-10.)
 
    (30 ILCS 105/6z-20)  (from Ch. 127, par. 142z-20)
    Sec. 6z-20. Of the money received from the 6.25% general
rate (and, beginning July 1, 2000 and through December 31,
2000, the 1.25% rate on motor fuel and gasohol, and beginning
on August 6, 2010 through August 15, 2010, the 1.25% rate on
sales tax holiday items) on sales subject to taxation under the
Retailers' Occupation Tax Act and Service Occupation Tax Act
and paid into the County and Mass Transit District Fund,
distribution to the Regional Transportation Authority tax
fund, created pursuant to Section 4.03 of the Regional
Transportation Authority Act, for deposit therein shall be made
based upon the retail sales occurring in a county having more
than 3,000,000 inhabitants. The remainder shall be distributed
to each county having 3,000,000 or fewer inhabitants based upon
the retail sales occurring in each such county.
    For the purpose of determining allocation to the local
government unit, a retail sale by a producer of coal or other
mineral mined in Illinois is a sale at retail at the place
where the coal or other mineral mined in Illinois is extracted
from the earth. This paragraph does not apply to coal or other
mineral when it is delivered or shipped by the seller to the
purchaser at a point outside Illinois so that the sale is
exempt under the United States Constitution as a sale in
interstate or foreign commerce.
    Of the money received from the 6.25% general use tax rate
on tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by any agency of this State's government and paid
into the County and Mass Transit District Fund, the amount for
which Illinois addresses for titling or registration purposes
are given as being in each county having more than 3,000,000
inhabitants shall be distributed into the Regional
Transportation Authority tax fund, created pursuant to Section
4.03 of the Regional Transportation Authority Act. The
remainder of the money paid from such sales shall be
distributed to each county based on sales for which Illinois
addresses for titling or registration purposes are given as
being located in the county. Any money paid into the Regional
Transportation Authority Occupation and Use Tax Replacement
Fund from the County and Mass Transit District Fund prior to
January 14, 1991, which has not been paid to the Authority
prior to that date, shall be transferred to the Regional
Transportation Authority tax fund.
    Whenever the Department determines that a refund of money
paid into the County and Mass Transit District Fund should be
made to a claimant instead of issuing a credit memorandum, the
Department shall notify the State Comptroller, who shall cause
the order to be drawn for the amount specified, and to the
person named, in such notification from the Department. Such
refund shall be paid by the State Treasurer out of the County
and Mass Transit District Fund.
    As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected during the second
preceding calendar month for sales within a STAR bond district
and deposited into the County and Mass Transit District Fund,
less 3% of that amount, which shall be transferred into the Tax
Compliance and Administration Fund and shall be used by the
Department, subject to appropriation, to cover the costs of the
Department in administering the Innovation Development and
Economy Act.
    After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the Regional
Transportation Authority and to named counties, the counties to
be those entitled to distribution, as hereinabove provided, of
taxes or penalties paid to the Department during the second
preceding calendar month. The amount to be paid to the Regional
Transportation Authority and each county having 3,000,000 or
fewer inhabitants shall be the amount (not including credit
memoranda) collected during the second preceding calendar
month by the Department and paid into the County and Mass
Transit District Fund, plus an amount the Department determines
is necessary to offset any amounts which were erroneously paid
to a different taxing body, and not including an amount equal
to the amount of refunds made during the second preceding
calendar month by the Department, and not including any amount
which the Department determines is necessary to offset any
amounts which were payable to a different taxing body but were
erroneously paid to the Regional Transportation Authority or
county, and not including any amounts that are transferred to
the STAR Bonds Revenue Fund. Within 10 days after receipt, by
the Comptroller, of the disbursement certification to the
Regional Transportation Authority and counties, provided for
in this Section to be given to the Comptroller by the
Department, the Comptroller shall cause the orders to be drawn
for the respective amounts in accordance with the directions
contained in such certification.
    When certifying the amount of a monthly disbursement to the
Regional Transportation Authority or to a county under this
Section, the Department shall increase or decrease that amount
by an amount necessary to offset any misallocation of previous
disbursements. The offset amount shall be the amount
erroneously disbursed within the 6 months preceding the time a
misallocation is discovered.
    The provisions directing the distributions from the
special fund in the State Treasury provided for in this Section
and from the Regional Transportation Authority tax fund created
by Section 4.03 of the Regional Transportation Authority Act
shall constitute an irrevocable and continuing appropriation
of all amounts as provided herein. The State Treasurer and
State Comptroller are hereby authorized to make distributions
as provided in this Section.
    In construing any development, redevelopment, annexation,
preannexation or other lawful agreement in effect prior to
September 1, 1990, which describes or refers to receipts from a
county or municipal retailers' occupation tax, use tax or
service occupation tax which now cannot be imposed, such
description or reference shall be deemed to include the
replacement revenue for such abolished taxes, distributed from
the County and Mass Transit District Fund or Local Government
Distributive Fund, as the case may be.
(Source: P.A. 96-939, eff. 6-24-10; 96-1012, eff. 7-7-10;
revised 7-22-10.)
 
    (30 ILCS 105/6z-82)
    Sec. 6z-82. State Police Operations Assistance Fund.
    (a) There is created in the State treasury a special fund
known as the State Police Operations Assistance Fund. The Fund
shall receive revenue pursuant to Section 27.3a of the Clerks
of Courts Act. The Fund may also receive revenue from grants,
donations, appropriations, and any other legal source.
    (b) The Department of State Police may use moneys in the
Fund to finance any of its lawful purposes or functions.
    (c) Expenditures may be made from the Fund only as
appropriated by the General Assembly by law.
    (d) Investment income that is attributable to the
investment of moneys in the Fund shall be retained in the Fund
for the uses specified in this Section.
    (e) The State Police Operations Assistance Fund shall not
be subject to administrative chargebacks.
(Source: P.A. 96-1029, eff. 7-13-10.)
 
    (30 ILCS 105/6z-84)
    Sec. 6z-84 6z-82. The Habitat for Humanity Fund; creation.
The Habitat for Humanity Fund is created as a special fund in
the State treasury. Moneys in the Fund shall be appropriated to
the Department of Human Services for the purpose of making
grants to Habitat for Humanity of Illinois, Inc., for the
purpose of supporting Habitat for Humanity projects in
Illinois.
(Source: P.A. 96-1424, eff. 8-3-10; revised 9-28-10.)
 
    (30 ILCS 105/12-1)  (from Ch. 127, par. 148-1)
    Sec. 12-1. Travel control boards.
    (a) The following travel control boards are created with
the members and jurisdiction set forth below:
        (1) A Travel Control Board is created within the Office
    of the Attorney General consisting of the Attorney General
    as chairman and 2 members of his supervisory staff
    appointed by him. The board shall have jurisdiction over
    travel by employees of the office.
        (2) A Travel Control Board is created within the Office
    of the State Comptroller consisting of the Comptroller as
    chairman and 2 members of his supervisory staff appointed
    by him. The board shall have jurisdiction over travel by
    employees of the office.
        (3) The Higher Education Travel Control Board shall
    consist of 11 members, one to be appointed by each of the
    following: 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, the Illinois Community College Board and the
    Illinois Board of Higher Education. Each member shall be an
    officer, member or employee of the board making the
    appointment, or of an institution governed or maintained by
    such board. The board shall have jurisdiction over travel
    by the Board of Higher Education, 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, the Illinois Community College Board, the
    State Community College of East St. Louis (abolished under
    Section 2-12.1 of the Public Community College Act), the
    Illinois State Scholarship Commission, the State
    Universities Retirement System, the University Civil
    Service Merit Board, the Board of Trustees of the Illinois
    Mathematics and Science Academy and all employees of the
    named Boards, Commission and System and of the institutions
    governed or maintained by the named Boards. The Higher
    Education Travel Control Board shall select a chairman from
    among its members.
        (4) The Legislative Travel Control Board shall consist
    of the following members serving ex-officio: The Auditor
    General as chairman, the President and the Minority Leader
    of the Senate and the Speaker and the Minority Leader of
    the House of Representatives. The board shall have
    jurisdiction over travel by employees of: the General
    Assembly, legislative boards and commissions, the Office
    of the Auditor General and all legislative agencies.
        (5) A Travel Control Board is created within the Office
    of the Lieutenant Governor consisting of the Lieutenant
    Governor as chairman and 2 members of his supervisory staff
    appointed by him. The board shall have jurisdiction over
    travel by employees of the office. The Travel Control Board
    within the office of the Lieutenant Governor is subject to
    the provisions of Section 405-500 of the Department of
    Central Management Services Law (20 ILCS 405/405-500).
        (6) A Travel Control Board is created within the Office
    of the Secretary of State consisting of the Secretary of
    State as chairman, and 2 members of his supervisory staff
    appointed by him. The board shall have jurisdiction over
    travel by employees of the office.
        (7) A Travel Control Board is created within the
    Judicial Branch consisting of a chairman and 2 members
    appointed by the Supreme Court. The board shall have
    jurisdiction over travel by personnel of the Judicial
    Branch, except the circuit courts and the judges.
        (8) A Travel Control Board is created under the State
    Board of Education, consisting of the State Superintendent
    of Education as chairman, and 2 members of his supervisory
    staff appointed by the State Board of Education. The Board
    shall have jurisdiction over travel by employees of the
    State Board of Education.
        (9) A Travel Control Board is created within the Office
    of the State Treasurer, consisting of the State Treasurer
    as chairman and 2 members of his supervisory staff
    appointed by him. The board shall have jurisdiction over
    travel by employees of the office.
        (10) A Governor's Travel Control Board is created
    consisting of the Governor ex-officio as chairman, and 2
    members appointed by the Governor. The board shall have
    jurisdiction over travel by employees and officers of all
    State agencies as defined in the Illinois State Auditing
    Act, except for the following: judges, members of the
    General Assembly, elected constitutional officers of the
    State, the Auditor General, and personnel under the
    jurisdiction of another travel control board created by
    statute.
    (a-5) The Commissioner of Banks and Real Estate, the
Prisoner Review Board, and the State Fire Marshal shall submit
to the Governor's Travel Control Board the quarterly reports
required by regulation pertaining to their employees
reimbursed for housing.
    (b) Each travel control board created by this Section shall
meet at the call of the chairman at least quarterly to review
all vouchers, or a report thereof, for travel reimbursements
involving an exception to the State Travel Regulations and
Rates. Each travel control board shall prescribe the procedures
for submission of an information copy of vouchers involving an
exception to the general provisions established by the State
Travel Regulations and Reimbursement Rates.
    (c) Any chairman or member of a travel control board may,
with the consent of the respective appointing official,
designate a deputy to serve in his place at any or all meetings
of the board. The designation shall be in writing and directed
to the chairman of the board.
    (d) No member of a travel control board may receive
additional compensation for his service as a member.
    (e) A report of the travel reimbursement claims reviewed by
each travel control board shall be submitted to the Legislative
Audit Commission at least once each quarter and that Commission
shall comment on all such reports in its annual reports to the
General Assembly.
(Source: P.A. 90-609, eff. 6-30-98; 91-239, eff. 1-1-00;
revised 9-16-10.)
 
    (30 ILCS 105/25)  (from Ch. 127, par. 161)
    Sec. 25. Fiscal year limitations.
    (a) All appropriations shall be available for expenditure
for the fiscal year or for a lesser period if the Act making
that appropriation so specifies. A deficiency or emergency
appropriation shall be available for expenditure only through
June 30 of the year when the Act making that appropriation is
enacted unless that Act otherwise provides.
    (b) Outstanding liabilities as of June 30, payable from
appropriations which have otherwise expired, may be paid out of
the expiring appropriations during the 2-month period ending at
the close of business on August 31. Any service involving
professional or artistic skills or any personal services by an
employee whose compensation is subject to income tax
withholding must be performed as of June 30 of the fiscal year
in order to be considered an "outstanding liability as of June
30" that is thereby eligible for payment out of the expiring
appropriation.
    However, payment of tuition reimbursement claims under
Section 14-7.03 or 18-3 of the School Code may be made by the
State Board of Education from its appropriations for those
respective purposes for any fiscal year, even though the claims
reimbursed by the payment may be claims attributable to a prior
fiscal year, and payments may be made at the direction of the
State Superintendent of Education from the fund from which the
appropriation is made without regard to any fiscal year
limitations.
    All outstanding liabilities as of June 30, 2010, payable
from appropriations that would otherwise expire at the
conclusion of the lapse period for fiscal year 2010, and
interest penalties payable on those liabilities under the State
Prompt Payment Act, may be paid out of the expiring
appropriations until December 31, 2010, without regard to the
fiscal year in which the payment is made, as long as vouchers
for the liabilities are received by the Comptroller no later
than August 31, 2010.
    Medical payments may be made by the Department of Veterans'
Affairs from its appropriations for those purposes for any
fiscal year, without regard to the fact that the medical
services being compensated for by such payment may have been
rendered in a prior fiscal year.
    Medical payments may be made by the Department of
Healthcare and Family Services and medical payments and child
care payments may be made by the Department of Human Services
(as successor to the Department of Public Aid) from
appropriations for those purposes for any fiscal year, without
regard to the fact that the medical or child care services
being compensated for by such payment may have been rendered in
a prior fiscal year; and payments may be made at the direction
of the Department of Central Management Services from the
Health Insurance Reserve Fund and the Local Government Health
Insurance Reserve Fund without regard to any fiscal year
limitations.
    Medical payments may be made by the Department of Human
Services from its appropriations relating to substance abuse
treatment services for any fiscal year, without regard to the
fact that the medical services being compensated for by such
payment may have been rendered in a prior fiscal year, provided
the payments are made on a fee-for-service basis consistent
with requirements established for Medicaid reimbursement by
the Department of Healthcare and Family Services.
    Additionally, payments may be made by the Department of
Human Services from its appropriations, or any other State
agency from its appropriations with the approval of the
Department of Human Services, from the Immigration Reform and
Control Fund for purposes authorized pursuant to the
Immigration Reform and Control Act of 1986, without regard to
any fiscal year limitations.
    Further, with respect to costs incurred in fiscal years
2002 and 2003 only, payments may be made by the State Treasurer
from its appropriations from the Capital Litigation Trust Fund
without regard to any fiscal year limitations.
    Lease payments may be made by the Department of Central
Management Services under the sale and leaseback provisions of
Section 7.4 of the State Property Control Act with respect to
the James R. Thompson Center and the Elgin Mental Health Center
and surrounding land from appropriations for that purpose
without regard to any fiscal year limitations.
    Lease payments may be made under the sale and leaseback
provisions of Section 7.5 of the State Property Control Act
with respect to the Illinois State Toll Highway Authority
headquarters building and surrounding land without regard to
any fiscal year limitations.
    Payments may be made in accordance with a plan authorized
by paragraph (11) or (12) of Section 405-105 of the Department
of Central Management Services Law from appropriations for
those payments without regard to fiscal year limitations.
    (c) Further, payments may be made by the Department of
Public Health and the Department of Human Services (acting as
successor to the Department of Public Health under the
Department of Human Services Act) from their respective
appropriations for grants for medical care to or on behalf of
persons suffering from chronic renal disease, persons
suffering from hemophilia, rape victims, and premature and
high-mortality risk infants and their mothers and for grants
for supplemental food supplies provided under the United States
Department of Agriculture Women, Infants and Children
Nutrition Program, for any fiscal year without regard to the
fact that the services being compensated for by such payment
may have been rendered in a prior fiscal year.
    (d) The Department of Public Health and the Department of
Human Services (acting as successor to the Department of Public
Health under the Department of Human Services Act) shall each
annually submit to the State Comptroller, Senate President,
Senate Minority Leader, Speaker of the House, House Minority
Leader, and the respective Chairmen and Minority Spokesmen of
the Appropriations Committees of the Senate and the House, on
or before December 31, a report of fiscal year funds used to
pay for services provided in any prior fiscal year. This report
shall document by program or service category those
expenditures from the most recently completed fiscal year used
to pay for services provided in prior fiscal years.
    (e) The Department of Healthcare and Family Services, the
Department of Human Services (acting as successor to the
Department of Public Aid), and the Department of Human Services
making fee-for-service payments relating to substance abuse
treatment services provided during a previous fiscal year shall
each annually submit to the State Comptroller, Senate
President, Senate Minority Leader, Speaker of the House, House
Minority Leader, the respective Chairmen and Minority
Spokesmen of the Appropriations Committees of the Senate and
the House, on or before November 30, a report that shall
document by program or service category those expenditures from
the most recently completed fiscal year used to pay for (i)
services provided in prior fiscal years and (ii) services for
which claims were received in prior fiscal years.
    (f) The Department of Human Services (as successor to the
Department of Public Aid) shall annually submit to the State
Comptroller, Senate President, Senate Minority Leader, Speaker
of the House, House Minority Leader, and the respective
Chairmen and Minority Spokesmen of the Appropriations
Committees of the Senate and the House, on or before December
31, a report of fiscal year funds used to pay for services
(other than medical care) provided in any prior fiscal year.
This report shall document by program or service category those
expenditures from the most recently completed fiscal year used
to pay for services provided in prior fiscal years.
    (g) In addition, each annual report required to be
submitted by the Department of Healthcare and Family Services
under subsection (e) shall include the following information
with respect to the State's Medicaid program:
        (1) Explanations of the exact causes of the variance
    between the previous year's estimated and actual
    liabilities.
        (2) Factors affecting the Department of Healthcare and
    Family Services' liabilities, including but not limited to
    numbers of aid recipients, levels of medical service
    utilization by aid recipients, and inflation in the cost of
    medical services.
        (3) The results of the Department's efforts to combat
    fraud and abuse.
    (h) As provided in Section 4 of the General Assembly
Compensation Act, any utility bill for service provided to a
General Assembly member's district office for a period
including portions of 2 consecutive fiscal years may be paid
from funds appropriated for such expenditure in either fiscal
year.
    (i) An agency which administers a fund classified by the
Comptroller as an internal service fund may issue rules for:
        (1) billing user agencies in advance for payments or
    authorized inter-fund transfers based on estimated charges
    for goods or services;
        (2) issuing credits, refunding through inter-fund
    transfers, or reducing future inter-fund transfers during
    the subsequent fiscal year for all user agency payments or
    authorized inter-fund transfers received during the prior
    fiscal year which were in excess of the final amounts owed
    by the user agency for that period; and
        (3) issuing catch-up billings to user agencies during
    the subsequent fiscal year for amounts remaining due when
    payments or authorized inter-fund transfers received from
    the user agency during the prior fiscal year were less than
    the total amount owed for that period.
User agencies are authorized to reimburse internal service
funds for catch-up billings by vouchers drawn against their
respective appropriations for the fiscal year in which the
catch-up billing was issued or by increasing an authorized
inter-fund transfer during the current fiscal year. For the
purposes of this Act, "inter-fund transfers" means transfers
without the use of the voucher-warrant process, as authorized
by Section 9.01 of the State Comptroller Act.
(Source: P.A. 95-331, eff. 8-21-07; 96-928, eff. 6-15-10;
96-958, eff. 7-1-10; revised 7-22-10.)
 
