103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4161

 

Introduced , by Rep. La Shawn K. Ford

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Industrial Hemp Act. Changes the short title of the Act to the Hemp Act. Permits the wholesale and retail sale of cannabinoids, hemp concentrate, or any other intermediate hemp cannabinoid products. Provides that no person shall offer or sell cannabinoid products, particularly packaged hemp products, to consumers in the State unless the person applies for and holds a hemp retailer license issued by the Department of Financial and Professional Regulation. Provides that no person shall sell ready-to-eat hemp products to end consumers without applying for and holding a hemp food establishment license issued by the Department of Public Health. Provides that no person shall sell cannabinoid product to any person under the age of 21 unless the person is a medical cardholder registered under the Compassionate Use of Medical Cannabis Program Act. Provides that the Department of Agriculture may not limit the number of hemp farm licenses. Provides that no person shall cultivate or grow hemp for commercial purposes unless licensed by the Department of Agriculture and subject to the rules of the Department. Provides that hemp farms may not create hemp extractions without a processor license. Provides that hemp farms may not engage in retail sales without a hemp retailer license. Provides that hemp farms may not create hemp extractions without a processor license. Provides that hemp farms may not engage in retail sales without a hemp retailer license. Creates in the State treasury a special fund known as the Hemp Social Equity Fund. Provides that 25% of all moneys deposited into the Hemp Regulatory Fund shall be transferred into the Hemp Social Equity Fund. Provides that, beginning on July 1, 2024, a tax is imposed upon purchases of all hemp cannabinoid products (hemp cannabinoid products for inhalation, hemp cannabinoid products for ingestion, and ready-to-eat hemp cannabinoid products) at a rate of 5% of the purchase price of the cannabinoid products. Defines terms. Preempts home rule powers. Amends the State Finance Act, Cannabis Regulation and Tax Act, the Illinois Noxious Weed Law, the Cannabis Control Act, the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act to make conforming changes. Effective immediately.


LRB103 34685 AWJ 64530 b

 

 

A BILL FOR

 

HB4161LRB103 34685 AWJ 64530 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section 9
5as follows:
 
6    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
7    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
8and trailers that are required to be registered with an agency
9of this State, each retailer required or authorized to collect
10the tax imposed by this Act shall pay to the Department the
11amount of such tax (except as otherwise provided) at the time
12when he is required to file his return for the period during
13which such tax was collected, less a discount of 2.1% prior to
14January 1, 1990, and 1.75% on and after January 1, 1990, or $5
15per calendar year, whichever is greater, which is allowed to
16reimburse the retailer for expenses incurred in collecting the
17tax, keeping records, preparing and filing returns, remitting
18the tax and supplying data to the Department on request. When
19determining the discount allowed under this Section, retailers
20shall include the amount of tax that would have been due at the
216.25% rate but for the 1.25% rate imposed on sales tax holiday
22items under Public Act 102-700 this amendatory Act of the
23102nd General Assembly. The discount under this Section is not

 

 

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1allowed for the 1.25% portion of taxes paid on aviation fuel
2that is subject to the revenue use requirements of 49 U.S.C.
347107(b) and 49 U.S.C. 47133. When determining the discount
4allowed under this Section, retailers shall include the amount
5of tax that would have been due at the 1% rate but for the 0%
6rate imposed under Public Act 102-700 this amendatory Act of
7the 102nd General Assembly. In the case of retailers who
8report and pay the tax on a transaction by transaction basis,
9as provided in this Section, such discount shall be taken with
10each such tax remittance instead of when such retailer files
11his periodic return. The discount allowed under this Section
12is allowed only for returns that are filed in the manner
13required by this Act. The Department may disallow the discount
14for retailers whose certificate of registration is revoked at
15the time the return is filed, but only if the Department's
16decision to revoke the certificate of registration has become
17final. A retailer need not remit that part of any tax collected
18by him to the extent that he is required to remit and does
19remit the tax imposed by the Retailers' Occupation Tax Act,
20with respect to the sale of the same property.
21    Where such tangible personal property is sold under a
22conditional sales contract, or under any other form of sale
23wherein the payment of the principal sum, or a part thereof, is
24extended beyond the close of the period for which the return is
25filed, the retailer, in collecting the tax (except as to motor
26vehicles, watercraft, aircraft, and trailers that are required

 

 

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1to be registered with an agency of this State), may collect for
2each tax return period, only the tax applicable to that part of
3the selling price actually received during such tax return
4period.
5    Except as provided in this Section, on or before the
6twentieth day of each calendar month, such retailer shall file
7a return for the preceding calendar month. Such return shall
8be filed on forms prescribed by the Department and shall
9furnish such information as the Department may reasonably
10require. The return shall include the gross receipts on food
11for human consumption that is to be consumed off the premises
12where it is sold (other than alcoholic beverages, food
13consisting of or infused with adult use cannabis, soft drinks,
14and food that has been prepared for immediate consumption)
15which were received during the preceding calendar month,
16quarter, or year, as appropriate, and upon which tax would
17have been due but for the 0% rate imposed under Public Act
18102-700 this amendatory Act of the 102nd General Assembly. The
19return shall also include the amount of tax that would have
20been due on food for human consumption that is to be consumed
21off the premises where it is sold (other than alcoholic
22beverages, food consisting of or infused with adult use
23cannabis, soft drinks, and food that has been prepared for
24immediate consumption) but for the 0% rate imposed under
25Public Act 102-700 this amendatory Act of the 102nd General
26Assembly.

 

 

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1    On and after January 1, 2018, except for returns required
2to be filed prior to January 1, 2023 for motor vehicles,
3watercraft, aircraft, and trailers that are required to be
4registered with an agency of this State, with respect to
5retailers whose annual gross receipts average $20,000 or more,
6all returns required to be filed pursuant to this Act shall be
7filed electronically. On and after January 1, 2023, with
8respect to retailers whose annual gross receipts average
9$20,000 or more, all returns required to be filed pursuant to
10this Act, including, but not limited to, returns for motor
11vehicles, watercraft, aircraft, and trailers that are required
12to be registered with an agency of this State, shall be filed
13electronically. Retailers who demonstrate that they do not
14have access to the Internet or demonstrate hardship in filing
15electronically may petition the Department to waive the
16electronic filing requirement.
17    The Department may require returns to be filed on a
18quarterly basis. If so required, a return for each calendar
19quarter shall be filed on or before the twentieth day of the
20calendar month following the end of such calendar quarter. The
21taxpayer shall also file a return with the Department for each
22of the first two months of each calendar quarter, on or before
23the twentieth day of the following calendar month, stating:
24        1. The name of the seller;
25        2. The address of the principal place of business from
26    which he engages in the business of selling tangible

 

 

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1    personal property at retail in this State;
2        3. The total amount of taxable receipts received by
3    him during the preceding calendar month from sales of
4    tangible personal property by him during such preceding
5    calendar month, including receipts from charge and time
6    sales, but less all deductions allowed by law;
7        4. The amount of credit provided in Section 2d of this
8    Act;
9        5. The amount of tax due;
10        5-5. The signature of the taxpayer; and
11        6. Such other reasonable information as the Department
12    may require.
13    Each retailer required or authorized to collect the tax
14imposed by this Act on aviation fuel sold at retail in this
15State during the preceding calendar month shall, instead of
16reporting and paying tax on aviation fuel as otherwise
17required by this Section, report and pay such tax on a separate
18aviation fuel tax return. The requirements related to the
19return shall be as otherwise provided in this Section.
20Notwithstanding any other provisions of this Act to the
21contrary, retailers collecting tax on aviation fuel shall file
22all aviation fuel tax returns and shall make all aviation fuel
23tax payments by electronic means in the manner and form
24required by the Department. For purposes of this Section,
25"aviation fuel" means jet fuel and aviation gasoline.
26    If a taxpayer fails to sign a return within 30 days after

 

 

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1the proper notice and demand for signature by the Department,
2the return shall be considered valid and any amount shown to be
3due on the return shall be deemed assessed.
4    Notwithstanding any other provision of this Act to the
5contrary, retailers subject to tax on cannabis shall file all
6cannabis tax returns and shall make all cannabis tax payments
7by electronic means in the manner and form required by the
8Department.
9    Notwithstanding any other provision of this Act to the
10contrary, retailers subject to a cannabinoid retail tax under
11the Hemp Act shall file all cannabinoid retail tax returns and
12shall make all cannabinoid retail tax payments by electronic
13means in the manner and form required by the Department.
14    Beginning October 1, 1993, a taxpayer who has an average
15monthly tax liability of $150,000 or more shall make all
16payments required by rules of the Department by electronic
17funds transfer. Beginning October 1, 1994, a taxpayer who has
18an average monthly tax liability of $100,000 or more shall
19make all payments required by rules of the Department by
20electronic funds transfer. Beginning October 1, 1995, a
21taxpayer who has an average monthly tax liability of $50,000
22or more shall make all payments required by rules of the
23Department by electronic funds transfer. Beginning October 1,
242000, a taxpayer who has an annual tax liability of $200,000 or
25more shall make all payments required by rules of the
26Department by electronic funds transfer. The term "annual tax

 

 

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1liability" shall be the sum of the taxpayer's liabilities
2under this Act, and under all other State and local occupation
3and use tax laws administered by the Department, for the
4immediately preceding calendar year. The term "average monthly
5tax liability" means the sum of the taxpayer's liabilities
6under this Act, and under all other State and local occupation
7and use tax laws administered by the Department, for the
8immediately preceding calendar year divided by 12. Beginning
9on October 1, 2002, a taxpayer who has a tax liability in the
10amount set forth in subsection (b) of Section 2505-210 of the
11Department of Revenue Law shall make all payments required by
12rules of the Department by electronic funds transfer.
13    Before August 1 of each year beginning in 1993, the
14Department shall notify all taxpayers required to make
15payments by electronic funds transfer. All taxpayers required
16to make payments by electronic funds transfer shall make those
17payments for a minimum of one year beginning on October 1.
18    Any taxpayer not required to make payments by electronic
19funds transfer may make payments by electronic funds transfer
20with the permission of the Department.
21    All taxpayers required to make payment by electronic funds
22transfer and any taxpayers authorized to voluntarily make
23payments by electronic funds transfer shall make those
24payments in the manner authorized by the Department.
25    The Department shall adopt such rules as are necessary to
26effectuate a program of electronic funds transfer and the

 

 

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1requirements of this Section.
2    Before October 1, 2000, if the taxpayer's average monthly
3tax liability to the Department under this Act, the Retailers'
4Occupation Tax Act, the Service Occupation Tax Act, the
5Service Use Tax Act was $10,000 or more during the preceding 4
6complete calendar quarters, he shall file a return with the
7Department each month by the 20th day of the month next
8following the month during which such tax liability is
9incurred and shall make payments to the Department on or
10before the 7th, 15th, 22nd and last day of the month during
11which such liability is incurred. On and after October 1,
122000, if the taxpayer's average monthly tax liability to the
13Department under this Act, the Retailers' Occupation Tax Act,
14the Service Occupation Tax Act, and the Service Use Tax Act was
15$20,000 or more during the preceding 4 complete calendar
16quarters, he shall file a return with the Department each
17month by the 20th day of the month next following the month
18during which such tax liability is incurred and shall make
19payment to the Department on or before the 7th, 15th, 22nd and
20last day of the month during which such liability is incurred.
21If the month during which such tax liability is incurred began
22prior to January 1, 1985, each payment shall be in an amount
23equal to 1/4 of the taxpayer's actual liability for the month
24or an amount set by the Department not to exceed 1/4 of the
25average monthly liability of the taxpayer to the Department
26for the preceding 4 complete calendar quarters (excluding the

 

 

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1month of highest liability and the month of lowest liability
2in such 4 quarter period). If the month during which such tax
3liability is incurred begins on or after January 1, 1985, and
4prior to January 1, 1987, each payment shall be in an amount
5equal to 22.5% of the taxpayer's actual liability for the
6month or 27.5% of the taxpayer's liability for the same
7calendar month of the preceding year. If the month during
8which such tax liability is incurred begins on or after
9January 1, 1987, and prior to January 1, 1988, each payment
10shall be in an amount equal to 22.5% of the taxpayer's actual
11liability for the month or 26.25% of the taxpayer's liability
12for the same calendar month of the preceding year. If the month
13during which such tax liability is incurred begins on or after
14January 1, 1988, and prior to January 1, 1989, or begins on or
15after January 1, 1996, each payment shall be in an amount equal
16to 22.5% of the taxpayer's actual liability for the month or
1725% of the taxpayer's liability for the same calendar month of
18the preceding year. If the month during which such tax
19liability is incurred begins on or after January 1, 1989, and
20prior to January 1, 1996, each payment shall be in an amount
21equal to 22.5% of the taxpayer's actual liability for the
22month or 25% of the taxpayer's liability for the same calendar
23month of the preceding year or 100% of the taxpayer's actual
24liability for the quarter monthly reporting period. The amount
25of such quarter monthly payments shall be credited against the
26final tax liability of the taxpayer's return for that month.

 

 

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1Before October 1, 2000, once applicable, the requirement of
2the making of quarter monthly payments to the Department shall
3continue until such taxpayer's average monthly liability to
4the Department during the preceding 4 complete calendar
5quarters (excluding the month of highest liability and the
6month of lowest liability) is less than $9,000, or until such
7taxpayer's average monthly liability to the Department as
8computed for each calendar quarter of the 4 preceding complete
9calendar quarter period is less than $10,000. However, if a
10taxpayer can show the Department that a substantial change in
11the taxpayer's business has occurred which causes the taxpayer
12to anticipate that his average monthly tax liability for the
13reasonably foreseeable future will fall below the $10,000
14threshold stated above, then such taxpayer may petition the
15Department for change in such taxpayer's reporting status. On
16and after October 1, 2000, once applicable, the requirement of
17the making of quarter monthly payments to the Department shall
18continue until such taxpayer's average monthly liability to
19the Department during the preceding 4 complete calendar
20quarters (excluding the month of highest liability and the
21month of lowest liability) is less than $19,000 or until such
22taxpayer's average monthly liability to the Department as
23computed for each calendar quarter of the 4 preceding complete
24calendar quarter period is less than $20,000. However, if a
25taxpayer can show the Department that a substantial change in
26the taxpayer's business has occurred which causes the taxpayer

 

 

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1to anticipate that his average monthly tax liability for the
2reasonably foreseeable future will fall below the $20,000
3threshold stated above, then such taxpayer may petition the
4Department for a change in such taxpayer's reporting status.
5The Department shall change such taxpayer's reporting status
6unless it finds that such change is seasonal in nature and not
7likely to be long term. Quarter monthly payment status shall
8be determined under this paragraph as if the rate reduction to
91.25% in Public Act 102-700 this amendatory Act of the 102nd
10General Assembly on sales tax holiday items had not occurred.
11For quarter monthly payments due on or after July 1, 2023 and
12through June 30, 2024, "25% of the taxpayer's liability for
13the same calendar month of the preceding year" shall be
14determined as if the rate reduction to 1.25% in Public Act
15102-700 this amendatory Act of the 102nd General Assembly on
16sales tax holiday items had not occurred. Quarter monthly
17payment status shall be determined under this paragraph as if
18the rate reduction to 0% in Public Act 102-700 this amendatory
19Act of the 102nd General Assembly on food for human
20consumption that is to be consumed off the premises where it is
21sold (other than alcoholic beverages, food consisting of or
22infused with adult use cannabis, soft drinks, and food that
23has been prepared for immediate consumption) had not occurred.
24For quarter monthly payments due under this paragraph on or
25after July 1, 2023 and through June 30, 2024, "25% of the
26taxpayer's liability for the same calendar month of the

 

 

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1preceding year" shall be determined as if the rate reduction
2to 0% in Public Act 102-700 this amendatory Act of the 102nd
3General Assembly had not occurred. If any such quarter monthly
4payment is not paid at the time or in the amount required by
5this Section, then the taxpayer shall be liable for penalties
6and interest on the difference between the minimum amount due
7and the amount of such quarter monthly payment actually and
8timely paid, except insofar as the taxpayer has previously
9made payments for that month to the Department in excess of the
10minimum payments previously due as provided in this Section.
11The Department shall make reasonable rules and regulations to
12govern the quarter monthly payment amount and quarter monthly
13payment dates for taxpayers who file on other than a calendar
14monthly basis.
15    If any such payment provided for in this Section exceeds
16the taxpayer's liabilities under this Act, the Retailers'
17Occupation Tax Act, the Service Occupation Tax Act and the
18Service Use Tax Act, as shown by an original monthly return,
19the Department shall issue to the taxpayer a credit memorandum
20no later than 30 days after the date of payment, which
21memorandum may be submitted by the taxpayer to the Department
22in payment of tax liability subsequently to be remitted by the
23taxpayer to the Department or be assigned by the taxpayer to a
24similar taxpayer under this Act, the Retailers' Occupation Tax
25Act, the Service Occupation Tax Act or the Service Use Tax Act,
26in accordance with reasonable rules and regulations to be

 

 

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1prescribed by the Department, except that if such excess
2payment is shown on an original monthly return and is made
3after December 31, 1986, no credit memorandum shall be issued,
4unless requested by the taxpayer. If no such request is made,
5the taxpayer may credit such excess payment against tax
6liability subsequently to be remitted by the taxpayer to the
7Department under this Act, the Retailers' Occupation Tax Act,
8the Service Occupation Tax Act or the Service Use Tax Act, in
9accordance with reasonable rules and regulations prescribed by
10the Department. If the Department subsequently determines that
11all or any part of the credit taken was not actually due to the
12taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
13be reduced by 2.1% or 1.75% of the difference between the
14credit taken and that actually due, and the taxpayer shall be
15liable for penalties and interest on such difference.
16    If the retailer is otherwise required to file a monthly
17return and if the retailer's average monthly tax liability to
18the Department does not exceed $200, the Department may
19authorize his returns to be filed on a quarter annual basis,
20with the return for January, February, and March of a given
21year being due by April 20 of such year; with the return for
22April, May and June of a given year being due by July 20 of
23such year; with the return for July, August and September of a
24given year being due by October 20 of such year, and with the
25return for October, November and December of a given year
26being due by January 20 of the following year.

 

 

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1    If the retailer is otherwise required to file a monthly or
2quarterly return and if the retailer's average monthly tax
3liability to the Department does not exceed $50, the
4Department may authorize his returns to be filed on an annual
5basis, with the return for a given year being due by January 20
6of the following year.
7    Such quarter annual and annual returns, as to form and
8substance, shall be subject to the same requirements as
9monthly returns.
10    Notwithstanding any other provision in this Act concerning
11the time within which a retailer may file his return, in the
12case of any retailer who ceases to engage in a kind of business
13which makes him responsible for filing returns under this Act,
14such retailer shall file a final return under this Act with the
15Department not more than one month after discontinuing such
16business.
17    In addition, with respect to motor vehicles, watercraft,
18aircraft, and trailers that are required to be registered with
19an agency of this State, except as otherwise provided in this
20Section, every retailer selling this kind of tangible personal
21property shall file, with the Department, upon a form to be
22prescribed and supplied by the Department, a separate return
23for each such item of tangible personal property which the
24retailer sells, except that if, in the same transaction, (i) a
25retailer of aircraft, watercraft, motor vehicles or trailers
26transfers more than one aircraft, watercraft, motor vehicle or

 

 

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1trailer to another aircraft, watercraft, motor vehicle or
2trailer retailer for the purpose of resale or (ii) a retailer
3of aircraft, watercraft, motor vehicles, or trailers transfers
4more than one aircraft, watercraft, motor vehicle, or trailer
5to a purchaser for use as a qualifying rolling stock as
6provided in Section 3-55 of this Act, then that seller may
7report the transfer of all the aircraft, watercraft, motor
8vehicles or trailers involved in that transaction to the
9Department on the same uniform invoice-transaction reporting
10return form. For purposes of this Section, "watercraft" means
11a Class 2, Class 3, or Class 4 watercraft as defined in Section
123-2 of the Boat Registration and Safety Act, a personal
13watercraft, or any boat equipped with an inboard motor.
14    In addition, with respect to motor vehicles, watercraft,
15aircraft, and trailers that are required to be registered with
16an agency of this State, every person who is engaged in the
17business of leasing or renting such items and who, in
18connection with such business, sells any such item to a
19retailer for the purpose of resale is, notwithstanding any
20other provision of this Section to the contrary, authorized to
21meet the return-filing requirement of this Act by reporting
22the transfer of all the aircraft, watercraft, motor vehicles,
23or trailers transferred for resale during a month to the
24Department on the same uniform invoice-transaction reporting
25return form on or before the 20th of the month following the
26month in which the transfer takes place. Notwithstanding any

 

 

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1other provision of this Act to the contrary, all returns filed
2under this paragraph must be filed by electronic means in the
3manner and form as required by the Department.
4    The transaction reporting return in the case of motor
5vehicles or trailers that are required to be registered with
6an agency of this State, shall be the same document as the
7Uniform Invoice referred to in Section 5-402 of the Illinois
8Vehicle Code and must show the name and address of the seller;
9the name and address of the purchaser; the amount of the
10selling price including the amount allowed by the retailer for
11traded-in property, if any; the amount allowed by the retailer
12for the traded-in tangible personal property, if any, to the
13extent to which Section 2 of this Act allows an exemption for
14the value of traded-in property; the balance payable after
15deducting such trade-in allowance from the total selling
16price; the amount of tax due from the retailer with respect to
17such transaction; the amount of tax collected from the
18purchaser by the retailer on such transaction (or satisfactory
19evidence that such tax is not due in that particular instance,
20if that is claimed to be the fact); the place and date of the
21sale; a sufficient identification of the property sold; such
22other information as is required in Section 5-402 of the
23Illinois Vehicle Code, and such other information as the
24Department may reasonably require.
25    The transaction reporting return in the case of watercraft
26and aircraft must show the name and address of the seller; the

 

 

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1name and address of the purchaser; the amount of the selling
2price including the amount allowed by the retailer for
3traded-in property, if any; the amount allowed by the retailer
4for the traded-in tangible personal property, if any, to the
5extent to which Section 2 of this Act allows an exemption for
6the value of traded-in property; the balance payable after
7deducting such trade-in allowance from the total selling
8price; the amount of tax due from the retailer with respect to
9such transaction; the amount of tax collected from the
10purchaser by the retailer on such transaction (or satisfactory
11evidence that such tax is not due in that particular instance,
12if that is claimed to be the fact); the place and date of the
13sale, a sufficient identification of the property sold, and
14such other information as the Department may reasonably
15require.
16    Such transaction reporting return shall be filed not later
17than 20 days after the date of delivery of the item that is
18being sold, but may be filed by the retailer at any time sooner
19than that if he chooses to do so. The transaction reporting
20return and tax remittance or proof of exemption from the tax
21that is imposed by this Act may be transmitted to the
22Department by way of the State agency with which, or State
23officer with whom, the tangible personal property must be
24titled or registered (if titling or registration is required)
25if the Department and such agency or State officer determine
26that this procedure will expedite the processing of

 

 

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1applications for title or registration.
2    With each such transaction reporting return, the retailer
3shall remit the proper amount of tax due (or shall submit
4satisfactory evidence that the sale is not taxable if that is
5the case), to the Department or its agents, whereupon the
6Department shall issue, in the purchaser's name, a tax receipt
7(or a certificate of exemption if the Department is satisfied
8that the particular sale is tax exempt) which such purchaser
9may submit to the agency with which, or State officer with
10whom, he must title or register the tangible personal property
11that is involved (if titling or registration is required) in
12support of such purchaser's application for an Illinois
13certificate or other evidence of title or registration to such
14tangible personal property.
15    No retailer's failure or refusal to remit tax under this
16Act precludes a user, who has paid the proper tax to the
17retailer, from obtaining his certificate of title or other
18evidence of title or registration (if titling or registration
19is required) upon satisfying the Department that such user has
20paid the proper tax (if tax is due) to the retailer. The
21Department shall adopt appropriate rules to carry out the
22mandate of this paragraph.
23    If the user who would otherwise pay tax to the retailer
24wants the transaction reporting return filed and the payment
25of tax or proof of exemption made to the Department before the
26retailer is willing to take these actions and such user has not

 

 

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1paid the tax to the retailer, such user may certify to the fact
2of such delay by the retailer, and may (upon the Department
3being satisfied of the truth of such certification) transmit
4the information required by the transaction reporting return
5and the remittance for tax or proof of exemption directly to
6the Department and obtain his tax receipt or exemption
7determination, in which event the transaction reporting return
8and tax remittance (if a tax payment was required) shall be
9credited by the Department to the proper retailer's account
10with the Department, but without the 2.1% or 1.75% discount
11provided for in this Section being allowed. When the user pays
12the tax directly to the Department, he shall pay the tax in the
13same amount and in the same form in which it would be remitted
14if the tax had been remitted to the Department by the retailer.
15    Where a retailer collects the tax with respect to the
16selling price of tangible personal property which he sells and
17the purchaser thereafter returns such tangible personal
18property and the retailer refunds the selling price thereof to
19the purchaser, such retailer shall also refund, to the
20purchaser, the tax so collected from the purchaser. When
21filing his return for the period in which he refunds such tax
22to the purchaser, the retailer may deduct the amount of the tax
23so refunded by him to the purchaser from any other use tax
24which such retailer may be required to pay or remit to the
25Department, as shown by such return, if the amount of the tax
26to be deducted was previously remitted to the Department by

 

 

HB4161- 20 -LRB103 34685 AWJ 64530 b

1such retailer. If the retailer has not previously remitted the
2amount of such tax to the Department, he is entitled to no
3deduction under this Act upon refunding such tax to the
4purchaser.
5    Any retailer filing a return under this Section shall also
6include (for the purpose of paying tax thereon) the total tax
7covered by such return upon the selling price of tangible
8personal property purchased by him at retail from a retailer,
9but as to which the tax imposed by this Act was not collected
10from the retailer filing such return, and such retailer shall
11remit the amount of such tax to the Department when filing such
12return.
13    If experience indicates such action to be practicable, the
14Department may prescribe and furnish a combination or joint
15return which will enable retailers, who are required to file
16returns hereunder and also under the Retailers' Occupation Tax
17Act, to furnish all the return information required by both
18Acts on the one form.
19    Where the retailer has more than one business registered
20with the Department under separate registration under this
21Act, such retailer may not file each return that is due as a
22single return covering all such registered businesses, but
23shall file separate returns for each such registered business.
24    Beginning January 1, 1990, each month the Department shall
25pay into the State and Local Sales Tax Reform Fund, a special
26fund in the State Treasury which is hereby created, the net

 

 

HB4161- 21 -LRB103 34685 AWJ 64530 b

1revenue realized for the preceding month from the 1% tax
2imposed under this Act.
3    Beginning January 1, 1990, each month the Department shall
4pay into the County and Mass Transit District Fund 4% of the
5net revenue realized for the preceding month from the 6.25%
6general rate on the selling price of tangible personal
7property which is purchased outside Illinois at retail from a
8retailer and which is titled or registered by an agency of this
9State's government.
10    Beginning January 1, 1990, each month the Department shall
11pay into the State and Local Sales Tax Reform Fund, a special
12fund in the State Treasury, 20% of the net revenue realized for
13the preceding month from the 6.25% general rate on the selling
14price of tangible personal property, other than (i) tangible
15personal property which is purchased outside Illinois at
16retail from a retailer and which is titled or registered by an
17agency of this State's government and (ii) aviation fuel sold
18on or after December 1, 2019. This exception for aviation fuel
19only applies for so long as the revenue use requirements of 49
20U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
21    For aviation fuel sold on or after December 1, 2019, each
22month the Department shall pay into the State Aviation Program
23Fund 20% of the net revenue realized for the preceding month
24from the 6.25% general rate on the selling price of aviation
25fuel, less an amount estimated by the Department to be
26required for refunds of the 20% portion of the tax on aviation

 

 

HB4161- 22 -LRB103 34685 AWJ 64530 b

1fuel under this Act, which amount shall be deposited into the
2Aviation Fuel Sales Tax Refund Fund. The Department shall only
3pay moneys into the State Aviation Program Fund and the
4Aviation Fuels Sales Tax Refund Fund under this Act for so long
5as the revenue use requirements of 49 U.S.C. 47107(b) and 49
6U.S.C. 47133 are binding on the State.
7    Beginning August 1, 2000, each month the Department shall
8pay into the State and Local Sales Tax Reform Fund 100% of the
9net revenue realized for the preceding month from the 1.25%
10rate on the selling price of motor fuel and gasohol. If, in any
11month, the tax on sales tax holiday items, as defined in
12Section 3-6, is imposed at the rate of 1.25%, then the
13Department shall pay 100% of the net revenue realized for that
14month from the 1.25% rate on the selling price of sales tax
15holiday items into the State and Local Sales Tax Reform Fund.
16    Beginning January 1, 1990, each month the Department shall
17pay into the Local Government Tax Fund 16% of the net revenue
18realized for the preceding month from the 6.25% general rate
19on the selling price of tangible personal property which is
20purchased outside Illinois at retail from a retailer and which
21is titled or registered by an agency of this State's
22government.
23    Beginning October 1, 2009, each month the Department shall
24pay into the Capital Projects Fund an amount that is equal to
25an amount estimated by the Department to represent 80% of the
26net revenue realized for the preceding month from the sale of

 

 

HB4161- 23 -LRB103 34685 AWJ 64530 b

1candy, grooming and hygiene products, and soft drinks that had
2been taxed at a rate of 1% prior to September 1, 2009 but that
3are now taxed at 6.25%.
4    Beginning July 1, 2011, each month the Department shall
5pay into the Clean Air Act Permit Fund 80% of the net revenue
6realized for the preceding month from the 6.25% general rate
7on the selling price of sorbents used in Illinois in the
8process of sorbent injection as used to comply with the
9Environmental Protection Act or the federal Clean Air Act, but
10the total payment into the Clean Air Act Permit Fund under this
11Act and the Retailers' Occupation Tax Act shall not exceed
12$2,000,000 in any fiscal year.
13    Beginning July 1, 2013, each month the Department shall
14pay into the Underground Storage Tank Fund from the proceeds
15collected under this Act, the Service Use Tax Act, the Service
16Occupation Tax Act, and the Retailers' Occupation Tax Act an
17amount equal to the average monthly deficit in the Underground
18Storage Tank Fund during the prior year, as certified annually
19by the Illinois Environmental Protection Agency, but the total
20payment into the Underground Storage Tank Fund under this Act,
21the Service Use Tax Act, the Service Occupation Tax Act, and
22the Retailers' Occupation Tax Act shall not exceed $18,000,000
23in any State fiscal year. As used in this paragraph, the
24"average monthly deficit" shall be equal to the difference
25between the average monthly claims for payment by the fund and
26the average monthly revenues deposited into the fund,

 

 

HB4161- 24 -LRB103 34685 AWJ 64530 b

1excluding payments made pursuant to this paragraph.
2    Beginning July 1, 2015, of the remainder of the moneys
3received by the Department under this Act, the Service Use Tax
4Act, the Service Occupation Tax Act, and the Retailers'
5Occupation Tax Act, each month the Department shall deposit
6$500,000 into the State Crime Laboratory Fund.
7    Of the remainder of the moneys received by the Department
8pursuant to this Act, (a) 1.75% thereof shall be paid into the
9Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
10and after July 1, 1989, 3.8% thereof shall be paid into the
11Build Illinois Fund; provided, however, that if in any fiscal
12year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
13may be, of the moneys received by the Department and required
14to be paid into the Build Illinois Fund pursuant to Section 3
15of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
16Act, Section 9 of the Service Use Tax Act, and Section 9 of the
17Service Occupation Tax Act, such Acts being hereinafter called
18the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
19may be, of moneys being hereinafter called the "Tax Act
20Amount", and (2) the amount transferred to the Build Illinois
21Fund from the State and Local Sales Tax Reform Fund shall be
22less than the Annual Specified Amount (as defined in Section 3
23of the Retailers' Occupation Tax Act), an amount equal to the
24difference shall be immediately paid into the Build Illinois
25Fund from other moneys received by the Department pursuant to
26the Tax Acts; and further provided, that if on the last

 

 

HB4161- 25 -LRB103 34685 AWJ 64530 b

1business day of any month the sum of (1) the Tax Act Amount
2required to be deposited into the Build Illinois Bond Account
3in the Build Illinois Fund during such month and (2) the amount
4transferred during such month to the Build Illinois Fund from
5the State and Local Sales Tax Reform Fund shall have been less
6than 1/12 of the Annual Specified Amount, an amount equal to
7the difference shall be immediately paid into the Build
8Illinois Fund from other moneys received by the Department
9pursuant to the Tax Acts; and, further provided, that in no
10event shall the payments required under the preceding proviso
11result in aggregate payments into the Build Illinois Fund
12pursuant to this clause (b) for any fiscal year in excess of
13the greater of (i) the Tax Act Amount or (ii) the Annual
14Specified Amount for such fiscal year; and, further provided,
15that the amounts payable into the Build Illinois Fund under
16this clause (b) shall be payable only until such time as the
17aggregate amount on deposit under each trust indenture
18securing Bonds issued and outstanding pursuant to the Build
19Illinois Bond Act is sufficient, taking into account any
20future investment income, to fully provide, in accordance with
21such indenture, for the defeasance of or the payment of the
22principal of, premium, if any, and interest on the Bonds
23secured by such indenture and on any Bonds expected to be
24issued thereafter and all fees and costs payable with respect
25thereto, all as certified by the Director of the Bureau of the
26Budget (now Governor's Office of Management and Budget). If on

 

 

