Rep. Jerry F. Costello, II

Filed: 3/23/2015

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3378

2    AMENDMENT NO. ______. Amend House Bill 3378 by replacing
3everything after the enacting clause with the following:
 
4    "Section 3. The Department of Agriculture Law of the Civil
5Administrative Code of Illinois is amended by adding Sections
6205-455 and 205-460 as follows:
 
7    (20 ILCS 205/205-455 new)
8    Sec. 205-455. Grants for water quality research. Subject
9to appropriation, the Department is authorized to award grants
10to eligible applicants for the purchase or acquisition of field
11equipment used for water quality research. The annual aggregate
12amount of grants awarded under this Section may not exceed
13$500,000 in any fiscal year from Fiscal Year 2016 through
14Fiscal Year 2018.
 
15    (20 ILCS 205/205-460 new)

 

 

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1    Sec. 205-460. Extension grants. The Department may make
2grants to the University of Illinois for the purpose of
3conducting agricultural extension programs in the State in an
4amount not to exceed $2,000,000 in any State fiscal year.
 
5    Section 5. The Department of Commerce and Economic
6Opportunity Law of the Civil Administrative Code of Illinois is
7amended by adding Section 605-1020 as follows:
 
8    (20 ILCS 605/605-1020 new)
9    Sec. 605-1020. National Corn to Ethanol Research Center
10grants. Subject to appropriation, the Department shall make
11grants to Southern Illinois University at Edwardsville for the
12support of the National Corn to Ethanol Research Center in an
13amount not to exceed $2,250,000 in any State fiscal year.
 
14    Section 7. The Illinois Renewable Fuels Development
15Program Act is amended by changing Sections 15 and 20 as
16follows:
 
17    (20 ILCS 689/15)
18    Sec. 15. Illinois Renewable Fuels Development Program.
19    (a) The Department must develop and administer the Illinois
20Renewable Fuels Development Program to assist in the
21construction, modification, alteration, or retrofitting of
22renewable fuel plants in Illinois. The recipient of a grant

 

 

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1under this Section must:
2        (1) be constructing, modifying, altering, or
3    retrofitting a plant in the State of Illinois;
4        (2) be constructing, modifying, altering, or
5    retrofitting a plant that has annual production capacity of
6    no less than 5,000,000 gallons of renewable fuel per year;
7    and
8        (3) enter into a project labor agreement, whenever
9    practicable, as prescribed by Section 25 of this Act.
10    (b) Grant applications must be made on forms provided by
11and in accordance with procedures established by the
12Department.
13    (c) The Department must give preference to applicants that
14use Illinois agricultural products in the production of
15renewable fuel at the plant for which the grant is being
16requested.
17(Source: P.A. 96-140, eff. 1-1-10.)
 
18    (20 ILCS 689/20)
19    Sec. 20. Grants. Subject to appropriation, the Director is
20authorized to award grants to eligible applicants for the
21installation of majority blended ethanol and blender pump
22fueling facilities. The annual aggregate amount of grants
23awarded under this Section shall not exceed $6,000,000 in any
24fiscal year from Fiscal Year 2016 through Fiscal Year 2018. The
25annual aggregate amount of grants awarded shall not exceed

 

 

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1$20,000,000, except that this amount does not include amounts,
2up to $4,000,000 per grant, that may be awarded to each
3eligible applicant who installs advanced technologies for
4water usage, carbon footprint reduction, and other blending
5improvements designed to optimize processes at the applicant's
6renewable fuels facility.
7(Source: P.A. 96-173, eff. 8-10-09.)
 
8    Section 10. The Use Tax Act is amended by changing Sections
93-10, 3-40, and 3-44 and by adding Section 3-44.3 as follows:
 
10    (35 ILCS 105/3-10)
11    Sec. 3-10. Rate of tax. Unless otherwise provided in this
12Section, the tax imposed by this Act is at the rate of 6.25% of
13either the selling price or the fair market value, if any, of
14the tangible personal property. In all cases where property
15functionally used or consumed is the same as the property that
16was purchased at retail, then the tax is imposed on the selling
17price of the property. In all cases where property functionally
18used or consumed is a by-product or waste product that has been
19refined, manufactured, or produced from property purchased at
20retail, then the tax is imposed on the lower of the fair market
21value, if any, of the specific property so used in this State
22or on the selling price of the property purchased at retail.
23For purposes of this Section "fair market value" means the
24price at which property would change hands between a willing