    Section 95. The Illinois State Collection Act of 1986 is
amended by renumbering multiple versions of Section 9 as
follows:
 
    (30 ILCS 210/10.1)
    Sec. 10.1 9. Collection agency fees. Except where
prohibited by federal law or regulation, in the case of any
liability referred to a collection agency on or after July 1,
2010, any fee charged to the State by the collection agency (i)
may not exceed 25% of the liability referred to the collection
agency unless the liability is for a tax debt, (ii) is
considered an additional liability owed to the State, (iii) is
immediately subject to all collection procedures applicable to
the liability referred to the collection agency, and (iv) must
be separately stated in any statement or notice of the
liability issued by the collection agency to the debtor.
(Source: P.A. 96-1383, eff. 1-1-11; revised 9-7-10.)
 
    (30 ILCS 210/10.2)
    Sec. 10.2 9. Deferral and compromise of past due debt.
    (a) In this Section, "past due debt" means any debt owed to
the State that has been outstanding for more than 12 months.
"Past due debt" does not include any debt if any of the actions
required under this Section would violate federal law or
regulation.
    (b) State agencies may enter into a deferred payment plan
for the purpose of satisfying a past due debt. The deferred
payment plan must meet the following requirements:
        (1) The term of the deferred payment plan may not
    exceed 2 years.
        (2) The first payment of the deferred payment plan must
    be at least 10% of the total amount due.
        (3) All subsequent monthly payments for the deferred
    payment plan must be assessed as equal monthly principal
    payments, together with interest.
        (4) The deferred payment plan must include interest at
    a rate that is the same as the interest required under the
    State Prompt Payment Act.
        (5) The deferred payment plan must be approved by the
    Secretary or Director of the State agency.
    (c) State agencies may compromise past due debts. Any
action taken by a State agency to compromise a past due debt
must meet the following requirements:
        (1) The amount of the compromised debt shall be no less
    than 80% of the total of the past due debt.
        (2) Once a past due debt has been compromised, the
    debtor must remit to the State agency the total amount of
    the compromised debt. However, the State agency may collect
    the compromised debt through a payment plan not to exceed 6
    months. If the State agency accepts the compromised debt
    through a payment plan, then the compromised debt shall be
    subject to the same rate of interest as required under the
    State Prompt Payment Act.
        (3) Before a State agency accepts a compromised debt,
    the amount of the compromised debt must be approved by the
    Department of Revenue.
    (d) State agencies may sell a past due debt to one or more
outside private vendors. Sales shall be conducted under rules
adopted by the Department of Revenue using a request for
proposals procedure similar to that procedure under the
Illinois Procurement Code. The outside private vendors shall
remit to the State agency the purchase price for debts sold
under this subsection.
    (e) The State agency shall deposit all amounts received
under this Section into the General Revenue Fund.
    (f) This Section does not apply to any tax debt owing to
the Department of Revenue.
(Source: P.A. 96-1435, eff. 8-16-10; revised 9-7-10.)
 
    Section 100. The General Obligation Bond Act is amended by
changing Section 2 as follows:
 
    (30 ILCS 330/2)  (from Ch. 127, par. 652)
    Sec. 2. Authorization for Bonds. The State of Illinois is
authorized to issue, sell and provide for the retirement of
General Obligation Bonds of the State of Illinois for the
categories and specific purposes expressed in Sections 2
through 8 of this Act, in the total amount of $37,217,777,443
$36,967,777,443.
    The bonds authorized in this Section 2 and in Section 16 of
this Act are herein called "Bonds".
    Of the total amount of Bonds authorized in this Act, up to
$2,200,000,000 in aggregate original principal amount may be
issued and sold in accordance with the Baccalaureate Savings
Act in the form of General Obligation College Savings Bonds.
    Of the total amount of Bonds authorized in this Act, up to
$300,000,000 in aggregate original principal amount may be
issued and sold in accordance with the Retirement Savings Act
in the form of General Obligation Retirement Savings Bonds.
    Of the total amount of Bonds authorized in this Act, the
additional $10,000,000,000 authorized by Public Act 93-2 and
the $3,466,000,000 authorized by Public Act 96-43 shall be used
solely as provided in Section 7.2.
    The issuance and sale of Bonds pursuant to the General
Obligation Bond Act is an economical and efficient method of
financing the long-term capital needs of the State. This Act
will permit the issuance of a multi-purpose General Obligation
Bond with uniform terms and features. This will not only lower
the cost of registration but also reduce the overall cost of
issuing debt by improving the marketability of Illinois General
Obligation Bonds.
(Source: P.A. 95-1026, eff. 1-12-09; 96-5, eff. 4-3-09; 96-36,
eff. 7-13-09; 96-43, eff. 7-15-09; 96-885, eff. 3-11-10;
96-1000, eff. 7-2-10; revised 9-3-10.)
 
    Section 105. The Public Works Finance Act is amended by
changing the title of the Act as follows:
 
    (30 ILCS 370/Act title)
An Act enabling units of local government governments in
this State to finance public work projects.
 
    Section 110. The Illinois Procurement Code is amended by
changing Sections 20-160, 30-45, 33-50, and 50-39 as follows:
 
    (30 ILCS 500/20-160)
    Sec. 20-160. Business entities; certification;
registration with the State Board of Elections.
    (a) For purposes of this Section, the terms "business
entity", "contract", "State contract", "contract with a State
agency", "State agency", "affiliated entity", and "affiliated
person" have the meanings ascribed to those terms in Section
50-37.
    (b) Every bid submitted to and every contract executed by
the State on or after January 1, 2009 (the effective date of
Public Act 95-971) shall contain (1) a certification by the
bidder or contractor that either (i) the bidder or contractor
is not required to register as a business entity with the State
Board of Elections pursuant to this Section or (ii) the bidder
or contractor has registered as a business entity with the
State Board of Elections and acknowledges a continuing duty to
update the registration and (2) a statement that the contract
is voidable under Section 50-60 for the bidder's or
contractor's failure to comply with this Section.
    (c) Within 30 days after the effective date of this
amendatory Act of the 95th General Assembly, each business
entity (i) whose aggregate bids and proposals on State
contracts annually total more than $50,000, (ii) whose
aggregate bids and proposals on State contracts combined with
the business entity's aggregate annual total value of State
contracts exceed $50,000, or (iii) whose contracts with State
agencies, in the aggregate, annually total more than $50,000
shall register with the State Board of Elections in accordance
with Section 9-35 of the Election Code. A business entity
required to register under this subsection shall submit a copy
of the certificate of registration to the applicable chief
procurement officer within 90 days after the effective date of
this amendatory Act of the 95th General Assembly. A business
entity required to register under this subsection due to item
(i) or (ii) has a continuing duty to ensure that the
registration is accurate during the period beginning on the
date of registration and ending on the day after the date the
contract is awarded; any change in information must be reported
to the State Board of Elections 5 business days following such
change or no later than a day before the contract is awarded,
whichever date is earlier. A business entity required to
register under this subsection due to item (iii) has a
continuing duty to ensure that the registration is accurate in
accordance with subsection report any changes in information to
the State Board of Elections on the final day of January,
April, July, and October of each year, or the first business
day after such dates, if such dates do not fall on a business
day (e).
    (d) Any business entity, not required under subsection (c)
to register within 30 days after the effective date of this
amendatory Act of the 95th General Assembly, whose aggregate
bids and proposals on State contracts annually total more than
$50,000, or whose aggregate bids and proposals on State
contracts combined with the business entity's aggregate annual
total value of State contracts exceed $50,000, shall register
with the State Board of Elections in accordance with Section
9-35 of the Election Code prior to submitting to a State agency
the bid or proposal whose value causes the business entity to
fall within the monetary description of this subsection. A
business entity required to register under this subsection has
a continuing duty to ensure that the registration is accurate
during the period beginning on the date of registration and
ending on the day after the date the contract is awarded. Any
change in information must be reported to the State Board of
Elections within 5 business days following such change or no
later than a day before the contract is awarded, whichever date
is earlier.
    (e) A business entity whose contracts with State agencies,
in the aggregate, annually total more than $50,000 must
maintain its registration under this Section and has a
continuing duty to ensure that the registration is accurate for
the duration of the term of office of the incumbent
officeholder awarding the contracts or for a period of 2 years
following the expiration or termination of the contracts,
whichever is longer. A business entity, required to register
under this subsection, has a continuing duty to report any
changes on a quarterly basis to the State Board of Elections
within 10 business days following the last day of January,
April, July, and October of each year. Any update pursuant to
this paragraph that is received beyond that date is presumed
late and the civil penalty authorized by subsection (e) of
Section 9-35 of the Election Code (10 ILCS 5/9-35) may be
assessed.
    Also, if on the final day of January, April, July, and
October of each year, or the first business day after such
dates, if such dates do not fall on a business day. If a
business entity required to register under this subsection has
a pending bid or proposal, any change in information shall be
reported to the State Board of Elections within 5 business days
following such change or no later than a day before the
contract is awarded, whichever date is earlier.
    (f) A business entity's continuing duty under this Section
to ensure the accuracy of its registration includes the
requirement that the business entity notify the State Board of
Elections of any change in information, including but not
limited to changes of affiliated entities or affiliated
persons.
    (g) A copy of a certificate of registration must accompany
any bid or proposal for a contract with a State agency by a
business entity required to register under this Section. A
chief procurement officer shall not accept a bid or proposal
unless the certificate is submitted to the agency with the bid
or proposal.
    (h) A registration, and any changes to a registration, must
include the business entity's verification of accuracy and
subjects the business entity to the penalties of the laws of
this State for perjury.
    In addition to any penalty under Section 9-35 of the
Election Code, intentional, willful, or material failure to
disclose information required for registration shall render
the contract, bid, proposal, or other procurement relationship
voidable by the chief procurement officer if he or she deems it
to be in the best interest of the State of Illinois.
    (i) This Section applies regardless of the method of source
selection used in awarding the contract.
(Source: P.A. 95-971, eff. 1-1-09; 96-795, eff. 7-1-10 (see
Section 5 of P.A. 96-793 for the effective date of changes made
by P.A. 96-795); 96-848, eff. 1-1-10; revised 9-23-10.)
 
    (30 ILCS 500/30-45)
    Sec. 30-45. Other Acts. This Article is subject to
applicable provisions of the following Acts:
        (1) the Prevailing Wage Act;
        (2) the Public Construction Bond Act;
        (3) the Public Works Employment Discrimination Act;
        (4) the Public Works Preference Act (repealed on June
    16, 2010 by Public Act 96-929);
        (5) the Employment of Illinois Workers on Public Works
    Act;
        (6) the Public Contract Fraud Act; and
        (7) the Illinois Construction Evaluation Act.
(Source: P.A. 90-572, eff. date - See Sec. 99-5; revised
10-19-10.)
 
    (30 ILCS 500/33-50)
    Sec. 33-50. Duties of construction manager; additional
requirements for persons performing construction work.
    (a) Upon the award of a construction management services
contract, a construction manager must contract with the Board
to furnish his or her skill and judgment in cooperation with,
and reliance upon, the services of the project architect or
engineer. The construction manager must furnish business
administration, management of the construction process, and
other specified services to the Board and must perform his or
her obligations in an expeditious and economical manner
consistent with the interest of the Board. If it is in the
State's best interest, the construction manager may provide or
perform basic services for which reimbursement is provided in
the general conditions to the construction management services
contract.
    (b) The actual construction work on the project must be
awarded to contractors under this Code. The Capital Development
Board may further separate additional divisions of work under
this Article. This subsection is subject to the applicable
provisions of the following Acts:
        (1) the Prevailing Wage Act;
        (2) the Public Construction Bond Act;
        (3) the Public Works Employment Discrimination Act;
        (4) the Public Works Preference Act (repealed on June
    16, 2010 by Public Act 96-929);
        (5) the Employment of Illinois Workers on Public Works
    Act;
        (6) the Public Contract Fraud Act;
        (7) the Illinois Construction Evaluation Act; and
        (8) the Illinois Architecture Practice Act of 1989, the
    Professional Engineering Practice Act of 1989, the
    Illinois Professional Land Surveyor Act of 1989, and the
    Structural Engineering Practice Act of 1989.
(Source: P.A. 94-532, eff. 8-10-05; revised 10-19-10.)
 