HB4161- 26 -LRB103 34685 AWJ 64530 b

1the last business day of any month in which Bonds are
2outstanding pursuant to the Build Illinois Bond Act, the
3aggregate of the moneys deposited in the Build Illinois Bond
4Account in the Build Illinois Fund in such month shall be less
5than the amount required to be transferred in such month from
6the Build Illinois Bond Account to the Build Illinois Bond
7Retirement and Interest Fund pursuant to Section 13 of the
8Build Illinois Bond Act, an amount equal to such deficiency
9shall be immediately paid from other moneys received by the
10Department pursuant to the Tax Acts to the Build Illinois
11Fund; provided, however, that any amounts paid to the Build
12Illinois Fund in any fiscal year pursuant to this sentence
13shall be deemed to constitute payments pursuant to clause (b)
14of the preceding sentence and shall reduce the amount
15otherwise payable for such fiscal year pursuant to clause (b)
16of the preceding sentence. The moneys received by the
17Department pursuant to this Act and required to be deposited
18into the Build Illinois Fund are subject to the pledge, claim
19and charge set forth in Section 12 of the Build Illinois Bond
20Act.
21    Subject to payment of amounts into the Build Illinois Fund
22as provided in the preceding paragraph or in any amendment
23thereto hereafter enacted, the following specified monthly
24installment of the amount requested in the certificate of the
25Chairman of the Metropolitan Pier and Exposition Authority
26provided under Section 8.25f of the State Finance Act, but not

 

 

HB4161- 27 -LRB103 34685 AWJ 64530 b

1in excess of the sums designated as "Total Deposit", shall be
2deposited in the aggregate from collections under Section 9 of
3the Use Tax Act, Section 9 of the Service Use Tax Act, Section
49 of the Service Occupation Tax Act, and Section 3 of the
5Retailers' Occupation Tax Act into the McCormick Place
6Expansion Project Fund in the specified fiscal years.
7Fiscal YearTotal Deposit
81993         $0
91994 53,000,000
101995 58,000,000
111996 61,000,000
121997 64,000,000
131998 68,000,000
141999 71,000,000
152000 75,000,000
162001 80,000,000
172002 93,000,000
182003 99,000,000
192004103,000,000
202005108,000,000
212006113,000,000
222007119,000,000
232008126,000,000
242009132,000,000
252010139,000,000
262011146,000,000

 

 

HB4161- 28 -LRB103 34685 AWJ 64530 b

12012153,000,000
22013161,000,000
32014170,000,000
42015179,000,000
52016189,000,000
62017199,000,000
72018210,000,000
82019221,000,000
92020233,000,000
102021300,000,000
112022300,000,000
122023300,000,000
132024 300,000,000
142025 300,000,000
152026 300,000,000
162027 375,000,000
172028 375,000,000
182029 375,000,000
192030 375,000,000
202031 375,000,000
212032 375,000,000
222033 375,000,000
232034375,000,000
242035375,000,000
252036450,000,000
26and

 

 

HB4161- 29 -LRB103 34685 AWJ 64530 b

1each fiscal year
2thereafter that bonds
3are outstanding under
4Section 13.2 of the
5Metropolitan Pier and
6Exposition Authority Act,
7but not after fiscal year 2060.
8    Beginning July 20, 1993 and in each month of each fiscal
9year thereafter, one-eighth of the amount requested in the
10certificate of the Chairman of the Metropolitan Pier and
11Exposition Authority for that fiscal year, less the amount
12deposited into the McCormick Place Expansion Project Fund by
13the State Treasurer in the respective month under subsection
14(g) of Section 13 of the Metropolitan Pier and Exposition
15Authority Act, plus cumulative deficiencies in the deposits
16required under this Section for previous months and years,
17shall be deposited into the McCormick Place Expansion Project
18Fund, until the full amount requested for the fiscal year, but
19not in excess of the amount specified above as "Total
20Deposit", has been deposited.
21    Subject to payment of amounts into the Capital Projects
22Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
23and the McCormick Place Expansion Project Fund pursuant to the
24preceding paragraphs or in any amendments thereto hereafter
25enacted, for aviation fuel sold on or after December 1, 2019,
26the Department shall each month deposit into the Aviation Fuel

 

 

HB4161- 30 -LRB103 34685 AWJ 64530 b

1Sales Tax Refund Fund an amount estimated by the Department to
2be required for refunds of the 80% portion of the tax on
3aviation fuel under this Act. The Department shall only
4deposit moneys into the Aviation Fuel Sales Tax Refund Fund
5under this paragraph for so long as the revenue use
6requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
7binding on the State.
8    Subject to payment of amounts into the Build Illinois Fund
9and the McCormick Place Expansion Project Fund pursuant to the
10preceding paragraphs or in any amendments thereto hereafter
11enacted, beginning July 1, 1993 and ending on September 30,
122013, the Department shall each month pay into the Illinois
13Tax Increment Fund 0.27% of 80% of the net revenue realized for
14the preceding month from the 6.25% general rate on the selling
15price of tangible personal property.
16    Subject to payment of amounts into the Build Illinois Fund
17and the McCormick Place Expansion Project Fund pursuant to the
18preceding paragraphs or in any amendments thereto hereafter
19enacted, beginning with the receipt of the first report of
20taxes paid by an eligible business and continuing for a
2125-year period, the Department shall each month pay into the
22Energy Infrastructure Fund 80% of the net revenue realized
23from the 6.25% general rate on the selling price of
24Illinois-mined coal that was sold to an eligible business. For
25purposes of this paragraph, the term "eligible business" means
26a new electric generating facility certified pursuant to

 

 

HB4161- 31 -LRB103 34685 AWJ 64530 b

1Section 605-332 of the Department of Commerce and Economic
2Opportunity Law of the Civil Administrative Code of Illinois.
3    Subject to payment of amounts into the Build Illinois
4Fund, the McCormick Place Expansion Project Fund, the Illinois
5Tax Increment Fund, and the Energy Infrastructure Fund
6pursuant to the preceding paragraphs or in any amendments to
7this Section hereafter enacted, beginning on the first day of
8the first calendar month to occur on or after August 26, 2014
9(the effective date of Public Act 98-1098), each month, from
10the collections made under Section 9 of the Use Tax Act,
11Section 9 of the Service Use Tax Act, Section 9 of the Service
12Occupation Tax Act, and Section 3 of the Retailers' Occupation
13Tax Act, the Department shall pay into the Tax Compliance and
14Administration Fund, to be used, subject to appropriation, to
15fund additional auditors and compliance personnel at the
16Department of Revenue, an amount equal to 1/12 of 5% of 80% of
17the cash receipts collected during the preceding fiscal year
18by the Audit Bureau of the Department under the Use Tax Act,
19the Service Use Tax Act, the Service Occupation Tax Act, the
20Retailers' Occupation Tax Act, and associated local occupation
21and use taxes administered by the Department.
22    Subject to payments of amounts into the Build Illinois
23Fund, the McCormick Place Expansion Project Fund, the Illinois
24Tax Increment Fund, the Energy Infrastructure Fund, and the
25Tax Compliance and Administration Fund as provided in this
26Section, beginning on July 1, 2018 the Department shall pay

 

 

HB4161- 32 -LRB103 34685 AWJ 64530 b

1each month into the Downstate Public Transportation Fund the
2moneys required to be so paid under Section 2-3 of the
3Downstate Public Transportation Act.
4    Subject to successful execution and delivery of a
5public-private agreement between the public agency and private
6entity and completion of the civic build, beginning on July 1,
72023, of the remainder of the moneys received by the
8Department under the Use Tax Act, the Service Use Tax Act, the
9Service Occupation Tax Act, and this Act, the Department shall
10deposit the following specified deposits in the aggregate from
11collections under the Use Tax Act, the Service Use Tax Act, the
12Service Occupation Tax Act, and the Retailers' Occupation Tax
13Act, as required under Section 8.25g of the State Finance Act
14for distribution consistent with the Public-Private
15Partnership for Civic and Transit Infrastructure Project Act.
16The moneys received by the Department pursuant to this Act and
17required to be deposited into the Civic and Transit
18Infrastructure Fund are subject to the pledge, claim, and
19charge set forth in Section 25-55 of the Public-Private
20Partnership for Civic and Transit Infrastructure Project Act.
21As used in this paragraph, "civic build", "private entity",
22"public-private agreement", and "public agency" have the
23meanings provided in Section 25-10 of the Public-Private
24Partnership for Civic and Transit Infrastructure Project Act.
25        Fiscal Year............................Total Deposit
26        2024....................................$200,000,000

 

 

HB4161- 33 -LRB103 34685 AWJ 64530 b

1        2025....................................$206,000,000
2        2026....................................$212,200,000
3        2027....................................$218,500,000
4        2028....................................$225,100,000
5        2029....................................$288,700,000
6        2030....................................$298,900,000
7        2031....................................$309,300,000
8        2032....................................$320,100,000
9        2033....................................$331,200,000
10        2034....................................$341,200,000
11        2035....................................$351,400,000
12        2036....................................$361,900,000
13        2037....................................$372,800,000
14        2038....................................$384,000,000
15        2039....................................$395,500,000
16        2040....................................$407,400,000
17        2041....................................$419,600,000
18        2042....................................$432,200,000
19        2043....................................$445,100,000
20    Beginning July 1, 2021 and until July 1, 2022, subject to
21the payment of amounts into the State and Local Sales Tax
22Reform Fund, the Build Illinois Fund, the McCormick Place
23Expansion Project Fund, the Illinois Tax Increment Fund, the
24Energy Infrastructure Fund, and the Tax Compliance and
25Administration Fund as provided in this Section, the
26Department shall pay each month into the Road Fund the amount

 

 

HB4161- 34 -LRB103 34685 AWJ 64530 b

1estimated to represent 16% of the net revenue realized from
2the taxes imposed on motor fuel and gasohol. Beginning July 1,
32022 and until July 1, 2023, subject to the payment of amounts
4into the State and Local Sales Tax Reform Fund, the Build
5Illinois Fund, the McCormick Place Expansion Project Fund, the
6Illinois Tax Increment Fund, the Energy Infrastructure Fund,
7and the Tax Compliance and Administration Fund as provided in
8this Section, the Department shall pay each month into the
9Road Fund the amount estimated to represent 32% of the net
10revenue realized from the taxes imposed on motor fuel and
11gasohol. Beginning July 1, 2023 and until July 1, 2024,
12subject to the payment of amounts into the State and Local
13Sales Tax Reform Fund, the Build Illinois Fund, the McCormick
14Place Expansion Project Fund, the Illinois Tax Increment Fund,
15the Energy Infrastructure Fund, and the Tax Compliance and
16Administration Fund as provided in this Section, the
17Department shall pay each month into the Road Fund the amount
18estimated to represent 48% of the net revenue realized from
19the taxes imposed on motor fuel and gasohol. Beginning July 1,
202024 and until July 1, 2025, subject to the payment of amounts
21into the State and Local Sales Tax Reform Fund, the Build
22Illinois Fund, the McCormick Place Expansion Project Fund, the
23Illinois Tax Increment Fund, the Energy Infrastructure Fund,
24and the Tax Compliance and Administration Fund as provided in
25this Section, the Department shall pay each month into the
26Road Fund the amount estimated to represent 64% of the net

 

 

HB4161- 35 -LRB103 34685 AWJ 64530 b

1revenue realized from the taxes imposed on motor fuel and
2gasohol. Beginning on July 1, 2025, subject to the payment of
3amounts into the State and Local Sales Tax Reform Fund, the
4Build Illinois Fund, the McCormick Place Expansion Project
5Fund, the Illinois Tax Increment Fund, the Energy
6Infrastructure Fund, and the Tax Compliance and Administration
7Fund as provided in this Section, the Department shall pay
8each month into the Road Fund the amount estimated to
9represent 80% of the net revenue realized from the taxes
10imposed on motor fuel and gasohol. As used in this paragraph
11"motor fuel" has the meaning given to that term in Section 1.1
12of the Motor Fuel Tax Law, and "gasohol" has the meaning given
13to that term in Section 3-40 of this Act.
14    Of the remainder of the moneys received by the Department
15pursuant to this Act, 75% thereof shall be paid into the State
16Treasury and 25% shall be reserved in a special account and
17used only for the transfer to the Common School Fund as part of
18the monthly transfer from the General Revenue Fund in
19accordance with Section 8a of the State Finance Act.
20    As soon as possible after the first day of each month, upon
21certification of the Department of Revenue, the Comptroller
22shall order transferred and the Treasurer shall transfer from
23the General Revenue Fund to the Motor Fuel Tax Fund an amount
24equal to 1.7% of 80% of the net revenue realized under this Act
25for the second preceding month. Beginning April 1, 2000, this
26transfer is no longer required and shall not be made.

 

 

HB4161- 36 -LRB103 34685 AWJ 64530 b

1    Net revenue realized for a month shall be the revenue
2collected by the State pursuant to this Act, less the amount
3paid out during that month as refunds to taxpayers for
4overpayment of liability.
5    For greater simplicity of administration, manufacturers,
6importers and wholesalers whose products are sold at retail in
7Illinois by numerous retailers, and who wish to do so, may
8assume the responsibility for accounting and paying to the
9Department all tax accruing under this Act with respect to
10such sales, if the retailers who are affected do not make
11written objection to the Department to this arrangement.
12(Source: P.A. 101-10, Article 15, Section 15-10, eff. 6-5-19;
13101-10, Article 25, Section 25-105, eff. 6-5-19; 101-27, eff.
146-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
15101-636, eff. 6-10-20; 102-700, Article 60, Section 60-15,
16eff. 4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22;
17102-1019, eff. 1-1-23; revised 12-13-22.)
 
18    Section 10. The Service Use Tax Act is amended by changing
19Section 9 as follows:
 
20    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
21    Sec. 9. Each serviceman required or authorized to collect
22the tax herein imposed shall pay to the Department the amount
23of such tax (except as otherwise provided) at the time when he
24is required to file his return for the period during which such

 

 

HB4161- 37 -LRB103 34685 AWJ 64530 b

1tax was collected, less a discount of 2.1% prior to January 1,
21990 and 1.75% on and after January 1, 1990, or $5 per calendar
3year, whichever is greater, which is allowed to reimburse the
4serviceman for expenses incurred in collecting the tax,
5keeping records, preparing and filing returns, remitting the
6tax and supplying data to the Department on request. When
7determining the discount allowed under this Section,
8servicemen shall include the amount of tax that would have
9been due at the 1% rate but for the 0% rate imposed under this
10amendatory Act of the 102nd General Assembly. The discount
11under this Section is not allowed for the 1.25% portion of
12taxes paid on aviation fuel that is subject to the revenue use
13requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
14discount allowed under this Section is allowed only for
15returns that are filed in the manner required by this Act. The
16Department may disallow the discount for servicemen whose
17certificate of registration is revoked at the time the return
18is filed, but only if the Department's decision to revoke the
19certificate of registration has become final. A serviceman
20need not remit that part of any tax collected by him to the
21extent that he is required to pay and does pay the tax imposed
22by the Service Occupation Tax Act with respect to his sale of
23service involving the incidental transfer by him of the same
24property.
25    Except as provided hereinafter in this Section, on or
26before the twentieth day of each calendar month, such

 

 

HB4161- 38 -LRB103 34685 AWJ 64530 b

1serviceman shall file a return for the preceding calendar
2month in accordance with reasonable Rules and Regulations to
3be promulgated by the Department. Such return shall be filed
4on a form prescribed by the Department and shall contain such
5information as the Department may reasonably require. The
6return shall include the gross receipts which were received
7during the preceding calendar month or quarter on the
8following items upon which tax would have been due but for the
90% rate imposed under this amendatory Act of the 102nd General
10Assembly: (i) food for human consumption that is to be
11consumed off the premises where it is sold (other than
12alcoholic beverages, food consisting of or infused with adult
13use cannabis, soft drinks, and food that has been prepared for
14immediate consumption); and (ii) food prepared for immediate
15consumption and transferred incident to a sale of service
16subject to this Act or the Service Occupation Tax Act by an
17entity licensed under the Hospital Licensing Act, the Nursing
18Home Care Act, the Assisted Living and Shared Housing Act, the
19ID/DD Community Care Act, the MC/DD Act, the Specialized
20Mental Health Rehabilitation Act of 2013, or the Child Care
21Act of 1969, or an entity that holds a permit issued pursuant
22to the Life Care Facilities Act. The return shall also include
23the amount of tax that would have been due on the items listed
24in the previous sentence but for the 0% rate imposed under this
25amendatory Act of the 102nd General Assembly.
26    On and after January 1, 2018, with respect to servicemen

 

 

HB4161- 39 -LRB103 34685 AWJ 64530 b

1whose annual gross receipts average $20,000 or more, all
2returns required to be filed pursuant to this Act shall be
3filed electronically. Servicemen who demonstrate that they do
4not have access to the Internet or demonstrate hardship in
5filing electronically may petition the Department to waive the
6electronic filing requirement.
7    The Department may require returns to be filed on a
8quarterly basis. If so required, a return for each calendar
9quarter shall be filed on or before the twentieth day of the
10calendar month following the end of such calendar quarter. The
11taxpayer shall also file a return with the Department for each
12of the first two months of each calendar quarter, on or before
13the twentieth day of the following calendar month, stating:
14        1. The name of the seller;
15        2. The address of the principal place of business from
16    which he engages in business as a serviceman in this
17    State;
18        3. The total amount of taxable receipts received by
19    him during the preceding calendar month, including
20    receipts from charge and time sales, but less all
21    deductions allowed by law;
22        4. The amount of credit provided in Section 2d of this
23    Act;
24        5. The amount of tax due;
25        5-5. The signature of the taxpayer; and
26        6. Such other reasonable information as the Department

 

 

HB4161- 40 -LRB103 34685 AWJ 64530 b

1    may require.
2    Each serviceman required or authorized to collect the tax
3imposed by this Act on aviation fuel transferred as an
4incident of a sale of service in this State during the
5preceding calendar month shall, instead of reporting and
6paying tax on aviation fuel as otherwise required by this
7Section, report and pay such tax on a separate aviation fuel
8tax return. The requirements related to the return shall be as
9otherwise provided in this Section. Notwithstanding any other
10provisions of this Act to the contrary, servicemen collecting
11tax on aviation fuel shall file all aviation fuel tax returns
12and shall make all aviation fuel tax payments by electronic
13means in the manner and form required by the Department. For
14purposes of this Section, "aviation fuel" means jet fuel and
15aviation gasoline.
16    If a taxpayer fails to sign a return within 30 days after
17the proper notice and demand for signature by the Department,
18the return shall be considered valid and any amount shown to be
19due on the return shall be deemed assessed.
20    Notwithstanding any other provision of this Act to the
21contrary, servicemen subject to tax on cannabis shall file all
22cannabis tax returns and shall make all cannabis tax payments
23by electronic means in the manner and form required by the
24Department.
25    Notwithstanding any other provision of this Act to the
26contrary, servicemen subject to a cannabinoid retail tax under

 

 

HB4161- 41 -LRB103 34685 AWJ 64530 b

1the Hemp Act shall file all cannabinoid retail tax returns and
2shall make all cannabinoid retail tax payments by electronic
3means in the manner and form required by the Department.
4    Beginning October 1, 1993, a taxpayer who has an average
5monthly tax liability of $150,000 or more shall make all
6payments required by rules of the Department by electronic
7funds transfer. Beginning October 1, 1994, a taxpayer who has
8an average monthly tax liability of $100,000 or more shall
9make all payments required by rules of the Department by
10electronic funds transfer. Beginning October 1, 1995, a
11taxpayer who has an average monthly tax liability of $50,000
12or more shall make all payments required by rules of the
13Department by electronic funds transfer. Beginning October 1,
142000, a taxpayer who has an annual tax liability of $200,000 or
15more shall make all payments required by rules of the
16Department by electronic funds transfer. The term "annual tax
17liability" shall be the sum of the taxpayer's liabilities
18under this Act, and under all other State and local occupation
19and use tax laws administered by the Department, for the
20immediately preceding calendar year. The term "average monthly
21tax liability" means the sum of the taxpayer's liabilities
22under this Act, and under all other State and local occupation
23and use tax laws administered by the Department, for the
24immediately preceding calendar year divided by 12. Beginning
25on October 1, 2002, a taxpayer who has a tax liability in the
26amount set forth in subsection (b) of Section 2505-210 of the

 

 

HB4161- 42 -LRB103 34685 AWJ 64530 b

1Department of Revenue Law shall make all payments required by
2rules of the Department by electronic funds transfer.
3    Before August 1 of each year beginning in 1993, the
4Department shall notify all taxpayers required to make
5payments by electronic funds transfer. All taxpayers required
6to make payments by electronic funds transfer shall make those
7payments for a minimum of one year beginning on October 1.
8    Any taxpayer not required to make payments by electronic
9funds transfer may make payments by electronic funds transfer
10with the permission of the Department.
11    All taxpayers required to make payment by electronic funds
12transfer and any taxpayers authorized to voluntarily make
13payments by electronic funds transfer shall make those
14payments in the manner authorized by the Department.
15    The Department shall adopt such rules as are necessary to
16effectuate a program of electronic funds transfer and the
17requirements of this Section.
18    If the serviceman is otherwise required to file a monthly
19return and if the serviceman's average monthly tax liability
20to the Department does not exceed $200, the Department may
21authorize his returns to be filed on a quarter annual basis,
22with the return for January, February and March of a given year
23being due by April 20 of such year; with the return for April,
24May and June of a given year being due by July 20 of such year;
25with the return for July, August and September of a given year
26being due by October 20 of such year, and with the return for

 

 

HB4161- 43 -LRB103 34685 AWJ 64530 b

1October, November and December of a given year being due by
2January 20 of the following year.
3    If the serviceman is otherwise required to file a monthly
4or quarterly return and if the serviceman's average monthly
5tax liability to the Department does not exceed $50, the
6Department may authorize his returns to be filed on an annual
7basis, with the return for a given year being due by January 20
8of the following year.
9    Such quarter annual and annual returns, as to form and
10substance, shall be subject to the same requirements as
11monthly returns.
12    Notwithstanding any other provision in this Act concerning
13the time within which a serviceman may file his return, in the
14case of any serviceman who ceases to engage in a kind of
15business which makes him responsible for filing returns under
16this Act, such serviceman shall file a final return under this
17Act with the Department not more than 1 month after
18discontinuing such business.
19    Where a serviceman collects the tax with respect to the
20selling price of property which he sells and the purchaser
21thereafter returns such property and the serviceman refunds
22the selling price thereof to the purchaser, such serviceman
23shall also refund, to the purchaser, the tax so collected from
24the purchaser. When filing his return for the period in which
25he refunds such tax to the purchaser, the serviceman may
26deduct the amount of the tax so refunded by him to the

 

 

HB4161- 44 -LRB103 34685 AWJ 64530 b

1purchaser from any other Service Use Tax, Service Occupation
2Tax, retailers' occupation tax or use tax which such
3serviceman may be required to pay or remit to the Department,
4as shown by such return, provided that the amount of the tax to
5be deducted shall previously have been remitted to the
6Department by such serviceman. If the serviceman shall not
7previously have remitted the amount of such tax to the
8Department, he shall be entitled to no deduction hereunder
9upon refunding such tax to the purchaser.
10    Any serviceman filing a return hereunder shall also
11include the total tax upon the selling price of tangible
12personal property purchased for use by him as an incident to a
13sale of service, and such serviceman shall remit the amount of
14such tax to the Department when filing such return.
15    If experience indicates such action to be practicable, the
16Department may prescribe and furnish a combination or joint
17return which will enable servicemen, who are required to file
18returns hereunder and also under the Service Occupation Tax
19Act, to furnish all the return information required by both
20Acts on the one form.
21    Where the serviceman has more than one business registered
22with the Department under separate registration hereunder,
23such serviceman shall not file each return that is due as a
24single return covering all such registered businesses, but
25shall file separate returns for each such registered business.
26    Beginning January 1, 1990, each month the Department shall

 

 

HB4161- 45 -LRB103 34685 AWJ 64530 b

1pay into the State and Local Tax Reform Fund, a special fund in
2the State Treasury, the net revenue realized for the preceding
3month from the 1% tax imposed under this Act.
4    Beginning January 1, 1990, each month the Department shall
5pay into the State and Local Sales Tax Reform Fund 20% of the
6net revenue realized for the preceding month from the 6.25%
7general rate on transfers of tangible personal property, other
8than (i) tangible personal property which is purchased outside
9Illinois at retail from a retailer and which is titled or
10registered by an agency of this State's government and (ii)
11aviation fuel sold on or after December 1, 2019. This
12exception for aviation fuel only applies for so long as the
13revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1447133 are binding on the State.
15    For aviation fuel sold on or after December 1, 2019, each
16month the Department shall pay into the State Aviation Program
17Fund 20% of the net revenue realized for the preceding month
18from the 6.25% general rate on the selling price of aviation
19fuel, less an amount estimated by the Department to be
20required for refunds of the 20% portion of the tax on aviation
21fuel under this Act, which amount shall be deposited into the
22Aviation Fuel Sales Tax Refund Fund. The Department shall only
23pay moneys into the State Aviation Program Fund and the
24Aviation Fuel Sales Tax Refund Fund under this Act for so long
25as the revenue use requirements of 49 U.S.C. 47107(b) and 49
26U.S.C. 47133 are binding on the State.

 

 

HB4161- 46 -LRB103 34685 AWJ 64530 b

1    Beginning August 1, 2000, each month the Department shall
2pay into the State and Local Sales Tax Reform Fund 100% of the
3net revenue realized for the preceding month from the 1.25%
4rate on the selling price of motor fuel and gasohol.
5    Beginning October 1, 2009, each month the Department shall
6pay into the Capital Projects Fund an amount that is equal to
7an amount estimated by the Department to represent 80% of the
8net revenue realized for the preceding month from the sale of
9candy, grooming and hygiene products, and soft drinks that had
10been taxed at a rate of 1% prior to September 1, 2009 but that
11are now taxed at 6.25%.
12    Beginning July 1, 2013, each month the Department shall
13pay into the Underground Storage Tank Fund from the proceeds
14collected under this Act, the Use Tax Act, the Service
15Occupation Tax Act, and the Retailers' Occupation Tax Act an
16amount equal to the average monthly deficit in the Underground
17Storage Tank Fund during the prior year, as certified annually
18by the Illinois Environmental Protection Agency, but the total
19payment into the Underground Storage Tank Fund under this Act,
20the Use Tax Act, the Service Occupation Tax Act, and the
21Retailers' Occupation Tax Act shall not exceed $18,000,000 in
22any State fiscal year. As used in this paragraph, the "average
23monthly deficit" shall be equal to the difference between the
24average monthly claims for payment by the fund and the average
25monthly revenues deposited into the fund, excluding payments
26made pursuant to this paragraph.

 

 

HB4161- 47 -LRB103 34685 AWJ 64530 b

1    Beginning July 1, 2015, of the remainder of the moneys
2received by the Department under the Use Tax Act, this Act, the
3Service Occupation Tax Act, and the Retailers' Occupation Tax
4Act, each month the Department shall deposit $500,000 into the
5State Crime Laboratory Fund.
6    Of the remainder of the moneys received by the Department
7pursuant to this Act, (a) 1.75% thereof shall be paid into the
8Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
9and after July 1, 1989, 3.8% thereof shall be paid into the
10Build Illinois Fund; provided, however, that if in any fiscal
11year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
12may be, of the moneys received by the Department and required
13to be paid into the Build Illinois Fund pursuant to Section 3
14of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
15Act, Section 9 of the Service Use Tax Act, and Section 9 of the
16Service Occupation Tax Act, such Acts being hereinafter called
17the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
18may be, of moneys being hereinafter called the "Tax Act
19Amount", and (2) the amount transferred to the Build Illinois
20Fund from the State and Local Sales Tax Reform Fund shall be
21less than the Annual Specified Amount (as defined in Section 3
22of the Retailers' Occupation Tax Act), an amount equal to the
23difference shall be immediately paid into the Build Illinois
24Fund from other moneys received by the Department pursuant to
25the Tax Acts; and further provided, that if on the last
26business day of any month the sum of (1) the Tax Act Amount

 

 

HB4161- 48 -LRB103 34685 AWJ 64530 b

1required to be deposited into the Build Illinois Bond Account
2in the Build Illinois Fund during such month and (2) the amount
3transferred during such month to the Build Illinois Fund from
4the State and Local Sales Tax Reform Fund shall have been less
5than 1/12 of the Annual Specified Amount, an amount equal to
6the difference shall be immediately paid into the Build
7Illinois Fund from other moneys received by the Department
8pursuant to the Tax Acts; and, further provided, that in no
9event shall the payments required under the preceding proviso
10result in aggregate payments into the Build Illinois Fund
11pursuant to this clause (b) for any fiscal year in excess of
12the greater of (i) the Tax Act Amount or (ii) the Annual
13Specified Amount for such fiscal year; and, further provided,
14that the amounts payable into the Build Illinois Fund under
15this clause (b) shall be payable only until such time as the
16aggregate amount on deposit under each trust indenture
17securing Bonds issued and outstanding pursuant to the Build
18Illinois Bond Act is sufficient, taking into account any
19future investment income, to fully provide, in accordance with
20such indenture, for the defeasance of or the payment of the
21principal of, premium, if any, and interest on the Bonds
22secured by such indenture and on any Bonds expected to be
23issued thereafter and all fees and costs payable with respect
24thereto, all as certified by the Director of the Bureau of the
25Budget (now Governor's Office of Management and Budget). If on
26the last business day of any month in which Bonds are

 

 

HB4161- 49 -LRB103 34685 AWJ 64530 b

1outstanding pursuant to the Build Illinois Bond Act, the
2aggregate of the moneys deposited in the Build Illinois Bond
3Account in the Build Illinois Fund in such month shall be less
4than the amount required to be transferred in such month from
5the Build Illinois Bond Account to the Build Illinois Bond
6Retirement and Interest Fund pursuant to Section 13 of the
7Build Illinois Bond Act, an amount equal to such deficiency
8shall be immediately paid from other moneys received by the
9Department pursuant to the Tax Acts to the Build Illinois
10Fund; provided, however, that any amounts paid to the Build
11Illinois Fund in any fiscal year pursuant to this sentence
12shall be deemed to constitute payments pursuant to clause (b)
13of the preceding sentence and shall reduce the amount
14otherwise payable for such fiscal year pursuant to clause (b)
15of the preceding sentence. The moneys received by the
16Department pursuant to this Act and required to be deposited
17into the Build Illinois Fund are subject to the pledge, claim
18and charge set forth in Section 12 of the Build Illinois Bond
19Act.
20    Subject to payment of amounts into the Build Illinois Fund
21as provided in the preceding paragraph or in any amendment
22thereto hereafter enacted, the following specified monthly
23installment of the amount requested in the certificate of the
24Chairman of the Metropolitan Pier and Exposition Authority
25provided under Section 8.25f of the State Finance Act, but not
26in excess of the sums designated as "Total Deposit", shall be

 

 

HB4161- 50 -LRB103 34685 AWJ 64530 b

1deposited in the aggregate from collections under Section 9 of
2the Use Tax Act, Section 9 of the Service Use Tax Act, Section
39 of the Service Occupation Tax Act, and Section 3 of the
4Retailers' Occupation Tax Act into the McCormick Place
5Expansion Project Fund in the specified fiscal years.
 