 

 

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1buyer and a willing seller, neither being under any compulsion
2to buy or sell and both having reasonable knowledge of the
3relevant facts. The fair market value shall be established by
4Illinois sales by the taxpayer of the same property as that
5functionally used or consumed, or if there are no such sales by
6the taxpayer, then comparable sales or purchases of property of
7like kind and character in Illinois.
8    Beginning on July 1, 2000 and through December 31, 2000,
9with respect to motor fuel, as defined in Section 1.1 of the
10Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
11the Use Tax Act, the tax is imposed at the rate of 1.25%.
12    Beginning on August 6, 2010 through August 15, 2010, with
13respect to sales tax holiday items as defined in Section 3-6 of
14this Act, the tax is imposed at the rate of 1.25%.
15    With respect to gasohol, the tax imposed by this Act
16applies to (i) 70% of the proceeds of sales made on or after
17January 1, 1990, and before July 1, 2003, (ii) 80% of the
18proceeds of sales made on or after July 1, 2003 and on or
19before June 30, 2015, (iii) 90% of the proceeds of sales made
20on or after July 1, 2015 and on or before December 31, 2018,
21and (iv) (iii) 100% of the proceeds of sales made thereafter.
22If, at any time, however, the tax under this Act on sales of
23gasohol is imposed at the rate of 1.25%, then the tax imposed
24by this Act applies to 100% of the proceeds of sales of gasohol
25made during that time.
26    With respect to mid-range ethanol blends, the tax imposed

 

 

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1by this Act applies to (i) 80% of the proceeds of sales made on
2or after July 1, 2015 and on or before December 31, 2018 and
3(ii) 100% of the proceeds of sales made thereafter. If, at any
4time, however, the tax under this Act on sales of mid-range
5ethanol blends is imposed at the rate of 1.25%, then the tax
6imposed by this Act applies to 100% of the proceeds of sales of
7mid-range ethanol blends made during that time.
8    With respect to majority blended ethanol fuel, the tax
9imposed by this Act does not apply to the proceeds of sales
10made on or after July 1, 2003 and on or before December 31,
112018 but applies to 100% of the proceeds of sales made
12thereafter.
13    With respect to biodiesel blends with no less than 1% and
14no more than 10% biodiesel, the tax imposed by this Act applies
15to (i) 80% of the proceeds of sales made on or after July 1,
162003 and on or before December 31, 2018 and (ii) 100% of the
17proceeds of sales made thereafter. If, at any time, however,
18the tax under this Act on sales of biodiesel blends with no
19less than 1% and no more than 10% biodiesel is imposed at the
20rate of 1.25%, then the tax imposed by this Act applies to 100%
21of the proceeds of sales of biodiesel blends with no less than
221% and no more than 10% biodiesel made during that time.
23    With respect to 100% biodiesel and biodiesel blends with
24more than 10% but no more than 99% biodiesel, the tax imposed
25by this Act does not apply to the proceeds of sales made on or
26after July 1, 2003 and on or before December 31, 2018 but

 

 

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1applies to 100% of the proceeds of sales made thereafter.
2    With respect to food for human consumption that is to be
3consumed off the premises where it is sold (other than
4alcoholic beverages, soft drinks, and food that has been
5prepared for immediate consumption) and prescription and
6nonprescription medicines, drugs, medical appliances,
7modifications to a motor vehicle for the purpose of rendering
8it usable by a disabled person, and insulin, urine testing
9materials, syringes, and needles used by diabetics, for human
10use, the tax is imposed at the rate of 1%. For the purposes of
11this Section, until September 1, 2009: the term "soft drinks"
12means any complete, finished, ready-to-use, non-alcoholic
13drink, whether carbonated or not, including but not limited to
14soda water, cola, fruit juice, vegetable juice, carbonated
15water, and all other preparations commonly known as soft drinks
16of whatever kind or description that are contained in any
17closed or sealed bottle, can, carton, or container, regardless
18of size; but "soft drinks" does not include coffee, tea,
19non-carbonated water, infant formula, milk or milk products as
20defined in the Grade A Pasteurized Milk and Milk Products Act,
21or drinks containing 50% or more natural fruit or vegetable
22juice.
23    Notwithstanding any other provisions of this Act,
24beginning September 1, 2009, "soft drinks" means non-alcoholic
25beverages that contain natural or artificial sweeteners. "Soft
26drinks" do not include beverages that contain milk or milk