    (30 ILCS 500/50-39)
    Sec. 50-39. Procurement communications reporting
requirement.
    (a) Any written or oral communication received by a State
employee that imparts or requests material information or makes
a material argument regarding potential action concerning a
procurement matter, including, but not limited to, an
application, a contract, or a project, shall be reported to the
Procurement Policy Board. These communications do not include
the following: (i) statements by a person publicly made in a
public forum; (ii) statements regarding matters of procedure
and practice, such as format, the number of copies required,
the manner of filing, and the status of a matter; and (iii)
statements made by a State employee of the agency to the agency
head or other employees of that agency or to the employees of
the Executive Ethics Commission. The provisions of this Section
shall not apply to communications regarding the administration
and implementation of an existing contract, except
communications regarding change orders or the renewal or
extension of a contract.
    (b) The report required by subsection (a) shall be
submitted monthly and include at least the following: (i) the
date and time of each communication; (ii) the identity of each
person from whom the written or oral communication was
received, the individual or entity represented by that person,
and any action the person requested or recommended; (iii) the
identity and job title of the person to whom each communication
was made; (iv) if a response is made, the identity and job
title of the person making each response; (v) a detailed
summary of the points made by each person involved in the
communication; (vi) the duration of the communication; (vii)
the location or locations of all persons involved in the
communication and, if the communication occurred by telephone,
the telephone numbers for the callers and recipients of the
communication; and (viii) any other pertinent information.
    (c) Additionally, when an oral communication made by a
person required to register under the Lobbyist Registration Act
is received by a State employee that is covered under this
Section, all individuals who initiate or participate in the
oral communication shall submit a written report to that State
employee that memorializes the communication and includes, but
is not limited to, the items listed in subsection (b).
    (d) The Procurement Policy Board shall make each report
submitted pursuant to this Section available on its website
within 7 days after its receipt of the report. The Procurement
Policy Board may promulgate rules to ensure compliance with
this Section.
    (e) The reporting requirements shall also be conveyed
through ethics training under the State Employees and Officials
and Employees Ethics Act. An employee who knowingly and
intentionally violates this Section shall be subject to
suspension or discharge. The Executive Ethics Commission shall
promulgate rules, including emergency rules, to implement this
Section.
    (f) This Section becomes operative on January 1, 2011.
(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
for the effective date of changes made by P.A. 96-795); 96-920,
eff. 7-1-10; revised 9-27-10.)
 
    Section 115. The State Mandates Act is amended by changing
Sections 8.33 as follows:
 
    (30 ILCS 805/8.33)
    Sec. 8.33. Exempt mandate.
    (a) Notwithstanding the provisions of Sections 6 and 8 of
this Act, no reimbursement by the State is required for the
implementation of Section 5-42 of the Olympic Games and
Paralympic Games (2016) Law.
    (b) 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 96-139, 96-251, 96-260,
96-285, 96-297, 96-299, 96-343, 96-357, 96-410, 96-429,
96-494, 96-505, 96-621, 96-650, 96-727, 96-745, 96-749, and
96-775, 96-841, or 96-843 this amendatory Act of the 96th
General Assembly.
    (c) Notwithstanding Sections 6 and 8 of this Act, no
reimbursement by the State is required for the implementation
of any mandate created by the Identity Protection Act.
(Source: P.A. 96-7, eff. 4-3-09; 96-139, eff. 1-1-10; 96-251,
eff. 8-11-09; 96-260, eff. 8-11-09; 96-285, eff. 8-11-09;
96-297, eff. 8-11-09; 96-299, eff. 8-11-09; 96-343, eff.
8-11-09; 96-357, eff. 8-13-09; 96-410, eff. 7-1-10; 96-429,
eff. 8-13-09; 96-494, eff. 8-14-09; 96-505, eff. 8-14-09;
96-621, eff. 1-1-10; 96-650, eff. 1-1-10; 96-727, eff. 8-25-09;
96-745, eff. 8-25-09; 96-749, eff. 1-1-10; 96-775, eff.
8-28-09; 96-841, eff. 12-23-09; 96-843, eff. 6-1-10; 96-874,
eff. 6-1-10; 96-1000, eff. 7-2-10; revised 9-27-10.)
 
    Section 120. The Illinois Income Tax Act is amended by
changing Sections 203 and 704A 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 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 person if
            the taxpayer can establish, based on a
            preponderance of the evidence, both of the
            following:
                    (a) the 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
                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 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 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 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 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 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 premiums 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) or
        Section 203(a)(2)(D-18) 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;
            (D-22) For taxable years beginning on or after
        January 1, 2009, in the case of a nonqualified
        withdrawal or refund of moneys from a qualified tuition
        program under Section 529 of the Internal Revenue Code
        administered by the State that is not used for
        qualified expenses at an eligible education
        institution, an amount equal to the contribution
        component of the nonqualified withdrawal or refund
        that was previously deducted from base income under
        subsection (a)(2)(y) of this Section, provided that
        the withdrawal or refund did not result from the
        beneficiary's death or disability;
            (D-23) An amount equal to the credit allowable to
        the taxpayer under Section 218(a) of this Act,
        determined without regard to Section 218(c) of this
        Act;
    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 that exempts income derived from
        bonds or other obligations from the tax imposed under
        this Act, the amount exempted shall be the interest net
        of bond premium amortization;
            (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). For purposes
        of this subparagraph, contributions made by an
        employer on behalf of an employee, or matching
        contributions made by an employee, shall be treated as
        made by the employee. 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. This subparagraph (CC) is
        exempt from the provisions of Section 250;
            (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. This subparagraph (DD)
        is exempt from the provisions of Section 250;
            (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. This subparagraph (EE) is exempt from the
        provisions of Section 250; and
            (FF) An amount equal to any amount awarded to the
        taxpayer during the taxable year by the Court of Claims
        under subsection (c) of Section 8 of the Court of
        Claims Act for time unjustly served in a State prison.
        This subparagraph (FF) is exempt from the provisions of
        Section 250.
 
    (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;
            (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 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 person if
            the taxpayer can establish, based on a
            preponderance of the evidence, both of the
            following:
                    (a) the 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
                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 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 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 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 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 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 premiums 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(b)(2)(E-12) or
        Section 203(b)(2)(E-13) of this Act;
            (E-15) For taxable years beginning after December
        31, 2008, any deduction for dividends paid by a captive
        real estate investment trust that is allowed to a real
        estate investment trust under Section 857(b)(2)(B) of
        the Internal Revenue Code for dividends paid;
            (E-16) An amount equal to the credit allowable to
        the taxpayer under Section 218(a) of this Act,
        determined without regard to Section 218(c) of this
        Act;
    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 that exempts income derived from
        bonds or other obligations from the tax imposed under
        this Act, the amount exempted shall be the interest net
        of bond premium amortization;
            (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 captive
        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 captive 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. This subparagraph (O) is exempt from
        the provisions of Section 250 of this Act;
            (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, (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, and (iii) any insurance premium
        income (net of 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-19), Section
        203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
        203(d)(2)(D-9), but not to exceed the amount of that
        addition modification. This subparagraph (V) is exempt
        from the provisions of Section 250;
            (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. This subparagraph (W)
        is exempt from the provisions of Section 250; and
            (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. This subparagraph (X) is exempt from the
        provisions of Section 250.
        (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 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 person if
            the taxpayer can establish, based on a
            preponderance of the evidence, both of the
            following:
                    (a) the 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
                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 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 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 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 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 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 premiums 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(c)(2)(G-12) or
        Section 203(c)(2)(G-13) of this Act;
            (G-15) An amount equal to the credit allowable to
        the taxpayer under Section 218(a) of this Act,
        determined without regard to Section 218(c) 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 that
        exempts income derived from bonds or other obligations
        from the tax imposed under this Act, the amount
        exempted shall be the interest net of bond premium
        amortization;
            (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. This subparagraph (T) is exempt
        from the provisions of Section 250;
            (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. This subparagraph (U)
        is exempt from the provisions of Section 250; and
            (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 (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(c)(2)(G-13) for
        intangible expenses and costs paid, accrued, or
        incurred, directly or indirectly, to the same foreign
        person. This subparagraph (V) is exempt from the
        provisions of Section 250.
        (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 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 person if
            the taxpayer can establish, based on a
            preponderance of the evidence, both of the
            following:
                    (a) the 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
                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 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 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 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 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 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 premiums 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(d)(2)(D-7) or
        Section 203(d)(2)(D-8) of this Act;
            (D-10) An amount equal to the credit allowable to
        the taxpayer under Section 218(a) of this Act,
        determined without regard to Section 218(c) 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 that exempts income derived from
        bonds or other obligations from the tax imposed under
        this Act, the amount exempted shall be the interest net
        of bond premium amortization;
            (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. This subparagraph (Q) is exempt
        from Section 250;
            (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. This subparagraph (R) is exempt from
        Section 250; and
            (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 person.
        This subparagraph (S) is exempt from Section 250.
 
    (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, but without regard to the prohibition
        against offsetting losses from patronage activities
        against income from nonpatronage activities; except
        that a cooperative corporation or association may make
        an election to follow its federal income tax treatment
        of patronage losses and nonpatronage losses. In the
        event such election is made, such losses shall be
        computed and carried over in a manner consistent with
        subsection (a) of Section 207 of this Act and
        apportioned by the apportionment factor reported by
        the cooperative on its Illinois income tax return filed
        for the taxable year in which the losses are incurred.
        The election shall be effective for all taxable years
        with original returns due on or after the date of the
        election. In addition, the cooperative may file an
        amended return or returns, as allowed under this Act,
        to provide that the election shall be effective for
        losses incurred or carried forward for taxable years
        occurring prior to the date of the election. Once made,
        the election may only be revoked upon approval of the
        Director. The Department shall adopt rules setting
        forth requirements for documenting the elections and
        any resulting Illinois net loss and the standards to be
        used by the Director in evaluating requests to revoke
        elections. Public Act 96-932 This amendatory Act of the
        96th General Assembly is declaratory of existing law;
            (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. 95-23, eff. 8-3-07; 95-233, eff. 8-16-07; 95-286,
eff. 8-20-07; 95-331, eff. 8-21-07; 95-707, eff. 1-11-08;
95-876, eff. 8-21-08; 96-45, eff. 7-15-09; 96-120, eff. 8-4-09;
96-198, eff. 8-10-09; 96-328, eff. 8-11-09; 96-520, eff.
8-14-09; 96-835, eff. 12-16-09; 96-932, eff. 1-1-11; 96-935,
eff. 6-21-10; 96-1214, eff. 7-22-10; revised 9-16-10.)
 
    (35 ILCS 5/704A)
    Sec. 704A. Employer's return and payment of tax withheld.
    (a) In general, every employer who deducts and withholds or
is required to deduct and withhold tax under this Act on or
after January 1, 2008 shall make those payments and returns as
provided in this Section.
    (b) Returns. Every employer shall, in the form and manner
required by the Department, make returns with respect to taxes
withheld or required to be withheld under this Article 7 for
each quarter beginning on or after January 1, 2008, on or
before the last day of the first month following the close of
that quarter.
    (c) Payments. With respect to amounts withheld or required
to be withheld on or after January 1, 2008:
        (1) Semi-weekly payments. For each calendar year, each
    employer who withheld or was required to withhold more than
    $12,000 during the one-year period ending on June 30 of the
    immediately preceding calendar year, payment must be made:
            (A) on or before each Friday of the calendar year,
        for taxes withheld or required to be withheld on the
        immediately preceding Saturday, Sunday, Monday, or
        Tuesday;
            (B) on or before each Wednesday of the calendar
        year, for taxes withheld or required to be withheld on
        the immediately preceding Wednesday, Thursday, or
        Friday.
        Beginning with calendar year 2011, payments payment
    made under this paragraph (1) of subsection (c) must be
    made by electronic funds transfer.
        (2) Semi-weekly payments. Any employer who withholds
    or is required to withhold more than $12,000 in any quarter
    of a calendar year is required to make payments on the
    dates set forth under item (1) of this subsection (c) for
    each remaining quarter of that calendar year and for the
    subsequent calendar year.
        (3) Monthly payments. Each employer, other than an
    employer described in items (1) or (2) of this subsection,
    shall pay to the Department, on or before the 15th day of
    each month the taxes withheld or required to be withheld
    during the immediately preceding month.
        (4) Payments with returns. Each employer shall pay to
    the Department, on or before the due date for each return
    required to be filed under this Section, any tax withheld
    or required to be withheld during the period for which the
    return is due and not previously paid to the Department.
    (d) Regulatory authority. The Department may, by rule:
        (1) Permit employers, in lieu of the requirements of
    subsections (b) and (c), to file annual returns due on or
    before January 31 of the year for taxes withheld or
    required to be withheld during the previous calendar year
    and, if the aggregate amounts required to be withheld by
    the employer under this Article 7 (other than amounts
    required to be withheld under Section 709.5) do not exceed
    $1,000 for the previous calendar year, to pay the taxes
    required to be shown on each such return no later than the
    due date for such return.
        (2) Provide that any payment required to be made under
    subsection (c)(1) or (c)(2) is deemed to be timely to the
    extent paid by electronic funds transfer on or before the
    due date for deposit of federal income taxes withheld from,
    or federal employment taxes due with respect to, the wages
    from which the Illinois taxes were withheld.
        (3) Designate one or more depositories to which payment
    of taxes required to be withheld under this Article 7 must
    be paid by some or all employers.
        (4) Increase the threshold dollar amounts at which
    employers are required to make semi-weekly payments under
    subsection (c)(1) or (c)(2).
    (e) Annual return and payment. Every employer who deducts
and withholds or is required to deduct and withhold tax from a
person engaged in domestic service employment, as that term is
defined in Section 3510 of the Internal Revenue Code, may
comply with the requirements of this Section with respect to
such employees by filing an annual return and paying the taxes
required to be deducted and withheld on or before the 15th day
of the fourth month following the close of the employer's
taxable year. The Department may allow the employer's return to
be submitted with the employer's individual income tax return
or to be submitted with a return due from the employer under
Section 1400.2 of the Unemployment Insurance Act.
    (f) Magnetic media and electronic filing. Any W-2 Form
that, under the Internal Revenue Code and regulations
promulgated thereunder, is required to be submitted to the
Internal Revenue Service on magnetic media or electronically
must also be submitted to the Department on magnetic media or
electronically for Illinois purposes, if required by the
Department.
    (g) For amounts deducted or withheld after December 31,
2009, a taxpayer who makes an election under subsection (f) of
Section 5-15 of the Economic Development for a Growing Economy
Tax Credit Act for a taxable year shall be allowed a credit
against payments due under this Section for amounts withheld
during the first calendar year beginning after the end of that
taxable year equal to the amount of the credit for the
incremental income tax attributable to full-time employees of
the taxpayer awarded to the taxpayer by the Department of
Commerce and Economic Opportunity under the Economic
Development for a Growing Economy Tax Credit Act for the
taxable year and credits not previously claimed and allowed to
be carried forward under Section 211(4) of this Act as provided
in subsection (f) of Section 5-15 of the Economic Development
for a Growing Economy Tax Credit Act. The credit or credits may
not reduce the taxpayer's obligation for any payment due under
this Section to less than zero. If the amount of the credit or
credits exceeds the total payments due under this Section with
respect to amounts withheld during the calendar year, the
excess may be carried forward and applied against the
taxpayer's liability under this Section in the succeeding
calendar years as allowed to be carried forward under paragraph
(4) of Section 211 of this Act. The credit or credits shall be
applied to the earliest year for which there is a tax
liability. If there are credits from more than one taxable year
that are available to offset a liability, the earlier credit
shall be applied first. Each employer who deducts and withholds
or is required to deduct and withhold tax under this Act and
who retains income tax withholdings under subsection (f) of
Section 5-15 of the Economic Development for a Growing Economy
Tax Credit Act must make a return with respect to such taxes
and retained amounts in the form and manner that the
Department, by rule, requires and pay to the Department or to a
depositary designated by the Department those withheld taxes
not retained by the taxpayer. For purposes of this subsection
(g), the term taxpayer shall include taxpayer and members of
the taxpayer's unitary business group as defined under
paragraph (27) of subsection (a) of Section 1501 of this Act.
This Section is exempt from the provisions of Section 250 of
this Act.
    (h) An employer may claim a credit against payments due
under this Section for amounts withheld during the first
calendar year ending after date on which a tax credit
certificate was issued under Section 35 of the Small Business
Job Creation Tax Credit Act. The credit shall be equal to the
amount shown on the certificate, but may not reduce the
taxpayer's obligation for any payment due under this Section to
less than zero. If the amount of the credit exceeds the total
payments due under this Section with respect to amounts
withheld during the calendar year, the excess may be carried
forward and applied against the taxpayer's liability under this
Section in the 5 succeeding calendar years. The credit shall be
applied to the earliest year for which there is a tax
liability. If there are credits from more than one calendar
year that are available to offset a liability, the earlier
credit shall be applied first. This Section is exempt from the
provisions of Section 250 of this Act.
(Source: P.A. 95-8, eff. 6-29-07; 95-707, eff. 1-11-08; 96-834,
eff. 12-14-09; 96-888, eff. 4-13-10; 96-905, eff. 6-4-10;
96-1027, eff. 7-12-10; revised 9-16-10.)
 