6Fiscal YearTotal Deposit
71993         $0
81994 53,000,000
91995 58,000,000
101996 61,000,000
111997 64,000,000
121998 68,000,000
131999 71,000,000
142000 75,000,000
152001 80,000,000
162002 93,000,000
172003 99,000,000
182004103,000,000
192005108,000,000
202006113,000,000
212007119,000,000
222008126,000,000
232009132,000,000
242010139,000,000
252011146,000,000

 

 

HB4161- 51 -LRB103 34685 AWJ 64530 b

12012153,000,000
22013161,000,000
32014170,000,000
42015179,000,000
52016189,000,000
62017199,000,000
72018210,000,000
82019221,000,000
92020233,000,000
102021300,000,000
112022300,000,000
122023300,000,000
132024 300,000,000
142025 300,000,000
152026 300,000,000
162027 375,000,000
172028 375,000,000
182029 375,000,000
192030 375,000,000
202031 375,000,000
212032 375,000,000
222033 375,000,000
232034375,000,000
242035375,000,000
252036450,000,000
26and

 

 

HB4161- 52 -LRB103 34685 AWJ 64530 b

1each fiscal year
2thereafter that bonds
3are outstanding under
4Section 13.2 of the
5Metropolitan Pier and
6Exposition Authority Act,
7but not after fiscal year 2060.
8    Beginning July 20, 1993 and in each month of each fiscal
9year thereafter, one-eighth of the amount requested in the
10certificate of the Chairman of the Metropolitan Pier and
11Exposition Authority for that fiscal year, less the amount
12deposited into the McCormick Place Expansion Project Fund by
13the State Treasurer in the respective month under subsection
14(g) of Section 13 of the Metropolitan Pier and Exposition
15Authority Act, plus cumulative deficiencies in the deposits
16required under this Section for previous months and years,
17shall be deposited into the McCormick Place Expansion Project
18Fund, until the full amount requested for the fiscal year, but
19not in excess of the amount specified above as "Total
20Deposit", has been deposited.
21    Subject to payment of amounts into the Capital Projects
22Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
23and the McCormick Place Expansion Project Fund pursuant to the
24preceding paragraphs or in any amendments thereto hereafter
25enacted, for aviation fuel sold on or after December 1, 2019,
26the Department shall each month deposit into the Aviation Fuel

 

 

HB4161- 53 -LRB103 34685 AWJ 64530 b

1Sales Tax Refund Fund an amount estimated by the Department to
2be required for refunds of the 80% portion of the tax on
3aviation fuel under this Act. The Department shall only
4deposit moneys into the Aviation Fuel Sales Tax Refund Fund
5under this paragraph for so long as the revenue use
6requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
7binding on the State.
8    Subject to payment of amounts into the Build Illinois Fund
9and the McCormick Place Expansion Project Fund pursuant to the
10preceding paragraphs or in any amendments thereto hereafter
11enacted, beginning July 1, 1993 and ending on September 30,
122013, the Department shall each month pay into the Illinois
13Tax Increment Fund 0.27% of 80% of the net revenue realized for
14the preceding month from the 6.25% general rate on the selling
15price of tangible personal property.
16    Subject to payment of amounts into the Build Illinois Fund
17and the McCormick Place Expansion Project Fund pursuant to the
18preceding paragraphs or in any amendments thereto hereafter
19enacted, beginning with the receipt of the first report of
20taxes paid by an eligible business and continuing for a
2125-year period, the Department shall each month pay into the
22Energy Infrastructure Fund 80% of the net revenue realized
23from the 6.25% general rate on the selling price of
24Illinois-mined coal that was sold to an eligible business. For
25purposes of this paragraph, the term "eligible business" means
26a new electric generating facility certified pursuant to

 

 

HB4161- 54 -LRB103 34685 AWJ 64530 b

1Section 605-332 of the Department of Commerce and Economic
2Opportunity Law of the Civil Administrative Code of Illinois.
3    Subject to payment of amounts into the Build Illinois
4Fund, the McCormick Place Expansion Project Fund, the Illinois
5Tax Increment Fund, and the Energy Infrastructure Fund
6pursuant to the preceding paragraphs or in any amendments to
7this Section hereafter enacted, beginning on the first day of
8the first calendar month to occur on or after August 26, 2014
9(the effective date of Public Act 98-1098), each month, from
10the collections made under Section 9 of the Use Tax Act,
11Section 9 of the Service Use Tax Act, Section 9 of the Service
12Occupation Tax Act, and Section 3 of the Retailers' Occupation
13Tax Act, the Department shall pay into the Tax Compliance and
14Administration Fund, to be used, subject to appropriation, to
15fund additional auditors and compliance personnel at the
16Department of Revenue, an amount equal to 1/12 of 5% of 80% of
17the cash receipts collected during the preceding fiscal year
18by the Audit Bureau of the Department under the Use Tax Act,
19the Service Use Tax Act, the Service Occupation Tax Act, the
20Retailers' Occupation Tax Act, and associated local occupation
21and use taxes administered by the Department.
22    Subject to payments of amounts into the Build Illinois
23Fund, the McCormick Place Expansion Project Fund, the Illinois
24Tax Increment Fund, the Energy Infrastructure Fund, and the
25Tax Compliance and Administration Fund as provided in this
26Section, beginning on July 1, 2018 the Department shall pay

 

 

HB4161- 55 -LRB103 34685 AWJ 64530 b

1each month into the Downstate Public Transportation Fund the
2moneys required to be so paid under Section 2-3 of the
3Downstate Public Transportation Act.
4    Subject to successful execution and delivery of a
5public-private agreement between the public agency and private
6entity and completion of the civic build, beginning on July 1,
72023, of the remainder of the moneys received by the
8Department under the Use Tax Act, the Service Use Tax Act, the
9Service Occupation Tax Act, and this Act, the Department shall
10deposit the following specified deposits in the aggregate from
11collections under the Use Tax Act, the Service Use Tax Act, the
12Service Occupation Tax Act, and the Retailers' Occupation Tax
13Act, as required under Section 8.25g of the State Finance Act
14for distribution consistent with the Public-Private
15Partnership for Civic and Transit Infrastructure Project Act.
16The moneys received by the Department pursuant to this Act and
17required to be deposited into the Civic and Transit
18Infrastructure Fund are subject to the pledge, claim, and
19charge set forth in Section 25-55 of the Public-Private
20Partnership for Civic and Transit Infrastructure Project Act.
21As used in this paragraph, "civic build", "private entity",
22"public-private agreement", and "public agency" have the
23meanings provided in Section 25-10 of the Public-Private
24Partnership for Civic and Transit Infrastructure Project Act.
25        Fiscal Year............................Total Deposit
26        2024....................................$200,000,000

 

 

HB4161- 56 -LRB103 34685 AWJ 64530 b

1        2025....................................$206,000,000
2        2026....................................$212,200,000
3        2027....................................$218,500,000
4        2028....................................$225,100,000
5        2029....................................$288,700,000
6        2030....................................$298,900,000
7        2031....................................$309,300,000
8        2032....................................$320,100,000
9        2033....................................$331,200,000
10        2034....................................$341,200,000
11        2035....................................$351,400,000
12        2036....................................$361,900,000
13        2037....................................$372,800,000
14        2038....................................$384,000,000
15        2039....................................$395,500,000
16        2040....................................$407,400,000
17        2041....................................$419,600,000
18        2042....................................$432,200,000
19        2043....................................$445,100,000
20    Beginning July 1, 2021 and until July 1, 2022, subject to
21the payment of amounts into the State and Local Sales Tax
22Reform Fund, the Build Illinois Fund, the McCormick Place
23Expansion Project Fund, the Illinois Tax Increment Fund, the
24Energy Infrastructure Fund, and the Tax Compliance and
25Administration Fund as provided in this Section, the
26Department shall pay each month into the Road Fund the amount

 

 

HB4161- 57 -LRB103 34685 AWJ 64530 b

1estimated to represent 16% of the net revenue realized from
2the taxes imposed on motor fuel and gasohol. Beginning July 1,
32022 and until July 1, 2023, subject to the payment of amounts
4into the State and Local Sales Tax Reform Fund, the Build
5Illinois Fund, the McCormick Place Expansion Project Fund, the
6Illinois Tax Increment Fund, the Energy Infrastructure Fund,
7and the Tax Compliance and Administration Fund as provided in
8this Section, the Department shall pay each month into the
9Road Fund the amount estimated to represent 32% of the net
10revenue realized from the taxes imposed on motor fuel and
11gasohol. Beginning July 1, 2023 and until July 1, 2024,
12subject to the payment of amounts into the State and Local
13Sales Tax Reform Fund, the Build Illinois Fund, the McCormick
14Place Expansion Project Fund, the Illinois Tax Increment Fund,
15the Energy Infrastructure Fund, and the Tax Compliance and
16Administration Fund as provided in this Section, the
17Department shall pay each month into the Road Fund the amount
18estimated to represent 48% of the net revenue realized from
19the taxes imposed on motor fuel and gasohol. Beginning July 1,
202024 and until July 1, 2025, subject to the payment of amounts
21into the State and Local Sales Tax Reform Fund, the Build
22Illinois Fund, the McCormick Place Expansion Project Fund, the
23Illinois Tax Increment Fund, the Energy Infrastructure Fund,
24and the Tax Compliance and Administration Fund as provided in
25this Section, the Department shall pay each month into the
26Road Fund the amount estimated to represent 64% of the net

 

 

HB4161- 58 -LRB103 34685 AWJ 64530 b

1revenue realized from the taxes imposed on motor fuel and
2gasohol. Beginning on July 1, 2025, subject to the payment of
3amounts into the State and Local Sales Tax Reform Fund, the
4Build Illinois Fund, the McCormick Place Expansion Project
5Fund, the Illinois Tax Increment Fund, the Energy
6Infrastructure Fund, and the Tax Compliance and Administration
7Fund as provided in this Section, the Department shall pay
8each month into the Road Fund the amount estimated to
9represent 80% of the net revenue realized from the taxes
10imposed on motor fuel and gasohol. As used in this paragraph
11"motor fuel" has the meaning given to that term in Section 1.1
12of the Motor Fuel Tax Law, and "gasohol" has the meaning given
13to that term in Section 3-40 of the Use Tax Act.
14    Of the remainder of the moneys received by the Department
15pursuant to this Act, 75% thereof shall be paid into the
16General Revenue Fund of the State Treasury and 25% shall be
17reserved in a special account and used only for the transfer to
18the Common School Fund as part of the monthly transfer from the
19General Revenue Fund in accordance with Section 8a of the
20State Finance Act.
21    As soon as possible after the first day of each month, upon
22certification of the Department of Revenue, the Comptroller
23shall order transferred and the Treasurer shall transfer from
24the General Revenue Fund to the Motor Fuel Tax Fund an amount
25equal to 1.7% of 80% of the net revenue realized under this Act
26for the second preceding month. Beginning April 1, 2000, this

 

 

HB4161- 59 -LRB103 34685 AWJ 64530 b

1transfer is no longer required and shall not be made.
2    Net revenue realized for a month shall be the revenue
3collected by the State pursuant to this Act, less the amount
4paid out during that month as refunds to taxpayers for
5overpayment of liability.
6(Source: P.A. 101-10, Article 15, Section 15-15, eff. 6-5-19;
7101-10, Article 25, Section 25-110, eff. 6-5-19; 101-27, eff.
86-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
9101-636, eff. 6-10-20; 102-700, eff. 4-19-22.)
 
10    Section 15. The Service Occupation Tax Act is amended by
11changing Section 9 as follows:
 
12    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
13    Sec. 9. Each serviceman required or authorized to collect
14the tax herein imposed shall pay to the Department the amount
15of such tax at the time when he is required to file his return
16for the period during which such tax was collectible, less a
17discount of 2.1% prior to January 1, 1990, and 1.75% on and
18after January 1, 1990, or $5 per calendar year, whichever is
19greater, which is allowed to reimburse the serviceman for
20expenses incurred in collecting the tax, keeping records,
21preparing and filing returns, remitting the tax and supplying
22data to the Department on request. When determining the
23discount allowed under this Section, servicemen shall include
24the amount of tax that would have been due at the 1% rate but

 

 

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1for the 0% rate imposed under this amendatory Act of the 102nd
2General Assembly. The discount under this Section is not
3allowed for the 1.25% portion of taxes paid on aviation fuel
4that is subject to the revenue use requirements of 49 U.S.C.
547107(b) and 49 U.S.C. 47133. The discount allowed under this
6Section is allowed only for returns that are filed in the
7manner required by this Act. The Department may disallow the
8discount for servicemen whose certificate of registration is
9revoked at the time the return is filed, but only if the
10Department's decision to revoke the certificate of
11registration has become final.
12    Where such tangible personal property is sold under a
13conditional sales contract, or under any other form of sale
14wherein the payment of the principal sum, or a part thereof, is
15extended beyond the close of the period for which the return is
16filed, the serviceman, in collecting the tax may collect, for
17each tax return period, only the tax applicable to the part of
18the selling price actually received during such tax return
19period.
20    Except as provided hereinafter in this Section, on or
21before the twentieth day of each calendar month, such
22serviceman shall file a return for the preceding calendar
23month in accordance with reasonable rules and regulations to
24be promulgated by the Department of Revenue. Such return shall
25be filed on a form prescribed by the Department and shall
26contain such information as the Department may reasonably

 

 

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1require. The return shall include the gross receipts which
2were received during the preceding calendar month or quarter
3on the following items upon which tax would have been due but
4for the 0% rate imposed under this amendatory Act of the 102nd
5General Assembly: (i) food for human consumption that is to be
6consumed off the premises where it is sold (other than
7alcoholic beverages, food consisting of or infused with adult
8use cannabis, soft drinks, and food that has been prepared for
9immediate consumption); and (ii) food prepared for immediate
10consumption and transferred incident to a sale of service
11subject to this Act or the Service Use Tax Act by an entity
12licensed under the Hospital Licensing Act, the Nursing Home
13Care Act, the Assisted Living and Shared Housing Act, the
14ID/DD Community Care Act, the MC/DD Act, the Specialized
15Mental Health Rehabilitation Act of 2013, or the Child Care
16Act of 1969, or an entity that holds a permit issued pursuant
17to the Life Care Facilities Act. The return shall also include
18the amount of tax that would have been due on the items listed
19in the previous sentence but for the 0% rate imposed under this
20amendatory Act of the 102nd General Assembly.
21    On and after January 1, 2018, with respect to servicemen
22whose annual gross receipts average $20,000 or more, all
23returns required to be filed pursuant to this Act shall be
24filed electronically. Servicemen who demonstrate that they do
25not have access to the Internet or demonstrate hardship in
26filing electronically may petition the Department to waive the

 

 

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1electronic filing requirement.
2    The Department may require returns to be filed on a
3quarterly basis. If so required, a return for each calendar
4quarter shall be filed on or before the twentieth day of the
5calendar month following the end of such calendar quarter. The
6taxpayer shall also file a return with the Department for each
7of the first two months of each calendar quarter, on or before
8the twentieth day of the following calendar month, stating:
9        1. The name of the seller;
10        2. The address of the principal place of business from
11    which he engages in business as a serviceman in this
12    State;
13        3. The total amount of taxable receipts received by
14    him during the preceding calendar month, including
15    receipts from charge and time sales, but less all
16    deductions allowed by law;
17        4. The amount of credit provided in Section 2d of this
18    Act;
19        5. The amount of tax due;
20        5-5. The signature of the taxpayer; and
21        6. Such other reasonable information as the Department
22    may require.
23    Each serviceman required or authorized to collect the tax
24herein imposed on aviation fuel acquired as an incident to the
25purchase of a service in this State during the preceding
26calendar month shall, instead of reporting and paying tax as

 

 

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1otherwise required by this Section, report and pay such tax on
2a separate aviation fuel tax return. The requirements related
3to the return shall be as otherwise provided in this Section.
4Notwithstanding any other provisions of this Act to the
5contrary, servicemen transferring aviation fuel incident to
6sales of service shall file all aviation fuel tax returns and
7shall make all aviation fuel tax payments by electronic means
8in the manner and form required by the Department. For
9purposes of this Section, "aviation fuel" means jet fuel and
10aviation gasoline.
11    If a taxpayer fails to sign a return within 30 days after
12the proper notice and demand for signature by the Department,
13the return shall be considered valid and any amount shown to be
14due on the return shall be deemed assessed.
15    Notwithstanding any other provision of this Act to the
16contrary, servicemen subject to tax on cannabis shall file all
17cannabis tax returns and shall make all cannabis tax payments
18by electronic means in the manner and form required by the
19Department.
20    Notwithstanding any other provision of this Act to the
21contrary, servicemen subject to a cannabinoid retail tax under
22the Hemp Act shall file all cannabinoid retail tax returns and
23shall make all cannabinoid retail tax payments by electronic
24means in the manner and form required by the Department.
25    Prior to October 1, 2003, and on and after September 1,
262004 a serviceman may accept a Manufacturer's Purchase Credit

 

 

HB4161- 64 -LRB103 34685 AWJ 64530 b

1certification from a purchaser in satisfaction of Service Use
2Tax as provided in Section 3-70 of the Service Use Tax Act if
3the purchaser provides the appropriate documentation as
4required by Section 3-70 of the Service Use Tax Act. A
5Manufacturer's Purchase Credit certification, accepted prior
6to October 1, 2003 or on or after September 1, 2004 by a
7serviceman as provided in Section 3-70 of the Service Use Tax
8Act, may be used by that serviceman to satisfy Service
9Occupation Tax liability in the amount claimed in the
10certification, not to exceed 6.25% of the receipts subject to
11tax from a qualifying purchase. A Manufacturer's Purchase
12Credit reported on any original or amended return filed under
13this Act after October 20, 2003 for reporting periods prior to
14September 1, 2004 shall be disallowed. Manufacturer's Purchase
15Credit reported on annual returns due on or after January 1,
162005 will be disallowed for periods prior to September 1,
172004. No Manufacturer's Purchase Credit may be used after
18September 30, 2003 through August 31, 2004 to satisfy any tax
19liability imposed under this Act, including any audit
20liability.
21    If the serviceman's average monthly tax liability to the
22Department does not exceed $200, the Department may authorize
23his returns to be filed on a quarter annual basis, with the
24return for January, February and March of a given year being
25due by April 20 of such year; with the return for April, May
26and June of a given year being due by July 20 of such year;

 

 

HB4161- 65 -LRB103 34685 AWJ 64530 b

1with the return for July, August and September of a given year
2being due by October 20 of such year, and with the return for
3October, November and December of a given year being due by
4January 20 of the following year.
5    If the serviceman's average monthly tax liability to the
6Department does not exceed $50, the Department may authorize
7his returns to be filed on an annual basis, with the return for
8a given year being due by January 20 of the following year.
9    Such quarter annual and annual returns, as to form and
10substance, shall be subject to the same requirements as
11monthly returns.
12    Notwithstanding any other provision in this Act concerning
13the time within which a serviceman may file his return, in the
14case of any serviceman who ceases to engage in a kind of
15business which makes him responsible for filing returns under
16this Act, such serviceman shall file a final return under this
17Act with the Department not more than 1 month after
18discontinuing such business.
19    Beginning October 1, 1993, a taxpayer who has an average
20monthly tax liability of $150,000 or more shall make all
21payments required by rules of the Department by electronic
22funds transfer. Beginning October 1, 1994, a taxpayer who has
23an average monthly tax liability of $100,000 or more shall
24make all payments required by rules of the Department by
25electronic funds transfer. Beginning October 1, 1995, a
26taxpayer who has an average monthly tax liability of $50,000

 

 

HB4161- 66 -LRB103 34685 AWJ 64530 b

1or more shall make all payments required by rules of the
2Department by electronic funds transfer. Beginning October 1,
32000, a taxpayer who has an annual tax liability of $200,000 or
4more shall make all payments required by rules of the
5Department by electronic funds transfer. The term "annual tax
6liability" shall be the sum of the taxpayer's liabilities
7under this Act, and under all other State and local occupation
8and use tax laws administered by the Department, for the
9immediately preceding calendar year. The term "average monthly
10tax liability" means the sum of the taxpayer's liabilities
11under this Act, and under all other State and local occupation
12and use tax laws administered by the Department, for the
13immediately preceding calendar year divided by 12. Beginning
14on October 1, 2002, a taxpayer who has a tax liability in the
15amount set forth in subsection (b) of Section 2505-210 of the
16Department of Revenue Law shall make all payments required by
17rules of the Department by electronic funds transfer.
18    Before August 1 of each year beginning in 1993, the
19Department shall notify all taxpayers required to make
20payments by electronic funds transfer. All taxpayers required
21to make payments by electronic funds transfer shall make those
22payments for a minimum of one year beginning on October 1.
23    Any taxpayer not required to make payments by electronic
24funds transfer may make payments by electronic funds transfer
25with the permission of the Department.
26    All taxpayers required to make payment by electronic funds

 

 

HB4161- 67 -LRB103 34685 AWJ 64530 b

1transfer and any taxpayers authorized to voluntarily make
2payments by electronic funds transfer shall make those
3payments in the manner authorized by the Department.
4    The Department shall adopt such rules as are necessary to
5effectuate a program of electronic funds transfer and the
6requirements of this Section.
7    Where a serviceman collects the tax with respect to the
8selling price of tangible personal property which he sells and
9the purchaser thereafter returns such tangible personal
10property and the serviceman refunds the selling price thereof
11to the purchaser, such serviceman shall also refund, to the
12purchaser, the tax so collected from the purchaser. When
13filing his return for the period in which he refunds such tax
14to the purchaser, the serviceman may deduct the amount of the
15tax so refunded by him to the purchaser from any other Service
16Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
17Use Tax which such serviceman may be required to pay or remit
18to the Department, as shown by such return, provided that the
19amount of the tax to be deducted shall previously have been
20remitted to the Department by such serviceman. If the
21serviceman shall not previously have remitted the amount of
22such tax to the Department, he shall be entitled to no
23deduction hereunder upon refunding such tax to the purchaser.
24    If experience indicates such action to be practicable, the
25Department may prescribe and furnish a combination or joint
26return which will enable servicemen, who are required to file

 

 

HB4161- 68 -LRB103 34685 AWJ 64530 b

1returns hereunder and also under the Retailers' Occupation Tax
2Act, the Use Tax Act or the Service Use Tax Act, to furnish all
3the return information required by all said Acts on the one
4form.
5    Where the serviceman has more than one business registered
6with the Department under separate registrations hereunder,
7such serviceman shall file separate returns for each
8registered business.
9    Beginning January 1, 1990, each month the Department shall
10pay into the Local Government Tax Fund the revenue realized
11for the preceding month from the 1% tax imposed under this Act.
12    Beginning January 1, 1990, each month the Department shall
13pay into the County and Mass Transit District Fund 4% of the
14revenue realized for the preceding month from the 6.25%
15general rate on sales of tangible personal property other than
16aviation fuel sold on or after December 1, 2019. This
17exception for aviation fuel only applies for so long as the
18revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1947133 are binding on the State.
20    Beginning August 1, 2000, each month the Department shall
21pay into the County and Mass Transit District Fund 20% of the
22net revenue realized for the preceding month from the 1.25%
23rate on the selling price of motor fuel and gasohol.
24    Beginning January 1, 1990, each month the Department shall
25pay into the Local Government Tax Fund 16% of the revenue
26realized for the preceding month from the 6.25% general rate

 

 

HB4161- 69 -LRB103 34685 AWJ 64530 b

1on transfers of tangible personal property other than aviation
2fuel sold on or after December 1, 2019. This exception for
3aviation fuel only applies for so long as the revenue use
4requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
5binding on the State.
6    For aviation fuel sold on or after December 1, 2019, each
7month the Department shall pay into the State Aviation Program
8Fund 20% of the net revenue realized for the preceding month
9from the 6.25% general rate on the selling price of aviation
10fuel, less an amount estimated by the Department to be
11required for refunds of the 20% portion of the tax on aviation
12fuel under this Act, which amount shall be deposited into the
13Aviation Fuel Sales Tax Refund Fund. The Department shall only
14pay moneys into the State Aviation Program Fund and the
15Aviation Fuel Sales Tax Refund Fund under this Act for so long
16as the revenue use requirements of 49 U.S.C. 47107(b) and 49
17U.S.C. 47133 are binding on the State.
18    Beginning August 1, 2000, each month the Department shall
19pay into the Local Government Tax Fund 80% of the net revenue
20realized for the preceding month from the 1.25% rate on the
21selling price of motor fuel and gasohol.
22    Beginning October 1, 2009, each month the Department shall
23pay into the Capital Projects Fund an amount that is equal to
24an amount estimated by the Department to represent 80% of the
25net revenue realized for the preceding month from the sale of
26candy, grooming and hygiene products, and soft drinks that had

 

 

HB4161- 70 -LRB103 34685 AWJ 64530 b

1been taxed at a rate of 1% prior to September 1, 2009 but that
2are now taxed at 6.25%.
3    Beginning July 1, 2013, each month the Department shall
4pay into the Underground Storage Tank Fund from the proceeds
5collected under this Act, the Use Tax Act, the Service Use Tax
6Act, and the Retailers' Occupation Tax Act an amount equal to
7the average monthly deficit in the Underground Storage Tank
8Fund during the prior year, as certified annually by the
9Illinois Environmental Protection Agency, but the total
10payment into the Underground Storage Tank Fund under this Act,
11the Use Tax Act, the Service Use Tax Act, and the Retailers'
12Occupation Tax Act shall not exceed $18,000,000 in any State
13fiscal year. As used in this paragraph, the "average monthly
14deficit" shall be equal to the difference between the average
15monthly claims for payment by the fund and the average monthly
16revenues deposited into the fund, excluding payments made
17pursuant to this paragraph.
18    Beginning July 1, 2015, of the remainder of the moneys
19received by the Department under the Use Tax Act, the Service
20Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
21each month the Department shall deposit $500,000 into the
22State Crime Laboratory Fund.
23    Of the remainder of the moneys received by the Department
24pursuant to this Act, (a) 1.75% thereof shall be paid into the
25Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
26and after July 1, 1989, 3.8% thereof shall be paid into the

 

 

HB4161- 71 -LRB103 34685 AWJ 64530 b

1Build Illinois Fund; provided, however, that if in any fiscal
2year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
3may be, of the moneys received by the Department and required
4to be paid into the Build Illinois Fund pursuant to Section 3
5of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
6Act, Section 9 of the Service Use Tax Act, and Section 9 of the
7Service Occupation Tax Act, such Acts being hereinafter called
8the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
9may be, of moneys being hereinafter called the "Tax Act
10Amount", and (2) the amount transferred to the Build Illinois
11Fund from the State and Local Sales Tax Reform Fund shall be
12less than the Annual Specified Amount (as defined in Section 3
13of the Retailers' Occupation Tax Act), an amount equal to the
14difference shall be immediately paid into the Build Illinois
15Fund from other moneys received by the Department pursuant to
16the Tax Acts; and further provided, that if on the last
17business day of any month the sum of (1) the Tax Act Amount
18required to be deposited into the Build Illinois Account in
19the Build Illinois Fund during such month and (2) the amount
20transferred during such month to the Build Illinois Fund from
21the State and Local Sales Tax Reform Fund shall have been less
22than 1/12 of the Annual Specified Amount, an amount equal to
23the difference shall be immediately paid into the Build
24Illinois Fund from other moneys received by the Department
25pursuant to the Tax Acts; and, further provided, that in no
26event shall the payments required under the preceding proviso

 

 

HB4161- 72 -LRB103 34685 AWJ 64530 b

1result in aggregate payments into the Build Illinois Fund
2pursuant to this clause (b) for any fiscal year in excess of
3the greater of (i) the Tax Act Amount or (ii) the Annual
4Specified Amount for such fiscal year; and, further provided,
5that the amounts payable into the Build Illinois Fund under
6this clause (b) shall be payable only until such time as the
7aggregate amount on deposit under each trust indenture
8securing Bonds issued and outstanding pursuant to the Build
9Illinois Bond Act is sufficient, taking into account any
10future investment income, to fully provide, in accordance with
11such indenture, for the defeasance of or the payment of the
12principal of, premium, if any, and interest on the Bonds
13secured by such indenture and on any Bonds expected to be
14issued thereafter and all fees and costs payable with respect
15thereto, all as certified by the Director of the Bureau of the
16Budget (now Governor's Office of Management and Budget). If on
17the last business day of any month in which Bonds are
18outstanding pursuant to the Build Illinois Bond Act, the
19aggregate of the moneys deposited in the Build Illinois Bond
20Account in the Build Illinois Fund in such month shall be less
21than the amount required to be transferred in such month from
22the Build Illinois Bond Account to the Build Illinois Bond
23Retirement and Interest Fund pursuant to Section 13 of the
24Build Illinois Bond Act, an amount equal to such deficiency
25shall be immediately paid from other moneys received by the
26Department pursuant to the Tax Acts to the Build Illinois

 

 

HB4161- 73 -LRB103 34685 AWJ 64530 b

1Fund; provided, however, that any amounts paid to the Build
2Illinois Fund in any fiscal year pursuant to this sentence
3shall be deemed to constitute payments pursuant to clause (b)
4of the preceding sentence and shall reduce the amount
5otherwise payable for such fiscal year pursuant to clause (b)
6of the preceding sentence. The moneys received by the
7Department pursuant to this Act and required to be deposited
8into the Build Illinois Fund are subject to the pledge, claim
9and charge set forth in Section 12 of the Build Illinois Bond
10Act.
11    Subject to payment of amounts into the Build Illinois Fund
12as provided in the preceding paragraph or in any amendment
13thereto hereafter enacted, the following specified monthly
14installment of the amount requested in the certificate of the
15Chairman of the Metropolitan Pier and Exposition Authority
16provided under Section 8.25f of the State Finance Act, but not
17in excess of the sums designated as "Total Deposit", shall be
18deposited in the aggregate from collections under Section 9 of
19the Use Tax Act, Section 9 of the Service Use Tax Act, Section
209 of the Service Occupation Tax Act, and Section 3 of the
21Retailers' Occupation Tax Act into the McCormick Place
22Expansion Project Fund in the specified fiscal years.
 
23Fiscal YearTotal Deposit
241993         $0
251994 53,000,000

 

 

HB4161- 74 -LRB103 34685 AWJ 64530 b

11995 58,000,000
21996 61,000,000
31997 64,000,000
41998 68,000,000
51999 71,000,000
62000 75,000,000
72001 80,000,000
82002 93,000,000
92003 99,000,000
102004103,000,000
112005108,000,000
122006113,000,000
132007119,000,000
142008126,000,000
152009132,000,000
162010139,000,000
172011146,000,000
182012153,000,000
192013161,000,000
202014170,000,000
212015179,000,000
222016189,000,000
232017199,000,000
242018210,000,000
252019221,000,000
262020233,000,000

 

 

HB4161- 75 -LRB103 34685 AWJ 64530 b

12021300,000,000
22022300,000,000
32023300,000,000
42024 300,000,000
52025 300,000,000
62026 300,000,000
72027 375,000,000
82028 375,000,000
92029 375,000,000
102030 375,000,000
112031 375,000,000
122032 375,000,000
132033 375,000,000
142034375,000,000
152035375,000,000
162036450,000,000
17and
18each fiscal year
19thereafter that bonds
20are outstanding under
21Section 13.2 of the
22Metropolitan Pier and
23Exposition Authority Act,
24but not after fiscal year 2060.
25    Beginning July 20, 1993 and in each month of each fiscal
26year thereafter, one-eighth of the amount requested in the

 

 

HB4161- 76 -LRB103 34685 AWJ 64530 b

1certificate of the Chairman of the Metropolitan Pier and
2Exposition Authority for that fiscal year, less the amount
3deposited into the McCormick Place Expansion Project Fund by
4the State Treasurer in the respective month under subsection
5(g) of Section 13 of the Metropolitan Pier and Exposition
6Authority Act, plus cumulative deficiencies in the deposits
7required under this Section for previous months and years,
8shall be deposited into the McCormick Place Expansion Project
9Fund, until the full amount requested for the fiscal year, but
10not in excess of the amount specified above as "Total
11Deposit", has been deposited.
12    Subject to payment of amounts into the Capital Projects
13Fund, the Build Illinois Fund, and the McCormick Place
14Expansion Project Fund pursuant to the preceding paragraphs or
15in any amendments thereto hereafter enacted, for aviation fuel
16sold on or after December 1, 2019, the Department shall each
17month deposit into the Aviation Fuel Sales Tax Refund Fund an
18amount estimated by the Department to be required for refunds
19of the 80% portion of the tax on aviation fuel under this Act.
20The Department shall only deposit moneys into the Aviation
21Fuel Sales Tax Refund Fund under this paragraph for so long as
22the revenue use requirements of 49 U.S.C. 47107(b) and 49
23U.S.C. 47133 are binding on the State.
24    Subject to payment of amounts into the Build Illinois Fund
25and the McCormick Place Expansion Project Fund pursuant to the
26preceding paragraphs or in any amendments thereto hereafter

 

 

HB4161- 77 -LRB103 34685 AWJ 64530 b

1enacted, beginning July 1, 1993 and ending on September 30,
22013, the Department shall each month pay into the Illinois
3Tax Increment Fund 0.27% of 80% of the net revenue realized for
4the preceding month from the 6.25% general rate on the selling
5price of tangible personal property.
6    Subject to payment of amounts into the Build Illinois Fund
7and the McCormick Place Expansion Project Fund pursuant to the
8preceding paragraphs or in any amendments thereto hereafter
9enacted, beginning with the receipt of the first report of
10taxes paid by an eligible business and continuing for a
1125-year period, the Department shall each month pay into the
12Energy Infrastructure Fund 80% of the net revenue realized
13from the 6.25% general rate on the selling price of
14Illinois-mined coal that was sold to an eligible business. For
15purposes of this paragraph, the term "eligible business" means
16a new electric generating facility certified pursuant to
17Section 605-332 of the Department of Commerce and Economic
18Opportunity Law of the Civil Administrative Code of Illinois.
19    Subject to payment of amounts into the Build Illinois
20Fund, the McCormick Place Expansion Project Fund, the Illinois
21Tax Increment Fund, and the Energy Infrastructure Fund
22pursuant to the preceding paragraphs or in any amendments to
23this Section hereafter enacted, beginning on the first day of
24the first calendar month to occur on or after August 26, 2014
25(the effective date of Public Act 98-1098), each month, from
26the collections made under Section 9 of the Use Tax Act,

 

 

HB4161- 78 -LRB103 34685 AWJ 64530 b

1Section 9 of the Service Use Tax Act, Section 9 of the Service
2Occupation Tax Act, and Section 3 of the Retailers' Occupation
3Tax Act, the Department shall pay into the Tax Compliance and
4Administration Fund, to be used, subject to appropriation, to
5fund additional auditors and compliance personnel at the
6Department of Revenue, an amount equal to 1/12 of 5% of 80% of
7the cash receipts collected during the preceding fiscal year
8by the Audit Bureau of the Department under the Use Tax Act,
9the Service Use Tax Act, the Service Occupation Tax Act, the
10Retailers' Occupation Tax Act, and associated local occupation
11and use taxes administered by the Department.
12    Subject to payments of amounts into the Build Illinois
13Fund, the McCormick Place Expansion Project Fund, the Illinois
14Tax Increment Fund, the Energy Infrastructure Fund, and the
15Tax Compliance and Administration Fund as provided in this
16Section, beginning on July 1, 2018 the Department shall pay
17each month into the Downstate Public Transportation Fund the
18moneys required to be so paid under Section 2-3 of the
19Downstate Public Transportation Act.
20    Subject to successful execution and delivery of a
21public-private agreement between the public agency and private
22entity and completion of the civic build, beginning on July 1,
232023, of the remainder of the moneys received by the
24Department under the Use Tax Act, the Service Use Tax Act, the
25Service Occupation Tax Act, and this Act, the Department shall
26deposit the following specified deposits in the aggregate from

 

 

HB4161- 79 -LRB103 34685 AWJ 64530 b

1collections under the Use Tax Act, the Service Use Tax Act, the
2Service Occupation Tax Act, and the Retailers' Occupation Tax
3Act, as required under Section 8.25g of the State Finance Act
4for distribution consistent with the Public-Private
5Partnership for Civic and Transit Infrastructure Project Act.
6The moneys received by the Department pursuant to this Act and
7required to be deposited into the Civic and Transit
8Infrastructure Fund are subject to the pledge, claim and
9charge set forth in Section 25-55 of the Public-Private
10Partnership for Civic and Transit Infrastructure Project Act.
11As used in this paragraph, "civic build", "private entity",
12"public-private agreement", and "public agency" have the
13meanings provided in Section 25-10 of the Public-Private
14Partnership for Civic and Transit Infrastructure Project Act.
15        Fiscal Year............................Total Deposit
16        2024....................................$200,000,000
17        2025....................................$206,000,000
18        2026....................................$212,200,000
19        2027....................................$218,500,000
20        2028....................................$225,100,000
21        2029....................................$288,700,000
22        2030....................................$298,900,000
23        2031....................................$309,300,000
24        2032....................................$320,100,000
25        2033....................................$331,200,000
26        2034....................................$341,200,000

 

 

HB4161- 80 -LRB103 34685 AWJ 64530 b

1        2035....................................$351,400,000
2        2036....................................$361,900,000
3        2037....................................$372,800,000
4        2038....................................$384,000,000
5        2039....................................$395,500,000
6        2040....................................$407,400,000
7        2041....................................$419,600,000
8        2042....................................$432,200,000
9        2043....................................$445,100,000
10    Beginning July 1, 2021 and until July 1, 2022, subject to
11the payment of amounts into the County and Mass Transit
12District Fund, the Local Government Tax Fund, the Build
13Illinois Fund, the McCormick Place Expansion Project Fund, the
14Illinois Tax Increment Fund, the Energy Infrastructure Fund,
15and the Tax Compliance and Administration Fund as provided in
16this Section, the Department shall pay each month into the
17Road Fund the amount estimated to represent 16% of the net
18revenue realized from the taxes imposed on motor fuel and
19gasohol. Beginning July 1, 2022 and until July 1, 2023,
20subject to the payment of amounts into the County and Mass
21Transit District Fund, the Local Government Tax Fund, the
22Build Illinois Fund, the McCormick Place Expansion Project
23Fund, the Illinois Tax Increment Fund, the Energy
24Infrastructure Fund, and the Tax Compliance and Administration
25Fund as provided in this Section, the Department shall pay
26each month into the Road Fund the amount estimated to

 

 

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1represent 32% of the net revenue realized from the taxes
2imposed on motor fuel and gasohol. Beginning July 1, 2023 and
3until July 1, 2024, subject to the payment of amounts into the
4County and Mass Transit District Fund, the Local Government
5Tax Fund, the Build Illinois Fund, the McCormick Place
6Expansion Project Fund, the Illinois Tax Increment Fund, the
7Energy Infrastructure Fund, and the Tax Compliance and
8Administration Fund as provided in this Section, the
9Department shall pay each month into the Road Fund the amount
10estimated to represent 48% of the net revenue realized from
11the taxes imposed on motor fuel and gasohol. Beginning July 1,
122024 and until July 1, 2025, subject to the payment of amounts
13into the County and Mass Transit District Fund, the Local
14Government Tax Fund, the Build Illinois Fund, the McCormick
15Place Expansion Project Fund, the Illinois Tax Increment Fund,
16the Energy Infrastructure Fund, and the Tax Compliance and
17Administration Fund as provided in this Section, the
18Department shall pay each month into the Road Fund the amount
19estimated to represent 64% of the net revenue realized from
20the taxes imposed on motor fuel and gasohol. Beginning on July
211, 2025, subject to the payment of amounts into the County and
22Mass Transit District Fund, the Local Government Tax Fund, the
23Build Illinois Fund, the McCormick Place Expansion Project
24Fund, the Illinois Tax Increment Fund, the Energy
25Infrastructure Fund, and the Tax Compliance and Administration
26Fund as provided in this Section, the Department shall pay

 

 

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1each month into the Road Fund the amount estimated to
2represent 80% of the net revenue realized from the taxes
3imposed on motor fuel and gasohol. As used in this paragraph
4"motor fuel" has the meaning given to that term in Section 1.1
5of the Motor Fuel Tax Law, and "gasohol" has the meaning given
6to that term in Section 3-40 of the Use Tax Act.
7    Of the remainder of the moneys received by the Department
8pursuant to this Act, 75% shall be paid into the General
9Revenue Fund of the State Treasury and 25% shall be reserved in
10a special account and used only for the transfer to the Common
11School Fund as part of the monthly transfer from the General
12Revenue Fund in accordance with Section 8a of the State
13Finance Act.
14    The Department may, upon separate written notice to a
15taxpayer, require the taxpayer to prepare and file with the
16Department on a form prescribed by the Department within not
17less than 60 days after receipt of the notice an annual
18information return for the tax year specified in the notice.
19Such annual return to the Department shall include a statement
20of gross receipts as shown by the taxpayer's last Federal
21income tax return. If the total receipts of the business as
22reported in the Federal income tax return do not agree with the
23gross receipts reported to the Department of Revenue for the
24same period, the taxpayer shall attach to his annual return a
25schedule showing a reconciliation of the 2 amounts and the
26reasons for the difference. The taxpayer's annual return to

 

 

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1the Department shall also disclose the cost of goods sold by
2the taxpayer during the year covered by such return, opening
3and closing inventories of such goods for such year, cost of
4goods used from stock or taken from stock and given away by the
5taxpayer during such year, pay roll information of the
6taxpayer's business during such year and any additional
7reasonable information which the Department deems would be
8helpful in determining the accuracy of the monthly, quarterly
9or annual returns filed by such taxpayer as hereinbefore
10provided for in this Section.
11    If the annual information return required by this Section
12is not filed when and as required, the taxpayer shall be liable
13as follows:
14        (i) Until January 1, 1994, the taxpayer shall be
15    liable for a penalty equal to 1/6 of 1% of the tax due from
16    such taxpayer under this Act during the period to be
17    covered by the annual return for each month or fraction of
18    a month until such return is filed as required, the
19    penalty to be assessed and collected in the same manner as
20    any other penalty provided for in this Act.
21        (ii) On and after January 1, 1994, the taxpayer shall
22    be liable for a penalty as described in Section 3-4 of the
23    Uniform Penalty and Interest Act.
24    The chief executive officer, proprietor, owner or highest
25ranking manager shall sign the annual return to certify the
26accuracy of the information contained therein. Any person who

 

 

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1willfully signs the annual return containing false or
2inaccurate information shall be guilty of perjury and punished
3accordingly. The annual return form prescribed by the
4Department shall include a warning that the person signing the
5return may be liable for perjury.
6    The foregoing portion of this Section concerning the
7filing of an annual information return shall not apply to a
8serviceman who is not required to file an income tax return
9with the United States Government.
10    As soon as possible after the first day of each month, upon
11certification of the Department of Revenue, the Comptroller
12shall order transferred and the Treasurer shall transfer from
13the General Revenue Fund to the Motor Fuel Tax Fund an amount
14equal to 1.7% of 80% of the net revenue realized under this Act
15for the second preceding month. Beginning April 1, 2000, this
16transfer is no longer required and shall not be made.
17    Net revenue realized for a month shall be the revenue
18collected by the State pursuant to this Act, less the amount
19paid out during that month as refunds to taxpayers for
20overpayment of liability.
21    For greater simplicity of administration, it shall be
22permissible for manufacturers, importers and wholesalers whose
23products are sold by numerous servicemen in Illinois, and who
24wish to do so, to assume the responsibility for accounting and
25paying to the Department all tax accruing under this Act with
26respect to such sales, if the servicemen who are affected do

 

 

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1not make written objection to the Department to this
2arrangement.
3(Source: P.A. 101-10, Article 15, Section 15-20, eff. 6-5-19;
4101-10, Article 25, Section 25-115, eff. 6-5-19; 101-27, eff.
56-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
6101-636, eff. 6-10-20; 102-700, eff. 4-19-22.)
 
7    Section 20. The Retailers' Occupation Tax Act is amended
8by changing Section 3 as follows:
 
9    (35 ILCS 120/3)  (from Ch. 120, par. 442)
10    Sec. 3. Except as provided in this Section, on or before
11the twentieth day of each calendar month, every person engaged
12in the business of selling tangible personal property at
13retail in this State during the preceding calendar month shall
14file a return with the Department, stating:
15        1. The name of the seller;
16        2. His residence address and the address of his
17    principal place of business and the address of the
18    principal place of business (if that is a different
19    address) from which he engages in the business of selling
20    tangible personal property at retail in this State;
21        3. Total amount of receipts received by him during the
22    preceding calendar month or quarter, as the case may be,
23    from sales of tangible personal property, and from
24    services furnished, by him during such preceding calendar

 

 

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1    month or quarter;
2        4. Total amount received by him during the preceding
3    calendar month or quarter on charge and time sales of
4    tangible personal property, and from services furnished,
5    by him prior to the month or quarter for which the return
6    is filed;
7        5. Deductions allowed by law;
8        6. Gross receipts which were received by him during
9    the preceding calendar month or quarter and upon the basis
10    of which the tax is imposed, including gross receipts on
11    food for human consumption that is to be consumed off the
12    premises where it is sold (other than alcoholic beverages,
13    food consisting of or infused with adult use cannabis,
14    soft drinks, and food that has been prepared for immediate
15    consumption) which were received during the preceding
16    calendar month or quarter and upon which tax would have
17    been due but for the 0% rate imposed under Public Act
18    102-700 this amendatory Act of the 102nd General Assembly;
19        7. The amount of credit provided in Section 2d of this
20    Act;
21        8. The amount of tax due, including the amount of tax
22    that would have been due on food for human consumption
23    that is to be consumed off the premises where it is sold
24    (other than alcoholic beverages, food consisting of or
25    infused with adult use cannabis, soft drinks, and food
26    that has been prepared for immediate consumption) but for

 

 

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1    the 0% rate imposed under Public Act 102-700 this
2    amendatory Act of the 102nd General Assembly;
3        9. The signature of the taxpayer; and
4        10. Such other reasonable information as the
5    Department may require.
6    On and after January 1, 2018, except for returns required
7to be filed prior to January 1, 2023 for motor vehicles,
8watercraft, aircraft, and trailers that are required to be
9registered with an agency of this State, with respect to
10retailers whose annual gross receipts average $20,000 or more,
11all returns required to be filed pursuant to this Act shall be
12filed electronically. On and after January 1, 2023, with
13respect to retailers whose annual gross receipts average
14$20,000 or more, all returns required to be filed pursuant to
15this Act, including, but not limited to, returns for motor
16vehicles, watercraft, aircraft, and trailers that are required
17to be registered with an agency of this State, shall be filed
18electronically. Retailers who demonstrate that they do not
19have access to the Internet or demonstrate hardship in filing
20electronically may petition the Department to waive the
21electronic filing requirement.
22    If a taxpayer fails to sign a return within 30 days after
23the proper notice and demand for signature by the Department,
24the return shall be considered valid and any amount shown to be
25due on the return shall be deemed assessed.
26    Each return shall be accompanied by the statement of

 

 

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1prepaid tax issued pursuant to Section 2e for which credit is
2claimed.
3    Prior to October 1, 2003, and on and after September 1,
42004 a retailer may accept a Manufacturer's Purchase Credit
5certification from a purchaser in satisfaction of Use Tax as
6provided in Section 3-85 of the Use Tax Act if the purchaser
7provides the appropriate documentation as required by Section
83-85 of the Use Tax Act. A Manufacturer's Purchase Credit
9certification, accepted by a retailer prior to October 1, 2003
10and on and after September 1, 2004 as provided in Section 3-85
11of the Use Tax Act, may be used by that retailer to satisfy
12Retailers' Occupation Tax liability in the amount claimed in
13the certification, not to exceed 6.25% of the receipts subject
14to tax from a qualifying purchase. A Manufacturer's Purchase
15Credit reported on any original or amended return filed under
16this Act after October 20, 2003 for reporting periods prior to
17September 1, 2004 shall be disallowed. Manufacturer's Purchase
18Credit reported on annual returns due on or after January 1,
192005 will be disallowed for periods prior to September 1,
202004. No Manufacturer's Purchase Credit may be used after
21September 30, 2003 through August 31, 2004 to satisfy any tax
22liability imposed under this Act, including any audit
23liability.
24    The Department may require returns to be filed on a
25quarterly basis. If so required, a return for each calendar
26quarter shall be filed on or before the twentieth day of the

 

 

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1calendar month following the end of such calendar quarter. The
2taxpayer shall also file a return with the Department for each
3of the first two months of each calendar quarter, on or before
4the twentieth day of the following calendar month, stating:
5        1. The name of the seller;
6        2. The address of the principal place of business from
7    which he engages in the business of selling tangible
8    personal property at retail in this State;
9        3. The total amount of taxable receipts received by
10    him during the preceding calendar month from sales of
11    tangible personal property by him during such preceding
12    calendar month, including receipts from charge and time
13    sales, but less all deductions allowed by law;
14        4. The amount of credit provided in Section 2d of this
15    Act;
16        5. The amount of tax due; and
17        6. Such other reasonable information as the Department
18    may require.
19    Every person engaged in the business of selling aviation
20fuel at retail in this State during the preceding calendar
21month shall, instead of reporting and paying tax as otherwise
22required by this Section, report and pay such tax on a separate
23aviation fuel tax return. The requirements related to the
24return shall be as otherwise provided in this Section.
25Notwithstanding any other provisions of this Act to the
26contrary, retailers selling aviation fuel shall file all

 

 

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1aviation fuel tax returns and shall make all aviation fuel tax
2payments by electronic means in the manner and form required
3by the Department. For purposes of this Section, "aviation
4fuel" means jet fuel and aviation gasoline.
5    Beginning on October 1, 2003, any person who is not a
6licensed distributor, importing distributor, or manufacturer,
7as defined in the Liquor Control Act of 1934, but is engaged in
8the business of selling, at retail, alcoholic liquor shall
9file a statement with the Department of Revenue, in a format
10and at a time prescribed by the Department, showing the total
11amount paid for alcoholic liquor purchased during the
12preceding month and such other information as is reasonably
13required by the Department. The Department may adopt rules to
14require that this statement be filed in an electronic or
15telephonic format. Such rules may provide for exceptions from
16the filing requirements of this paragraph. For the purposes of
17this paragraph, the term "alcoholic liquor" shall have the
18meaning prescribed in the Liquor Control Act of 1934.
19    Beginning on October 1, 2003, every distributor, importing
20distributor, and manufacturer of alcoholic liquor as defined
21in the Liquor Control Act of 1934, shall file a statement with
22the Department of Revenue, no later than the 10th day of the
23month for the preceding month during which transactions
24occurred, by electronic means, showing the total amount of
25gross receipts from the sale of alcoholic liquor sold or
26distributed during the preceding month to purchasers;

 

 

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1identifying the purchaser to whom it was sold or distributed;
2the purchaser's tax registration number; and such other
3information reasonably required by the Department. A
4distributor, importing distributor, or manufacturer of
5alcoholic liquor must personally deliver, mail, or provide by
6electronic means to each retailer listed on the monthly
7statement a report containing a cumulative total of that
8distributor's, importing distributor's, or manufacturer's
9total sales of alcoholic liquor to that retailer no later than
10the 10th day of the month for the preceding month during which
11the transaction occurred. The distributor, importing
12distributor, or manufacturer shall notify the retailer as to
13the method by which the distributor, importing distributor, or
14manufacturer will provide the sales information. If the
15retailer is unable to receive the sales information by
16electronic means, the distributor, importing distributor, or
17manufacturer shall furnish the sales information by personal
18delivery or by mail. For purposes of this paragraph, the term
19"electronic means" includes, but is not limited to, the use of
20a secure Internet website, e-mail, or facsimile.
21    If a total amount of less than $1 is payable, refundable or
22creditable, such amount shall be disregarded if it is less
23than 50 cents and shall be increased to $1 if it is 50 cents or
24more.
25    Notwithstanding any other provision of this Act to the
26contrary, retailers subject to tax on cannabis shall file all

 

 

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1cannabis tax returns and shall make all cannabis tax payments
2by electronic means in the manner and form required by the
3Department.
4    Notwithstanding any other provision of this Act to the
5contrary, retailers subject to a cannabinoid retail tax under
6the Hemp Act shall file all cannabinoid retail tax returns and
7shall make all cannabinoid retail tax payments by electronic
8means in the manner and form required by the Department.
9    Beginning October 1, 1993, a taxpayer who has an average
10monthly tax liability of $150,000 or more shall make all
11payments required by rules of the Department by electronic
12funds transfer. Beginning October 1, 1994, a taxpayer who has
13an average monthly tax liability of $100,000 or more shall
14make all payments required by rules of the Department by
15electronic funds transfer. Beginning October 1, 1995, a
16taxpayer who has an average monthly tax liability of $50,000
17or more shall make all payments required by rules of the
18Department by electronic funds transfer. Beginning October 1,
192000, a taxpayer who has an annual tax liability of $200,000 or
20more shall make all payments required by rules of the
21Department by electronic funds transfer. The term "annual tax
22liability" shall be the sum of the taxpayer's liabilities
23under this Act, and under all other State and local occupation
24and use tax laws administered by the Department, for the
25immediately preceding calendar year. The term "average monthly
26tax liability" shall be the sum of the taxpayer's liabilities

 

 

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1under this Act, and under all other State and local occupation
2and use tax laws administered by the Department, for the
3immediately preceding calendar year divided by 12. Beginning
4on October 1, 2002, a taxpayer who has a tax liability in the
5amount set forth in subsection (b) of Section 2505-210 of the
6Department of Revenue Law shall make all payments required by
7rules of the Department by electronic funds transfer.
8    Before August 1 of each year beginning in 1993, the
9Department shall notify all taxpayers required to make
10payments by electronic funds transfer. All taxpayers required
11to make payments by electronic funds transfer shall make those
12payments for a minimum of one year beginning on October 1.
13    Any taxpayer not required to make payments by electronic
14funds transfer may make payments by electronic funds transfer
15with the permission of the Department.
16    All taxpayers required to make payment by electronic funds
17transfer and any taxpayers authorized to voluntarily make
18payments by electronic funds transfer shall make those
19payments in the manner authorized by the Department.
20    The Department shall adopt such rules as are necessary to
21effectuate a program of electronic funds transfer and the
22requirements of this Section.
23    Any amount which is required to be shown or reported on any
24return or other document under this Act shall, if such amount
25is not a whole-dollar amount, be increased to the nearest
26whole-dollar amount in any case where the fractional part of a

 

 

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1dollar is 50 cents or more, and decreased to the nearest
2whole-dollar amount where the fractional part of a dollar is
3less than 50 cents.
4    If the retailer is otherwise required to file a monthly
5return and if the retailer's average monthly tax liability to
6the Department does not exceed $200, the Department may
7authorize his returns to be filed on a quarter annual basis,
8with the return for January, February and March of a given year
9being due by April 20 of such year; with the return for April,
10May and June of a given year being due by July 20 of such year;
11with the return for July, August and September of a given year
12being due by October 20 of such year, and with the return for
13October, November and December of a given year being due by
14January 20 of the following year.
15    If the retailer is otherwise required to file a monthly or
16quarterly return and if the retailer's average monthly tax
17liability with the Department does not exceed $50, the
18Department may authorize his returns to be filed on an annual
19basis, with the return for a given year being due by January 20
20of the following year.
21    Such quarter annual and annual returns, as to form and
22substance, shall be subject to the same requirements as
23monthly returns.
24    Notwithstanding any other provision in this Act concerning
25the time within which a retailer may file his return, in the
26case of any retailer who ceases to engage in a kind of business

 

 

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1which makes him responsible for filing returns under this Act,
2such retailer shall file a final return under this Act with the
3Department not more than one month after discontinuing such
4business.
5    Where the same person has more than one business
6registered with the Department under separate registrations
7under this Act, such person may not file each return that is
8due as a single return covering all such registered
9businesses, but shall file separate returns for each such
10registered business.
11    In addition, with respect to motor vehicles, watercraft,
12aircraft, and trailers that are required to be registered with
13an agency of this State, except as otherwise provided in this
14Section, every retailer selling this kind of tangible personal
15property shall file, with the Department, upon a form to be
16prescribed and supplied by the Department, a separate return
17for each such item of tangible personal property which the
18retailer sells, except that if, in the same transaction, (i) a
19retailer of aircraft, watercraft, motor vehicles or trailers
20transfers more than one aircraft, watercraft, motor vehicle or
21trailer to another aircraft, watercraft, motor vehicle
22retailer or trailer retailer for the purpose of resale or (ii)
23a retailer of aircraft, watercraft, motor vehicles, or
24trailers transfers more than one aircraft, watercraft, motor
25vehicle, or trailer to a purchaser for use as a qualifying
26rolling stock as provided in Section 2-5 of this Act, then that

 

 

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1seller may report the transfer of all aircraft, watercraft,
2motor vehicles or trailers involved in that transaction to the
3Department on the same uniform invoice-transaction reporting
4return form. For purposes of this Section, "watercraft" means
5a Class 2, Class 3, or Class 4 watercraft as defined in Section
63-2 of the Boat Registration and Safety Act, a personal
7watercraft, or any boat equipped with an inboard motor.
8    In addition, with respect to motor vehicles, watercraft,
9aircraft, and trailers that are required to be registered with
10an agency of this State, every person who is engaged in the
11business of leasing or renting such items and who, in
12connection with such business, sells any such item to a
13retailer for the purpose of resale is, notwithstanding any
14other provision of this Section to the contrary, authorized to
15meet the return-filing requirement of this Act by reporting
16the transfer of all the aircraft, watercraft, motor vehicles,
17or trailers transferred for resale during a month to the
18Department on the same uniform invoice-transaction reporting
19return form on or before the 20th of the month following the
20month in which the transfer takes place. Notwithstanding any
21other provision of this Act to the contrary, all returns filed
22under this paragraph must be filed by electronic means in the
23manner and form as required by the Department.
24    Any retailer who sells only motor vehicles, watercraft,
25aircraft, or trailers that are required to be registered with
26an agency of this State, so that all retailers' occupation tax

 

 

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1liability is required to be reported, and is reported, on such
2transaction reporting returns and who is not otherwise
3required to file monthly or quarterly returns, need not file
4monthly or quarterly returns. However, those retailers shall
5be required to file returns on an annual basis.
6    The transaction reporting return, in the case of motor
7vehicles or trailers that are required to be registered with
8an agency of this State, shall be the same document as the
9Uniform Invoice referred to in Section 5-402 of the Illinois
10Vehicle Code and must show the name and address of the seller;
11the name and address of the purchaser; the amount of the
12selling price including the amount allowed by the retailer for
13traded-in property, if any; the amount allowed by the retailer
14for the traded-in tangible personal property, if any, to the
15extent to which Section 1 of this Act allows an exemption for
16the value of traded-in property; the balance payable after
17deducting such trade-in allowance from the total selling
18price; the amount of tax due from the retailer with respect to
19such transaction; the amount of tax collected from the
20purchaser by the retailer on such transaction (or satisfactory
21evidence that such tax is not due in that particular instance,
22if that is claimed to be the fact); the place and date of the
23sale; a sufficient identification of the property sold; such
24other information as is required in Section 5-402 of the
25Illinois Vehicle Code, and such other information as the
26Department may reasonably require.

 

 

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1    The transaction reporting return in the case of watercraft
2or aircraft must show the name and address of the seller; the
3name and address of the purchaser; the amount of the selling
4price including the amount allowed by the retailer for
5traded-in property, if any; the amount allowed by the retailer
6for the traded-in tangible personal property, if any, to the
7extent to which Section 1 of this Act allows an exemption for
8the value of traded-in property; the balance payable after
9deducting such trade-in allowance from the total selling
10price; the amount of tax due from the retailer with respect to
11such transaction; the amount of tax collected from the
12purchaser by the retailer on such transaction (or satisfactory
13evidence that such tax is not due in that particular instance,
14if that is claimed to be the fact); the place and date of the
15sale, a sufficient identification of the property sold, and
16such other information as the Department may reasonably
17require.
18    Such transaction reporting return shall be filed not later
19than 20 days after the day of delivery of the item that is
20being sold, but may be filed by the retailer at any time sooner
21than that if he chooses to do so. The transaction reporting
22return and tax remittance or proof of exemption from the
23Illinois use tax may be transmitted to the Department by way of
24the State agency with which, or State officer with whom the
25tangible personal property must be titled or registered (if
26titling or registration is required) if the Department and

 

 

HB4161- 99 -LRB103 34685 AWJ 64530 b

1such agency or State officer determine that this procedure
2will expedite the processing of applications for title or
3registration.
4    With each such transaction reporting return, the retailer
5shall remit the proper amount of tax due (or shall submit
6satisfactory evidence that the sale is not taxable if that is
7the case), to the Department or its agents, whereupon the
8Department shall issue, in the purchaser's name, a use tax
9receipt (or a certificate of exemption if the Department is
10satisfied that the particular sale is tax exempt) which such
11purchaser may submit to the agency with which, or State
12officer with whom, he must title or register the tangible
13personal property that is involved (if titling or registration
14is required) in support of such purchaser's application for an
15Illinois certificate or other evidence of title or
16registration to such tangible personal property.
17    No retailer's failure or refusal to remit tax under this
18Act precludes a user, who has paid the proper tax to the
19retailer, from obtaining his certificate of title or other
20evidence of title or registration (if titling or registration
21is required) upon satisfying the Department that such user has
22paid the proper tax (if tax is due) to the retailer. The
23Department shall adopt appropriate rules to carry out the
24mandate of this paragraph.
25    If the user who would otherwise pay tax to the retailer
26wants the transaction reporting return filed and the payment

 

 

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1of the tax or proof of exemption made to the Department before
2the retailer is willing to take these actions and such user has
3not paid the tax to the retailer, such user may certify to the
4fact of such delay by the retailer and may (upon the Department
5being satisfied of the truth of such certification) transmit
6the information required by the transaction reporting return
7and the remittance for tax or proof of exemption directly to
8the Department and obtain his tax receipt or exemption
9determination, in which event the transaction reporting return
10and tax remittance (if a tax payment was required) shall be
11credited by the Department to the proper retailer's account
12with the Department, but without the 2.1% or 1.75% discount
13provided for in this Section being allowed. When the user pays
14the tax directly to the Department, he shall pay the tax in the
15same amount and in the same form in which it would be remitted
16if the tax had been remitted to the Department by the retailer.
17    Refunds made by the seller during the preceding return
18period to purchasers, on account of tangible personal property
19returned to the seller, shall be allowed as a deduction under
20subdivision 5 of his monthly or quarterly return, as the case
21may be, in case the seller had theretofore included the
22receipts from the sale of such tangible personal property in a
23return filed by him and had paid the tax imposed by this Act
24with respect to such receipts.
25    Where the seller is a corporation, the return filed on
26behalf of such corporation shall be signed by the president,

 

 

HB4161- 101 -LRB103 34685 AWJ 64530 b

1vice-president, secretary or treasurer or by the properly
2accredited agent of such corporation.
3    Where the seller is a limited liability company, the
4return filed on behalf of the limited liability company shall
5be signed by a manager, member, or properly accredited agent
6of the limited liability company.
7    Except as provided in this Section, the retailer filing
8the return under this Section shall, at the time of filing such
9return, pay to the Department the amount of tax imposed by this
10Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
11on and after January 1, 1990, or $5 per calendar year,
12whichever is greater, which is allowed to reimburse the
13retailer for the expenses incurred in keeping records,
14preparing and filing returns, remitting the tax and supplying
15data to the Department on request. On and after January 1,
162021, a certified service provider, as defined in the Leveling
17the Playing Field for Illinois Retail Act, filing the return
18under this Section on behalf of a remote retailer shall, at the
19time of such return, pay to the Department the amount of tax
20imposed by this Act less a discount of 1.75%. A remote retailer
21using a certified service provider to file a return on its
22behalf, as provided in the Leveling the Playing Field for
23Illinois Retail Act, is not eligible for the discount. When
24determining the discount allowed under this Section, retailers
25shall include the amount of tax that would have been due at the
261% rate but for the 0% rate imposed under Public Act 102-700

 

 

HB4161- 102 -LRB103 34685 AWJ 64530 b

1this amendatory Act of the 102nd General Assembly. When
2determining the discount allowed under this Section, retailers
3shall include the amount of tax that would have been due at the
46.25% rate but for the 1.25% rate imposed on sales tax holiday
5items under Public Act 102-700 this amendatory Act of the
6102nd General Assembly. The discount under this Section is not
7allowed for the 1.25% portion of taxes paid on aviation fuel
8that is subject to the revenue use requirements of 49 U.S.C.
947107(b) and 49 U.S.C. 47133. Any prepayment made pursuant to
10Section 2d of this Act shall be included in the amount on which
11such 2.1% or 1.75% discount is computed. In the case of
12retailers who report and pay the tax on a transaction by
13transaction basis, as provided in this Section, such discount
14shall be taken with each such tax remittance instead of when
15such retailer files his periodic return. The discount allowed
16under this Section is allowed only for returns that are filed
17in the manner required by this Act. The Department may
18disallow the discount for retailers whose certificate of
19registration is revoked at the time the return is filed, but
20only if the Department's decision to revoke the certificate of
21registration has become final.
22    Before October 1, 2000, if the taxpayer's average monthly
23tax liability to the Department under this Act, the Use Tax
24Act, the Service Occupation Tax Act, and the Service Use Tax
25Act, excluding any liability for prepaid sales tax to be
26remitted in accordance with Section 2d of this Act, was

 

 

HB4161- 103 -LRB103 34685 AWJ 64530 b

1$10,000 or more during the preceding 4 complete calendar
2quarters, he shall file a return with the Department each
3month by the 20th day of the month next following the month
4during which such tax liability is incurred and shall make
5payments to the Department on or before the 7th, 15th, 22nd and
6last day of the month during which such liability is incurred.
7On and after October 1, 2000, if the taxpayer's average
8monthly tax liability to the Department under this Act, the
9Use Tax Act, the Service Occupation Tax Act, and the Service
10Use Tax Act, excluding any liability for prepaid sales tax to
11be remitted in accordance with Section 2d of this Act, was
12$20,000 or more during the preceding 4 complete calendar
13quarters, he shall file a return with the Department each
14month by the 20th day of the month next following the month
15during which such tax liability is incurred and shall make
16payment to the Department on or before the 7th, 15th, 22nd and
17last day of the month during which such liability is incurred.
18If the month during which such tax liability is incurred began
19prior to January 1, 1985, each payment shall be in an amount
20equal to 1/4 of the taxpayer's actual liability for the month
21or an amount set by the Department not to exceed 1/4 of the
22average monthly liability of the taxpayer to the Department
23for the preceding 4 complete calendar quarters (excluding the
24month of highest liability and the month of lowest liability
25in such 4 quarter period). If the month during which such tax
26liability is incurred begins on or after January 1, 1985 and

 

 

HB4161- 104 -LRB103 34685 AWJ 64530 b

1prior to January 1, 1987, each payment shall be in an amount
2equal to 22.5% of the taxpayer's actual liability for the
3month or 27.5% of the taxpayer's liability for the same
4calendar month of the preceding year. If the month during
5which such tax liability is incurred begins on or after
6January 1, 1987 and prior to January 1, 1988, each payment
7shall be in an amount equal to 22.5% of the taxpayer's actual
8liability for the month or 26.25% of the taxpayer's liability
9for the same calendar month of the preceding year. If the month
10during which such tax liability is incurred begins on or after
11January 1, 1988, and prior to January 1, 1989, or begins on or
12after January 1, 1996, each payment shall be in an amount equal
13to 22.5% of the taxpayer's actual liability for the month or
1425% of the taxpayer's liability for the same calendar month of
15the preceding year. If the month during which such tax
16liability is incurred begins on or after January 1, 1989, and
17prior to January 1, 1996, each payment shall be in an amount
18equal to 22.5% of the taxpayer's actual liability for the
19month or 25% of the taxpayer's liability for the same calendar
20month of the preceding year or 100% of the taxpayer's actual
21liability for the quarter monthly reporting period. The amount
22of such quarter monthly payments shall be credited against the
23final tax liability of the taxpayer's return for that month.
24Before October 1, 2000, once applicable, the requirement of
25the making of quarter monthly payments to the Department by
26taxpayers having an average monthly tax liability of $10,000

 

 

HB4161- 105 -LRB103 34685 AWJ 64530 b

1or more as determined in the manner provided above shall
2continue until such taxpayer's average monthly liability to
3the Department during the preceding 4 complete calendar
4quarters (excluding the month of highest liability and the
5month of lowest liability) is less than $9,000, or until such
6taxpayer's average monthly liability to the Department as
7computed for each calendar quarter of the 4 preceding complete
8calendar quarter period is less than $10,000. However, if a
9taxpayer can show the Department that a substantial change in
10the taxpayer's business has occurred which causes the taxpayer
11to anticipate that his average monthly tax liability for the
12reasonably foreseeable future will fall below the $10,000
13threshold stated above, then such taxpayer may petition the
14Department for a change in such taxpayer's reporting status.
15On and after October 1, 2000, once applicable, the requirement
16of the making of quarter monthly payments to the Department by
17taxpayers having an average monthly tax liability of $20,000
18or more as determined in the manner provided above shall
19continue until such taxpayer's average monthly liability to
20the Department during the preceding 4 complete calendar
21quarters (excluding the month of highest liability and the
22month of lowest liability) is less than $19,000 or until such
23taxpayer's average monthly liability to the Department as
24computed for each calendar quarter of the 4 preceding complete
25calendar quarter period is less than $20,000. However, if a
26taxpayer can show the Department that a substantial change in