    Section 125. The Use Tax Act is amended by changing Section
9 as follows:
 
    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
and trailers that are required to be registered with an agency
of this State, each retailer required or authorized to collect
the tax imposed by this Act shall pay to the Department the
amount of such tax (except as otherwise provided) at the time
when he is required to file his return for the period during
which such tax was collected, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990, or $5
per calendar year, whichever is greater, which is allowed to
reimburse the retailer for expenses incurred in collecting the
tax, keeping records, preparing and filing returns, remitting
the tax and supplying data to the Department on request. In the
case of retailers who report and pay the tax on a transaction
by transaction basis, as provided in this Section, such
discount shall be taken with each such tax remittance instead
of when such retailer files his periodic return. A retailer
need not remit that part of any tax collected by him to the
extent that he is required to remit and does remit the tax
imposed by the Retailers' Occupation Tax Act, with respect to
the sale of the same property.
    Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the retailer, in collecting the tax (except as to motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State), may collect for
each tax return period, only the tax applicable to that part of
the selling price actually received during such tax return
period.
    Except as provided in this Section, on or before the
twentieth day of each calendar month, such retailer shall file
a return for the preceding calendar month. Such return shall be
filed on forms prescribed by the Department and shall furnish
such information as the Department may reasonably require.
    The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
        1. The name of the seller;
        2. The address of the principal place of business from
    which he engages in the business of selling tangible
    personal property at retail in this State;
        3. The total amount of taxable receipts received by him
    during the preceding calendar month from sales of tangible
    personal property by him during such preceding calendar
    month, including receipts from charge and time sales, but
    less all deductions allowed by law;
        4. The amount of credit provided in Section 2d of this
    Act;
        5. The amount of tax due;
        5-5. The signature of the taxpayer; and
        6. Such other reasonable information as the Department
    may require.
    If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
    Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
    Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
    All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
    Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act, the Service
Use Tax Act was $10,000 or more during the preceding 4 complete
calendar quarters, he shall file a return with the Department
each month by the 20th day of the month next following the
month during which such tax liability is incurred and shall
make payments to the Department on or before the 7th, 15th,
22nd and last day of the month during which such liability is
incurred. On and after October 1, 2000, if the taxpayer's
average monthly tax liability to the Department under this Act,
the Retailers' Occupation Tax Act, the Service Occupation Tax
Act, and the Service Use Tax Act was $20,000 or more during the
preceding 4 complete calendar quarters, he shall file a return
with the Department each month by the 20th day of the month
next following the month during which such tax liability is
incurred and shall make payment to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such
liability is incurred. If the month during which such tax
liability is incurred began prior to January 1, 1985, each
payment shall be in an amount equal to 1/4 of the taxpayer's
actual liability for the month or an amount set by the
Department not to exceed 1/4 of the average monthly liability
of the taxpayer to the Department for the preceding 4 complete
calendar quarters (excluding the month of highest liability and
the month of lowest liability in such 4 quarter period). If the
month during which such tax liability is incurred begins on or
after January 1, 1985, and prior to January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 27.5% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1987, and prior to January 1, 1988, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1988, and prior to January 1, 1989, or
begins on or after January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during which
such tax liability is incurred begins on or after January 1,
1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year or 100% of the taxpayer's
actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month. Before October 1, 2000, once applicable, the
requirement of the making of quarter monthly payments to the
Department shall continue until such taxpayer's average
monthly liability to the Department during the preceding 4
complete calendar quarters (excluding the month of highest
liability and the month of lowest liability) is less than
$9,000, or until such taxpayer's average monthly liability to
the Department as computed for each calendar quarter of the 4
preceding complete calendar quarter period is less than
$10,000. However, if a taxpayer can show the Department that a
substantial change in the taxpayer's business has occurred
which causes the taxpayer to anticipate that his average
monthly tax liability for the reasonably foreseeable future
will fall below the $10,000 threshold stated above, then such
taxpayer may petition the Department for change in such
taxpayer's reporting status. On and after October 1, 2000, once
applicable, the requirement of the making of quarter monthly
payments to the Department shall continue until such taxpayer's
average monthly liability to the Department during the
preceding 4 complete calendar quarters (excluding the month of
highest liability and the month of lowest liability) is less
than $19,000 or until such taxpayer's average monthly liability
to the Department as computed for each calendar quarter of the
4 preceding complete calendar quarter period is less than
$20,000. However, if a taxpayer can show the Department that a
substantial change in the taxpayer's business has occurred
which causes the taxpayer to anticipate that his average
monthly tax liability for the reasonably foreseeable future
will fall below the $20,000 threshold stated above, then such
taxpayer may petition the Department for a change in such
taxpayer's reporting status. The Department shall change such
taxpayer's reporting status unless it finds that such change is
seasonal in nature and not likely to be long term. If any such
quarter monthly payment is not paid at the time or in the
amount required by this Section, then the taxpayer shall be
liable for penalties and interest on the difference between the
minimum amount due and the amount of such quarter monthly
payment actually and timely paid, except insofar as the
taxpayer has previously made payments for that month to the
Department in excess of the minimum payments previously due as
provided in this Section. The Department shall make reasonable
rules and regulations to govern the quarter monthly payment
amount and quarter monthly payment dates for taxpayers who file
on other than a calendar monthly basis.
    If any such payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act and the
Service Use Tax Act, as shown by an original monthly return,
the Department shall issue to the taxpayer a credit memorandum
no later than 30 days after the date of payment, which
memorandum may be submitted by the taxpayer to the Department
in payment of tax liability subsequently to be remitted by the
taxpayer to the Department or be assigned by the taxpayer to a
similar taxpayer under this Act, the Retailers' Occupation Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department, except that if such excess
payment is shown on an original monthly return and is made
after December 31, 1986, no credit memorandum shall be issued,
unless requested by the taxpayer. If no such request is made,
the taxpayer may credit such excess payment against tax
liability subsequently to be remitted by the taxpayer to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations prescribed by
the Department. If the Department subsequently determines that
all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
be reduced by 2.1% or 1.75% of the difference between the
credit taken and that actually due, and the taxpayer shall be
liable for penalties and interest on such difference.
    If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May and June of a given year being due by July 20 of such
year; with the return for July, August and September of a given
year being due by October 20 of such year, and with the return
for October, November and December of a given year being due by
January 20 of the following year.
    If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability to the Department does not exceed $50, the Department
may authorize his returns to be filed on an annual basis, with
the return for a given year being due by January 20 of the
following year.
    Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
    Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
    In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every retailer selling this kind of
tangible personal property shall file, with the Department,
upon a form to be prescribed and supplied by the Department, a
separate return for each such item of tangible personal
property which the retailer sells, except that if, in the same
transaction, (i) a retailer of aircraft, watercraft, motor
vehicles or trailers transfers more than one aircraft,
watercraft, motor vehicle or trailer to another aircraft,
watercraft, motor vehicle or trailer retailer for the purpose
of resale or (ii) a retailer of aircraft, watercraft, motor
vehicles, or trailers transfers more than one aircraft,
watercraft, motor vehicle, or trailer to a purchaser for use as
a qualifying rolling stock as provided in Section 3-55 of this
Act, then that seller may report the transfer of all the
aircraft, watercraft, motor vehicles or trailers involved in
that transaction to the Department on the same uniform
invoice-transaction reporting return form. For purposes of
this Section, "watercraft" means a Class 2, Class 3, or Class 4
watercraft as defined in Section 3-2 of the Boat Registration
and Safety Act, a personal watercraft, or any boat equipped
with an inboard motor.
    The transaction reporting return in the case of motor
vehicles or trailers that are required to be registered with an
agency of this State, shall be the same document as the Uniform
Invoice referred to in Section 5-402 of the Illinois Vehicle
Code and must show the name and address of the seller; the name
and address of the purchaser; the amount of the selling price
including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the
traded-in tangible personal property, if any, to the extent to
which Section 2 of this Act allows an exemption for the value
of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of
tax due from the retailer with respect to such transaction; the
amount of tax collected from the purchaser by the retailer on
such transaction (or satisfactory evidence that such tax is not
due in that particular instance, if that is claimed to be the
fact); the place and date of the sale; a sufficient
identification of the property sold; such other information as
is required in Section 5-402 of the Illinois Vehicle Code, and
such other information as the Department may reasonably
require.
    The transaction reporting return in the case of watercraft
and aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 2 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling price;
the amount of tax due from the retailer with respect to such
transaction; the amount of tax collected from the purchaser by
the retailer on such transaction (or satisfactory evidence that
such tax is not due in that particular instance, if that is
claimed to be the fact); the place and date of the sale, a
sufficient identification of the property sold, and such other
information as the Department may reasonably require.
    Such transaction reporting return shall be filed not later
than 20 days after the date of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the tax
that is imposed by this Act may be transmitted to the
Department by way of the State agency with which, or State
officer with whom, the tangible personal property must be
titled or registered (if titling or registration is required)
if the Department and such agency or State officer determine
that this procedure will expedite the processing of
applications for title or registration.
    With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a tax receipt
(or a certificate of exemption if the Department is satisfied
that the particular sale is tax exempt) which such purchaser
may submit to the agency with which, or State officer with
whom, he must title or register the tangible personal property
that is involved (if titling or registration is required) in
support of such purchaser's application for an Illinois
certificate or other evidence of title or registration to such
tangible personal property.
    No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
    If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment of
tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer, and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
    Where a retailer collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the retailer refunds the selling price thereof to
the purchaser, such retailer shall also refund, to the
purchaser, the tax so collected from the purchaser. When filing
his return for the period in which he refunds such tax to the
purchaser, the retailer may deduct the amount of the tax so
refunded by him to the purchaser from any other use tax which
such retailer may be required to pay or remit to the
Department, as shown by such return, if the amount of the tax
to be deducted was previously remitted to the Department by
such retailer. If the retailer has not previously remitted the
amount of such tax to the Department, he is entitled to no
deduction under this Act upon refunding such tax to the
purchaser.
    Any retailer filing a return under this Section shall also
include (for the purpose of paying tax thereon) the total tax
covered by such return upon the selling price of tangible
personal property purchased by him at retail from a retailer,
but as to which the tax imposed by this Act was not collected
from the retailer filing such return, and such retailer shall
remit the amount of such tax to the Department when filing such
return.
    If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable retailers, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
    Where the retailer has more than one business registered
with the Department under separate registration under this Act,
such retailer may not file each return that is due as a single
return covering all such registered businesses, but shall file
separate returns for each such registered business.
    Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury which is hereby created, the net
revenue realized for the preceding month from the 1% tax on
sales of food for human consumption which is to be consumed off
the premises where it is sold (other than alcoholic beverages,
soft drinks and food which 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.
    Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
net revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal property
which is purchased outside Illinois at retail from a retailer
and which is titled or registered by an agency of this State's
government.
    Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury, 20% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property, other than tangible
personal property which is purchased outside Illinois at retail
from a retailer and which is titled or registered by an agency
of this State's government.
    Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. Beginning
September 1, 2010, each month the Department shall pay into the
State and Local Sales Tax Reform Fund 100% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of sales tax holiday items.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of tangible personal property which is
purchased outside Illinois at retail from a retailer and which
is titled or registered by an agency of this State's
government.
    Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
is now taxed at 6.25%.
    Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing
Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future
investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois Fund;
provided, however, that any amounts paid to the Build Illinois
Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the
preceding sentence and shall reduce the amount otherwise
payable for such fiscal year pursuant to clause (b) of the
preceding sentence. The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge
set forth in Section 12 of the Build Illinois Bond Act.
    Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021246,000,000
2022260,000,000
2023275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
    Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993, the Department shall each
month pay into the Illinois Tax Increment Fund 0.27% of 80% of
the net revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
    Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
    As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
    For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to such
sales, if the retailers who are affected do not make written
objection to the Department to this arrangement.
(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898,
eff. 5-27-10; 96-1012, eff. 7-7-10; revised 7-22-10.)
 