 

 

HB4161- 106 -LRB103 34685 AWJ 64530 b

1the taxpayer's business has occurred which causes the taxpayer
2to anticipate that his average monthly tax liability for the
3reasonably foreseeable future will fall below the $20,000
4threshold stated above, then such taxpayer may petition the
5Department for a change in such taxpayer's reporting status.
6The Department shall change such taxpayer's reporting status
7unless it finds that such change is seasonal in nature and not
8likely to be long term. Quarter monthly payment status shall
9be determined under this paragraph as if the rate reduction to
100% in Public Act 102-700 this amendatory Act of the 102nd
11General Assembly on food for human consumption that is to be
12consumed off the premises where it is sold (other than
13alcoholic beverages, food consisting of or infused with adult
14use cannabis, soft drinks, and food that has been prepared for
15immediate consumption) had not occurred. For quarter monthly
16payments due under this paragraph on or after July 1, 2023 and
17through June 30, 2024, "25% of the taxpayer's liability for
18the same calendar month of the preceding year" shall be
19determined as if the rate reduction to 0% in Public Act 102-700
20this amendatory Act of the 102nd General Assembly had not
21occurred. Quarter monthly payment status shall be determined
22under this paragraph as if the rate reduction to 1.25% in
23Public Act 102-700 this amendatory Act of the 102nd General
24Assembly on sales tax holiday items had not occurred. For
25quarter monthly payments due on or after July 1, 2023 and
26through June 30, 2024, "25% of the taxpayer's liability for

 

 

HB4161- 107 -LRB103 34685 AWJ 64530 b

1the same calendar month of the preceding year" shall be
2determined as if the rate reduction to 1.25% in Public Act
3102-700 this amendatory Act of the 102nd General Assembly on
4sales tax holiday items had not occurred. If any such quarter
5monthly payment is not paid at the time or in the amount
6required by this Section, then the taxpayer shall be liable
7for penalties and interest on the difference between the
8minimum amount due as a payment and the amount of such quarter
9monthly payment actually and timely paid, except insofar as
10the taxpayer has previously made payments for that month to
11the Department in excess of the minimum payments previously
12due as provided in this Section. The Department shall make
13reasonable rules and regulations to govern the quarter monthly
14payment amount and quarter monthly payment dates for taxpayers
15who file on other than a calendar monthly basis.
16    The provisions of this paragraph apply before October 1,
172001. Without regard to whether a taxpayer is required to make
18quarter monthly payments as specified above, any taxpayer who
19is required by Section 2d of this Act to collect and remit
20prepaid taxes and has collected prepaid taxes which average in
21excess of $25,000 per month during the preceding 2 complete
22calendar quarters, shall file a return with the Department as
23required by Section 2f and shall make payments to the
24Department on or before the 7th, 15th, 22nd and last day of the
25month during which such liability is incurred. If the month
26during which such tax liability is incurred began prior to

 

 

HB4161- 108 -LRB103 34685 AWJ 64530 b

1September 1, 1985 (the effective date of Public Act 84-221),
2each payment shall be in an amount not less than 22.5% of the
3taxpayer's actual liability under Section 2d. If the month
4during which such tax liability is incurred begins on or after
5January 1, 1986, each payment shall be in an amount equal to
622.5% of the taxpayer's actual liability for the month or
727.5% of the taxpayer's liability for the same calendar month
8of the preceding calendar year. If the month during which such
9tax liability is incurred begins on or after January 1, 1987,
10each payment shall be in an amount equal to 22.5% of the
11taxpayer's actual liability for the month or 26.25% of the
12taxpayer's liability for the same calendar month of the
13preceding year. The amount of such quarter monthly payments
14shall be credited against the final tax liability of the
15taxpayer's return for that month filed under this Section or
16Section 2f, as the case may be. Once applicable, the
17requirement of the making of quarter monthly payments to the
18Department pursuant to this paragraph shall continue until
19such taxpayer's average monthly prepaid tax collections during
20the preceding 2 complete calendar quarters is $25,000 or less.
21If any such quarter monthly payment is not paid at the time or
22in the amount required, the taxpayer shall be liable for
23penalties and interest on such difference, except insofar as
24the taxpayer has previously made payments for that month in
25excess of the minimum payments previously due.
26    The provisions of this paragraph apply on and after

 

 

HB4161- 109 -LRB103 34685 AWJ 64530 b

1October 1, 2001. Without regard to whether a taxpayer is
2required to make quarter monthly payments as specified above,
3any taxpayer who is required by Section 2d of this Act to
4collect and remit prepaid taxes and has collected prepaid
5taxes that average in excess of $20,000 per month during the
6preceding 4 complete calendar quarters shall file a return
7with the Department as required by Section 2f and shall make
8payments to the Department on or before the 7th, 15th, 22nd and
9last day of the month during which the liability is incurred.
10Each payment shall be in an amount equal to 22.5% of the
11taxpayer's actual liability for the month or 25% of the
12taxpayer's liability for the same calendar month of the
13preceding year. The amount of the quarter monthly payments
14shall be credited against the final tax liability of the
15taxpayer's return for that month filed under this Section or
16Section 2f, as the case may be. Once applicable, the
17requirement of the making of quarter monthly payments to the
18Department pursuant to this paragraph shall continue until the
19taxpayer's average monthly prepaid tax collections during the
20preceding 4 complete calendar quarters (excluding the month of
21highest liability and the month of lowest liability) is less
22than $19,000 or until such taxpayer's average monthly
23liability to the Department as computed for each calendar
24quarter of the 4 preceding complete calendar quarters is less
25than $20,000. If any such quarter monthly payment is not paid
26at the time or in the amount required, the taxpayer shall be

 

 

HB4161- 110 -LRB103 34685 AWJ 64530 b

1liable for penalties and interest on such difference, except
2insofar as the taxpayer has previously made payments for that
3month in excess of the minimum payments previously due.
4    If any payment provided for in this Section exceeds the
5taxpayer's liabilities under this Act, the Use Tax Act, the
6Service Occupation Tax Act and the Service Use Tax Act, as
7shown on an original monthly return, the Department shall, if
8requested by the taxpayer, issue to the taxpayer a credit
9memorandum no later than 30 days after the date of payment. The
10credit evidenced by such credit memorandum may be assigned by
11the taxpayer to a similar taxpayer under this Act, the Use Tax
12Act, the Service Occupation Tax Act or the Service Use Tax Act,
13in accordance with reasonable rules and regulations to be
14prescribed by the Department. If no such request is made, the
15taxpayer may credit such excess payment against tax liability
16subsequently to be remitted to the Department under this Act,
17the Use Tax Act, the Service Occupation Tax Act or the Service
18Use Tax Act, in accordance with reasonable rules and
19regulations prescribed by the Department. If the Department
20subsequently determined that all or any part of the credit
21taken was not actually due to the taxpayer, the taxpayer's
222.1% and 1.75% vendor's discount shall be reduced by 2.1% or
231.75% of the difference between the credit taken and that
24actually due, and that taxpayer shall be liable for penalties
25and interest on such difference.
26    If a retailer of motor fuel is entitled to a credit under

 

 

HB4161- 111 -LRB103 34685 AWJ 64530 b

1Section 2d of this Act which exceeds the taxpayer's liability
2to the Department under this Act for the month for which the
3taxpayer is filing a return, the Department shall issue the
4taxpayer a credit memorandum for the excess.
5    Beginning January 1, 1990, each month the Department shall
6pay into the Local Government Tax Fund, a special fund in the
7State treasury which is hereby created, the net revenue
8realized for the preceding month from the 1% tax imposed under
9this Act.
10    Beginning January 1, 1990, each month the Department shall
11pay into the County and Mass Transit District Fund, a special
12fund in the State treasury which is hereby created, 4% of the
13net revenue realized for the preceding month from the 6.25%
14general rate other than aviation fuel sold on or after
15December 1, 2019. This exception for aviation fuel only
16applies for so long as the revenue use requirements of 49
17U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
18    Beginning August 1, 2000, each month the Department shall
19pay into the County and Mass Transit District Fund 20% of the
20net revenue realized for the preceding month from the 1.25%
21rate on the selling price of motor fuel and gasohol. If, in any
22month, the tax on sales tax holiday items, as defined in
23Section 2-8, is imposed at the rate of 1.25%, then the
24Department shall pay 20% of the net revenue realized for that
25month from the 1.25% rate on the selling price of sales tax
26holiday items into the County and Mass Transit District Fund.

 

 

HB4161- 112 -LRB103 34685 AWJ 64530 b

1    Beginning January 1, 1990, each month the Department shall
2pay into the Local Government Tax Fund 16% of the net revenue
3realized for the preceding month from the 6.25% general rate
4on the selling price of tangible personal property other than
5aviation fuel sold on or after December 1, 2019. This
6exception for aviation fuel only applies for so long as the
7revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
847133 are binding on the State.
9    For aviation fuel sold on or after December 1, 2019, each
10month the Department shall pay into the State Aviation Program
11Fund 20% of the net revenue realized for the preceding month
12from the 6.25% general rate on the selling price of aviation
13fuel, less an amount estimated by the Department to be
14required for refunds of the 20% portion of the tax on aviation
15fuel under this Act, which amount shall be deposited into the
16Aviation Fuel Sales Tax Refund Fund. The Department shall only
17pay moneys into the State Aviation Program Fund and the
18Aviation Fuel Sales Tax Refund Fund under this Act for so long
19as the revenue use requirements of 49 U.S.C. 47107(b) and 49
20U.S.C. 47133 are binding on the State.
21    Beginning August 1, 2000, each month the Department shall
22pay into the Local Government Tax Fund 80% of the net revenue
23realized for the preceding month from the 1.25% rate on the
24selling price of motor fuel and gasohol. If, in any month, the
25tax on sales tax holiday items, as defined in Section 2-8, is
26imposed at the rate of 1.25%, then the Department shall pay 80%

 

 

HB4161- 113 -LRB103 34685 AWJ 64530 b

1of the net revenue realized for that month from the 1.25% rate
2on the selling price of sales tax holiday items into the Local
3Government Tax Fund.
4    Beginning October 1, 2009, each month the Department shall
5pay into the Capital Projects Fund an amount that is equal to
6an amount estimated by the Department to represent 80% of the
7net revenue realized for the preceding month from the sale of
8candy, grooming and hygiene products, and soft drinks that had
9been taxed at a rate of 1% prior to September 1, 2009 but that
10are now taxed at 6.25%.
11    Beginning July 1, 2011, each month the Department shall
12pay into the Clean Air Act Permit Fund 80% of the net revenue
13realized for the preceding month from the 6.25% general rate
14on the selling price of sorbents used in Illinois in the
15process of sorbent injection as used to comply with the
16Environmental Protection Act or the federal Clean Air Act, but
17the total payment into the Clean Air Act Permit Fund under this
18Act and the Use Tax Act shall not exceed $2,000,000 in any
19fiscal year.
20    Beginning July 1, 2013, each month the Department shall
21pay into the Underground Storage Tank Fund from the proceeds
22collected under this Act, the Use Tax Act, the Service Use Tax
23Act, and the Service Occupation Tax Act an amount equal to the
24average monthly deficit in the Underground Storage Tank Fund
25during the prior year, as certified annually by the Illinois
26Environmental Protection Agency, but the total payment into

 

 

HB4161- 114 -LRB103 34685 AWJ 64530 b

1the Underground Storage Tank Fund under this Act, the Use Tax
2Act, the Service Use Tax Act, and the Service Occupation Tax
3Act shall not exceed $18,000,000 in any State fiscal year. As
4used in this paragraph, the "average monthly deficit" shall be
5equal to the difference between the average monthly claims for
6payment by the fund and the average monthly revenues deposited
7into the fund, excluding payments made pursuant to this
8paragraph.
9    Beginning July 1, 2015, of the remainder of the moneys
10received by the Department under the Use Tax Act, the Service
11Use Tax Act, the Service Occupation Tax Act, and this Act, each
12month the Department shall deposit $500,000 into the State
13Crime Laboratory Fund.
14    Of the remainder of the moneys received by the Department
15pursuant to this Act, (a) 1.75% thereof shall be paid into the
16Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
17and after July 1, 1989, 3.8% thereof shall be paid into the
18Build Illinois Fund; provided, however, that if in any fiscal
19year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
20may be, of the moneys received by the Department and required
21to be paid into the Build Illinois Fund pursuant to this Act,
22Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
23Act, and Section 9 of the Service Occupation Tax Act, such Acts
24being hereinafter called the "Tax Acts" and such aggregate of
252.2% or 3.8%, as the case may be, of moneys being hereinafter
26called the "Tax Act Amount", and (2) the amount transferred to

 

 

HB4161- 115 -LRB103 34685 AWJ 64530 b

1the Build Illinois Fund from the State and Local Sales Tax
2Reform Fund shall be less than the Annual Specified Amount (as
3hereinafter defined), an amount equal to the difference shall
4be immediately paid into the Build Illinois Fund from other
5moneys received by the Department pursuant to the Tax Acts;
6the "Annual Specified Amount" means the amounts specified
7below for fiscal years 1986 through 1993:
8Fiscal YearAnnual Specified Amount
91986$54,800,000
101987$76,650,000
111988$80,480,000
121989$88,510,000
131990$115,330,000
141991$145,470,000
151992$182,730,000
161993$206,520,000;
17and means the Certified Annual Debt Service Requirement (as
18defined in Section 13 of the Build Illinois Bond Act) or the
19Tax Act Amount, whichever is greater, for fiscal year 1994 and
20each fiscal year thereafter; and further provided, that if on
21the last business day of any month the sum of (1) the Tax Act
22Amount required to be deposited into the Build Illinois Bond
23Account in the Build Illinois Fund during such month and (2)
24the amount transferred to the Build Illinois Fund from the
25State and Local Sales Tax Reform Fund shall have been less than
261/12 of the Annual Specified Amount, an amount equal to the

 

 

HB4161- 116 -LRB103 34685 AWJ 64530 b

1difference shall be immediately paid into the Build Illinois
2Fund from other moneys received by the Department pursuant to
3the Tax Acts; and, further provided, that in no event shall the
4payments required under the preceding proviso result in
5aggregate payments into the Build Illinois Fund pursuant to
6this clause (b) for any fiscal year in excess of the greater of
7(i) the Tax Act Amount or (ii) the Annual Specified Amount for
8such fiscal year. The amounts payable into the Build Illinois
9Fund under clause (b) of the first sentence in this paragraph
10shall be payable only until such time as the aggregate amount
11on deposit under each trust indenture securing Bonds issued
12and outstanding pursuant to the Build Illinois Bond Act is
13sufficient, taking into account any future investment income,
14to fully provide, in accordance with such indenture, for the
15defeasance of or the payment of the principal of, premium, if
16any, and interest on the Bonds secured by such indenture and on
17any Bonds expected to be issued thereafter and all fees and
18costs payable with respect thereto, all as certified by the
19Director of the Bureau of the Budget (now Governor's Office of
20Management and Budget). If on the last business day of any
21month in which Bonds are outstanding pursuant to the Build
22Illinois Bond Act, the aggregate of moneys deposited in the
23Build Illinois Bond Account in the Build Illinois Fund in such
24month shall be less than the amount required to be transferred
25in such month from the Build Illinois Bond Account to the Build
26Illinois Bond Retirement and Interest Fund pursuant to Section

 

 

HB4161- 117 -LRB103 34685 AWJ 64530 b

113 of the Build Illinois Bond Act, an amount equal to such
2deficiency shall be immediately paid from other moneys
3received by the Department pursuant to the Tax Acts to the
4Build Illinois Fund; provided, however, that any amounts paid
5to the Build Illinois Fund in any fiscal year pursuant to this
6sentence shall be deemed to constitute payments pursuant to
7clause (b) of the first sentence of this paragraph and shall
8reduce the amount otherwise payable for such fiscal year
9pursuant to that clause (b). The moneys received by the
10Department pursuant to this Act and required to be deposited
11into the Build Illinois Fund are subject to the pledge, claim
12and charge set forth in Section 12 of the Build Illinois Bond
13Act.
14    Subject to payment of amounts into the Build Illinois Fund
15as provided in the preceding paragraph or in any amendment
16thereto hereafter enacted, the following specified monthly
17installment of the amount requested in the certificate of the
18Chairman of the Metropolitan Pier and Exposition Authority
19provided under Section 8.25f of the State Finance Act, but not
20in excess of sums designated as "Total Deposit", shall be
21deposited in the aggregate from collections under Section 9 of
22the Use Tax Act, Section 9 of the Service Use Tax Act, Section
239 of the Service Occupation Tax Act, and Section 3 of the
24Retailers' Occupation Tax Act into the McCormick Place
25Expansion Project Fund in the specified fiscal years.
26Fiscal YearTotal Deposit

 

 

HB4161- 118 -LRB103 34685 AWJ 64530 b

11993         $0
21994 53,000,000
31995 58,000,000
41996 61,000,000
51997 64,000,000
61998 68,000,000
71999 71,000,000
82000 75,000,000
92001 80,000,000
102002 93,000,000
112003 99,000,000
122004103,000,000
132005108,000,000
142006113,000,000
152007119,000,000
162008126,000,000
172009132,000,000
182010139,000,000
192011146,000,000
202012153,000,000
212013161,000,000
222014170,000,000
232015179,000,000
242016189,000,000
252017199,000,000
262018210,000,000

 

 

HB4161- 119 -LRB103 34685 AWJ 64530 b

12019221,000,000
22020233,000,000
32021300,000,000
42022300,000,000
52023300,000,000
62024 300,000,000
72025 300,000,000
82026 300,000,000
92027 375,000,000
102028 375,000,000
112029 375,000,000
122030 375,000,000
132031 375,000,000
142032 375,000,000
152033375,000,000
162034375,000,000
172035375,000,000
182036450,000,000
19and
20each fiscal year
21thereafter that bonds
22are outstanding under
23Section 13.2 of the
24Metropolitan Pier and
25Exposition Authority Act,
26but not after fiscal year 2060.

 

 

HB4161- 120 -LRB103 34685 AWJ 64530 b

1    Beginning July 20, 1993 and in each month of each fiscal
2year thereafter, one-eighth of the amount requested in the
3certificate of the Chairman of the Metropolitan Pier and
4Exposition Authority for that fiscal year, less the amount
5deposited into the McCormick Place Expansion Project Fund by
6the State Treasurer in the respective month under subsection
7(g) of Section 13 of the Metropolitan Pier and Exposition
8Authority Act, plus cumulative deficiencies in the deposits
9required under this Section for previous months and years,
10shall be deposited into the McCormick Place Expansion Project
11Fund, until the full amount requested for the fiscal year, but
12not in excess of the amount specified above as "Total
13Deposit", has been deposited.
14    Subject to payment of amounts into the Capital Projects
15Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
16and the McCormick Place Expansion Project Fund pursuant to the
17preceding paragraphs or in any amendments thereto hereafter
18enacted, for aviation fuel sold on or after December 1, 2019,
19the Department shall each month deposit into the Aviation Fuel
20Sales Tax Refund Fund an amount estimated by the Department to
21be required for refunds of the 80% portion of the tax on
22aviation fuel under this Act. The Department shall only
23deposit moneys into the Aviation Fuel Sales Tax Refund Fund
24under this paragraph for so long as the revenue use
25requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
26binding on the State.

 

 

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1    Subject to payment of amounts into the Build Illinois Fund
2and the McCormick Place Expansion Project Fund pursuant to the
3preceding paragraphs or in any amendments thereto hereafter
4enacted, beginning July 1, 1993 and ending on September 30,
52013, the Department shall each month pay into the Illinois
6Tax Increment Fund 0.27% of 80% of the net revenue realized for
7the preceding month from the 6.25% general rate on the selling
8price of tangible personal property.
9    Subject to payment of amounts into the Build Illinois Fund
10and the McCormick Place Expansion Project Fund pursuant to the
11preceding paragraphs or in any amendments thereto hereafter
12enacted, beginning with the receipt of the first report of
13taxes paid by an eligible business and continuing for a
1425-year period, the Department shall each month pay into the
15Energy Infrastructure Fund 80% of the net revenue realized
16from the 6.25% general rate on the selling price of
17Illinois-mined coal that was sold to an eligible business. For
18purposes of this paragraph, the term "eligible business" means
19a new electric generating facility certified pursuant to
20Section 605-332 of the Department of Commerce and Economic
21Opportunity Law of the Civil Administrative Code of Illinois.
22    Subject to payment of amounts into the Build Illinois
23Fund, the McCormick Place Expansion Project Fund, the Illinois
24Tax Increment Fund, and the Energy Infrastructure Fund
25pursuant to the preceding paragraphs or in any amendments to
26this Section hereafter enacted, beginning on the first day of

 

 

HB4161- 122 -LRB103 34685 AWJ 64530 b

1the first calendar month to occur on or after August 26, 2014
2(the effective date of Public Act 98-1098), each month, from
3the collections made under Section 9 of the Use Tax Act,
4Section 9 of the Service Use Tax Act, Section 9 of the Service
5Occupation Tax Act, and Section 3 of the Retailers' Occupation
6Tax Act, the Department shall pay into the Tax Compliance and
7Administration Fund, to be used, subject to appropriation, to
8fund additional auditors and compliance personnel at the
9Department of Revenue, an amount equal to 1/12 of 5% of 80% of
10the cash receipts collected during the preceding fiscal year
11by the Audit Bureau of the Department under the Use Tax Act,
12the Service Use Tax Act, the Service Occupation Tax Act, the
13Retailers' Occupation Tax Act, and associated local occupation
14and use taxes administered by the Department.
15    Subject to payments of amounts into the Build Illinois
16Fund, the McCormick Place Expansion Project Fund, the Illinois
17Tax Increment Fund, the Energy Infrastructure Fund, and the
18Tax Compliance and Administration Fund as provided in this
19Section, beginning on July 1, 2018 the Department shall pay
20each month into the Downstate Public Transportation Fund the
21moneys required to be so paid under Section 2-3 of the
22Downstate Public Transportation Act.
23    Subject to successful execution and delivery of a
24public-private agreement between the public agency and private
25entity and completion of the civic build, beginning on July 1,
262023, of the remainder of the moneys received by the

 

 

HB4161- 123 -LRB103 34685 AWJ 64530 b

1Department under the Use Tax Act, the Service Use Tax Act, the
2Service Occupation Tax Act, and this Act, the Department shall
3deposit the following specified deposits in the aggregate from
4collections under the Use Tax Act, the Service Use Tax Act, the
5Service Occupation Tax Act, and the Retailers' Occupation Tax
6Act, as required under Section 8.25g of the State Finance Act
7for distribution consistent with the Public-Private
8Partnership for Civic and Transit Infrastructure Project Act.
9The moneys received by the Department pursuant to this Act and
10required to be deposited into the Civic and Transit
11Infrastructure Fund are subject to the pledge, claim and
12charge set forth in Section 25-55 of the Public-Private
13Partnership for Civic and Transit Infrastructure Project Act.
14As used in this paragraph, "civic build", "private entity",
15"public-private agreement", and "public agency" have the
16meanings provided in Section 25-10 of the Public-Private
17Partnership for Civic and Transit Infrastructure Project Act.
18        Fiscal Year.............................Total Deposit
19        2024.....................................$200,000,000
20        2025....................................$206,000,000
21        2026....................................$212,200,000
22        2027....................................$218,500,000
23        2028....................................$225,100,000
24        2029....................................$288,700,000
25        2030....................................$298,900,000
26        2031....................................$309,300,000

 

 

HB4161- 124 -LRB103 34685 AWJ 64530 b

1        2032....................................$320,100,000
2        2033....................................$331,200,000
3        2034....................................$341,200,000
4        2035....................................$351,400,000
5        2036....................................$361,900,000
6        2037....................................$372,800,000
7        2038....................................$384,000,000
8        2039....................................$395,500,000
9        2040....................................$407,400,000
10        2041....................................$419,600,000
11        2042....................................$432,200,000
12        2043....................................$445,100,000
13    Beginning July 1, 2021 and until July 1, 2022, subject to
14the payment of amounts into the County and Mass Transit
15District Fund, the Local Government Tax Fund, the Build
16Illinois Fund, the McCormick Place Expansion Project Fund, the
17Illinois Tax Increment Fund, the Energy Infrastructure Fund,
18and the Tax Compliance and Administration Fund as provided in
19this Section, the Department shall pay each month into the
20Road Fund the amount estimated to represent 16% of the net
21revenue realized from the taxes imposed on motor fuel and
22gasohol. Beginning July 1, 2022 and until July 1, 2023,
23subject to the payment of amounts into the County and Mass
24Transit District Fund, the Local Government Tax Fund, the
25Build Illinois Fund, the McCormick Place Expansion Project
26Fund, the Illinois Tax Increment Fund, the Energy

 

 

HB4161- 125 -LRB103 34685 AWJ 64530 b

1Infrastructure Fund, and the Tax Compliance and Administration
2Fund as provided in this Section, the Department shall pay
3each month into the Road Fund the amount estimated to
4represent 32% of the net revenue realized from the taxes
5imposed on motor fuel and gasohol. Beginning July 1, 2023 and
6until July 1, 2024, subject to the payment of amounts into the
7County and Mass Transit District Fund, the Local Government
8Tax Fund, the Build Illinois Fund, the McCormick Place
9Expansion Project Fund, the Illinois Tax Increment Fund, the
10Energy Infrastructure Fund, and the Tax Compliance and
11Administration Fund as provided in this Section, the
12Department shall pay each month into the Road Fund the amount
13estimated to represent 48% of the net revenue realized from
14the taxes imposed on motor fuel and gasohol. Beginning July 1,
152024 and until July 1, 2025, subject to the payment of amounts
16into the County and Mass Transit District Fund, the Local
17Government Tax Fund, the Build Illinois Fund, the McCormick
18Place Expansion Project Fund, the Illinois Tax Increment Fund,
19the Energy Infrastructure Fund, and the Tax Compliance and
20Administration Fund as provided in this Section, the
21Department shall pay each month into the Road Fund the amount
22estimated to represent 64% of the net revenue realized from
23the taxes imposed on motor fuel and gasohol. Beginning on July
241, 2025, subject to the payment of amounts into the County and
25Mass Transit District Fund, the Local Government Tax Fund, the
26Build Illinois Fund, the McCormick Place Expansion Project

 

 

HB4161- 126 -LRB103 34685 AWJ 64530 b

1Fund, the Illinois Tax Increment Fund, the Energy
2Infrastructure Fund, and the Tax Compliance and Administration
3Fund as provided in this Section, the Department shall pay
4each month into the Road Fund the amount estimated to
5represent 80% of the net revenue realized from the taxes
6imposed on motor fuel and gasohol. As used in this paragraph
7"motor fuel" has the meaning given to that term in Section 1.1
8of the Motor Fuel Tax Law, and "gasohol" has the meaning given
9to that term in Section 3-40 of the Use Tax Act.
10    Of the remainder of the moneys received by the Department
11pursuant to this Act, 75% thereof shall be paid into the State
12treasury Treasury and 25% shall be reserved in a special
13account and used only for the transfer to the Common School
14Fund as part of the monthly transfer from the General Revenue
15Fund in accordance with Section 8a of the State Finance Act.
16    The Department may, upon separate written notice to a
17taxpayer, require the taxpayer to prepare and file with the
18Department on a form prescribed by the Department within not
19less than 60 days after receipt of the notice an annual
20information return for the tax year specified in the notice.
21Such annual return to the Department shall include a statement
22of gross receipts as shown by the retailer's last Federal
23income tax return. If the total receipts of the business as
24reported in the Federal income tax return do not agree with the
25gross receipts reported to the Department of Revenue for the
26same period, the retailer shall attach to his annual return a

 

 

HB4161- 127 -LRB103 34685 AWJ 64530 b

1schedule showing a reconciliation of the 2 amounts and the
2reasons for the difference. The retailer's annual return to
3the Department shall also disclose the cost of goods sold by
4the retailer during the year covered by such return, opening
5and closing inventories of such goods for such year, costs of
6goods used from stock or taken from stock and given away by the
7retailer during such year, payroll information of the
8retailer's business during such year and any additional
9reasonable information which the Department deems would be
10helpful in determining the accuracy of the monthly, quarterly
11or annual returns filed by such retailer as provided for in
12this Section.
13    If the annual information return required by this Section
14is not filed when and as required, the taxpayer shall be liable
15as follows:
16        (i) Until January 1, 1994, the taxpayer shall be
17    liable for a penalty equal to 1/6 of 1% of the tax due from
18    such taxpayer under this Act during the period to be
19    covered by the annual return for each month or fraction of
20    a month until such return is filed as required, the
21    penalty to be assessed and collected in the same manner as
22    any other penalty provided for in this Act.
23        (ii) On and after January 1, 1994, the taxpayer shall
24    be liable for a penalty as described in Section 3-4 of the
25    Uniform Penalty and Interest Act.
26    The chief executive officer, proprietor, owner or highest

 

 

HB4161- 128 -LRB103 34685 AWJ 64530 b

1ranking manager shall sign the annual return to certify the
2accuracy of the information contained therein. Any person who
3willfully signs the annual return containing false or
4inaccurate information shall be guilty of perjury and punished
5accordingly. The annual return form prescribed by the
6Department shall include a warning that the person signing the
7return may be liable for perjury.
8    The provisions of this Section concerning the filing of an
9annual information return do not apply to a retailer who is not
10required to file an income tax return with the United States
11Government.
12    As soon as possible after the first day of each month, upon
13certification of the Department of Revenue, the Comptroller
14shall order transferred and the Treasurer shall transfer from
15the General Revenue Fund to the Motor Fuel Tax Fund an amount
16equal to 1.7% of 80% of the net revenue realized under this Act
17for the second preceding month. Beginning April 1, 2000, this
18transfer is no longer required and shall not be made.
19    Net revenue realized for a month shall be the revenue
20collected by the State pursuant to this Act, less the amount
21paid out during that month as refunds to taxpayers for
22overpayment of liability.
23    For greater simplicity of administration, manufacturers,
24importers and wholesalers whose products are sold at retail in
25Illinois by numerous retailers, and who wish to do so, may
26assume the responsibility for accounting and paying to the

 

 

HB4161- 129 -LRB103 34685 AWJ 64530 b

1Department all tax accruing under this Act with respect to
2such sales, if the retailers who are affected do not make
3written objection to the Department to this arrangement.
4    Any person who promotes, organizes, provides retail
5selling space for concessionaires or other types of sellers at
6the Illinois State Fair, DuQuoin State Fair, county fairs,
7local fairs, art shows, flea markets and similar exhibitions
8or events, including any transient merchant as defined by
9Section 2 of the Transient Merchant Act of 1987, is required to
10file a report with the Department providing the name of the
11merchant's business, the name of the person or persons engaged
12in merchant's business, the permanent address and Illinois
13Retailers Occupation Tax Registration Number of the merchant,
14the dates and location of the event and other reasonable
15information that the Department may require. The report must
16be filed not later than the 20th day of the month next
17following the month during which the event with retail sales
18was held. Any person who fails to file a report required by
19this Section commits a business offense and is subject to a
20fine not to exceed $250.
21    Any person engaged in the business of selling tangible
22personal property at retail as a concessionaire or other type
23of seller at the Illinois State Fair, county fairs, art shows,
24flea markets and similar exhibitions or events, or any
25transient merchants, as defined by Section 2 of the Transient
26Merchant Act of 1987, may be required to make a daily report of

 

 

HB4161- 130 -LRB103 34685 AWJ 64530 b

1the amount of such sales to the Department and to make a daily
2payment of the full amount of tax due. The Department shall
3impose this requirement when it finds that there is a
4significant risk of loss of revenue to the State at such an
5exhibition or event. Such a finding shall be based on evidence
6that a substantial number of concessionaires or other sellers
7who are not residents of Illinois will be engaging in the
8business of selling tangible personal property at retail at
9the exhibition or event, or other evidence of a significant
10risk of loss of revenue to the State. The Department shall
11notify concessionaires and other sellers affected by the
12imposition of this requirement. In the absence of notification
13by the Department, the concessionaires and other sellers shall
14file their returns as otherwise required in this Section.
15(Source: P.A. 101-10, Article 15, Section 15-25, eff. 6-5-19;
16101-10, Article 25, Section 25-120, eff. 6-5-19; 101-27, eff.
176-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
18101-636, eff. 6-10-20; 102-634, eff. 8-27-21; 102-700, Article
1960, Section 60-30, eff. 4-19-22; 102-700, Article 65, Section
2065-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff.
211-1-23; revised 12-13-22.)
 