    Section 130. The Retailers' Occupation Tax Act is amended
by changing Section 3 as follows:
 
    (35 ILCS 120/3)  (from Ch. 120, par. 442)
    Sec. 3. Except as provided in this Section, on or before
the twentieth day of each calendar month, every person engaged
in the business of selling tangible personal property at retail
in this State during the preceding calendar month shall file a
return with the Department, stating:
        1. The name of the seller;
        2. His residence address and the address of his
    principal place of business and the address of the
    principal place of business (if that is a different
    address) from which he engages in the business of selling
    tangible personal property at retail in this State;
        3. Total amount of receipts received by him during the
    preceding calendar month or quarter, as the case may be,
    from sales of tangible personal property, and from services
    furnished, by him during such preceding calendar month or
    quarter;
        4. Total amount received by him during the preceding
    calendar month or quarter on charge and time sales of
    tangible personal property, and from services furnished,
    by him prior to the month or quarter for which the return
    is filed;
        5. Deductions allowed by law;
        6. Gross receipts which were received by him during the
    preceding calendar month or quarter and upon the basis of
    which the tax is imposed;
        7. The amount of credit provided in Section 2d of this
    Act;
        8. The amount of tax due;
        9. The signature of the taxpayer; and
        10. Such other reasonable information as the
    Department may require.
    If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
    Each return shall be accompanied by the statement of
prepaid tax issued pursuant to Section 2e for which credit is
claimed.
    Prior to October 1, 2003, and on and after September 1,
2004 a retailer may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Use Tax as
provided in Section 3-85 of the Use Tax Act if the purchaser
provides the appropriate documentation as required by Section
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003
and on and after September 1, 2004 as provided in Section 3-85
of the Use Tax Act, may be used by that retailer to satisfy
Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject
to tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's
Purchaser Credit reported on annual returns due on or after
January 1, 2005 will be disallowed for periods prior to
September 1, 2004. No Manufacturer's Purchase Credit may be
used after September 30, 2003 through August 31, 2004 to
satisfy any tax liability imposed under this Act, including any
audit liability.
    The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
        1. The name of the seller;
        2. The address of the principal place of business from
    which he engages in the business of selling tangible
    personal property at retail in this State;
        3. The total amount of taxable receipts received by him
    during the preceding calendar month from sales of tangible
    personal property by him during such preceding calendar
    month, including receipts from charge and time sales, but
    less all deductions allowed by law;
        4. The amount of credit provided in Section 2d of this
    Act;
        5. The amount of tax due; and
        6. Such other reasonable information as the Department
    may require.
    Beginning on October 1, 2003, any person who is not a
licensed distributor, importing distributor, or manufacturer,
as defined in the Liquor Control Act of 1934, but is engaged in
the business of selling, at retail, alcoholic liquor shall file
a statement with the Department of Revenue, in a format and at
a time prescribed by the Department, showing the total amount
paid for alcoholic liquor purchased during the preceding month
and such other information as is reasonably required by the
Department. The Department may adopt rules to require that this
statement be filed in an electronic or telephonic format. Such
rules may provide for exceptions from the filing requirements
of this paragraph. For the purposes of this paragraph, the term
"alcoholic liquor" shall have the meaning prescribed in the
Liquor Control Act of 1934.
    Beginning on October 1, 2003, every distributor, importing
distributor, and manufacturer of alcoholic liquor as defined in
the Liquor Control Act of 1934, shall file a statement with the
Department of Revenue, no later than the 10th day of the month
for the preceding month during which transactions occurred, by
electronic means, showing the total amount of gross receipts
from the sale of alcoholic liquor sold or distributed during
the preceding month to purchasers; identifying the purchaser to
whom it was sold or distributed; the purchaser's tax
registration number; and such other information reasonably
required by the Department. A distributor, importing
distributor, or manufacturer of alcoholic liquor must
personally deliver, mail, or provide by electronic means to
each retailer listed on the monthly statement a report
containing a cumulative total of that distributor's, importing
distributor's, or manufacturer's total sales of alcoholic
liquor to that retailer no later than the 10th day of the month
for the preceding month during which the transaction occurred.
The distributor, importing distributor, or manufacturer shall
notify the retailer as to the method by which the distributor,
importing distributor, or manufacturer will provide the sales
information. If the retailer is unable to receive the sales
information by electronic means, the distributor, importing
distributor, or manufacturer shall furnish the sales
information by personal delivery or by mail. For purposes of
this paragraph, the term "electronic means" includes, but is
not limited to, the use of a secure Internet website, e-mail,
or facsimile.
    If a total amount of less than $1 is payable, refundable or
creditable, such amount shall be disregarded if it is less than
50 cents and shall be increased to $1 if it is 50 cents or more.
    Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" shall be the sum of
the taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
    Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
    All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
    Any amount which is required to be shown or reported on any
return or other document under this Act shall, if such amount
is not a whole-dollar amount, be increased to the nearest
whole-dollar amount in any case where the fractional part of a
dollar is 50 cents or more, and decreased to the nearest
whole-dollar amount where the fractional part of a dollar is
less than 50 cents.
    If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
    If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability with the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
    Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
    Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
    Where the same person has more than one business registered
with the Department under separate registrations under this
Act, such person may not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
    In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every retailer selling this kind of
tangible personal property shall file, with the Department,
upon a form to be prescribed and supplied by the Department, a
separate return for each such item of tangible personal
property which the retailer sells, except that if, in the same
transaction, (i) a retailer of aircraft, watercraft, motor
vehicles or trailers transfers more than one aircraft,
watercraft, motor vehicle or trailer to another aircraft,
watercraft, motor vehicle retailer or trailer retailer for the
purpose of resale or (ii) a retailer of aircraft, watercraft,
motor vehicles, or trailers transfers more than one aircraft,
watercraft, motor vehicle, or trailer to a purchaser for use as
a qualifying rolling stock as provided in Section 2-5 of this
Act, then that seller may report the transfer of all aircraft,
watercraft, motor vehicles or trailers involved in that
transaction to the Department on the same uniform
invoice-transaction reporting return form. For purposes of
this Section, "watercraft" means a Class 2, Class 3, or Class 4
watercraft as defined in Section 3-2 of the Boat Registration
and Safety Act, a personal watercraft, or any boat equipped
with an inboard motor.
    Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with
an agency of this State, so that all retailers' occupation tax
liability is required to be reported, and is reported, on such
transaction reporting returns and who is not otherwise required
to file monthly or quarterly returns, need not file monthly or
quarterly returns. However, those retailers shall be required
to file returns on an annual basis.
    The transaction reporting return, in the case of motor
vehicles or trailers that are required to be registered with an
agency of this State, shall be the same document as the Uniform
Invoice referred to in Section 5-402 of The Illinois Vehicle
Code and must show the name and address of the seller; the name
and address of the purchaser; the amount of the selling price
including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the
traded-in tangible personal property, if any, to the extent to
which Section 1 of this Act allows an exemption for the value
of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of
tax due from the retailer with respect to such transaction; the
amount of tax collected from the purchaser by the retailer on
such transaction (or satisfactory evidence that such tax is not
due in that particular instance, if that is claimed to be the
fact); the place and date of the sale; a sufficient
identification of the property sold; such other information as
is required in Section 5-402 of The Illinois Vehicle Code, and
such other information as the Department may reasonably
require.
    The transaction reporting return in the case of watercraft
or aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling price;
the amount of tax due from the retailer with respect to such
transaction; the amount of tax collected from the purchaser by
the retailer on such transaction (or satisfactory evidence that
such tax is not due in that particular instance, if that is
claimed to be the fact); the place and date of the sale, a
sufficient identification of the property sold, and such other
information as the Department may reasonably require.
    Such transaction reporting return shall be filed not later
than 20 days after the day of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the
Illinois use tax may be transmitted to the Department by way of
the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if
titling or registration is required) if the Department and such
agency or State officer determine that this procedure will
expedite the processing of applications for title or
registration.
    With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a use tax
receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax exempt) which such
purchaser may submit to the agency with which, or State officer
with whom, he must title or register the tangible personal
property that is involved (if titling or registration is
required) in support of such purchaser's application for an
Illinois certificate or other evidence of title or registration
to such tangible personal property.
    No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
    If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment of
the tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
    Refunds made by the seller during the preceding return
period to purchasers, on account of tangible personal property
returned to the seller, shall be allowed as a deduction under
subdivision 5 of his monthly or quarterly return, as the case
may be, in case the seller had theretofore included the
receipts from the sale of such tangible personal property in a
return filed by him and had paid the tax imposed by this Act
with respect to such receipts.
    Where the seller is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary or treasurer or by the properly
accredited agent of such corporation.
    Where the seller is a limited liability company, the return
filed on behalf of the limited liability company shall be
signed by a manager, member, or properly accredited agent of
the limited liability company.
    Except as provided in this Section, the retailer filing the
return under this Section shall, at the time of filing such
return, pay to the Department the amount of tax imposed by this
Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
on and after January 1, 1990, or $5 per calendar year,
whichever is greater, which is allowed to reimburse the
retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. Any prepayment made pursuant
to Section 2d of this Act shall be included in the amount on
which such 2.1% or 1.75% discount is computed. In the case of
retailers who report and pay the tax on a transaction by
transaction basis, as provided in this Section, such discount
shall be taken with each such tax remittance instead of when
such retailer files his periodic return.
    Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Use Tax
Act, the Service Occupation Tax Act, and the Service Use Tax
Act, excluding any liability for prepaid sales tax to be
remitted in accordance with Section 2d of this Act, was $10,000
or more during the preceding 4 complete calendar quarters, he
shall file a return with the Department each month by the 20th
day of the month next following the month during which such tax
liability is incurred and shall make payments to the Department
on or before the 7th, 15th, 22nd and last day of the month
during which such liability is incurred. On and after October
1, 2000, if the taxpayer's average monthly tax liability to the
Department under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Service Use Tax Act, excluding any
liability for prepaid sales tax to be remitted in accordance
with Section 2d of this Act, was $20,000 or more during the
preceding 4 complete calendar quarters, he shall file a return
with the Department each month by the 20th day of the month
next following the month during which such tax liability is
incurred and shall make payment to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such
liability is incurred. If the month during which such tax
liability is incurred began prior to January 1, 1985, each
payment shall be in an amount equal to 1/4 of the taxpayer's
actual liability for the month or an amount set by the
Department not to exceed 1/4 of the average monthly liability
of the taxpayer to the Department for the preceding 4 complete
calendar quarters (excluding the month of highest liability and
the month of lowest liability in such 4 quarter period). If the
month during which such tax liability is incurred begins on or
after January 1, 1985 and prior to January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 27.5% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1987 and prior to January 1, 1988, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1988, and prior to January 1, 1989, or
begins on or after January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during which
such tax liability is incurred begins on or after January 1,
1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year or 100% of the taxpayer's
actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month. Before October 1, 2000, once applicable, the
requirement of the making of quarter monthly payments to the
Department by taxpayers having an average monthly tax liability
of $10,000 or more as determined in the manner provided above
shall continue until such taxpayer's average monthly liability
to the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $9,000, or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $10,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status. On
and after October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $20,000 or
more as determined in the manner provided above shall continue
until such taxpayer's average monthly liability to the
Department during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of
lowest liability) is less than $19,000 or until such taxpayer's
average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar
quarter period is less than $20,000. However, if a taxpayer can
show the Department that a substantial change in the taxpayer's
business has occurred which causes the taxpayer to anticipate
that his average monthly tax liability for the reasonably
foreseeable future will fall below the $20,000 threshold stated
above, then such taxpayer may petition the Department for a
change in such taxpayer's reporting status. The Department
shall change such taxpayer's reporting status unless it finds
that such change is seasonal in nature and not likely to be
long term. If any such quarter monthly payment is not paid at
the time or in the amount required by this Section, then the
taxpayer shall be liable for penalties and interest on the
difference between the minimum amount due as a payment and the
amount of such quarter monthly payment actually and timely
paid, except insofar as the taxpayer has previously made
payments for that month to the Department in excess of the
minimum payments previously due as provided in this Section.
The Department shall make reasonable rules and regulations to
govern the quarter monthly payment amount and quarter monthly
payment dates for taxpayers who file on other than a calendar
monthly basis.
    The provisions of this paragraph apply before October 1,
2001. Without regard to whether a taxpayer is required to make
quarter monthly payments as specified above, any taxpayer who
is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes which average in
excess of $25,000 per month during the preceding 2 complete
calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which such liability is incurred. If the month
during which such tax liability is incurred began prior to the
effective date of this amendatory Act of 1985, each payment
shall be in an amount not less than 22.5% of the taxpayer's
actual liability under Section 2d. If the month during which
such tax liability is incurred begins on or after January 1,
1986, each payment shall be in an amount equal to 22.5% of the
taxpayer's actual liability for the month or 27.5% of the
taxpayer's liability for the same calendar month of the
preceding calendar year. If the month during which such tax
liability is incurred begins on or after January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year.
The amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month filed under this Section or Section 2f, as the case
may be. Once applicable, the requirement of the making of
quarter monthly payments to the Department pursuant to this
paragraph shall continue until such taxpayer's average monthly
prepaid tax collections during the preceding 2 complete
calendar quarters is $25,000 or less. If any such quarter
monthly payment is not paid at the time or in the amount
required, the taxpayer shall be liable for penalties and
interest on such difference, except insofar as the taxpayer has
previously made payments for that month in excess of the
minimum payments previously due.
    The provisions of this paragraph apply on and after October
1, 2001. Without regard to whether a taxpayer is required to
make quarter monthly payments as specified above, any taxpayer
who is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes that average in
excess of $20,000 per month during the preceding 4 complete
calendar quarters shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which the liability is incurred. Each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 25% of the taxpayer's liability for
the same calendar month of the preceding year. The amount of
the quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month
filed under this Section or Section 2f, as the case may be.
Once applicable, the requirement of the making of quarter
monthly payments to the Department pursuant to this paragraph
shall continue until the taxpayer's average monthly prepaid tax
collections during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of
lowest liability) is less than $19,000 or until such taxpayer's
average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar
quarters is less than $20,000. If any such quarter monthly
payment is not paid at the time or in the amount required, the
taxpayer shall be liable for penalties and interest on such
difference, except insofar as the taxpayer has previously made
payments for that month in excess of the minimum payments
previously due.
    If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, the Use Tax Act, the
Service Occupation Tax Act and the Service Use Tax Act, as
shown on an original monthly return, the Department shall, if
requested by the taxpayer, issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment. The
credit evidenced by such credit memorandum may be assigned by
the taxpayer to a similar taxpayer under this Act, the Use Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department. If no such request is made, the
taxpayer may credit such excess payment against tax liability
subsequently to be remitted to the Department under this Act,
the Use Tax Act, the Service Occupation Tax Act or the Service
Use Tax Act, in accordance with reasonable rules and
regulations prescribed by the Department. If the Department
subsequently determined that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's 2.1%
and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
of the difference between the credit taken and that actually
due, and that taxpayer shall be liable for penalties and
interest on such difference.
    If a retailer of motor fuel is entitled to a credit under
Section 2d of this Act which exceeds the taxpayer's liability
to the Department under this Act for the month which the
taxpayer is filing a return, the Department shall issue the
taxpayer a credit memorandum for the excess.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund, a special fund in the
State treasury which is hereby created, the net revenue
realized for the preceding month from the 1% tax on sales of
food for human consumption which is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks and food which 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.
    Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund, a special
fund in the State treasury which is hereby created, 4% of the
net revenue realized for the preceding month from the 6.25%
general rate.
    Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. Beginning
September 1, 2010, each month the Department shall pay into the
County and Mass Transit District Fund 20% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of sales tax holiday items.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of tangible personal property.
    Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol. Beginning September 1,
2010, each month the Department shall pay into the Local
Government Tax Fund 80% of the net revenue realized for the
preceding month from the 1.25% rate on the selling price of
sales tax holiday items.
    Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
is now taxed at 6.25%.
    Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to this Act,
Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of
2.2% or 3.8%, as the case may be, of moneys being hereinafter
called the "Tax Act Amount", and (2) the amount transferred to
the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as
hereinafter defined), an amount equal to the difference shall
be immediately paid into the Build Illinois Fund from other
moneys received by the Department pursuant to the Tax Acts; the
"Annual Specified Amount" means the amounts specified below for
fiscal years 1986 through 1993:
Fiscal YearAnnual Specified Amount
1986$54,800,000
1987$76,650,000
1988$80,480,000
1989$88,510,000
1990$115,330,000
1991$145,470,000
1992$182,730,000
1993$206,520,000;
and means the Certified Annual Debt Service Requirement (as
defined in Section 13 of the Build Illinois Bond Act) or the
Tax Act Amount, whichever is greater, for fiscal year 1994 and
each fiscal year thereafter; and further provided, that if on
the last business day of any month the sum of (1) the Tax Act
Amount required to be deposited into the Build Illinois Bond
Account in the Build Illinois Fund during such month and (2)
the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and, further provided, that in no event shall the
payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to
this clause (b) for any fiscal year in excess of the greater of
(i) the Tax Act Amount or (ii) the Annual Specified Amount for
such fiscal year. The amounts payable into the Build Illinois
Fund under clause (b) of the first sentence in this paragraph
shall be payable only until such time as the aggregate amount
on deposit under each trust indenture securing Bonds issued and
outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income,
to fully provide, in accordance with such indenture, for the
defeasance of or the payment of the principal of, premium, if
any, and interest on the Bonds secured by such indenture and on
any Bonds expected to be issued thereafter and all fees and
costs payable with respect thereto, all as certified by the
Director of the Bureau of the Budget (now Governor's Office of
Management and Budget). If on the last business day of any
month in which Bonds are outstanding pursuant to the Build
Illinois Bond Act, the aggregate of moneys deposited in the
Build Illinois Bond Account in the Build Illinois Fund in such
month shall be less than the amount required to be transferred
in such month from the Build Illinois Bond Account to the Build
Illinois Bond Retirement and Interest Fund pursuant to Section
13 of the Build Illinois Bond Act, an amount equal to such
deficiency shall be immediately paid from other moneys received
by the Department pursuant to the Tax Acts to the Build
Illinois Fund; provided, however, that any amounts paid to the
Build Illinois Fund in any fiscal year pursuant to this
sentence shall be deemed to constitute payments pursuant to
clause (b) of the first sentence of this paragraph and shall
reduce the amount otherwise payable for such fiscal year
pursuant to that clause (b). The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
    Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021246,000,000
2022260,000,000
2023275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
    Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993, the Department shall each
month pay into the Illinois Tax Increment Fund 0.27% of 80% of
the net revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
    Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
    The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the retailer's last Federal
income tax return. If the total receipts of the business as
reported in the Federal income tax return do not agree with the
gross receipts reported to the Department of Revenue for the
same period, the retailer shall attach to his annual return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The retailer's annual return to the
Department shall also disclose the cost of goods sold by the
retailer during the year covered by such return, opening and
closing inventories of such goods for such year, costs of goods
used from stock or taken from stock and given away by the
retailer during such year, payroll information of the
retailer's business during such year and any additional
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly
or annual returns filed by such retailer as provided for in
this Section.
    If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
        (i) Until January 1, 1994, the taxpayer shall be liable
    for a penalty equal to 1/6 of 1% of the tax due from such
    taxpayer under this Act during the period to be covered by
    the annual return for each month or fraction of a month
    until such return is filed as required, the penalty to be
    assessed and collected in the same manner as any other
    penalty provided for in this Act.
        (ii) On and after January 1, 1994, the taxpayer shall
    be liable for a penalty as described in Section 3-4 of the
    Uniform Penalty and Interest Act.
    The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
    The provisions of this Section concerning the filing of an
annual information return do not apply to a retailer who is not
required to file an income tax return with the United States
Government.
    As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
    For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to such
sales, if the retailers who are affected do not make written
objection to the Department to this arrangement.
    Any person who promotes, organizes, provides retail
selling space for concessionaires or other types of sellers at
the Illinois State Fair, DuQuoin State Fair, county fairs,
local fairs, art shows, flea markets and similar exhibitions or
events, including any transient merchant as defined by Section
2 of the Transient Merchant Act of 1987, is required to file a
report with the Department providing the name of the merchant's
business, the name of the person or persons engaged in
merchant's business, the permanent address and Illinois
Retailers Occupation Tax Registration Number of the merchant,
the dates and location of the event and other reasonable
information that the Department may require. The report must be
filed not later than the 20th day of the month next following
the month during which the event with retail sales was held.
Any person who fails to file a report required by this Section
commits a business offense and is subject to a fine not to
exceed $250.
    Any person engaged in the business of selling tangible
personal property at retail as a concessionaire or other type
of seller at the Illinois State Fair, county fairs, art shows,
flea markets and similar exhibitions or events, or any
transient merchants, as defined by Section 2 of the Transient
Merchant Act of 1987, may be required to make a daily report of
the amount of such sales to the Department and to make a daily
payment of the full amount of tax due. The Department shall
impose this requirement when it finds that there is a
significant risk of loss of revenue to the State at such an
exhibition or event. Such a finding shall be based on evidence
that a substantial number of concessionaires or other sellers
who are not residents of Illinois will be engaging in the
business of selling tangible personal property at retail at the
exhibition or event, or other evidence of a significant risk of
loss of revenue to the State. The Department shall notify
concessionaires and other sellers affected by the imposition of
this requirement. In the absence of notification by the
Department, the concessionaires and other sellers shall file
their returns as otherwise required in this Section.
(Source: P.A. 95-331, eff. 8-21-07; 96-34, eff. 7-13-09; 96-38,
eff. 7-13-09; 96-898, eff. 5-27-10; 96-1012, eff. 7-7-10;
revised 7-22-10.)
 
    Section 135. The Property Tax Code is amended by changing
Sections 15-167, 15-169, 20-25, and 27-75 as follows:
 
    (35 ILCS 200/15-167)
    Sec. 15-167. Returning Veterans' Homestead Exemption.
    (a) Beginning with taxable year 2007, a homestead
exemption, limited to a reduction set forth under subsection
(b), from the property's value, as equalized or assessed by the
Department, is granted for property that is owned and occupied
as the principal residence of a veteran returning from an armed
conflict involving the armed forces of the United States who is
liable for paying real estate taxes on the property and is an
owner of record of the property or has a legal or equitable
interest therein as evidenced by a written instrument, except
for a leasehold interest, other than a leasehold interest of
land on which a single family residence is located, which is
occupied as the principal residence of a veteran returning from
an armed conflict involving the armed forces of the United
States who has an ownership interest therein, legal, equitable
or as a lessee, and on which he or she is liable for the payment
of property taxes. For purposes of the exemption under this
Section, "veteran" means an Illinois resident who has served as
a member of the United States Armed Forces, a member of the
Illinois National Guard, or a member of the United States
Reserve Forces.
    (b) In all counties, the reduction is $5,000 for the
taxable year in which the veteran returns from active duty in
an armed conflict involving the armed forces of the United
States; however, if the veteran first acquires his or her
principal residence during the taxable year in which he or she
returns, but after January 1 of that year, and if the property
is owned and occupied by the veteran as a principal residence
on January 1 of the next taxable year, he or she may apply the
exemption for the next taxable year, and only the next taxable
year, after he or she returns. Beginning in taxable year 2010,
the reduction shall also be allowed for the taxable year after
the taxable year in which the veteran returns from active duty
in an armed conflict involving the armed forces of the United
States. For land improved with an apartment building owned and
operated as a cooperative, the maximum reduction from the value
of the property, as equalized by the Department, must be
multiplied by the number of apartments or units occupied by a
veteran returning from an armed conflict involving the armed
forces of the United States who is liable, by contract with the
owner or owners of record, for paying property taxes on the
property and is an owner of record of a legal or equitable
interest in the cooperative apartment building, other than a
leasehold interest. In a cooperative where a homestead
exemption has been granted, the cooperative association or the
management firm of the cooperative or facility shall credit the
savings resulting from that exemption only to the apportioned
tax liability of the owner or resident who qualified for the
exemption. Any person who willfully refuses to so credit the
savings is guilty of a Class B misdemeanor.
    (c) Application must be made during the application period
in effect for the county of his or her residence. The assessor
or chief county assessment officer may determine the
eligibility of residential property to receive the homestead
exemption provided by this Section by application, visual
inspection, questionnaire, or other reasonable methods. The
determination must be made in accordance with guidelines
established by the Department.
    (d) The exemption under this Section is in addition to any
other homestead exemption provided in this Article 15.
Notwithstanding Sections 6 and 8 of the State Mandates Act, no
reimbursement by the State is required for the implementation
of any mandate created by this Section.
(Source: P.A. 95-644, eff. 10-12-07; 96-1288, eff. 7-26-10;
96-1418, eff. 8-2-10; revised 9-2-10.)
 
    (35 ILCS 200/15-169)
    Sec. 15-169. Disabled veterans standard homestead
exemption.
    (a) Beginning with taxable year 2007, an annual homestead
exemption, limited to the amounts set forth in subsection (b),
is granted for property that is used as a qualified residence
by a disabled veteran.
    (b) The amount of the exemption under this Section is as
follows:
        (1) for veterans with a service-connected disability
    of at least (i) 75% for exemptions granted in taxable years
    2007 through 2009 and (ii) 70% for exemptions granted in
    taxable year 2010 and each taxable year thereafter, as
    certified by the United States Department of Veterans
    Affairs, the annual exemption is $5,000; and
        (2) for veterans with a service-connected disability
    of at least 50%, but less than (i) 75% for exemptions
    granted in taxable years 2007 through 2009 and (ii) 70% for
    exemptions granted in taxable year 2010 and each taxable
    year thereafter, as certified by the United States
    Department of Veterans Affairs, the annual exemption is
    $2,500.
    (b-5) If a homestead exemption is granted under this
Section and the person awarded the exemption subsequently
becomes a resident of a facility licensed under the Nursing
Home Care Act or a facility operated by the United States
Department of Veterans Affairs, then the exemption shall
continue (i) so long as the residence continues to be occupied
by the qualifying person's spouse or (ii) if the residence
remains unoccupied but is still owned by the person who
qualified for the homestead exemption.
    (c) The tax exemption under this Section carries over to
the benefit of the veteran's surviving spouse as long as the
spouse holds the legal or beneficial title to the homestead,
permanently resides thereon, and does not remarry. If the
surviving spouse sells the property, an exemption not to exceed
the amount granted from the most recent ad valorem tax roll may
be transferred to his or her new residence as long as it is
used as his or her primary residence and he or she does not
remarry.
    (d) The exemption under this Section applies for taxable
year 2007 and thereafter. A taxpayer who claims an exemption
under Section 15-165 or 15-168 may not claim an exemption under
this Section.
    (e) Each taxpayer who has been granted an exemption under
this Section must reapply on an annual basis. Application must
be made during the application period in effect for the county
of his or her residence. The assessor or chief county
assessment officer may determine the eligibility of
residential property to receive the homestead exemption
provided by this Section by application, visual inspection,
questionnaire, or other reasonable methods. The determination
must be made in accordance with guidelines established by the
Department.
    (f) For the purposes of this Section:
    "Qualified residence" means real property, but less any
portion of that property that is used for commercial purposes,
with an equalized assessed value of less than $250,000 that is
the disabled veteran's primary residence. Property rented for
more than 6 months is presumed to be used for commercial
purposes.
    "Veteran" means an Illinois resident who has served as a
member of the United States Armed Forces on active duty or
State active duty, a member of the Illinois National Guard, or
a member of the United States Reserve Forces and who has
received an honorable discharge.
(Source: P.A. 95-644, eff. 10-12-07; 96-1298, eff. 1-1-11;
96-1418, eff. 8-2-10; revised 9-2-10.)
 
    (35 ILCS 200/20-25)
    Sec. 20-25. Forms of payment.
    (a) Taxes levied by taxing districts may be satisfied by
payment in legal money of the United States, cashier's check,
certified check, post office money order, bank money order
issued by a national or state bank that is insured by the
Federal Deposit Insurance Corporation, or by a personal or
corporate check drawn on such a bank, to the respective
collection officers who are entitled by law to receive the tax
payments or by credit card in accordance with the Local
Governmental Acceptance of Credit Cards Act. A county collector
may refuse to accept a personal or corporate check within 45
days before a tax sale or at any time if a previous payment by
the same payer was returned by a bank for any reason.
    (b) Beginning on January 1, 2012, subject to compliance
with all applicable purchasing requirements, a county with a
population of more than 3,000,000 is required to accept payment
by credit card for each installment of property taxes; provided
that all service charges or fees, as determined by the county,
associated with the processing or accepting of a credit card
payment by the county shall be paid by the taxpayer. If a
taxpayer elects to make a property tax payment by credit card
and a service charge or fee is imposed, the payment of that
service charge or fee shall be deemed voluntary by the taxpayer
and shall not be refundable. Nothing in this subsection
requires a county with a population of more than 3,000,000 to
accept payment by credit card for the payment on any
installment of taxes that is delinquent under Section 21-10,
21-25, or 21-30 of the Property Tax Code or for the purposes of
any tax sale or scavenger sale under Division 3.5, 4, or 5 of
Article 21 of the Property Tax Code. A county that accepts
payment of property taxes by credit card in accordance with the
terms of this subsection shall not incur liability for or
associated with the collection of a property tax payment by
credit card. The public hearing requirement of subsection (a)
of Section 20 of the Local Governmental Acceptance of Credit
Cards Act shall not apply to this subsection. This subsection
is a limitation under subsection (i) of Section 6 of Article
VII of the Illinois Constitution on the concurrent exercise by
home rule units of powers and functions exercised by the State.
(Source: P.A. 96-1248, eff. 7-23-10; 96-1250, eff. 7-23-10;
revised 9-16-10.)
 
    (35 ILCS 200/27-75)
    Sec. 27-75. Extension of tax levy. If a property tax is
levied, the tax shall be extended by the county clerk in the
special service area in the manner provided by Articles 1
through 26 of this Code based on equalized assessed values as
established under Articles 1 through 26. The municipality or
county shall file a certified copy of the ordinance creating
the special service area, including an accurate map thereof, a
copy of the public hearing notice, and a description of the
special services to be provided, with the county clerk. The
corporate authorities of the municipality or county may levy
taxes in the special service area prior to the date the levy
must be filed with the county clerk, for the same year in which
the ordinance and map are filed with the county clerk. In
addition, the corporate authorities shall file a certified copy
of each ordinance levying taxes in the special service area on
or before the last Tuesday of December of each year and shall
file a certified copy of any ordinance authorizing the issuance
of bonds and providing for a property tax levy in the area by
December 31 of the year of the first levy.
    In lieu of or in addition to an ad valorem property tax, a
special tax may be levied and extended within the special
service area on any other basis that provides a rational
relationship between the amount of the tax levied against each
lot, block, tract and parcel of land in the special service
area and the special service benefit rendered. In that case, a
special tax roll shall be prepared containing: (a) a
description of the special services to be provided, (b) an
explanation of the method of spreading the special tax, (c) a
list of lots, blocks, tracts and parcels of land in the special
service area, and (d) the amount assessed against each. The
special tax roll shall be included in the ordinance
establishing the special service area or in an amendment of the
ordinance, and shall be filed with the county clerk for use in
extending the tax. The lien and foreclosure remedies provided
in Article 9 of the Illinois Municipal Code shall apply upon
non-payment of the special tax.
    As an alternative to an ad valorem tax based on the whole
equalized assessed value of the property, the corporate
authorities may provide for the ad valorem tax to be extended
solely upon the equalized assessed value of the land in a
special service area, without regard to improvements, if the
equalized assessed value of the land in the special service
area is at least 75% of the total of the whole equalized
assessed value of property within the special service area at
the time that it was established. If the corporate authorities
choose to provide for this method of taxation on the land value
only, then each notice given in connection with the special
service area must include a statement in substantially the
following form: "The taxes to be extended shall be upon the
equalized assessed value of the land in the proposed special
service area, without regard to improvements." Section 10-30 of
this Code does not apply to any property that is part of a
special service area created under this paragraph, namely,
property for which the ad valorem taxes are extended solely
upon the equalized assessed value of the land in the special
service area, without regard to improvements.
(Source: P.A. 96-1396, eff. 7-29-10; revised 9-16-10.)
 