22    Section 25. The Cannabis Regulation and Tax Act is amended
23by changing Sections 1-10 and 10-10 as follows:
 
24    (410 ILCS 705/1-10)

 

 

HB4161- 131 -LRB103 34685 AWJ 64530 b

1    Sec. 1-10. Definitions. In this Act:
2    "Adult Use Cultivation Center License" means a license
3issued by the Department of Agriculture that permits a person
4to act as a cultivation center under this Act and any
5administrative rule made in furtherance of this Act.
6    "Adult Use Dispensing Organization License" means a
7license issued by the Department of Financial and Professional
8Regulation that permits a person to act as a dispensing
9organization under this Act and any administrative rule made
10in furtherance of this Act.
11    "Advertise" means to engage in promotional activities
12including, but not limited to: newspaper, radio, Internet and
13electronic media, and television advertising; the distribution
14of fliers and circulars; billboard advertising; and the
15display of window and interior signs. "Advertise" does not
16mean exterior signage displaying only the name of the licensed
17cannabis business establishment.
18    "Application points" means the number of points a
19Dispensary Applicant receives on an application for a
20Conditional Adult Use Dispensing Organization License.
21    "BLS Region" means a region in Illinois used by the United
22States Bureau of Labor Statistics to gather and categorize
23certain employment and wage data. The 17 such regions in
24Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
25Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
26Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,

 

 

HB4161- 132 -LRB103 34685 AWJ 64530 b

1Rockford, St. Louis, Springfield, Northwest Illinois
2nonmetropolitan area, West Central Illinois nonmetropolitan
3area, East Central Illinois nonmetropolitan area, and South
4Illinois nonmetropolitan area.
5    "By lot" means a randomized method of choosing between 2
6or more Eligible Tied Applicants or 2 or more Qualifying
7Applicants.
8    "Cannabis" means marijuana, hashish, and other substances
9that are identified as including any parts of the plant
10Cannabis sativa and including derivatives or subspecies, such
11as indica, of all strains of cannabis, whether growing or not;
12the seeds thereof, the resin extracted from any part of the
13plant; and any compound, manufacture, salt, derivative,
14mixture, or preparation of the plant, its seeds, or resin,
15including tetrahydrocannabinol (THC) and all other naturally
16produced cannabinol derivatives, whether produced directly or
17indirectly by extraction; however, "cannabis" does not include
18the mature stalks of the plant, fiber produced from the
19stalks, oil or cake made from the seeds of the plant, any other
20compound, manufacture, salt, derivative, mixture, or
21preparation of the mature stalks (except the resin extracted
22from it), fiber, oil or cake, or the sterilized seed of the
23plant that is incapable of germination. "Cannabis" does not
24include industrial hemp as defined and authorized under the
25Industrial Hemp Act. "Cannabis" also means cannabis flower,
26concentrate, and cannabis-infused products.

 

 

HB4161- 133 -LRB103 34685 AWJ 64530 b

1    "Cannabis business establishment" means a cultivation
2center, craft grower, processing organization, infuser
3organization, dispensing organization, or transporting
4organization.
5    "Cannabis concentrate" means a product derived from
6cannabis that is produced by extracting cannabinoids,
7including tetrahydrocannabinol (THC), from the plant through
8the use of propylene glycol, glycerin, butter, olive oil, or
9other typical cooking fats; water, ice, or dry ice; or butane,
10propane, CO2, ethanol, or isopropanol and with the intended
11use of smoking or making a cannabis-infused product. The use
12of any other solvent is expressly prohibited unless and until
13it is approved by the Department of Agriculture.
14    "Cannabis container" means a sealed or resealable,
15traceable, container, or package used for the purpose of
16containment of cannabis or cannabis-infused product during
17transportation.
18    "Cannabis flower" means marijuana, hashish, and other
19substances that are identified as including any parts of the
20plant Cannabis sativa and including derivatives or subspecies,
21such as indica, of all strains of cannabis; including raw
22kief, leaves, and buds, but not resin that has been extracted
23from any part of such plant; nor any compound, manufacture,
24salt, derivative, mixture, or preparation of such plant, its
25seeds, or resin.
26    "Cannabis-infused product" means a beverage, food, oil,

 

 

HB4161- 134 -LRB103 34685 AWJ 64530 b

1ointment, tincture, topical formulation, or another product
2containing cannabis or cannabis concentrate that is not
3intended to be smoked.
4    "Cannabis paraphernalia" means equipment, products, or
5materials intended to be used for planting, propagating,
6cultivating, growing, harvesting, manufacturing, producing,
7processing, preparing, testing, analyzing, packaging,
8repackaging, storing, containing, concealing, ingesting, or
9otherwise introducing cannabis into the human body.
10    "Cannabis plant monitoring system" or "plant monitoring
11system" means a system that includes, but is not limited to,
12testing and data collection established and maintained by the
13cultivation center, craft grower, or processing organization
14and that is available to the Department of Revenue, the
15Department of Agriculture, the Department of Financial and
16Professional Regulation, and the Illinois State Police for the
17purposes of documenting each cannabis plant and monitoring
18plant development throughout the life cycle of a cannabis
19plant cultivated for the intended use by a customer from seed
20planting to final packaging.
21    "Cannabis testing facility" means an entity registered by
22the Department of Agriculture to test cannabis for potency and
23contaminants.
24    "Clone" means a plant section from a female cannabis plant
25not yet rootbound, growing in a water solution or other
26propagation matrix, that is capable of developing into a new

 

 

HB4161- 135 -LRB103 34685 AWJ 64530 b

1plant.
2    "Community College Cannabis Vocational Training Pilot
3Program faculty participant" means a person who is 21 years of
4age or older, licensed by the Department of Agriculture, and
5is employed or contracted by an Illinois community college to
6provide student instruction using cannabis plants at an
7Illinois Community College.
8    "Community College Cannabis Vocational Training Pilot
9Program faculty participant Agent Identification Card" means a
10document issued by the Department of Agriculture that
11identifies a person as a Community College Cannabis Vocational
12Training Pilot Program faculty participant.
13    "Conditional Adult Use Dispensing Organization License"
14means a contingent license awarded to applicants for an Adult
15Use Dispensing Organization License that reserves the right to
16an Adult Use Dispensing Organization License if the applicant
17meets certain conditions described in this Act, but does not
18entitle the recipient to begin purchasing or selling cannabis
19or cannabis-infused products.
20    "Conditional Adult Use Cultivation Center License" means a
21license awarded to top-scoring applicants for an Adult Use
22Cultivation Center License that reserves the right to an Adult
23Use Cultivation Center License if the applicant meets certain
24conditions as determined by the Department of Agriculture by
25rule, but does not entitle the recipient to begin growing,
26processing, or selling cannabis or cannabis-infused products.

 

 

HB4161- 136 -LRB103 34685 AWJ 64530 b

1    "Craft grower" means a facility operated by an
2organization or business that is licensed by the Department of
3Agriculture to cultivate, dry, cure, and package cannabis and
4perform other necessary activities to make cannabis available
5for sale at a dispensing organization or use at a processing
6organization. A craft grower may contain up to 5,000 square
7feet of canopy space on its premises for plants in the
8flowering state. The Department of Agriculture may authorize
9an increase or decrease of flowering stage cultivation space
10in increments of 3,000 square feet by rule based on market
11need, craft grower capacity, and the licensee's history of
12compliance or noncompliance, with a maximum space of 14,000
13square feet for cultivating plants in the flowering stage,
14which must be cultivated in all stages of growth in an enclosed
15and secure area. A craft grower may share premises with a
16processing organization or a dispensing organization, or both,
17provided each licensee stores currency and cannabis or
18cannabis-infused products in a separate secured vault to which
19the other licensee does not have access or all licensees
20sharing a vault share more than 50% of the same ownership.
21    "Craft grower agent" means a principal officer, board
22member, employee, or other agent of a craft grower who is 21
23years of age or older.
24    "Craft Grower Agent Identification Card" means a document
25issued by the Department of Agriculture that identifies a
26person as a craft grower agent.

 

 

HB4161- 137 -LRB103 34685 AWJ 64530 b

1    "Cultivation center" means a facility operated by an
2organization or business that is licensed by the Department of
3Agriculture to cultivate, process, transport (unless otherwise
4limited by this Act), and perform other necessary activities
5to provide cannabis and cannabis-infused products to cannabis
6business establishments.
7    "Cultivation center agent" means a principal officer,
8board member, employee, or other agent of a cultivation center
9who is 21 years of age or older.
10    "Cultivation Center Agent Identification Card" means a
11document issued by the Department of Agriculture that
12identifies a person as a cultivation center agent.
13    "Currency" means currency and coin of the United States.
14    "Dispensary" means a facility operated by a dispensing
15organization at which activities licensed by this Act may
16occur.
17    "Dispensary Applicant" means the Proposed Dispensing
18Organization Name as stated on an application for a
19Conditional Adult Use Dispensing Organization License.
20    "Dispensing organization" means a facility operated by an
21organization or business that is licensed by the Department of
22Financial and Professional Regulation to acquire cannabis from
23a cultivation center, craft grower, processing organization,
24or another dispensary for the purpose of selling or dispensing
25cannabis, cannabis-infused products, cannabis seeds,
26paraphernalia, or related supplies under this Act to

 

 

HB4161- 138 -LRB103 34685 AWJ 64530 b

1purchasers or to qualified registered medical cannabis
2patients and caregivers. As used in this Act, "dispensing
3organization" includes a registered medical cannabis
4organization as defined in the Compassionate Use of Medical
5Cannabis Program Act or its successor Act that has obtained an
6Early Approval Adult Use Dispensing Organization License.
7    "Dispensing organization agent" means a principal officer,
8employee, or agent of a dispensing organization who is 21
9years of age or older.
10    "Dispensing organization agent identification card" means
11a document issued by the Department of Financial and
12Professional Regulation that identifies a person as a
13dispensing organization agent.
14    "Disproportionately Impacted Area" means a census tract or
15comparable geographic area that satisfies the following
16criteria as determined by the Department of Commerce and
17Economic Opportunity, that:
18        (1) meets at least one of the following criteria:
19            (A) the area has a poverty rate of at least 20%
20        according to the latest federal decennial census; or
21            (B) 75% or more of the children in the area
22        participate in the federal free lunch program
23        according to reported statistics from the State Board
24        of Education; or
25            (C) at least 20% of the households in the area
26        receive assistance under the Supplemental Nutrition

 

 

HB4161- 139 -LRB103 34685 AWJ 64530 b

1        Assistance Program; or
2            (D) the area has an average unemployment rate, as
3        determined by the Illinois Department of Employment
4        Security, that is more than 120% of the national
5        unemployment average, as determined by the United
6        States Department of Labor, for a period of at least 2
7        consecutive calendar years preceding the date of the
8        application; and
9        (2) has high rates of arrest, conviction, and
10    incarceration related to the sale, possession, use,
11    cultivation, manufacture, or transport of cannabis.
12    "Early Approval Adult Use Cultivation Center License"
13means a license that permits a medical cannabis cultivation
14center licensed under the Compassionate Use of Medical
15Cannabis Program Act as of the effective date of this Act to
16begin cultivating, infusing, packaging, transporting (unless
17otherwise provided in this Act), processing, and selling
18cannabis or cannabis-infused product to cannabis business
19establishments for resale to purchasers as permitted by this
20Act as of January 1, 2020.
21    "Early Approval Adult Use Dispensing Organization License"
22means a license that permits a medical cannabis dispensing
23organization licensed under the Compassionate Use of Medical
24Cannabis Program Act as of the effective date of this Act to
25begin selling cannabis or cannabis-infused product to
26purchasers as permitted by this Act as of January 1, 2020.

 

 

HB4161- 140 -LRB103 34685 AWJ 64530 b

1    "Early Approval Adult Use Dispensing Organization at a
2secondary site" means a license that permits a medical
3cannabis dispensing organization licensed under the
4Compassionate Use of Medical Cannabis Program Act as of the
5effective date of this Act to begin selling cannabis or
6cannabis-infused product to purchasers as permitted by this
7Act on January 1, 2020 at a different dispensary location from
8its existing registered medical dispensary location.
9    "Eligible Tied Applicant" means a Tied Applicant that is
10eligible to participate in the process by which a remaining
11available license is distributed by lot pursuant to a Tied
12Applicant Lottery.
13    "Enclosed, locked facility" means a room, greenhouse,
14building, or other enclosed area equipped with locks or other
15security devices that permit access only by cannabis business
16establishment agents working for the licensed cannabis
17business establishment or acting pursuant to this Act to
18cultivate, process, store, or distribute cannabis.
19    "Enclosed, locked space" means a closet, room, greenhouse,
20building, or other enclosed area equipped with locks or other
21security devices that permit access only by authorized
22individuals under this Act. "Enclosed, locked space" may
23include:
24        (1) a space within a residential building that (i) is
25    the primary residence of the individual cultivating 5 or
26    fewer cannabis plants that are more than 5 inches tall and

 

 

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1    (ii) includes sleeping quarters and indoor plumbing. The
2    space must only be accessible by a key or code that is
3    different from any key or code that can be used to access
4    the residential building from the exterior; or
5        (2) a structure, such as a shed or greenhouse, that
6    lies on the same plot of land as a residential building
7    that (i) includes sleeping quarters and indoor plumbing
8    and (ii) is used as a primary residence by the person
9    cultivating 5 or fewer cannabis plants that are more than
10    5 inches tall, such as a shed or greenhouse. The structure
11    must remain locked when it is unoccupied by people.
12    "Financial institution" has the same meaning as "financial
13organization" as defined in Section 1501 of the Illinois
14Income Tax Act, and also includes the holding companies,
15subsidiaries, and affiliates of such financial organizations.
16    "Flowering stage" means the stage of cultivation where and
17when a cannabis plant is cultivated to produce plant material
18for cannabis products. This includes mature plants as follows:
19        (1) if greater than 2 stigmas are visible at each
20    internode of the plant; or
21        (2) if the cannabis plant is in an area that has been
22    intentionally deprived of light for a period of time
23    intended to produce flower buds and induce maturation,
24    from the moment the light deprivation began through the
25    remainder of the marijuana plant growth cycle.
26    "Individual" means a natural person.

 

 

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1    "Infuser organization" or "infuser" means a facility
2operated by an organization or business that is licensed by
3the Department of Agriculture to directly incorporate cannabis
4or cannabis concentrate into a product formulation to produce
5a cannabis-infused product.
6    "Kief" means the resinous crystal-like trichomes that are
7found on cannabis and that are accumulated, resulting in a
8higher concentration of cannabinoids, untreated by heat or
9pressure, or extracted using a solvent.
10    "Labor peace agreement" means an agreement between a
11cannabis business establishment and any labor organization
12recognized under the National Labor Relations Act, referred to
13in this Act as a bona fide labor organization, that prohibits
14labor organizations and members from engaging in picketing,
15work stoppages, boycotts, and any other economic interference
16with the cannabis business establishment. This agreement means
17that the cannabis business establishment has agreed not to
18disrupt efforts by the bona fide labor organization to
19communicate with, and attempt to organize and represent, the
20cannabis business establishment's employees. The agreement
21shall provide a bona fide labor organization access at
22reasonable times to areas in which the cannabis business
23establishment's employees work, for the purpose of meeting
24with employees to discuss their right to representation,
25employment rights under State law, and terms and conditions of
26employment. This type of agreement shall not mandate a

 

 

HB4161- 143 -LRB103 34685 AWJ 64530 b

1particular method of election or certification of the bona
2fide labor organization.
3    "Limited access area" means a room or other area under the
4control of a cannabis dispensing organization licensed under
5this Act and upon the licensed premises where cannabis sales
6occur with access limited to purchasers, dispensing
7organization owners and other dispensing organization agents,
8or service professionals conducting business with the
9dispensing organization, or, if sales to registered qualifying
10patients, caregivers, provisional patients, and Opioid
11Alternative Pilot Program participants licensed pursuant to
12the Compassionate Use of Medical Cannabis Program Act are also
13permitted at the dispensary, registered qualifying patients,
14caregivers, provisional patients, and Opioid Alternative Pilot
15Program participants.
16    "Member of an impacted family" means an individual who has
17a parent, legal guardian, child, spouse, or dependent, or was
18a dependent of an individual who, prior to the effective date
19of this Act, was arrested for, convicted of, or adjudicated
20delinquent for any offense that is eligible for expungement
21under this Act.
22    "Mother plant" means a cannabis plant that is cultivated
23or maintained for the purpose of generating clones, and that
24will not be used to produce plant material for sale to an
25infuser or dispensing organization.
26    "Ordinary public view" means within the sight line with

 

 

HB4161- 144 -LRB103 34685 AWJ 64530 b

1normal visual range of a person, unassisted by visual aids,
2from a public street or sidewalk adjacent to real property, or
3from within an adjacent property.
4    "Ownership and control" means ownership of at least 51% of
5the business, including corporate stock if a corporation, and
6control over the management and day-to-day operations of the
7business and an interest in the capital, assets, and profits
8and losses of the business proportionate to percentage of
9ownership.
10    "Person" means a natural individual, firm, partnership,
11association, joint stock company, joint venture, public or
12private corporation, limited liability company, or a receiver,
13executor, trustee, guardian, or other representative appointed
14by order of any court.
15    "Possession limit" means the amount of cannabis under
16Section 10-10 that may be possessed at any one time by a person
1721 years of age or older or who is a registered qualifying
18medical cannabis patient or caregiver under the Compassionate
19Use of Medical Cannabis Program Act.
20    "Principal officer" includes a cannabis business
21establishment applicant or licensed cannabis business
22establishment's board member, owner with more than 1% interest
23of the total cannabis business establishment or more than 5%
24interest of the total cannabis business establishment of a
25publicly traded company, president, vice president, secretary,
26treasurer, partner, officer, member, manager member, or person

 

 

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1with a profit sharing, financial interest, or revenue sharing
2arrangement. The definition includes a person with authority
3to control the cannabis business establishment, a person who
4assumes responsibility for the debts of the cannabis business
5establishment and who is further defined in this Act.
6    "Primary residence" means a dwelling where a person
7usually stays or stays more often than other locations. It may
8be determined by, without limitation, presence, tax filings;
9address on an Illinois driver's license, an Illinois
10Identification Card, or an Illinois Person with a Disability
11Identification Card; or voter registration. No person may have
12more than one primary residence.
13    "Processing organization" or "processor" means a facility
14operated by an organization or business that is licensed by
15the Department of Agriculture to either extract constituent
16chemicals or compounds to produce cannabis concentrate or
17incorporate cannabis or cannabis concentrate into a product
18formulation to produce a cannabis product.
19    "Processing organization agent" means a principal officer,
20board member, employee, or agent of a processing organization.
21    "Processing organization agent identification card" means
22a document issued by the Department of Agriculture that
23identifies a person as a processing organization agent.
24    "Purchaser" means a person 21 years of age or older who
25acquires cannabis for a valuable consideration. "Purchaser"
26does not include a cardholder under the Compassionate Use of

 

 

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1Medical Cannabis Program Act.
2    "Qualifying Applicant" means an applicant that submitted
3an application pursuant to Section 15-30 that received at
4least 85% of 250 application points available under Section
515-30 as the applicant's final score and meets the definition
6of "Social Equity Applicant" as set forth under this Section.
7    "Qualifying Social Equity Justice Involved Applicant"
8means an applicant that submitted an application pursuant to
9Section 15-30 that received at least 85% of 250 application
10points available under Section 15-30 as the applicant's final
11score and meets the criteria of either paragraph (1) or (2) of
12the definition of "Social Equity Applicant" as set forth under
13this Section.
14    "Qualified Social Equity Applicant" means a Social Equity
15Applicant who has been awarded a conditional license under
16this Act to operate a cannabis business establishment.
17    "Resided" means an individual's primary residence was
18located within the relevant geographic area as established by
192 of the following:
20        (1) a signed lease agreement that includes the
21    applicant's name;
22        (2) a property deed that includes the applicant's
23    name;
24        (3) school records;
25        (4) a voter registration card;
26        (5) an Illinois driver's license, an Illinois

 

 

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1    Identification Card, or an Illinois Person with a
2    Disability Identification Card;
3        (6) a paycheck stub;
4        (7) a utility bill;
5        (8) tax records; or
6        (9) any other proof of residency or other information
7    necessary to establish residence as provided by rule.
8    "Smoking" means the inhalation of smoke caused by the
9combustion of cannabis.
10    "Social Equity Applicant" means an applicant that is an
11Illinois resident that meets one of the following criteria:
12        (1) an applicant with at least 51% ownership and
13    control by one or more individuals who have resided for at
14    least 5 of the preceding 10 years in a Disproportionately
15    Impacted Area;
16        (2) an applicant with at least 51% ownership and
17    control by one or more individuals who:
18            (i) have been arrested for, convicted of, or
19        adjudicated delinquent for any offense that is
20        eligible for expungement under this Act; or
21            (ii) is a member of an impacted family;
22        (3) for applicants with a minimum of 10 full-time
23    employees, an applicant with at least 51% of current
24    employees who:
25            (i) currently reside in a Disproportionately
26        Impacted Area; or

 

 

HB4161- 148 -LRB103 34685 AWJ 64530 b

1            (ii) have been arrested for, convicted of, or
2        adjudicated delinquent for any offense that is
3        eligible for expungement under this Act or member of
4        an impacted family.
5    Nothing in this Act shall be construed to preempt or limit
6the duties of any employer under the Job Opportunities for
7Qualified Applicants Act. Nothing in this Act shall permit an
8employer to require an employee to disclose sealed or expunged
9offenses, unless otherwise required by law.
10    "Tied Applicant" means an application submitted by a
11Dispensary Applicant pursuant to Section 15-30 that received
12the same number of application points under Section 15-30 as
13the Dispensary Applicant's final score as one or more
14top-scoring applications in the same BLS Region and would have
15been awarded a license but for the one or more other
16top-scoring applications that received the same number of
17application points. Each application for which a Dispensary
18Applicant was required to pay a required application fee for
19the application period ending January 2, 2020 shall be
20considered an application of a separate Tied Applicant.
21    "Tied Applicant Lottery" means the process established
22under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
23Use Dispensing Organization Licenses pursuant to Sections
2415-25 and 15-30 among Eligible Tied Applicants.
25    "Tincture" means a cannabis-infused solution, typically
26comprised of alcohol, glycerin, or vegetable oils, derived

 

 

HB4161- 149 -LRB103 34685 AWJ 64530 b

1either directly from the cannabis plant or from a processed
2cannabis extract. A tincture is not an alcoholic liquor as
3defined in the Liquor Control Act of 1934. A tincture shall
4include a calibrated dropper or other similar device capable
5of accurately measuring servings.
6    "Transporting organization" or "transporter" means an
7organization or business that is licensed by the Department of
8Agriculture to transport cannabis or cannabis-infused product
9on behalf of a cannabis business establishment or a community
10college licensed under the Community College Cannabis
11Vocational Training Pilot Program.
12    "Transporting organization agent" means a principal
13officer, board member, employee, or agent of a transporting
14organization.
15    "Transporting organization agent identification card"
16means a document issued by the Department of Agriculture that
17identifies a person as a transporting organization agent.
18    "Unit of local government" means any county, city,
19village, or incorporated town.
20    "Vegetative stage" means the stage of cultivation in which
21a cannabis plant is propagated to produce additional cannabis
22plants or reach a sufficient size for production. This
23includes seedlings, clones, mothers, and other immature
24cannabis plants as follows:
25        (1) if the cannabis plant is in an area that has not
26    been intentionally deprived of light for a period of time

 

 

HB4161- 150 -LRB103 34685 AWJ 64530 b

1    intended to produce flower buds and induce maturation, it
2    has no more than 2 stigmas visible at each internode of the
3    cannabis plant; or
4        (2) any cannabis plant that is cultivated solely for
5    the purpose of propagating clones and is never used to
6    produce cannabis.
7(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
8102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
95-13-22.)
 
10    (410 ILCS 705/10-10)
11    Sec. 10-10. Possession limit.
12    (a) Except if otherwise authorized by this Act, for a
13person who is 21 years of age or older and a resident of this
14State, the possession limit is as follows:
15        (1) 30 grams of cannabis flower;
16        (2) no more than 500 milligrams of THC contained in
17    cannabis-infused product;
18        (3) 5 grams of cannabis concentrate; and
19        (4) for registered qualifying patients, any cannabis
20    produced by cannabis plants grown under subsection (b) of
21    Section 10-5, provided any amount of cannabis produced in
22    excess of 30 grams of raw cannabis or its equivalent must
23    remain secured within the residence or residential
24    property in which it was grown.
25    (b) For a person who is 21 years of age or older and who is

 

 

HB4161- 151 -LRB103 34685 AWJ 64530 b

1not a resident of this State, the possession limit is:
2        (1) 15 grams of cannabis flower;
3        (2) 2.5 grams of cannabis concentrate; and
4        (3) 250 milligrams of THC contained in a
5    cannabis-infused product.
6    (c) The possession limits found in subsections (a) and (b)
7of this Section are to be considered cumulative.
8    (d) No person shall knowingly obtain, seek to obtain, or
9possess an amount of cannabis from a dispensing organization
10or craft grower that would cause him or her to exceed the
11possession limit under this Section, including cannabis that
12is cultivated by a person under this Act or obtained under the
13Compassionate Use of Medical Cannabis Program Act.
14    (e) Cannabis and cannabis-derived substances regulated
15under the Industrial Hemp Act are not covered by this Act.
16(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
17    Section 30. The Industrial Hemp Act is amended by changing
18Sections 1, 5, 15, 17, 18, and 20 and by adding Sections 3, 6,
197, 10.5, 10.10, 10.15, 10.20, 10.25, 10.30, 10.35, 10.40,
2010.45, 10.50, 10.55, 10.60, 10.65, 10.70, 10.75, 10.80, 10.85,
2110.90, 10.95, 10.100, 11, 11.5, 11.10, 11.15, 11.20, 12, 13,
2215.5, 16, 17.5, 18.5, 28, 30, and 800 as follows:
 
23    (505 ILCS 89/1)
24    Sec. 1. Short title. This Act may be cited as the

 

 

HB4161- 152 -LRB103 34685 AWJ 64530 b

1Industrial Hemp Act.
2(Source: P.A. 100-1091, eff. 8-26-18.)
 
3    (505 ILCS 89/3 new)
4    Sec. 3. Findings. The General Assembly finds that:
5    (1) In the interest of allowing law enforcement to focus
6on violent and property crimes, generating revenue for
7education, substance abuse prevention and treatment, freeing
8public resources to invest in communities and other public
9purposes, and individual freedom, the use of hemp-derived
10cannabinoids should be legal for persons 21 years of age or
11older and should be taxed in a manner similar to beer, wine,
12spirits, and cannabis.
13    (2) In the interest of the health and public safety of the
14residents of Illinois, hemp-derived cannabinoids should be
15regulated in a manner similar to beer, wine, spirits, and
16cannabis so that:
17        (A) persons will have to show proof of age before
18    purchasing hemp-derived cannabinoids;
19        (B) selling, distributing, or transferring
20    hemp-derived cannabinoids to minors and other persons
21    under 21 years of age shall be illegal;
22        (C) driving under the influence of hemp-derived
23    cannabinoids, operating a watercraft under the influence
24    of hemp-derived cannabinoids and operating a snowmobile
25    under the influence of hemp-derived cannabinoids shall be

 

 

HB4161- 153 -LRB103 34685 AWJ 64530 b

1    illegal;
2        (D) legitimate, taxpaying business people, and not
3    criminal actors, will conduct the sales of hemp-derived
4    cannabinoids;
5        (E) hemp-derived cannabinoids sold in the State will
6    be tested, labeled, and subject to additional regulation
7    to ensure that purchasers are informed and protected; and
8        (F) purchasers shall be informed of any known health
9    risks associated with the use of hemp-derived
10    cannabinoids, as concluded by evidence-based, peer
11    reviewed research.
12    (3) It is necessary to ensure consistency and fairness in
13the application of this Act throughout the State and,
14therefore, the matters by this Act are, except as specified in
15this Act, matters of statewide concern.
16    (4) This Act shall not diminish the State's duties and
17commitment to purchasers and businesses that operate under the
18Cannabis Regulation and Tax Act or alter the protections
19granted to them.
20    (5) This Act shall not diminish the State's duties and
21commitment to seriously ill patients registered under the
22Compassionate Use of Medical Cannabis Program Act, nor alter
23the protections granted to them.
24    (6) Supporting and encouraging labor neutrality in the
25hemp-derived cannabinoid industry and employee workplace
26safety is desirable, and employer workplace policies shall be

 

 

HB4161- 154 -LRB103 34685 AWJ 64530 b

1interpreted broadly to protect employee safety.
 
2    (505 ILCS 89/5)
3    Sec. 5. Definitions. In this Act:
4    "Batch" means a specific quantity of a specific
5cannabinoid product that is manufactured at the same time and
6using the same methods, equipment, and ingredients, that is
7uniform and intended to meet specifications for identity,
8strength, purity, and composition, and that is manufactured,
9packaged, and labeled according to a single batch production
10record executed and documented during the same cycle of
11manufacture and produced by a continuous process.
12    "Batch cycle" means a specific quantity of a specific
13cannabinoid product that is manufactured using the same
14methods, equipment, and ingredients, that is uniform and
15intended to meet specifications for identity, strength,
16purity, and composition, and that is manufactured, packaged,
17and labeled according to a batch cycle production record
18executed and documented during the same cycle of manufacture.
19    "Cannabinoid menu item" means a restaurant-type food that
20incorporates ready-to-eat cannabinoids included on a menu or
21menu board or offered as a self-service food or food on
22display.
23    "Cannabinoid retail tax" means a tax of 5% that is
24assessed on the final retail sale of all products that contain
25cannabinoids.

 

 

HB4161- 155 -LRB103 34685 AWJ 64530 b

1    "Cottage hemp cannabinoid product" means a type of hemp
2cannabinoid product available for human consumption, including
3time/temperature control for safety food as that term is
4defined in Section 1-201.10 of the 2017 Food Code of the United
5States Public Health Service of the Food and Drug
6Administration, that utilize intermediate hemp products as an
7input and is produced by a cottage hemp food operator and
8contains THC levels below 0.3% by weight.
9    "Cottage hemp food operator" means an individual who
10produces food or drink, other than foods and drinks listed as
11prohibited by Section 4 of the Food Handling Regulation
12Enforcement Act, that incorporate intermediate hemp products
13in a kitchen located in that person's primary domestic
14residence or another appropriately designed and equipped
15kitchen on a farm for direct sale by the individual, a family
16member, or employee.
17    "Department" means the Department of Agriculture.
18    "Director" means the Director of Agriculture.
19    "Disproportionately impacted area" means a census tract or
20comparable geographic area that satisfies the following
21criteria, as determined by the Department of Commerce and
22Economic Opportunity, that meets at least one of the following
23criteria:
24        (1) 20% or more of the households in the area have
25    incomes at or below 185% of the poverty guidelines updated
26    periodically in the Federal Register by the U.S.

 

 

HB4161- 156 -LRB103 34685 AWJ 64530 b

1    Department of Health and Human Services under the
2    authority of 42 U.S.C. 9902(2);
3        (2) 75% or more of the children in the area
4    participate in the National School Lunch Program according
5    to reported statistics from the State Board of Education;
6        (3) at least 20% of the households in the area receive
7    assistance under the Supplemental Nutrition Assistance
8    Program; or
9        (4) the area has an average unemployment rate, as
10    determined by the Illinois Department of Employment
11    Security, that is more than 120% of the national
12    employment average, as determined by the United States
13    Department of Labor, for a period of at least 2
14    consecutive calendar years preceding the date of the
15    application and has high rates or arrest, conviction, and
16    incarceration related to the sale, possession, use,
17    cultivation, manufacture, or transport of cannabis as
18    defined under the Cannabis Regulation and Tax Act.
19    "Full-panel test" means a test that includes potency
20testing and tests for contaminants, such as pesticides, heavy
21metals, mold, and residual solvents.
22    "Hemp" or "industrial hemp" means the plant Cannabis
23sativa L. and any part of that plant, including the seeds
24thereof and all derivatives, extracts, cannabinoids, isomers,
25acids, salts, and salts of isomers, whether growing or not,
26with a total THC delta-9 tetrahydrocannabinol concentration of

 

 

HB4161- 157 -LRB103 34685 AWJ 64530 b

1not more than 0.3 percent on a dry-weight basis. "Hemp"
2includes industrial hemp, hemp cannabinoid products, and
3ready-to-eat hemp products dry weight basis and includes any
4intermediate or finished product made or derived from
5industrial hemp.
6    "Hemp business establishment" means a hemp farm, hemp
7processor, hemp distributor, hemp retailer, hemp food
8establishment, or cottage hemp food operator.
9    "Hemp cannabinoid" means the chemical constituents of hemp
10plants that are naturally occurring and biologically active.
11    "Hemp cannabinoid product" means a finished product for
12sale to hemp cannabinoid users or medical patients at hemp
13business establishments within the State of Illinois that
14contains cannabinoids derived from hemp, is intended for human
15consumption by inhalation and ingestion, does not exceed 50
16milligrams of THC per serving, and meets the packaging,
17labeling, and testing requirements of this Act.
18    "Hemp cannabinoid user" means a member of the general
19public who buys or uses hemp and who is protected by laws
20against unfair or fraudulent practices in the marketplace.
21    "Hemp distributor" means a facility operated by an
22organization or business that is licensed by the Department of
23Financial and Professional Regulation to import hemp
24cannabinoid products from out-of-state and distribute or sell
25live hemp products and hemp cannabinoid products to other hemp
26business establishments.