    Section 140. The Motor Fuel Tax Law is amended by changing
Section 8 as follows:
 
    (35 ILCS 505/8)  (from Ch. 120, par. 424)
    Sec. 8. Except as provided in Section 8a, subdivision
(h)(1) of Section 12a, Section 13a.6, and items 13, 14, 15, and
16 of Section 15, all money received by the Department under
this Act, including payments made to the Department by member
jurisdictions participating in the International Fuel Tax
Agreement, shall be deposited in a special fund in the State
treasury, to be known as the "Motor Fuel Tax Fund", and shall
be used as follows:
    (a) 2 1/2 cents per gallon of the tax collected on special
fuel under paragraph (b) of Section 2 and Section 13a of this
Act shall be transferred to the State Construction Account Fund
in the State Treasury;
    (b) $420,000 shall be transferred each month to the State
Boating Act Fund to be used by the Department of Natural
Resources for the purposes specified in Article X of the Boat
Registration and Safety Act;
    (c) $3,500,000 shall be transferred each month to the Grade
Crossing Protection Fund to be used as follows: not less than
$12,000,000 each fiscal year shall be used for the construction
or reconstruction of rail highway grade separation structures;
$2,250,000 in fiscal years 2004 through 2009 and $3,000,000 in
fiscal year 2010 and each fiscal year thereafter shall be
transferred to the Transportation Regulatory Fund and shall be
accounted for as part of the rail carrier portion of such funds
and shall be used to pay the cost of administration of the
Illinois Commerce Commission's railroad safety program in
connection with its duties under subsection (3) of Section
18c-7401 of the Illinois Vehicle Code, with the remainder to be
used by the Department of Transportation upon order of the
Illinois Commerce Commission, to pay that part of the cost
apportioned by such Commission to the State to cover the
interest of the public in the use of highways, roads, streets,
or pedestrian walkways in the county highway system, township
and district road system, or municipal street system as defined
in the Illinois Highway Code, as the same may from time to time
be amended, for separation of grades, for installation,
construction or reconstruction of crossing protection or
reconstruction, alteration, relocation including construction
or improvement of any existing highway necessary for access to
property or improvement of any grade crossing and grade
crossing surface including the necessary highway approaches
thereto of any railroad across the highway or public road, or
for the installation, construction, reconstruction, or
maintenance of a pedestrian walkway over or under a railroad
right-of-way, as provided for in and in accordance with Section
18c-7401 of the Illinois Vehicle Code. The Commission may order
up to $2,000,000 per year in Grade Crossing Protection Fund
moneys for the improvement of grade crossing surfaces and up to
$300,000 per year for the maintenance and renewal of 4-quadrant
gate vehicle detection systems located at non-high speed rail
grade crossings. The Commission shall not order more than
$2,000,000 per year in Grade Crossing Protection Fund moneys
for pedestrian walkways. In entering orders for projects for
which payments from the Grade Crossing Protection Fund will be
made, the Commission shall account for expenditures authorized
by the orders on a cash rather than an accrual basis. For
purposes of this requirement an "accrual basis" assumes that
the total cost of the project is expended in the fiscal year in
which the order is entered, while a "cash basis" allocates the
cost of the project among fiscal years as expenditures are
actually made. To meet the requirements of this subsection, the
Illinois Commerce Commission shall develop annual and 5-year
project plans of rail crossing capital improvements that will
be paid for with moneys from the Grade Crossing Protection
Fund. The annual project plan shall identify projects for the
succeeding fiscal year and the 5-year project plan shall
identify projects for the 5 directly succeeding fiscal years.
The Commission shall submit the annual and 5-year project plans
for this Fund to the Governor, the President of the Senate, the
Senate Minority Leader, the Speaker of the House of
Representatives, and the Minority Leader of the House of
Representatives on the first Wednesday in April of each year;
    (d) of the amount remaining after allocations provided for
in subsections (a), (b) and (c), a sufficient amount shall be
reserved to pay all of the following:
        (1) the costs of the Department of Revenue in
    administering this Act;
        (2) the costs of the Department of Transportation in
    performing its duties imposed by the Illinois Highway Code
    for supervising the use of motor fuel tax funds apportioned
    to municipalities, counties and road districts;
        (3) refunds provided for in Section 13, refunds for
    overpayment of decal fees paid under Section 13a.4 of this
    Act, and refunds provided for under the terms of the
    International Fuel Tax Agreement referenced in Section
    14a;
        (4) from October 1, 1985 until June 30, 1994, the
    administration of the Vehicle Emissions Inspection Law,
    which amount shall be certified monthly by the
    Environmental Protection Agency to the State Comptroller
    and shall promptly be transferred by the State Comptroller
    and Treasurer from the Motor Fuel Tax Fund to the Vehicle
    Inspection Fund, and for the period July 1, 1994 through
    June 30, 2000, one-twelfth of $25,000,000 each month, for
    the period July 1, 2000 through June 30, 2003, one-twelfth
    of $30,000,000 each month, and $15,000,000 on July 1, 2003,
    and $15,000,000 on January 1, 2004, and $15,000,000 on each
    July 1 and October 1, or as soon thereafter as may be
    practical, during the period July 1, 2004 through June 30,
    2011, for the administration of the Vehicle Emissions
    Inspection Law of 2005, to be transferred by the State
    Comptroller and Treasurer from the Motor Fuel Tax Fund into
    the Vehicle Inspection Fund;
        (5) amounts ordered paid by the Court of Claims; and
        (6) payment of motor fuel use taxes due to member
    jurisdictions under the terms of the International Fuel Tax
    Agreement. The Department shall certify these amounts to
    the Comptroller by the 15th day of each month; the
    Comptroller shall cause orders to be drawn for such
    amounts, and the Treasurer shall administer those amounts
    on or before the last day of each month;
    (e) after allocations for the purposes set forth in
subsections (a), (b), (c) and (d), the remaining amount shall
be apportioned as follows:
        (1) Until January 1, 2000, 58.4%, and beginning January
    1, 2000, 45.6% shall be deposited as follows:
            (A) 37% into the State Construction Account Fund,
        and
            (B) 63% into the Road Fund, $1,250,000 of which
        shall be reserved each month for the Department of
        Transportation to be used in accordance with the
        provisions of Sections 6-901 through 6-906 of the
        Illinois Highway Code;
        (2) Until January 1, 2000, 41.6%, and beginning January
    1, 2000, 54.4% shall be transferred to the Department of
    Transportation to be distributed as follows:
            (A) 49.10% to the municipalities of the State,
            (B) 16.74% to the counties of the State having
        1,000,000 or more inhabitants,
            (C) 18.27% to the counties of the State having less
        than 1,000,000 inhabitants,
            (D) 15.89% to the road districts of the State.
    As soon as may be after the first day of each month the
Department of Transportation shall allot to each municipality
its share of the amount apportioned to the several
municipalities which shall be in proportion to the population
of such municipalities as determined by the last preceding
municipal census if conducted by the Federal Government or
Federal census. If territory is annexed to any municipality
subsequent to the time of the last preceding census the
corporate authorities of such municipality may cause a census
to be taken of such annexed territory and the population so
ascertained for such territory shall be added to the population
of the municipality as determined by the last preceding census
for the purpose of determining the allotment for that
municipality. If the population of any municipality was not
determined by the last Federal census preceding any
apportionment, the apportionment to such municipality shall be
in accordance with any census taken by such municipality. Any
municipal census used in accordance with this Section shall be
certified to the Department of Transportation by the clerk of
such municipality, and the accuracy thereof shall be subject to
approval of the Department which may make such corrections as
it ascertains to be necessary.
    As soon as may be after the first day of each month the
Department of Transportation shall allot to each county its
share of the amount apportioned to the several counties of the
State as herein provided. Each allotment to the several
counties having less than 1,000,000 inhabitants shall be in
proportion to the amount of motor vehicle license fees received
from the residents of such counties, respectively, during the
preceding calendar year. The Secretary of State shall, on or
before April 15 of each year, transmit to the Department of
Transportation a full and complete report showing the amount of
motor vehicle license fees received from the residents of each
county, respectively, during the preceding calendar year. The
Department of Transportation shall, each month, use for
allotment purposes the last such report received from the
Secretary of State.
    As soon as may be after the first day of each month, the
Department of Transportation shall allot to the several
counties their share of the amount apportioned for the use of
road districts. The allotment shall be apportioned among the
several counties in the State in the proportion which the total
mileage of township or district roads in the respective
counties bears to the total mileage of all township and
district roads in the State. Funds allotted to the respective
counties for the use of road districts therein shall be
allocated to the several road districts in the county in the
proportion which the total mileage of such township or district
roads in the respective road districts bears to the total
mileage of all such township or district roads in the county.
After July 1 of any year prior to 2011, no allocation shall be
made for any road district unless it levied a tax for road and
bridge purposes in an amount which will require the extension
of such tax against the taxable property in any such road
district at a rate of not less than either .08% of the value
thereof, based upon the assessment for the year immediately
prior to the year in which such tax was levied and as equalized
by the Department of Revenue or, in DuPage County, an amount
equal to or greater than $12,000 per mile of road under the
jurisdiction of the road district, whichever is less. Beginning
July 1, 2011 and each July 1 thereafter, an allocation shall be
made for any road district if it levied a tax for road and
bridge purposes. In counties other than DuPage County, if the
amount of the tax levy requires the extension of the tax
against the taxable property in the road district at a rate
that is less than 0.08% of the value thereof, based upon the
assessment for the year immediately prior to the year in which
the tax was levied and as equalized by the Department of
Revenue, then the amount of the allocation for that road
district shall be a percentage of the maximum allocation equal
to the percentage obtained by dividing the rate extended by the
district by 0.08%. In DuPage County, if the amount of the tax
levy requires the extension of the tax against the taxable
property in the road district at a rate that is less than the
lesser of (i) 0.08% of the value of the taxable property in the
road district, based upon the assessment for the year
immediately prior to the year in which such tax was levied and
as equalized by the Department of Revenue, or (ii) a rate that
will yield an amount equal to $12,000 per mile of road under
the jurisdiction of the road district, then the amount of the
allocation for the road district shall be a percentage of the
maximum allocation equal to the percentage obtained by dividing
the rate extended by the district by the lesser of (i) 0.08% or
(ii) the rate that will yield an amount equal to $12,000 per
mile of road under the jurisdiction of the road district.
    Prior to 2011, if any road district has levied a special
tax for road purposes pursuant to Sections 6-601, 6-602 and
6-603 of the Illinois Highway Code, and such tax was levied in
an amount which would require extension at a rate of not less
than .08% of the value of the taxable property thereof, as
equalized or assessed by the Department of Revenue, or, in
DuPage County, an amount equal to or greater than $12,000 per
mile of road under the jurisdiction of the road district,
whichever is less, such levy shall, however, be deemed a proper
compliance with this Section and shall qualify such road
district for an allotment under this Section. Beginning in 2011
and thereafter, if any road district has levied a special tax
for road purposes under Sections 6-601, 6-602, and 6-603 of the
Illinois Highway Code, and the tax was levied in an amount that
would require extension at a rate of not less than 0.08% of the
value of the taxable property of that road district, as
equalized or assessed by the Department of Revenue or, in
DuPage County, an amount equal to or greater than $12,000 per
mile of road under the jurisdiction of the road district,
whichever is less, that levy shall be deemed a proper
compliance with this Section and shall qualify such road
district for a full, rather than proportionate, allotment under
this Section. If the levy for the special tax is less than
0.08% of the value of the taxable property, or, in DuPage
County if the levy for the special tax is less than the lesser
of (i) 0.08% or (ii) $12,000 per mile of road under the
jurisdiction of the road district, and if the levy for the
special tax is more than any other levy for road and bridge
purposes, then the levy for the special tax qualifies the road
district for a proportionate, rather than full, allotment under
this Section. If the levy for the special tax is equal to or
less than any other levy for road and bridge purposes, then any
allotment under this Section shall be determined by the other
levy for road and bridge purposes.
    Prior to 2011, if a township has transferred to the road
and bridge fund money which, when added to the amount of any
tax levy of the road district would be the equivalent of a tax
levy requiring extension at a rate of at least .08%, or, in
DuPage County, an amount equal to or greater than $12,000 per
mile of road under the jurisdiction of the road district,
whichever is less, such transfer, together with any such tax
levy, shall be deemed a proper compliance with this Section and
shall qualify the road district for an allotment under this
Section.
    In counties in which a property tax extension limitation is
imposed under the Property Tax Extension Limitation Law, road
districts may retain their entitlement to a motor fuel tax
allotment or, beginning in 2011, their entitlement to a full
allotment if, at the time the property tax extension limitation
was imposed, the road district was levying a road and bridge
tax at a rate sufficient to entitle it to a motor fuel tax
allotment and continues to levy the maximum allowable amount
after the imposition of the property tax extension limitation.
Any road district may in all circumstances retain its
entitlement to a motor fuel tax allotment or, beginning in
2011, its entitlement to a full allotment if it levied a road
and bridge tax in an amount that will require the extension of
the tax against the taxable property in the road district at a
rate of not less than 0.08% of the assessed value of the
property, based upon the assessment for the year immediately
preceding the year in which the tax was levied and as equalized
by the Department of Revenue or, in DuPage County, an amount
equal to or greater than $12,000 per mile of road under the
jurisdiction of the road district, whichever is less.
    As used in this Section the term "road district" means any
road district, including a county unit road district, provided
for by the Illinois Highway Code; and the term "township or
district road" means any road in the township and district road
system as defined in the Illinois Highway Code. For the
purposes of this Section, "township or district road" also
includes such roads as are maintained by park districts, forest
preserve districts and conservation districts. The Department
of Transportation shall determine the mileage of all township
and district roads for the purposes of making allotments and
allocations of motor fuel tax funds for use in road districts.
    Payment of motor fuel tax moneys to municipalities and
counties shall be made as soon as possible after the allotment
is made. The treasurer of the municipality or county may invest
these funds until their use is required and the interest earned
by these investments shall be limited to the same uses as the
principal funds.
(Source: P.A. 95-744, eff. 7-18-08; 96-34, eff. 7-13-09; 96-45,
eff. 7-15-09; 96-959, eff. 7-1-10; 96-1000, eff. 7-2-10;
96-1024, eff. 7-12-10; 96-1384, eff. 7-29-10; revised 9-2-10.)
 