 

 

HB4161- 158 -LRB103 34685 AWJ 64530 b

1    "Hemp farm" means an Illinois farm or facility operated by
2an organization or business that is licensed by the Department
3of Agriculture to grow hemp.
4    "Hemp food establishment" means a facility regulated by
5the Illinois Department of Public Health that incorporates
6intermediate hemp products in the manufacturing, processing,
7or preparation of prepackaged or ready-to-eat hemp cannabinoid
8products intended for human ingestion and which meets the
9requirements of this Act.
10    "Hemp processor" means a facility operated by an
11organization or business that is licensed by the Department of
12Agriculture to convert raw hemp material into processed hemp
13products or intermediate hemp products, including the
14extraction, synthesis, or concentration of constituent
15chemicals and compounds from raw hemp or intermediate hemp
16products.
17    "Hemp production plan" means a plan submitted by the
18Department to the Secretary of the United States Department of
19Agriculture pursuant to the federal Agriculture Improvement
20Act of 2018, Public Law 115-334, and consistent with the
21Domestic Hemp Production Program pursuant to 7 CFR Part 990
22wherein the Department establishes its desire to have primary
23regulatory authority over the production of hemp.
24    "Hemp retailer" means a retailer operated by an
25organization or business that is licensed by the Department of
26Financial and Professional Regulation to sell live hemp

 

 

HB4161- 159 -LRB103 34685 AWJ 64530 b

1products or hemp cannabinoid products to hemp cannabinoid
2users or medical patients.
3    "Hemp social equity participant" means an individual who
4is an Illinois resident or a business entity located within
5Illinois that meets one or a combination of any the following
6criteria:
7        (1) is an applicant with at least 51% ownership and
8    control by one or more individuals who have resided for at
9    least 5 of the preceding 10 years in a disproportionately
10    impacted area; or
11        (2) is an applicant with at least 51% ownership and
12    control by at least one individual who:
13            (A) has been arrested for, convicted of, or
14        adjudicated delinquent for any offense that is
15        eligible for expungement under the Cannabis Regulation
16        and Tax Act; or
17            (B) is a member of an impacted family.
18    "Human consumption" means consumption by inhalation or
19ingestion but does not include topical application.
20    "Illinois hemp" means hemp grown, processed, or produced
21by hemp business establishments licensed and located in the
22State of Illinois, including live hemp products, raw hemp
23products, intermediate hemp products, and hemp cannabinoid
24products. "Illinois hemp" includes hemp cannabinoid and
25intermediate hemp products that are only produced in the State
26of Illinois and do not incorporate any form of imported hemp.

 

 

HB4161- 160 -LRB103 34685 AWJ 64530 b

1    "Imported hemp" means hemp that incorporates raw hemp or
2intermediate hemp products not produced in Illinois.
3    "Industrial hemp" includes intermediate or finished
4product made or derived from hemp.
5    "Ingestion" means the process of consuming cannabinoid
6products through the mouth, whether by swallowing into the
7gastrointestinal system or through tissue absorption.
8    "Inhalation" means the process of consuming cannabinoid
9products through the mouth or nasal passages into the
10respiratory system.
11    "Intermediate hemp products" means products that are made
12from processed hemp that may only be sold to hemp business
13establishments to be used as ingredients for other
14intermediate hemp products or final hemp cannabinoid products
15for human consumption by ingestion or inhalation.
16"Intermediate hemp products" may include products that contain
17more than 0.3% THC.
18    "Labor peace agreement" means an agreement (i) between a
19hemp business establishment and any labor organization
20recognized under the National Labor Relations Act, referred to
21in this Act as a bona fide labor organization, that prohibits
22labor organizations and members from engaging in picketing,
23work stoppages, boycotts, and any other economic interference
24with the cannabis business establishment, (ii) in which the
25hemp business establishment has agreed not to disrupt efforts
26by the bona fide labor organization to communicate with, and

 

 

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1attempt to organize and represent, the hemp business
2establishment's employees, (iii) that provides a bona fide
3labor organization access at reasonable times to areas in
4which the cannabis business establishment's employees work for
5the purpose of meeting with employees to discuss their right
6to representation, employment rights under State law, and
7terms and conditions of employment, and (iv) does not mandate
8a particular method of election or certification of the bona
9fide labor organization.
10    "Land area" means a farm as defined in Section 1-60 of the
11Property Tax Code in this State or land or facilities under the
12control of an institution of higher education.
13    "Live hemp products" means living plants, plant cuttings,
14viable seeds, or tissue culture that can be used to propagate
15new hemp plants, that test under 0.3% THC by weight using high
16performance liquid chromatography or comparable technologies
17capable of identifying THC separately from other cannabinoids,
18and that may only be sold or transferred to other hemp farms or
19medical patients.
20    "Medical patient" means an individual who has been issued
21a medical card under the Compassionate Use of Medical Cannabis
22Program Act.
23    "Member of an impacted family" means an individual who has
24a parent, legal guardian, child, spouse, or dependent, or was
25a dependent of an individual who, prior to the effective date
26of this amendatory Act of the 103rd General Assembly, was

 

 

HB4161- 162 -LRB103 34685 AWJ 64530 b

1arrested for, convicted of, or adjudicated delinquent for any
2offense that is eligible for expungement under subsection (i)
3of Section 5.2 of the Criminal Identification Act.
4    "Menu" means the primary writing of the establishment from
5which a customer makes an order selection, including, but not
6limited to, breakfast, lunch, and dinner menus, dessert menus,
7beverage menus, other specialty menus, electronic menus, menu
8boards, and menus published on the Internet.
9    "Person" means any individual, partnership, firm,
10corporation, company, society, association, the State or any
11department, agency, or subdivision thereof, or any other
12entity.
13    "Potency test" means a test on hemp-derived products that
14measures the amount of cannabinoids, such as THC, in a sample.
15    "Process" means the conversion of raw industrial hemp
16plant material into a form that is presently legal to import
17from outside the United States under federal law.
18    "Processed hemp products" means products that are derived
19from hemp that are made for purposes other than human
20consumption. "Processed hemp products" include hemp fibers,
21hemp hurd, hempcrete, hemp fuels, hemp topicals and lotions,
22and other products, such as clothing, plastics, paper, or
23textiles that use or may incorporate elements of hemp.
24    "Raw hemp products" means products that are derived from
25hemp that are not processed or refined with any solvents or
26chemical reactions. "Raw hemp products" includes hulled hemp

 

 

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1seed, hemp seed protein powder, hemp seed oil, hemp stalks,
2hemp leaves, and artwork incorporating hemp by-products.
3    "Ready-to-eat hemp cannabinoid product" means a type of
4hemp cannabinoid product available for human consumption,
5including time or temperature control, or both, for safety
6foods, as that term is defined in Section 1-201.10 of the Food
7Code 2017 of the United States Public Health Service of the
8Food and Drug Administration, that does not exceed 50
9milligrams of THC per serving, and that utilize intermediate
10hemp products as an input as is produced as a single serving in
11a retail food establishment.
12    "Retail sale" means any sale of cannabinoid products that
13would be subject to the Retailers' Occupation Tax Act.
14    "Serving" means the amount of product intended to be
15consumed in a single serving as declared on the label
16expressed in a common household measure. "Serving size" does
17not include a fraction of a piece, but a fraction may be
18indicated by marking or scoring on packaging or labeling.
19    "THC" means delta-9 tetrahydrocannabinol. "THC" does not
20include CBD, CBG, CBN, delta-7 THC, delta-8 THC, delta-10 THC,
21THCa, THCv, THCva, and other yet-to-be-discovered
22cannabinoids.
23(Source: P.A. 102-690, eff. 12-17-21.)
 
24    (505 ILCS 89/6 new)
25    Sec. 6. Sale of hemp cannabinoid products.

 

 

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1    (a) The wholesale and retail sale of cannabinoids, hemp
2concentrate, or any other intermediate hemp cannabinoid
3product is allowed as provided in this Act.
4    (b) No person shall offer or sell hemp cannabinoid
5products, particularly packaged hemp products, to consumers in
6the State of Illinois unless the person applies for and holds a
7hemp retailer license issued by the Department of Financial
8and Professional Regulation. No person shall sell ready-to-eat
9hemp products to end consumers without holding a hemp food
10establishment license issued by the Department of Public
11Health.
12    (c) A hemp food establishment that sells    amt
13ready-to-eat cannabinoid products shall be exclusively
14licensed and located in the State of Illinois.
15    (d) No person shall sell a hemp cannabinoid product to any
16person under the age of 21 unless the person is a medical
17patient.
18    (e) No person shall sell, buy for, distribute samples of,
19or furnish any cannabinoid product to any person under the age
20of 21 except as provided in subsection (d).
21    (f) For purposes of this Act, a medical patient shall not
22be considered an unlawful user solely as a result of his or her
23qualifying patient or designated caregiver status. All
24products purchased by a qualifying patient at a licensed
25organization shall be lawful products and a distinction shall
26be made between medical and nonmedical use as a result of the

 

 

HB4161- 165 -LRB103 34685 AWJ 64530 b

1qualifying patient's cardholder status.
2    (g) No person under 21 years of age in the furtherance or
3facilitation of obtaining hemp cannabinoid products shall
4display or use a false or forged identification card or
5transfer, alter, or deface an identification card.
6    (h) A hemp food establishment or hemp retailer that sells
7cannabinoid products intended for inhalation shall post a
8clear and conspicuous sign directly adjacent to the display of
9the product that states the following: "THE SALE OF
10CANNABINOID PRODUCTS INTENDED FOR INHALATION TO PERSONS UNDER
11THE AGE OF 21 IS PROHIBITED. PROOF OF AGE IS REQUIRED FOR
12PURCHASE.".
13    (i) Cannabinoid products may not be mailed, shipped, or
14otherwise delivered to a purchaser unless, before the delivery
15to the purchaser, the hemp retailer obtains confirmation that
16the purchaser is 21 years of age or older or is a medical
17patient.
18    (j) Hemp food establishments and hemp retailers shall
19require proof of age or proof of valid registration under the
20Compassionate Use of Medical Cannabis Program Act from a
21purchaser of any cannabinoid products before selling the
22product to that person. Hemp food establishments and hemp
23retailers shall exercise diligence in the management and
24supervision of their premises and in the supervision and
25training of their employees to prevent the underage sale of
26these products.

 

 

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1    (k) A product containing cannabinoids must not be
2considered adulterated or unsafe solely because the product
3contains cannabinoids or other material is extracted or
4derived from hemp plants.
5    (l) A person, hemp retailer, or hemp food establishment
6that violates subsection (e) is guilty of a violation of this
7Act and is subject to a penalty under Section 17 of this Act. A
8person under the age of 21 who violates subsection (g) is
9guilty of a Class A misdemeanor.
 
10    (505 ILCS 89/7 new)
11    Sec. 7. Inhalable cannabinoid products.
12    (a) No person shall prepare and sell wholesale packaged
13cannabinoid products that are intended for inhalation unless
14the person is licensed by the Department as a hemp processor or
15hemp distributor. No person shall offer inhalable hemp
16cannabinoid products for sale directly to the public unless
17the person is licensed as a hemp retailer.
18    (b) All cannabinoid products that are intended for
19inhalation shall be manufactured by a source that meets local,
20State, or federal regulatory good manufacturing practices and
21health standards from the jurisdiction of origin.
22    (c) Hemp cannabinoid products intended for inhalation are
23not subject to the Tobacco Products Tax Act of 1995.
 
24    (505 ILCS 89/10.5 new)

 

 

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1    Sec. 10.5. Licensing and regulation of hemp farms.
2    (a) The Department of Agriculture may not limit the number
3of hemp farm licenses.
4    (b) No person shall cultivate or grow hemp for commercial
5purposes unless licensed by the Department of Agriculture and
6subject to the rules adopted by the Department of Agriculture.
7Hemp farms may not create hemp extractions without a hemp
8processor license. A hemp farm may not engage in retail sales
9without a hemp retailer license.
10    (c) All licensed hemp farms shall be responsible for
11ensuring that their harvest of raw hemp products and live hemp
12products test under 0.3% THC and maybe sold to other hemp
13businesses or persons under the Compassionate Use of Medical
14Cannabis Program Act.
15    (d) Businesses licensed under the Cannabis Regulation and
16Tax Act may hold a hemp farm license.
17    (e) The Department of Agriculture may require hemp farm
18applicants to enter into a labor peace agreement with a bona
19fide labor organization.
20    (f) Hemp farm facilities may be located outdoors, in
21greenhouses, or indoors and may be located on residentially
22zoned properties in accordance with permitted agricultural use
23guidelines from local zoning ordinances.
24    (g) Hemp farms may produce live and raw hemp products.
25Live hemp products produced by hemp farms may only be sold and
26exchanged with other hemp business establishments or medical

 

 

HB4161- 168 -LRB103 34685 AWJ 64530 b

1patients.
2    (h) Raw hemp products may be sold by hemp farms to
3consumers without a hemp retailer's license.
 
4    (505 ILCS 89/10.10 new)
5    Sec. 10.10. Licensing and regulation of hemp processors.
6    (a) The Department of Agriculture may not limit the number
7of hemp processor licenses.
8    (b) No person shall process hemp unless licensed by the
9Department of Agriculture and subject to the rules adopted by
10the Department. In addition to processing hemp, licensed hemp
11processors may turn hemp plant material into intermediate hemp
12products or manufacture hemp products for inhalation or
13topical use. Processors may not grow hemp without a hemp farm
14license. Processors may not manufacture hemp cannabinoid
15products for human ingestion without a hemp food establishment
16license. Processors may not engage in retail sales without a
17hemp retailer license.
18    (c) A business licensed under the Cannabis Regulation and
19Tax Act may hold a hemp processor license.
20    (d) The Department of Agriculture may require hemp
21processor applicants to enter into a labor peace agreement
22with a bona fide labor organization.
 
23    (505 ILCS 89/10.15 new)
24    Sec. 10.15. Regulation of hemp distributors.

 

 

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1    (a) The Department of Financial and Professional
2Regulation shall administer and enforce the provisions of this
3Act relating to licensing and oversight of hemp distributor
4establishments unless otherwise provided in this Act.
5    (b) No person shall operate a hemp distributor
6establishment for the purpose of serving purchasers of raw
7hemp products, intermediate hemp products, or hemp cannabinoid
8products to other in-state hemp processors, hemp distributors,
9hemp food establishments, hemp retailers, or cottage hemp food
10operators without a license issued under this Act by the
11Department of Financial and Professional Regulation.
12    (c) Subject to the provisions of this Act, the Department
13of Financial and Professional Regulation may exercise the
14following powers and duties:
15        (1) Prescribe forms to be issued for the
16    administration and enforcement of this Act.
17        (2) Examine, inspect, and investigate the premises,
18    operations, and records of hemp distributor organization
19    applicants and licensees.
20        (3) Conduct investigations of possible violations of
21    this Act pertaining to hemp distributor establishments.
22        (4) Conduct hearings on proceedings to refuse to issue
23    or renew licenses or to revoke, suspend, place on
24    probation, reprimand, or otherwise discipline a license
25    holder under this Act or take other nondisciplinary
26    action.
 

 

 

HB4161- 170 -LRB103 34685 AWJ 64530 b

1    (505 ILCS 89/10.20 new)
2    Sec. 10.20. Hemp distributor license.
3    (a) As used in this Section, "Department" means the
4Department of Financial and Professional Regulation.
5    (b) The Department may not limit the number of hemp
6distributor licenses.
7    (c) Applicants for a hemp distributor license must submit
8all information required by the Department. Failure by an
9applicant to submit all required information may result in the
10application being disqualified.
11    (d) The Department may verify information contained in
12each application and accompanying documentation to assess the
13applicant's veracity and fitness to operate a hemp distributor
14establishment.
15    (e) The Department may refuse to issue an authorization to
16any applicant:
17        (1) who fails to disclose or falsifies any information
18    called for in the applications;
19        (2) who has been found guilty of a violation of this
20    Act, who has had any disciplinary order entered against
21    the applicant by the Department, who has entered into a
22    disciplinary or nondisciplinary agreement with the
23    Department, or whose hemp business establishment license
24    was suspended, restricted, revoked, or denied in another
25    state; or

 

 

HB4161- 171 -LRB103 34685 AWJ 64530 b

1        (3) who has engaged in a pattern or practice of unfair
2    or illegal practices, methods or activities in the conduct
3    of owning a hemp business establishment or other business.
4    The Department may require hemp distributor applicants to
5enter into a labor peace agreement with a bona fide labor
6organization.
7    (f) The Department shall deny the license if any principal
8officer, board member, or person having a financial or voting
9interest of 5% or greater on the license is delinquent in
10filing any required tax returns or paying any amounts owed to
11the State of Illinois.
12    (g) The Department shall verify an applicant's compliance
13with the requirements of this Act and rules before issuing a
14hemp distributor license.
15    (h) Businesses licensed under the Cannabis Regulation and
16Tax Act may hold a hemp distributor license.
 
17    (505 ILCS 89/10.25 new)
18    Sec. 10.25. Operational requirements of hemp distributors.
19    (a) A hemp distributor establishment shall operate in
20accordance with the representations made in its application
21and license materials. It shall be in compliance with this Act
22and rules.
23    (b) All live hemp products and hemp cannabinoid products
24must be obtained from a hemp farm, hemp retailer, hemp food
25establishment, or hemp distributor licensed by the State of

 

 

HB4161- 172 -LRB103 34685 AWJ 64530 b

1Illinois or from another similarly licensed out-of-state
2entity.
3    (c) Hemp distributor establishments shall maintain
4compliance with State and local building, fire, and zoning
5requirements and regulations.
6    (d) A hemp distributor establishment's license allows for
7a hemp distributor to be operated only at a single location.
8    (e) A hemp distributor establishment that handles or
9stores live hemp products for other hemp business
10establishments must obtain a separate hemp farm license for
11each location.
12    (f) A hemp distributor establishment shall ensure that any
13building or equipment used by the hemp distributor
14establishment for the storage or sale of live hemp and hemp
15cannabinoid products are maintained in a clean and sanitary
16condition appropriate for the products being held and sold.
17    (g) A hemp distributor establishment shall be free from
18infestation by insects, rodents, or pests.
19    (h) A hemp distributor license does not give the
20organization the right to:
21        (1) grow hemp;
22        (2) produce or manufacture hemp or hemp cannabinoid
23    products;
24        (3) accept or sell hemp cannabinoid products that are
25    not packaged, tested, and labeled in accordance with this
26    Act and any rules that may be adopted pursuant to this Act;

 

 

HB4161- 173 -LRB103 34685 AWJ 64530 b

1        (4) obtain unregistered live hemp or hemp cannabinoid
2    products;
3        (5) sell live hemp, intermediate hemp products, or
4    hemp cannabinoid products to anyone that is not a
5    registered hemp business establishment;
6        (6) sell live hemp products or hemp cannabinoid
7    products to hemp cannabinoid users or medical patients
8    unless the hemp distributor has also obtained a hemp
9    retailer license; or
10        (7) violate any other requirements or prohibitions set
11    by Department of Financial and Professional Regulation
12    rules.
13    (i) A hemp distributor license may be obtained by an
14out-of-state entity, if the applicant:
15        (1) and all principal officers on the application
16    retains a registered agent or office and agrees to submit
17    to tax nexus within the State of Illinois for
18    jurisdictional, regulatory, and enforcement purposes;
19        (2) agrees to only sell to hemp business
20    establishments registered live hemp products that are
21    registered with the Department of Agriculture;
22        (3) agrees to only sell to hemp business
23    establishments intermediate hemp products that are tested
24    in accordance with the rules adopted pursuant to this Act;
25        (4) agrees to only sell to hemp business
26    establishments registered hemp cannabinoid products that

 

 

HB4161- 174 -LRB103 34685 AWJ 64530 b

1    are registered with the State of Illinois; and
2        (5) maintains a log of all sales to hemp business
3    establishments located within the State of Illinois to be
4    submitted for inspection by the Department of Financial
5    and Professional Regulation.
6    (j) A hemp distributor establishment has the right to
7obtain and concurrently operate a hemp farm, hemp processor,
8hemp food establishment, and hemp retail establishment
9licenses at its location so long as it is in compliance with
10all local regulations and zoning ordinances.
 
11    (505 ILCS 89/10.30 new)
12    Sec. 10.30. Hemp distributor recordkeeping.
13    (a) A hemp distributor shall keep electronically, or at
14the licensed address or place of business located within the
15State of Illinois, complete and accurate records of all sales
16or other dispositions of live hemp products, intermediate hemp
17products, and hemp cannabinoid products sold, whether for
18itself or for another, together with a physical inventory made
19as of the close of each period for which a return is required,
20covering all live hemp products, intermediate hemp products,
21and hemp cannabinoid products on hand.
22    (b) A hemp distributor is required to retain invoices and
23bills of lading covering purchases and invoices and duplicate
24copies of bills of lading covering sales of live hemp
25products, intermediate hemp products, and hemp cannabinoid

 

 

HB4161- 175 -LRB103 34685 AWJ 64530 b

1products.
2    To support deductions on the ground that deliveries of
3live hemp products, intermediate hemp products, and hemp
4cannabinoid products were made outside of the State of
5Illinois, records shall include satisfactory evidence of
6delivery to and receipt by out-of-state consignees.
7    (c) A physical inventory must be taken and a record
8thereof preserved as of the close of business on the last
9business day of each calendar month.
10    Hemp distributors shall include an inventory on hand of
11all live hemp products, intermediate hemp products, and hemp
12cannabinoid products, including those in bond and other
13warehouses, and shall designate whether the hemp products are
14owned by the hemp distributor or whether such hemp products
15are lawfully held by the distributor as agent for another.
16    (d) A hemp distributor must, at the time of sale of any
17live hemp products, intermediate hemp products, and hemp
18cannabinoid products, render to the purchaser an invoice
19describing the hemp product sold (including the tax rate
20category applicable to the product sold), the date of sale, to
21whom sold, and the quantity sold. Duplicate copies of all the
22invoices must be made and preserved by the hemp distributor
23for audit purposes.
24    When a hemp distributor sells live hemp products,
25intermediate hemp products, or hemp cannabinoid products to
26another hemp business establishment that is not a cottage hemp

 

 

HB4161- 176 -LRB103 34685 AWJ 64530 b

1food operator, each original and duplicate invoice pertaining
2to the sale must be printed, stamped, or bear in writing
3language substantially as follows: "Hemp products described
4herein sold without payment of Illinois cannabinoid retail
5hemp tax to holder of Illinois hemp license no. XXX.".
6    When a hemp distributor sells intermediate hemp products
7to a cottage hemp food operator, each original and duplicate
8invoice pertaining to the sale must be printed, stamped, or
9bear in writing language substantially as follows "Payment of
10Illinois cannabinoid retail hemp tax made by vendor issuing
11this invoice.".
12    Failure of any hemp distributor to print, stamp, or write
13upon any invoice covering live hemp products, intermediate
14hemp products, or hemp cannabinoid products sold in Illinois
15any statement relating to payment of the cannabinoid retail
16hemp tax shall oblige the Department of Financial and
17Professional Regulation to assume that the hemp distributor is
18liable for tax with respect to the sales.
19    No hemp distributor shall sell or deliver any live hemp
20products, intermediate hemp products, or hemp cannabinoid
21products to another for resale, unless the person to whom lire
22hemp products are sold or delivered is authorized to receive
23the products under the provisions of the Act. A hemp
24distributor must place the license number of the person
25receiving the products on all receipts, bills, invoices, and
26statements covering the sales or deliveries.

 

 

HB4161- 177 -LRB103 34685 AWJ 64530 b

1    (e) Hemp distributor establishment records must be
2maintained electronically for 3 years and be available for
3inspection by the Department of Financial and Professional
4Regulation upon request, unless the Department, in writing,
5authorizes the records' destruction or disposal at an earlier
6date. Books and records must be maintained at the licensed
7address that is located within the State of Illinois. The
8Department may in its discretion prescribe uniform methods for
9keeping the records.
10    (f) If a hemp distributor closes due to insolvency,
11revocation, bankruptcy, or for any other reasons, all records
12must be preserved at the expense of the hemp distributor for at
13least 3 years in a form and location in Illinois acceptable to
14the Department. The hemp distributor shall keep the records
15longer if requested by the Department. The hemp distributor
16shall notify the Department of the location where the hemp
17retailer records are stored or transferred.
18    (g) A hemp distributor selling intermediate hemp products
19to cottage food operators are responsible for maintaining
20cottage food registration records and collecting cannabinoid
21retail taxes on behalf of the cottage food operator.
 
22    (505 ILCS 89/10.35 new)
23    Sec. 10.35. Regulation of hemp retailers.
24    (a) As used in this Section, "Department" means the
25Department of Financial and Professional Regulation.

 

 

HB4161- 178 -LRB103 34685 AWJ 64530 b

1    (b) The Department shall administer and enforce the
2provisions of this Act relating to licensing and oversight of
3hemp retailers unless otherwise provided in this Act.
4    (c) No person shall operate a hemp retail establishment
5for the purpose of serving purchasers of hemp cannabinoid
6products without a license issued under this Act by the
7Department.
8    (d) Subject to the provisions of this Act, the Department
9may exercise the following powers and duties:
10        (1) Prescribe forms to be issued for the
11    administration and enforcement of this Act.
12        (2) Examine, inspect, and investigate the premises,
13    operations, and records of hemp retailer applicants and
14    licensees.
15        (3) Conduct investigations of possible violations of
16    this Act pertaining to hemp retailer.
17        (4) Conduct hearings on proceedings to refuse to issue
18    or renew licenses or to revoke, suspend, place on
19    probation, reprimand or otherwise discipline a license
20    holder under this Act or take other nondisciplinary
21    action.
22    (e) Businesses licensed under the Cannabis Regulation and
23Tax Act may hold a hemp retailer license.
24    (f) The Department may not limit the number of hemp
25retailer licenses.
26    (g) The Department may not limit the number of hemp

 

 

HB4161- 179 -LRB103 34685 AWJ 64530 b

1retailer licenses an individual may hold.
2    (h) Applicants for a hemp retailer license must submit all
3information required by the Department. Failure by an
4applicant to submit all required information may result in the
5application being disqualified.
6    (i) The Department may verify information contained in
7each application and accompanying documentation to assess the
8applicant's veracity and fitness to operate a hemp retailer
9establishment.
10    (j) The Department may refuse to issue a license to any
11applicant:
12        (1) who fails to disclose or falsifies any information
13    called for in the application;
14        (2) who has been found guilty of a violation of this
15    Act, who has had any disciplinary order entered against
16    the applicant by the Department, who has entered into a
17    disciplinary or nondisciplinary agreement with the
18    Department, or whose hemp business establishment license
19    was suspended, restricted, revoked, or denied in another
20    state; or
21        (3) who has engaged in a pattern or practice of unfair
22    or illegal practices, methods, or activities in the
23    conduct of owning a hemp business establishment or other
24    business.
25    (k) The Department may require hemp retailer applicants to
26enter into a labor peace agreement with a bona fide labor

 

 

HB4161- 180 -LRB103 34685 AWJ 64530 b

1organization.
2    (l) The Department shall deny the license if any principal
3officer, board member or persons having a financial or voting
4interest of 5% or greater on the license is delinquent in
5filing any required tax returns or paying any amounts owed to
6the State of Illinois.
7    (m) The Department shall verify an applicant's compliance
8with the requirements of this Act and the rules adopted under
9this Act before issuing a hemp retailer license.
 
10    (505 ILCS 89/10.40 new)
11    Sec. 10.40. Operational requirements of hemp retailers.
12    (a) A hemp retailer shall operate in accordance with the
13representations made in its application and license materials.
14It shall be in compliance with this Act and rules.
15    (b) All live hemp products and hemp cannabinoid products
16must be obtained from a hemp farm, hemp distributor, hemp food
17establishment, or another hemp retailer licensed by the State
18of Illinois or from another similarly licensed out-of-state
19entity.
20    (c) A hemp retailer establishment that handles or stores
21live hemp products for the purpose of selling live hemp
22products to medical patients must obtain a separate hemp farm
23license for that location.
24    (d) A hemp retailer establishment that obtains a hemp food
25establishment license may prepare and sell ready-to-eat hemp

 

 

HB4161- 181 -LRB103 34685 AWJ 64530 b

1cannabinoid products.
2    (e) A hemp retailer establishment that maintains a hemp
3food establishment license may host cottage hemp food
4operators on premises for special events lasting no longer
5than 3 days.
6    (f) A hemp retailer establishment shall maintain
7compliance with State and local building, fire, and zoning
8requirements and regulations.
9    (g) A hemp retailer license allows for a hemp retailer to
10be operated only at a single location.
11    (h) A hemp retailer establishment shall ensure that any
12building or equipment used by the hemp retailer establishment
13for the sale of hemp, hemp cannabinoid products, and
14ready-to-eat hemp cannabinoid products are maintained in a
15clean and sanitary condition.
16    (i) A hemp retailer establishment shall be free from
17infestation by insects, rodents, or pests.
18    (j) A hemp retailer license does not give the licensee the
19right to:
20        (1) grow hemp;
21        (2) produce or manufacture hemp or hemp cannabinoid
22    products;
23        (3) accept and sell hemp cannabinoid products that are
24    not packaged, tested, and labeled in accordance with this
25    Act and any rules that may be adopted pursuant to this Act;
26        (4) obtain unregistered live hemp or hemp cannabinoid

 

 

HB4161- 182 -LRB103 34685 AWJ 64530 b

1    products;
2        (5) sell live hemp to a purchaser unless the purchaser
3    is registered under the Compassionate Use of Medical
4    Cannabis Program;
5        (6) sell hemp cannabinoid products to a purchaser
6    unless the purchaser is a medical patient or that the
7    purchaser has been verified to be 21 years of age or older;
8    or
9        (7) violate any other requirements or prohibitions set
10    by Department rules.
11    (k) A hemp retailer license may be obtained by an
12out-of-state entity if the applicant:
13        (1) and all principal officers on the application
14    retains a registered agent or office and agree to submit
15    to tax nexus within the State of Illinois for
16    jurisdictional, regulatory, and enforcement purposes;
17        (2) agrees to only sell to residents located within
18    the State of Illinois registered live hemp products that
19    are registered with the Department of Agriculture;
20        (3) agrees to only sell to residents located within
21    the State of Illinois registered hemp cannabinoid products
22    that are registered with the State of Illinois; and
23        (4) maintains a log of all sales to residents located
24    within the State of Illinois to be submitted for
25    inspection by the Department.
26    (l) A hemp retailer has the right to obtain and operate

 

 

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1hemp farm, hemp distributor, hemp processor, or hemp food
2establishments at its location if it is in compliance with all
3local regulations and zoning ordinances.
4    (m) A hemp retailer is responsible for collecting and
5remitting cannabinoid retail taxes.
 
6    (505 ILCS 89/10.45 new)
7    Sec. 10.45. Hemp retailer recordkeeping.    
8    (a) Hemp retailer records must be maintained
9electronically for 3 years and be available for inspection by
10the Department upon request. Required written records include,
11but are not limited to, the following:
12        (1) Operating procedures.
13        (2) Inventory records, policies, and procedures.
14        (3) Business records, including, but not limited to:
15            (A) Assets and liabilities.
16            (B) Monetary transactions.
17            (C) Written or electronic accounts, including bank
18        statements, journals, ledgers and supporting
19        documents, agreements, checks, invoices, receipts, and
20        vouchers.
21            (D) Any other financial accounts reasonably
22        related to the hemp retailer operations.
23    (b) If a hemp retailer closes due to insolvency,
24revocation, bankruptcy, or for any other reasons, all records
25must be preserved at the expense of the hemp retailer for at

 

 

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1least 3 years in a form and location in Illinois acceptable to
2the Department. The hemp retailer shall keep the records
3longer if requested by the Department. The hemp retailer shall
4notify the Department of the location where the hemp retailer
5records are stored or transferred.
 
6    (505 ILCS 89/10.50 new)
7    Sec. 10.50. Regulation of hemp food establishments.
8    (a) As used in this Section, "Department" means the
9Department of Public Health.
10    (b) The Department shall administer and enforce the
11provisions of this Act relating to licensing and oversight of
12hemp food establishments unless otherwise provided in this
13Act.
14    (c) No person shall operate a hemp food establishment for
15the purpose of serving hemp cannabinoid products for human
16ingestion or ready-to-eat hemp cannabinoid products without a
17license issued under this Act.
18    (d) Subject to the provisions of this Act, the Department
19may exercise the following powers and duties:
20        (1) Prescribe forms to be issued for the
21    administration and enforcement of this Act.
22        (2) Examine, inspect, and investigate the premises,
23    operations, and records of hemp food establishment
24    applicants and licensees.
25        (3) Conduct investigations of possible violations of

 

 

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1    this Act pertaining to hemp food establishments.
2        (4) Conduct hearings on proceedings to refuse to issue
3    or renew licenses or to revoke, suspend, place on
4    probation, reprimand, or otherwise discipline a license
5    holder under this Act or take other nondisciplinary
6    action.
7    (e) Businesses licensed under the Cannabis Regulation and
8Tax Act may hold a hemp food establishment license.
 
9    (505 ILCS 89/10.55 new)
10    Sec. 10.55. Hemp food establishment licenses.
11    (a) As used in this Section, "Department" means the
12Department of Public Health.
13    (b) The Department may not limit the number of hemp food
14establishment licenses.
15    (c) The Department shall not limit the number of licenses
16an individual may hold. Applicants for a hemp food
17establishment license must submit all information required by
18the Department. Failure by an applicant to submit all required
19information may result in the application being disqualified.
20    (d) The Department may verify information contained in
21each application and accompanying documentation to assess the
22applicant's veracity and fitness to operate a hemp food
23establishment.
24    (e) The Department may refuse to issue an authorization to
25any applicant:

 

 

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1        (1) who fails to disclose or falsifies any information
2    called for in the application;
3        (2) who has been found guilty of a violation of this
4    Act, who has had any disciplinary order entered against
5    the applicant by the Department, who has entered into a
6    disciplinary or nondisciplinary agreement with the
7    Department, or whose hemp business establishment license
8    was suspended, restricted, revoked, or denied in another
9    State; or
10        (3) who has engaged in a pattern or practice of unfair
11    or illegal practices, methods, or activities in the
12    conduct of owning a hemp business establishment or other
13    business.
14    (f) The Department may require hemp food establishment
15applicants to enter into a labor peace agreement with a bona
16fide labor organization.
17    (g) The Department shall deny the license if any principal
18officer, board member, or persons having a financial or voting
19interest of 5% or greater on the license is delinquent in
20filing any required tax returns or paying any amounts owed to
21the State of Illinois.
22    (h) The Department shall verify an applicant's compliance
23with the requirements of this Act and rules before issuing a
24hemp food establishment license.
 