    Section 145. The Illinois Pension Code is amended by
changing Sections 7-172, 7-173, 14-104, and 21-102 as follows:
 
    (40 ILCS 5/7-172)  (from Ch. 108 1/2, par. 7-172)
    Sec. 7-172. Contributions by participating municipalities
and participating instrumentalities.
    (a) Each participating municipality and each participating
instrumentality shall make payment to the fund as follows:
        1. municipality contributions in an amount determined
    by applying the municipality contribution rate to each
    payment of earnings paid to each of its participating
    employees;
        2. an amount equal to the employee contributions
    provided by paragraphs (a) and (b) of Section 7-173,
    whether or not the employee contributions are withheld as
    permitted by that Section;
        3. all accounts receivable, together with interest
    charged thereon, as provided in Section 7-209;
        4. if it has no participating employees with current
    earnings, an amount payable which, over a closed period of
    20 years for participating municipalities and 10 years for
    participating instrumentalities, will amortize, at the
    effective rate for that year, any unfunded obligation. The
    unfunded obligation shall be computed as provided in
    paragraph 2 of subsection (b);
        5. if it has fewer than 7 participating employees or a
    negative balance in its municipality reserve, the greater
    of (A) an amount payable that, over a period of 20 years,
    will amortize at the effective rate for that year any
    unfunded obligation, computed as provided in paragraph 2 of
    subsection (b) or (B) the amount required by paragraph 1 of
    this subsection (a).
    (b) A separate municipality contribution rate shall be
determined for each calendar year for all participating
municipalities together with all instrumentalities thereof.
The municipality contribution rate shall be determined for
participating instrumentalities as if they were participating
municipalities. The municipality contribution rate shall be
the sum of the following percentages:
        1. The percentage of earnings of all the participating
    employees of all participating municipalities and
    participating instrumentalities which, if paid over the
    entire period of their service, will be sufficient when
    combined with all employee contributions available for the
    payment of benefits, to provide all annuities for
    participating employees, and the $3,000 death benefit
    payable under Sections 7-158 and 7-164, such percentage to
    be known as the normal cost rate.
        2. The percentage of earnings of the participating
    employees of each participating municipality and
    participating instrumentalities necessary to adjust for
    the difference between the present value of all benefits,
    excluding temporary and total and permanent disability and
    death benefits, to be provided for its participating
    employees and the sum of its accumulated municipality
    contributions and the accumulated employee contributions
    and the present value of expected future employee and
    municipality contributions pursuant to subparagraph 1 of
    this paragraph (b). This adjustment shall be spread over
    the remainder of the period that is allowable under
    generally accepted accounting principles.
        3. The percentage of earnings of the participating
    employees of all municipalities and participating
    instrumentalities necessary to provide the present value
    of all temporary and total and permanent disability
    benefits granted during the most recent year for which
    information is available.
        4. The percentage of earnings of the participating
    employees of all participating municipalities and
    participating instrumentalities necessary to provide the
    present value of the net single sum death benefits expected
    to become payable from the reserve established under
    Section 7-206 during the year for which this rate is fixed.
        5. The percentage of earnings necessary to meet any
    deficiency arising in the Terminated Municipality Reserve.
    (c) A separate municipality contribution rate shall be
computed for each participating municipality or participating
instrumentality for its sheriff's law enforcement employees.
    A separate municipality contribution rate shall be
computed for the sheriff's law enforcement employees of each
forest preserve district that elects to have such employees.
For the period from January 1, 1986 to December 31, 1986, such
rate shall be the forest preserve district's regular rate plus
2%.
    In the event that the Board determines that there is an
actuarial deficiency in the account of any municipality with
respect to a person who has elected to participate in the Fund
under Section 3-109.1 of this Code, the Board may adjust the
municipality's contribution rate so as to make up that
deficiency over such reasonable period of time as the Board may
determine.
    (d) The Board may establish a separate municipality
contribution rate for all employees who are program
participants employed under the federal Comprehensive
Employment Training Act by all of the participating
municipalities and instrumentalities. The Board may also
provide that, in lieu of a separate municipality rate for these
employees, a portion of the municipality contributions for such
program participants shall be refunded or an extra charge
assessed so that the amount of municipality contributions
retained or received by the fund for all CETA program
participants shall be an amount equal to that which would be
provided by the separate municipality contribution rate for all
such program participants. Refunds shall be made to prime
sponsors of programs upon submission of a claim therefor and
extra charges shall be assessed to participating
municipalities and instrumentalities. In establishing the
municipality contribution rate as provided in paragraph (b) of
this Section, the use of a separate municipality contribution
rate for program participants or the refund of a portion of the
municipality contributions, as the case may be, may be
considered.
    (e) Computations of municipality contribution rates for
the following calendar year shall be made prior to the
beginning of each year, from the information available at the
time the computations are made, and on the assumption that the
employees in each participating municipality or participating
instrumentality at such time will continue in service until the
end of such calendar year at their respective rates of earnings
at such time.
    (f) Any municipality which is the recipient of State
allocations representing that municipality's contributions for
retirement annuity purposes on behalf of its employees as
provided in Section 12-21.16 of the Illinois Public Aid Code
shall pay the allocations so received to the Board for such
purpose. Estimates of State allocations to be received during
any taxable year shall be considered in the determination of
the municipality's tax rate for that year under Section 7-171.
If a special tax is levied under Section 7-171, none of the
proceeds may be used to reimburse the municipality for the
amount of State allocations received and paid to the Board. Any
multiple-county or consolidated health department which
receives contributions from a county under Section 11.2 of "An
Act in relation to establishment and maintenance of county and
multiple-county health departments", approved July 9, 1943, as
amended, or distributions under Section 3 of the Department of
Public Health Act, shall use these only for municipality
contributions by the health department.
    (g) Municipality contributions for the several purposes
specified shall, for township treasurers and employees in the
offices of the township treasurers who meet the qualifying
conditions for coverage hereunder, be allocated among the
several school districts and parts of school districts serviced
by such treasurers and employees in the proportion which the
amount of school funds of each district or part of a district
handled by the treasurer bears to the total amount of all
school funds handled by the treasurer.
    From the funds subject to allocation among districts and
parts of districts pursuant to the School Code, the trustees
shall withhold the proportionate share of the liability for
municipality contributions imposed upon such districts by this
Section, in respect to such township treasurers and employees
and remit the same to the Board.
    The municipality contribution rate for an educational
service center shall initially be the same rate for each year
as the regional office of education or school district which
serves as its administrative agent. When actuarial data become
available, a separate rate shall be established as provided in
subparagraph (i) of this Section.
    The municipality contribution rate for a public agency,
other than a vocational education cooperative, formed under the
Intergovernmental Cooperation Act shall initially be the
average rate for the municipalities which are parties to the
intergovernmental agreement. When actuarial data become
available, a separate rate shall be established as provided in
subparagraph (i) of this Section.
    (h) Each participating municipality and participating
instrumentality shall make the contributions in the amounts
provided in this Section in the manner prescribed from time to
time by the Board and all such contributions shall be
obligations of the respective participating municipalities and
participating instrumentalities to this fund. The failure to
deduct any employee contributions shall not relieve the
participating municipality or participating instrumentality of
its obligation to this fund. Delinquent payments of
contributions due under this Section may, with interest, be
recovered by civil action against the participating
municipalities or participating instrumentalities.
Municipality contributions, other than the amount necessary
for employee contributions and Social Security contributions,
for periods of service by employees from whose earnings no
deductions were made for employee contributions to the fund,
may be charged to the municipality reserve for the municipality
or participating instrumentality.
    (i) Contributions by participating instrumentalities shall
be determined as provided herein except that the percentage
derived under subparagraph 2 of paragraph (b) of this Section,
and the amount payable under subparagraph 4 of paragraph (a) of
this Section, shall be based on an amortization period of 10
years.
    (j) Notwithstanding the other provisions of this Section,
the additional unfunded liability accruing as a result of this
amendatory Act of the 94th General Assembly shall be amortized
over a period of 30 years beginning on January 1 of the second
calendar year following the calendar year in which this
amendatory Act takes effect, except that the employer may
provide for a longer amortization period by adopting a
resolution or ordinance specifying a 35-year or 40-year period
and submitting a certified copy of the ordinance or resolution
to the fund no later than June 1 of the calendar year following
the calendar year in which this amendatory Act takes effect.
(Source: P.A. 96-1084, eff. 7-16-10; 96-1140, eff. 7-21-10;
revised 9-16-10.)
 
    (40 ILCS 5/7-173)  (from Ch. 108 1/2, par. 7-173)
    Sec. 7-173. Contributions by employees.
    (a) Each participating employee shall make contributions
to the fund as follows:
        1. For retirement annuity purposes, normal
    contributions of 3 3/4% of earnings.
        2. Additional contributions of such percentages of
    each payment of earnings, as shall be elected by the
    employee for retirement annuity purposes, but not in excess
    of 10%. The selected rate shall be applicable to all
    earnings paid following receipt by the Board of written
    notice of election to make such contributions. Additional
    contributions at the selected rate shall be made
    concurrently with normal contributions.
        3. Survivor contributions, by each participating
    employee, of 3/4% of each payment of earnings.
    (b) Each employee shall make contributions for Federal
Social Security taxes, for periods during which he is a covered
employee, as required by the Social Security Enabling Act and
State and federal law. For participating employees, such
contributions shall be in addition to those required under
paragraph (a) of this Section.
    (c) Contributions shall be deducted from each
corresponding payment of earnings paid to each employee and
shall be remitted to the board by the participating
municipality or participating instrumentality making such
payment. The remittance, together with a report of the earnings
and contributions shall be made as directed by the board. For
township treasurers and employees of township treasurers
qualifying as employees hereunder, the contributions herein
required as deductions from salary shall be withheld by the
school township trustees from funds available for the payment
of the compensation of such treasurers and employees as
provided in the School Code and remitted to the board.
    (d) An employee who has made additional contributions under
paragraph (a)2 of this Section may upon retirement or at any
time prior thereto, elect to withdraw the total of such
additional contributions including interest credited thereon
to the end of the preceding calendar year.
    (e) Failure to make the deductions for employee
contributions provided in paragraph (c) of this Section shall
not relieve the employee from liability for such contributions.
The amount of such liability may be deducted, with interest
charged under Section 7-209, from any annuities or benefits
payable hereunder to the employee or any other person receiving
an annuity or benefit by reason of such employee's
participation.
    (f) A participating employee who has at least 40 years of
creditable service in the Fund may elect to cease making the
contributions required under this Section. The status of the
employee under this Article shall be unaffected by this
election, except that the employee shall not receive any
additional creditable service for the periods of employment
following the election. An election under this subsection
relieves the employer from making additional employer
contributions in relation to that employee.
(Source: P.A. 96-1084, eff. 7-16-10; 96-1258, eff. 7-23-10;
revised 9-2-10.)
 
    (40 ILCS 5/14-104)  (from Ch. 108 1/2, par. 14-104)
    Sec. 14-104. Service for which contributions permitted.
Contributions provided for in this Section shall cover the
period of service granted. Except as otherwise provided in this
Section, the contributions shall be based upon the employee's
compensation and contribution rate in effect on the date he
last became a member of the System; provided that for all
employment prior to January 1, 1969 the contribution rate shall
be that in effect for a noncovered employee on the date he last
became a member of the System. Except as otherwise provided in
this Section, contributions permitted under this Section shall
include regular interest from the date an employee last became
a member of the System to the date of payment.
    These contributions must be paid in full before retirement
either in a lump sum or in installment payments in accordance
with such rules as may be adopted by the board.
    (a) Any member may make contributions as required in this
Section for any period of service, subsequent to the date of
establishment, but prior to the date of membership.
    (b) Any employee who had been previously excluded from
membership because of age at entry and subsequently became
eligible may elect to make contributions as required in this
Section for the period of service during which he was
ineligible.
    (c) An employee of the Department of Insurance who, after
January 1, 1944 but prior to becoming eligible for membership,
received salary from funds of insurance companies in the
process of rehabilitation, liquidation, conservation or
dissolution, may elect to make contributions as required in
this Section for such service.
    (d) Any employee who rendered service in a State office to
which he was elected, or rendered service in the elective
office of Clerk of the Appellate Court prior to the date he
became a member, may make contributions for such service as
required in this Section. Any member who served by appointment
of the Governor under the Civil Administrative Code of Illinois
and did not participate in this System may make contributions
as required in this Section for such service.
    (e) Any person employed by the United States government or
any instrumentality or agency thereof from January 1, 1942
through November 15, 1946 as the result of a transfer from
State service by executive order of the President of the United
States shall be entitled to prior service credit covering the
period from January 1, 1942 through December 31, 1943 as
provided for in this Article and to membership service credit
for the period from January 1, 1944 through November 15, 1946
by making the contributions required in this Section. A person
so employed on January 1, 1944 but whose employment began after
January 1, 1942 may qualify for prior service and membership
service credit under the same conditions.
    (f) An employee of the Department of Labor of the State of
Illinois who performed services for and under the supervision
of that Department prior to January 1, 1944 but who was
compensated for those services directly by federal funds and
not by a warrant of the Auditor of Public Accounts paid by the
State Treasurer may establish credit for such employment by
making the contributions required in this Section. An employee
of the Department of Agriculture of the State of Illinois, who
performed services for and under the supervision of that
Department prior to June 1, 1963, but was compensated for those
services directly by federal funds and not paid by a warrant of
the Auditor of Public Accounts paid by the State Treasurer, and
who did not contribute to any other public employee retirement
system for such service, may establish credit for such
employment by making the contributions required in this
Section.
    (g) Any employee who executed a waiver of membership within
60 days prior to January 1, 1944 may, at any time while in the
service of a department, file with the board a rescission of
such waiver. Upon making the contributions required by this
Section, the member shall be granted the creditable service
that would have been received if the waiver had not been
executed.
    (h) Until May 1, 1990, an employee who was employed on a
full-time basis by a regional planning commission for at least
5 continuous years may establish creditable service for such
employment by making the contributions required under this
Section, provided that any credits earned by the employee in
the commission's retirement plan have been terminated.
    (i) Any person who rendered full time contractual services
to the General Assembly as a member of a legislative staff may
establish service credit for up to 8 years of such services by
making the contributions required under this Section, provided
that application therefor is made not later than July 1, 1991.
    (j) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be
equal to the employer's normal cost of the benefit plus
interest, but with all of the interest calculated from the date
the employee last became a member of the System or November 19,
1991, whichever is later, to the date of payment, an employee
may establish service credit for a period of up to 4 years
spent in active military service for which he does not qualify
for credit under Section 14-105, provided that (1) he was not
dishonorably discharged from such military service, and (2) the
amount of service credit established by a member under this
subsection (j), when added to the amount of military service
credit granted to the member under subsection (b) of Section
14-105, shall not exceed 5 years. The change in the manner of
calculating interest under this subsection (j) made by this
amendatory Act of the 92nd General Assembly applies to credit
purchased by an employee on or after its effective date and
does not entitle any person to a refund of contributions or
interest already paid. In compliance with Section 14-152.1 of
this Act concerning new benefit increases, any new benefit
increase as a result of the changes to this subsection (j) made
by Public Act 95-483 is funded through the employee
contributions provided for in this subsection (j). Any new
benefit increase as a result of the changes made to this
subsection (j) by Public Act 95-483 is exempt from the
provisions of subsection (d) of Section 14-152.1.
    (k) An employee who was employed on a full-time basis by
the Illinois State's Attorneys Association Statewide Appellate
Assistance Service LEAA-ILEC grant project prior to the time
that project became the State's Attorneys Appellate Service
Commission, now the Office of the State's Attorneys Appellate
Prosecutor, an agency of State government, may establish
creditable service for not more than 60 months service for such
employment by making contributions required under this
Section.
    (l) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be
equal to the employer's normal cost of the benefit plus
interest, a member may establish service credit for periods of
less than one year spent on authorized leave of absence from
service, provided that (1) the period of leave began on or
after January 1, 1982 and (2) any credit established by the
member for the period of leave in any other public employee
retirement system has been terminated. A member may establish
service credit under this subsection for more than one period
of authorized leave, and in that case the total period of
service credit established by the member under this subsection
may exceed one year. In determining the contributions required
for establishing service credit under this subsection, the
interest shall be calculated from the beginning of the leave of
absence to the date of payment.
    (l-5) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be
equal to the employer's normal cost of the benefit plus
interest, a member may establish service credit for periods of
up to 2 years spent on authorized leave of absence from
service, provided that during that leave the member represented
or was employed as an officer or employee of a statewide labor
organization that represents members of this System. In
determining the contributions required for establishing
service credit under this subsection, the interest shall be
calculated from the beginning of the leave of absence to the
date of payment.
    (m) Any person who rendered contractual services to a
member of the General Assembly as a worker in the member's
district office may establish creditable service for up to 3
years of those contractual services by making the contributions
required under this Section. The System shall determine a