25    (505 ILCS 89/10.60 new)

 

 

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1    Sec. 10.60. Operational requirements of hemp food
2establishments.
3    (a) A hemp food establishment dealing in the manufacture
4and sale of food items that does not comply with the existing
5State laws related to food handling or does not comply with the
6health and food handling regulations of a unit of local
7government having jurisdiction over the establishment may be
8enjoined from doing business in the following manner: the
9Department of Public Health or a local department of health
10may seek an injunction in the circuit court for the county in
11which the establishment is located. An injunction, if granted,
12shall prohibit the hemp food establishment from selling hemp
13cannabinoid products for human ingestion until it complies
14with any applicable State law or regulations of a unit of local
15government. However, no injunction may be sought or granted
16before January 1, 2025, to enforce any rule or regulation
17requiring a licensed food business to adhere to those rules
18and regulations.
19    (b) The Department of Public Health shall adopt and
20enforce rules for the manufacture and processing of hemp
21cannabinoid products for human ingestion at a hemp food
22establishment, and, for that purpose, it may at all times
23enter every building, room, basement, enclosure, or premises
24occupied or used, or suspected of being occupied or used, for
25the production, preparation, manufacture for sale, storage,
26sale, processing, distribution, or transportation and to

 

 

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1inspect the premises of a hemp food establishment together
2with all utensils, fixtures, furniture, and machinery used for
3the preparation of these products.
4    (c) A hemp food establishment shall be under the
5operational supervision of a certified food service sanitation
6manager in accordance with rules promulgated under this Act.
7    (d) A hemp food establishment shall operate in accordance
8with the representations made in its application and license
9materials. It shall be in compliance with this Act and rules.
10    (e) A hemp food establishment shall comply with the food
11handling, preparation, packaging, and labeling provisions of
12the Illinois Food, Drug and Cosmetic Act, the Food Handling
13Regulation Enforcement Act, and the Sanitary Food Preparation
14Act.
15    (f) A hemp food establishment shall obtain raw hemp
16products from a hemp farm or hemp distributor.
17    (g) A hemp food establishment shall obtain intermediate
18hemp products from a hemp distributor.
19    (h) A hemp food establishment that obtains a hemp retailer
20license may prepare and sell ready-to-eat hemp cannabinoid
21products.
22    (i) A hemp food establishment shall maintain compliance
23with State and local building, fire, and zoning requirements.
24    (j) A hemp food establishment license allows for a hemp
25food establishment to be operated only at a single location.
26    (k) A hemp food establishment shall ensure that any

 

 

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1building or equipment used by the hemp food establishment for
2the storage, preparation, or sale of hemp cannabinoid products
3for human ingestion and ready-to-eat hemp cannabinoid products
4are maintained in a clean and sanitary condition.
5    (l) A hemp food establishment shall be free from
6infestation by insects, rodents, or pests.
7    (m) A hemp food establishment, when combined with an
8on-site hemp retailer license, allows for the preparation and
9sale of ready-to-eat hemp cannabinoid products.
10    (n) A hemp food establishment license does not give the
11establishment the right to:
12        (1) grow hemp;
13        (2) process hemp;
14        (3) accept and use intermediate hemp products that are
15    not packaged, tested, and labeled in accordance with this
16    Act;
17        (4) distribute intermediate hemp products to cottage
18    hemp food operators;
19        (5) obtain unregistered live hemp or hemp cannabinoid
20    products;
21        (6) prepare and sell ready-to-eat hemp cannabinoid
22    products to a purchaser unless the individual is
23    registered under the Compassionate Use of Medical Cannabis
24    Program or that the purchaser has been verified to be 21
25    years of age or older; or
26        (7) violate any other requirements or prohibitions set

 

 

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1    by Department of Public Health rules.
 
2    (505 ILCS 89/10.65 new)
3    Sec. 10.65. Recipes and dosing of ready-to-eat hemp
4cannabinoid products. In order to sell ready-to-eat hemp
5cannabinoid products, a hemp food establishment shall do all
6of the following:
7        (1) Use only intermediate hemp products that have been
8    fully tested in accordance with this Act.
9        (2) Keep THC dosing at or below 50 milligrams per
10    serving.
11        (3) Submit a standard operating procedure for dosing
12    to the Department for approval and registration. Such
13    approval shall be granted within 30 days of submission
14    unless the Department provides good cause, in writing, for
15    withholding approval.
16        (4) Submit the recipe, at the hemp food
17    establishment's expense, to a third-party testing
18    laboratory for potency testing to ensure 0.3% THC
19    compliance on an annual basis.
20        (5) Use only the varietal or proportional varietals of
21    ingredients included in the tested recipe for all
22    subsequent batches of the recipe.
23        (6) Provide documentation of the annual test results
24    of the recipe submitted under this paragraph upon
25    registration and to an inspector upon request during any

 

 

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1    inspection authorized by the Department.
 
2    (505 ILCS 89/10.70 new)
3    Sec. 10.70. Disclosure and labeling of ready-to-eat hemp
4cannabinoid products.
5    (a) Hemp food establishments must ensure that the total
6milligram content of each type of Cannabinoid exceeding one
7milligram contained in each ready-to-eat hemp cannabinoid menu
8item is listed on the menu adjacent to the name or the price of
9the associated menu item.
10    (b) Hemp food establishments must ensure that served
11ready-to-eat hemp cannabinoid menu items include a label that:
12        (1) indicates the total milligram content of the
13    served item; and
14        (2) provides a QR code for a link to a web page
15    containing:
16            (A) a copy of the testing results of the
17        intermediate hemp product used;
18            (B) a copy of the dosing standard operating
19        procedure; and
20            (C) a copy of a representative compliance test for
21        the recipe.
 
22    (505 ILCS 89/10.75 new)
23    Sec. 10.75. Recordkeeping of ready-to-eat hemp cannabinoid
24products.

 

 

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1    (a) Hemp food establishment records must be maintained
2electronically for 3 years and be available for inspection by
3the Department upon request. Required records include, but are
4not limited to, the following:
5        (1) Operating procedures and recipes.
6        (2) Inventory records, policies, and procedures.
7        (3) Batch creation logs of intermediate hemp products.
8        (4) Dosing records of ready-to-eat hemp cannabinoid
9    products.
10    (b) If a hemp food establishment closes due to insolvency,
11revocation, bankruptcy, or for any other reasons, all records
12must be preserved at the expense of the hemp food
13establishment for at least 3 years in a form and location in
14Illinois acceptable to the Department. The hemp food
15establishment shall keep the records longer if requested by
16the Department. The hemp food establishment shall notify the
17Department of the location where the hemp food establishment
18records are stored or transferred.
 
19    (505 ILCS 89/10.80 new)
20    Sec. 10.80. Regulation of cottage hemp food operators.
21    (a) As used in this Section, "Department" means the
22Department of Public Health.
23    (b) The Department shall administer and enforce the
24provisions of this Act relating to licensing and oversight of
25cottage hemp food operators unless otherwise provided in this

 

 

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1Act.
2    (c) No person shall operate as a cottage hemp food
3operator for the purpose of serving purchasers of ready-to-eat
4hemp cannabinoid products without a license issued under this
5Act.
6    (d) Subject to the provisions of this Act, the Department
7may exercise the following powers and duties:
8        (1) Prescribe forms to be issued for the
9    administration and enforcement of this Act.
10        (2) Examine, inspect, and investigate the premises,
11    operations, and records of hemp food establishment
12    applicants and licensees.
13        (3) Conduct investigations of possible violations of
14    this Act pertaining to hemp food establishments.
15        (4) Conduct hearings on proceedings to refuse to issue
16    or renew licenses or to revoke, suspend, place on
17    probation, reprimand, or otherwise discipline a license
18    holder under this Act or take other nondisciplinary
19    action.
 
20    (505 ILCS 89/10.85 new)
21    Sec. 10.85. Cottage hemp food operator licenses.
22    (a) As used in this Section, "Department" means the
23Department of Public Health.
24    (b) The Department may not limit the number of cottage
25hemp food operator licenses issued.

 

 

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1    (c) The Department shall not limit the number of licenses
2an individual may hold.
3    (d) The fee for a cottage hemp food operator license is
4$75.
5    (e) An applicant for a cottage hemp food operator license
6shall be an individual.
7    (f) An applicant for a hemp food establishment license
8must submit all information required by the Department.
9Failure by an applicant to submit all required information may
10result in the application being disqualified.
11    (g) The Department may verify information contained in
12each application and accompanying documentation to assess the
13applicant's veracity and fitness to operate a hemp food
14establishment.
15    (h) The Department may refuse to issue a license to any
16applicant:
17        (1) who fails to disclose or falsifies any information
18    called for in the application;
19        (2) who has been found guilty of a violation of this
20    Act, who has had any disciplinary order entered against
21    the applicant by the Department, who has entered into a
22    disciplinary or nondisciplinary agreement with the
23    Department, or whose hemp business establishment license
24    was suspended, restricted, revoked, or denied in another
25    state; or
26        (3) who has engaged in a pattern or practice of unfair

 

 

HB4161- 195 -LRB103 34685 AWJ 64530 b

1    or illegal practices, methods or activities in the conduct
2    of owning a hemp business establishment or other business.
3    (i) The Department shall deny the license if the applicant
4is delinquent in filing any required tax returns or paying any
5amounts owed to the State of Illinois.
6    (j) The Department shall verify an applicant's compliance
7with the requirements of this Act and rules before issuing a
8cottage hemp food operator license.
9    (k) A licensee under the Cannabis Regulation and Tax Act
10may not hold a hemp cottage food license.
 
11    (505 ILCS 89/10.90 new)
12    Sec. 10.90. Operational requirements of cottage hemp food
13operators.
14    (a) Cottage hemp food operators must register with a hemp
15distributor annually.
16    (b) Cottage hemp food operators are responsible for paying
17cannabinoid retail taxes to their hemp distributor.
18    (c) Cottage hemp food operators have an annual
19intermediate hemp products purchase limit equivalent to 1,000
20grams of THC.
21    (d) Cottage hemp food operators must comply with all
22provisions of Section 4 of the Food Handling Regulation
23Enforcement Act.
24    (e) In order to produce cottage hemp cannabinoid products,
25the cottage hemp food operator shall:

 

 

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1        (1) use only intermediate hemp products from its
2    registered distributor that have been fully tested in
3    accordance with this Act;
4        (2) attest to following a standard operating procedure
5    submitted by its licensed hemp distributor for dosing to
6    the Department of Public Health for approval and
7    registration;
8        (3) keep THC dosing at or below 50 milligrams per
9    serving.
10        (4) use no more than the equivalent of 1,000 grams of
11    THC in intermediate hemp products on an annual basis; and
12        (5) register with a hemp distributor, who is
13    responsible for collecting and remitting cannabinoid
14    retail taxes on behalf of the cottage hemp food operator.
15    (f) In order to sell cottage hemp cannabinoid products,
16the cottage hemp food operator shall display at the point of
17sale:
18        (1) A QR code with to links to a web page containing:
19            (A) A copy of the testing results of the
20        intermediate hemp product used.
21            (B) A copy of the registered distributor's dosing
22        SOP.
23        (2) Notice in a prominent location that states "This
24    product was made using tested cannabinoids but was
25    produced in a home kitchen not inspected by a health
26    department that may also process common food allergens and

 

 

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1    may not be accurately dosed. If you have safety concerns,
2    contact your local health department."
3    Cottage hemp food products may not be sold to other hemp
4business establishments.
5    (g) Cottage hemp cannabinoid products must conform with
6the labeling requirements of the Illinois Food, Drug and
7Cosmetic Act and the food shall be affixed with a prominent
8label that includes the following:
9        (1) The name of the cottage hemp food operation.
10        (2) The identifying registration number provided for
11    the cottage hemp food operation.
12        (3) A label displaying the total milligram content of
13    each type of cannabinoid exceeding 1 milligram contained
14    in each cottage hemp cannabinoid product.
15        (4) The following phrase in prominent lettering "This
16    product was made using tested cannabinoids but was
17    produced in a home kitchen not inspected by a health
18    department that may also process common food allergens and
19    may not be accurately dosed. If you have safety concerns,
20    contact your local health department."
21    (h) Cottage hemp cannabinoid products produced by a
22cottage hemp food operator shall be sold directly to hemp
23cannabinoid users or medical patients within the State of
24Illinois for their own consumption and not for resale. Sales
25directly to consumers include, but are not limited to, sales
26at or through:

 

 

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1        (1) farmers markets;
2        (2) fairs, festivals, public events, or online;
3        (3) pickup from the private home or farm of the
4    cottage hemp food operator if the pickup is not prohibited
5    by ordinance of the unit of local government that applies
6    equally to all cottage food operations; in a municipality
7    with a population of 1,000,000 or more, a cottage hemp
8    food operator shall comply with an ordinance of the
9    municipality that applies equally to all home-based
10    businesses;
11        (4) delivery to the customer;
12        (5) pickup from a third-party private property with
13    the consent of the third-party property holder; and
14        (6) hemp retailer establishments.
 
15    (505 ILCS 89/10.95 new)
16    Sec. 10.95. Fee waivers for hemp social equity
17participants.
18    (a) For hemp social equity participants, the Department of
19Financial and Professional Regulation and the Department of
20Agriculture shall waive 50% of any nonrefundable permit
21application fees, any nonrefundable fees associated with
22operating a hemp business establishment, and financial
23requirements for a hemp social equity participant who is
24applying for the individual's first hemp business
25establishment permit.

 

 

HB4161- 199 -LRB103 34685 AWJ 64530 b

1    (b) If the Department of Financial and Professional
2Regulation or the Department of Agriculture determines that an
3applicant who applied as a hemp social equity participant is
4not eligible for that status, the applicant shall be provided
5an additional 10 days to provide alternative evidence that he
6or she qualifies as a hemp social equity participant.
7Alternatively, the applicant may pay the remainder of the
8waived fee and will not be considered as a hemp social equity
9participant. If the applicant cannot do either, then the
10Departments may keep the initial permit fee.
 
11    (505 ILCS 89/10.100 new)
12    Sec. 10.100. Limitations.
13    (a) Nothing in this Act:
14        (1) prohibits the issuance of a license or permit to a
15    person also holding a hemp business license authorizing
16    the manufacture, distribution, or retail sale of
17    cannabinoid products;
18        (2) allows any agreement between a licensing authority
19    and license or permit holder that prohibits the license or
20    permit holder from also holding a cannabinoid
21    manufacturer, distributor, or retailer license; or
22        (3) allows the revocation or suspension of a license
23    or permit, or the imposition of a penalty on a license or
24    permit holder, due to the license or permit holder also
25    holding a hemp business license.

 

 

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1    (b) For purposes of this Section, "hemp business license"
2means a hemp distributor, hemp cultivator, hemp processor,
3hemp retailer, or hemp food establishment license issued by
4the applicable Department.
 
5    (505 ILCS 89/11 new)
6    Sec. 11. Independent testing labs.    
7    (a) No laboratory shall handle, test, or analyze hemp or
8hemp cannabinoid products unless approved by the Department of
9Agriculture in accordance with this Section. In lieu of
10Department approval, all laboratories with a valid United
11States Drug Enforcement Administration hemp analytical testing
12laboratory registration, a current cannabis laboratory license
13issued by the Department, or a valid ISO/IEC 17025
14certification are considered approved.
15    (b) Notwithstanding subsection (a), a laboratory may not
16be approved to handle, test, or analyze hemp or hemp
17cannabinoid products unless the laboratory:
18        (1) is accredited by a private laboratory accrediting
19    organization;
20        (2) is independent from persons involved in the hemp
21    industry in Illinois, including that no person with a
22    direct or indirect interest in the laboratory has a direct
23    or indirect financial, management, or other interest in an
24    Illinois hemp business entity; and
25        (3) has employed at least one person to oversee and be

 

 

HB4161- 201 -LRB103 34685 AWJ 64530 b

1    responsible for the laboratory testing who has earned,
2    from a college or university accredited by a national or
3    regional certifying authority, at least:
4            (A) a master's degree in chemical or biological
5        sciences and a minimum of 2 years' post degree
6        laboratory experience; or
7            (B) a bachelor's degree in chemical or biological
8        sciences and a minimum of 4 years' post degree
9        laboratory experience.
10        (4) Each independent testing laboratory that claims to
11    be accredited must provide the Department of Agriculture
12    with a copy of the most recent annual inspection report
13    granting accreditation and every annual report thereafter.
14    (c) No more than 30 days prior to harvest, a hemp farm
15shall submit to an approved laboratory a sample of hemp to
16verify that the THC concentration does not exceed 0.3% on a
17dry-weight basis in the following manner:
18        (1) A sample shall be sent for each separate strain
19    and for each separate growing area at the Department of
20    Agriculture's discretion.
21        (2) A sample must consist of at least one ounce,
22    weighed at the time of harvest, and consist of full buds,
23    along with any attached leaves and stems.
24        (3) Quantitative laboratory determination of THC
25    concentration on a dry-weight basis must be performed.
26    (d) A test result with a THC concentration on a dry-weight

 

 

HB4161- 202 -LRB103 34685 AWJ 64530 b

1basis that exceeds 0.3% but is less than 0.7% may be retested
2at the expense of the licensee. A request for a retest by the
3licensee must be received by the Department of Agriculture
4within 3 days after initial receipt of the original test
5results by the licensee.
6    (e) All harvested hemp receiving a sample test result with
7a THC concentration on a dry-weight basis that exceeds 0.3%
8and is not retested at the request of the licensee shall be
9destroyed.
10    (f) All harvested hemp receiving both a sample test result
11and a sample retest result with THC concentrations on a
12dry-weight basis that exceeds 0.3% shall be destroyed.
13    (g) All harvested hemp receiving a sample test result with
14a THC concentration on a dry-weight basis that equals or
15exceeds 1.0% shall be destroyed.
16    (h) All harvested hemp awaiting test results shall be
17stored by the licensee or processor and shall not be processed
18or transported until test results are obtained and the hemp is
19released by the Department.
 
20    (505 ILCS 89/11.5 new)
21    Sec. 11.5. Laboratory testing of intermediate hemp
22products.
23    (a) Immediately after the manufacturing or processing of
24any intermediate hemp product, each batch shall be tested by
25an approved laboratory for:

 

 

HB4161- 203 -LRB103 34685 AWJ 64530 b

1        (1) microbiological contaminants;
2        (2) mycotoxins;
3        (3) pesticide active ingredients; and
4        (4) residual solvents.
5    An active ingredient analysis shall also be conducted.
6    (b) The laboratory shall immediately return or dispose of
7the intermediate hemp product upon the completion of any
8testing, use, or research. If intermediate hemp is disposed
9of, it shall be done in compliance with Department of
10Agriculture rule.
11    (c) If a sample of the intermediate hemp product does not
12pass the microbiological, mycotoxin, pesticide chemical
13residue, or solvent residual test, based on the standards
14established by the Department of Agriculture, the following
15applies:
16        (1) If the sample failed the pesticide chemical
17    residue test, the entire batch from which the sample was
18    taken shall, if applicable, be recalled as provided by
19    rule.
20        (2) If the sample failed any other test, the batch may
21    be used to make a CO2-based or solvent-based extract. After
22    processing, the CO2-based or solvent-based extract must
23    still pass all required tests.
24    (d) The Department shall establish standards for
25microbial, mycotoxin, pesticide residue, solvent residue, or
26other standards for the presence of possible contaminants.

 

 

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1    (e) The laboratory shall file with the Department an
2electronic copy of each laboratory test result for any batch
3that does not pass the microbiological, mycotoxin, or
4pesticide chemical residue test at the same time that it
5transmits those results to the hemp processor. In addition,
6the laboratory shall maintain the laboratory test results for
7at least 5 years and make them available at the Department's
8request.
9    (f) The hemp processor or hemp distributor shall provide
10to a hemp business establishment the laboratory test results
11for each batch of intermediate hemp products purchased by the
12hemp business establishment, if sampled. A hemp business
13establishment must have these laboratory results available
14online or in-person upon request to purchasers.
 
15    (505 ILCS 89/11.10 new)
16    Sec. 11.10. Laboratory testing for hemp cannabinoid
17products utilizing extraction methods.
18    (a) Hemp processors, hemp distributors, and hemp food
19establishments must begin a new batch cycle every time a
20specific hemp cannabinoid product is made. A manufacturer of
21hemp cannabinoid products utilizing hemp cannabinoids directly
22extracted from raw hemp or untested intermediate hemp products
23and hemp cannabinoid products for human inhalation shall be
24tested by the approved laboratory for:
25        (1) potency;

 

 

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1        (2) microbiological contaminants;
2        (3) mycotoxins;
3        (4) pesticide active ingredients; and
4        (5) residual solvents.
5    An active ingredient analysis shall also be conducted.
6    (b) The laboratory shall immediately return or dispose of
7the hemp cannabinoid product upon the completion of any
8testing, use, or research. If the hemp cannabinoid product is
9disposed of, it shall be done in compliance with Department
10rule.
11    (c) If a sample of the hemp cannabinoid does not pass the
12microbiological, mycotoxin, pesticide chemical residue, or
13solvent residual test, based on the standards established by
14the Department, the following applies:
15        (1) If the sample failed the pesticide chemical
16    residue test, the entire batch from which the sample was
17    taken shall, if applicable, be recalled as provided by
18    rule.
19        (2) If the sample failed any other test, the batch may
20    be used to make a CO2-based or solvent-based extract. After
21    processing, the CO2-based or solvent-based extract must
22    still pass all required tests.
23    (d) The Department of Agriculture shall establish
24standards for microbial, mycotoxin, pesticide residue, solvent
25residue, or other standards for the presence of possible
26contaminants which shall be no more strict than comparable

 

 

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1food or inhalable product testing requirements.
2    (e) The laboratory shall file with the Department of
3Agriculture an electronic copy of each laboratory test result
4for any batch that does not pass the microbiological,
5mycotoxin, or pesticide chemical residue test at the same time
6that it transmits those results to the hemp processor,
7distributor or food establishment. In addition, the laboratory
8shall maintain the laboratory test results for at least 5
9years and make them available at the Department of
10Agriculture's request.
11    (f) The hemp processor, hemp distributor, or hemp food
12establishment shall provide to a hemp business establishment
13the laboratory test results for each batch of hemp cannabinoid
14products purchased by the hemp business establishment, if
15sampled. A hemp business establishment must have these
16laboratory results available upon request to purchasers.
 
17    (505 ILCS 89/11.15 new)
18    Sec. 11.15. Laboratory testing for hemp cannabinoid
19products for human ingestion.
20    (a) Hemp food establishments using intermediate hemp
21products to create hemp cannabinoid products for human
22ingestion that have passed testing under Section 11.10 only
23need to test for federal compliance if all other ingredients
24and inputs to be added into the hemp cannabinoid products are
25food grade. The manufacturer of hemp cannabinoid products for

 

 

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1human ingestion must submit a representative sample of the
2batch cycle every time a different intermediate hemp product
3batch is used to an independent, accredited laboratory, which
4shall be tested by the approved laboratory for potency.
5    (b) The laboratory shall immediately return or dispose of
6the hemp cannabinoid product upon the completion of any
7testing, use, or research. If the hemp cannabinoid product is
8disposed of, it shall be done in compliance with Department
9rule.
10    (c) If a sample of the hemp cannabinoid does not pass the
110.3% THC compliance test, based on the standards established
12by the Department, the following applies:
13        (1) the batch may be used to make a CO2-based or
14    solvent-based extract; and
15        (2) after processing, the CO2-based or solvent-based
16    extract must pass all required tests.
17    (d) The hemp distributor or hemp food establishment shall
18provide to a hemp business establishment the laboratory test
19results for each batch of hemp cannabinoid products purchased
20by the hemp business establishment, if sampled. A hemp
21business establishment must have these laboratory results
22available upon request to purchasers.
 
23    (505 ILCS 89/11.20 new)
24    Sec. 11.20. Laboratory testing for ready-to-eat hemp
25cannabinoid products using tested intermediate hemp products.

 

 

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1    (a) Retail hemp food establishments using intermediate
2hemp products that have passed testing under Section 11 to
3create ready-to-eat hemp cannabinoid products only need to
4test for federal compliance if all other ingredients and
5inputs to be added into the hemp cannabinoid products are food
6grade. The retail hemp food establishment creating the
7ready-to-eat hemp cannabinoid product for a manufacturer of a
8product regulated under this Section must submit a
9representative sample of its registered recipe using its
10registered dosing standard operating procedure either (1)
11annually or (2) every time a different intermediate hemp
12product batch is used to an independent, accredited
13laboratory, which shall be tested by the approved laboratory
14for potency.
15    (b) The laboratory shall immediately return or dispose of
16ready-to-eat hemp cannabinoid product upon the completion of
17any testing, use, or research. If the ready-to-eat hemp
18cannabinoid product is disposed of, it shall be done in
19compliance with Department rule.
20    (c) The retail hemp food establishment shall provide to
21its customers a copy of its registered recipe, registered
22dosing standard operating procedure. A hemp distributor or
23hemp food establishment shall provide to a hemp business
24establishment the laboratory test results for each batch of
25hemp cannabinoid products purchased by the hemp business
26establishment, if sampled. A hemp business establishment must

 

 

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1have these laboratory results available upon request to
2purchasers.
 
3    (505 ILCS 89/12 new)
4    Sec. 12. Hemp cannabinoid product packaging and labeling.
5    (a) A hemp cannabinoid product, except for cottage hemp
6cannabinoid products, produced for sale to the general public
7shall be registered with the Department on forms provided by
8the Department. Each product registration must include a label
9and the required registration fee at the rate established by
10the Department not exceed $50 per registered product. The
11registration fee is for the name of the product offered for
12sale and one fee is sufficient for all package sizes.
13    (b) A hemp cannabinoid product, except for ready-to-eat
14hemp cannabinoid products and cottage hemp cannabinoid
15products, such as packaged cannabinoid products, shall be
16labeled before sale, and each label shall be securely affixed
17to the package and shall state in English:
18        (1) The name and post office box or address of the
19    relevant hemp distributor, hemp processor, or hemp food
20    establishment where the item was manufactured.
21        (2) The common or usual name of the item and the
22    registered name of the hemp cannabinoid product that was
23    registered with the Department under subsection (a).
24        (3) The "use by" date.
25        (4) Content list, which must include:

 

 

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1            (A) the minimum and maximum percentage content by
2        weight for any hemp-derived cannabinoid exceeding one
3        milligram; and
4            (B) all other ingredients of the product,
5        including any colors, artificial flavors, and
6        preservatives, listed in descending order by
7        predominance of weight shown with common or usual
8        names.
9        (5) For hemp cannabinoid products tested under Section
10    11.10:
11            (A) the date of testing and packaging and the
12        identification of the independent testing laboratory;
13        and
14            (B) a pass-fail rating based on the laboratory's
15        microbiological, mycotoxins, and pesticide and solvent
16        residue analysis.
17        (6) For hemp cannabinoid products tested under Section
18    11.15,
19            (A) the date of Section 50-10 intermediate hemp
20        product testing, packaging and the identification of
21        the independent testing laboratory; and
22            (B) a pass-fail rating based on the laboratory's
23        microbiological, mycotoxins, and pesticide and solvent
24        residue analysis of the Section 11.5 intermediate hemp
25        product.
26    The required packaging elements of this subsection may be

 

 

HB4161- 211 -LRB103 34685 AWJ 64530 b

1satisfied by means of a QR code linking to a website where the
2information is available for a consumer.
3    (c) Packaging for packaged hemp cannabinoid products must
4not contain information that:
5        (1) is false or misleading;
6        (2) promotes excessive consumption;
7        (3) depicts a person under 21 years of age consuming
8    hemp cannabinoids;
9        (4) includes the image of a cannabis or hemp leaf;
10        (5) includes images designed or likely to appeal to
11    minors, including cartoons, toys, animals, or children, or
12    any other likeness to images, characters; phrases that are
13    popularly used to advertise to children; or any packaging
14    or labeling that bears reasonable resemblance to any
15    product available for consumption as a commercially
16    available candy or that promotes consumption of cannabis;
17    or
18        (6) contains any seal, flag, crest, coat of arms, or
19    other insignia likely to mislead the purchaser to believe
20    that the product has been endorsed, made, or used by the
21    State of Illinois or any of its representatives, except as
22    authorized by this Act.
23    (d) All packaged hemp cannabinoid products must contain
24warning statements established for purchasers, of a size that
25is legible and readily visible to a consumer inspecting a
26package, that may not be covered or obscured in any way. The

 

 

HB4161- 212 -LRB103 34685 AWJ 64530 b

1Department of Public Health shall define and update
2appropriate health warnings for packaging, including specific
3labeling or warning requirements for specific hemp cannabinoid
4products.
5    (e) Unless modified by rule to strengthen or respond to
6new evidence and science, the following warning applies to all
7packaged hemp cannabinoid products unless modified by rule:
8"This product contains cannabinoids and is intended for use by
9adults 21 and over. Its use can impair cognition and may be
10habit forming. This product should not be used by pregnant or
11breastfeeding women. It is illegal to operate a motor vehicle
12while under the influence of cannabinoids."
13    (f) Warnings for each of the following product types must
14be present on labels when offered for sale to a purchaser:
15        (1) Hemp cannabinoid products for inhalation must
16    contain the following statement: "Smoking is hazardous to
17    your health.".
18        (2) Hemp cannabinoid products for ingestion must
19    contain the following statement: "CAUTION: This product
20    contains cannabinoids, and intoxication following use may
21    be delayed 2 or more hours. This product was produced in a
22    facility that may also process common food allergens.".
23    The warnings required under this subsection may be
24satisfied by means of a QR code linking to a website where the
25information is available for a consumer.
 

 

 

HB4161- 213 -LRB103 34685 AWJ 64530 b

1    (505 ILCS 89/13 new)
2    Sec. 13. Hemp Social Equity Fund.
3    (a) The General Assembly finds that in order to address
4the disparities described in this Section, aggressive
5approaches and targeted technical assistance resources to
6support social equity entrepreneurs are required. To carry
7this intent, the Hemp Social Equity Fund is created to
8directly address the impact of economic disinvestment,
9violence, and the historical overuse of criminal justice
10response to community and individual needs by providing
11resources, funding, and technical assistance for hemp social
12equity participants to establish, build, and create ownership
13in hemp business establishments.
14    (b) There is created in the State treasury a special fund,
15which shall be held separate and apart from all other State
16moneys, to be known as the Hemp Social Equity Fund. 25% of all
17moneys deposited into the Hemp Regulatory Fund shall be
18transferred into the Hemp Social Equity Fund. The Hemp Social
19Equity Fund shall be exclusively used for the following
20purposes:
21        (1) to provide low-interest rate loans to qualified
22    hemp social equity participants to pay for ordinary and
23    necessary expenses to start and operate a hemp business
24    establishment permitted by this Act;
25        (2) to provide grants to qualified hemp social equity
26    participants to pay for ordinary and necessary expenses to

 

 

HB4161- 214 -LRB103 34685 AWJ 64530 b

1    start and operate a hemp business establishment permitted
2    by this Act;
3        (3) to compensate the Department of Commerce and
4    Economic Opportunity for any costs related to the
5    provision of low-interest loans and grants to qualified
6    hemp social equity participants;
7        (4) to pay for education, outreach and technical
8    assistance that may be provided or targeted to attract and
9    support hemp social equity participants; and
10        (5) to support urban and rural farming, medicinal and
11    food security, and hemp-related criminal justice reform.
12    (c) Notwithstanding any other provision of law, the Hemp
13Social Equity Fund is not subject to sweeps, administrative
14charge-backs, or any other fiscal or budgetary maneuver that
15would in any way transfer any amounts from the Hemp Social
16Equity Fund into any other fund of the State.
17    (d) The Department of Commerce and Economic Opportunity
18shall establish grant and loan programs, subject to
19appropriations to the Hemp Social Equity Fund, for the purpose
20of providing financial assistance, loans, grants and technical
21assistance to hemp social equity participants.
22    (e) The Department of Commerce and Economic Opportunity
23may:
24        (1) Provide Hemp Social Equity loans and grants from
25    appropriations from the Hemp Social Equity Fund to assist
26    qualified hemp social equity participants in gaining entry

 

 

HB4161- 215 -LRB103 34685 AWJ 64530 b

1    to, and successfully operating in, the State's regulated
2    hemp-derived cannabinoid marketplace.
3        (2) Enter into agreements that set forth terms and
4    conditions of the financial assistance, accept funds or
5    grants, and engage in cooperation with private entities
6    and agencies of State or local government to carry out the
7    purposes of this Section.
8        (3) Fix, determine, charge and collect any premiums,
9    fees, charges, costs, and expenses, including application
10    fees, commitment fees, program fees, financing charges, or
11    publication fees in connection with its activities under
12    this Section.
13        (4) Coordinate assistance under these loan programs
14    with activities of the Department of Financial and
15    Professional Regulation, the Department of Agriculture,
16    and other agencies as needed to maximize the effectiveness
17    and efficiency of this Act.
18        (5) Provide staff and administrative and related
19    support required to administer this Section.
20        (6) Take whatever actions are necessary or appropriate
21    to protect the State's interest due to bankruptcy,