 

 

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1products, soy, rice or similar milk substitutes, or greater
2than 50% of vegetable or fruit juice by volume.
3    Until August 1, 2009, and notwithstanding any other
4provisions of this Act, "food for human consumption that is to
5be consumed off the premises where it is sold" includes all
6food sold through a vending machine, except soft drinks and
7food products that are dispensed hot from a vending machine,
8regardless of the location of the vending machine. Beginning
9August 1, 2009, and notwithstanding any other provisions of
10this Act, "food for human consumption that is to be consumed
11off the premises where it is sold" includes all food sold
12through a vending machine, except soft drinks, candy, and food
13products that are dispensed hot from a vending machine,
14regardless of the location of the vending machine.
15    Notwithstanding any other provisions of this Act,
16beginning September 1, 2009, "food for human consumption that
17is to be consumed off the premises where it is sold" does not
18include candy. For purposes of this Section, "candy" means a
19preparation of sugar, honey, or other natural or artificial
20sweeteners in combination with chocolate, fruits, nuts or other
21ingredients or flavorings in the form of bars, drops, or
22pieces. "Candy" does not include any preparation that contains
23flour or requires refrigeration.
24    Notwithstanding any other provisions of this Act,
25beginning September 1, 2009, "nonprescription medicines and
26drugs" does not include grooming and hygiene products. For

 

 

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1purposes of this Section, "grooming and hygiene products"
2includes, but is not limited to, soaps and cleaning solutions,
3shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
4lotions and screens, unless those products are available by
5prescription only, regardless of whether the products meet the
6definition of "over-the-counter-drugs". For the purposes of
7this paragraph, "over-the-counter-drug" means a drug for human
8use that contains a label that identifies the product as a drug
9as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
10label includes:
11        (A) A "Drug Facts" panel; or
12        (B) A statement of the "active ingredient(s)" with a
13    list of those ingredients contained in the compound,
14    substance or preparation.
15    Beginning on the effective date of this amendatory Act of
16the 98th General Assembly, "prescription and nonprescription
17medicines and drugs" includes medical cannabis purchased from a
18registered dispensing organization under the Compassionate Use
19of Medical Cannabis Pilot Program Act.
20    If the property that is purchased at retail from a retailer
21is acquired outside Illinois and used outside Illinois before
22being brought to Illinois for use here and is taxable under
23this Act, the "selling price" on which the tax is computed
24shall be reduced by an amount that represents a reasonable
25allowance for depreciation for the period of prior out-of-state
26use.

 

 

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1(Source: P.A. 97-636, eff. 6-1-12; 98-122, eff. 1-1-14.)
 
2    (35 ILCS 105/3-40)  (from Ch. 120, par. 439.3-40)
3    Sec. 3-40. Gasohol. As used in this Act, "gasohol" means
4motor fuel that is a denatured ethanol and gasoline blend of
5denatured ethanol and gasoline that contains (i) no more than
61.25% water by weight and (ii) the maximum proportion of
7ethanol authorized by the United States Environmental
8Protection Agency under Section 211 of the Clean Air Act. The
9blend must contain 90% gasoline and 10% denatured ethanol. A
10maximum of one percent error factor in the amount of denatured
11ethanol used in the blend is allowable to compensate for
12blending equipment variations. Any person who knowingly sells
13or represents as gasohol any fuel that does not qualify as
14gasohol under this Act is guilty of a business offense and
15shall be fined not more than $100 for each day that the sale or
16representation takes place after notification from the
17Department of Agriculture that the fuel in question does not
18qualify as gasohol.
19(Source: P.A. 93-724, eff. 7-13-04.)
 
20    (35 ILCS 105/3-44)
21    Sec. 3-44. Majority blended ethanol fuel. "Majority
22blended ethanol fuel" means motor fuel that (i) contains not
23less than 51% and no more than 83% by volume ethanol, as
24specified in ASTM Standard DS798-11 and (ii) is capable of

 

 

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1being used in the operation of flexible fuel vehicles. 70% and
2no more than 90% denatured ethanol and no less than 10% and no
3more than 30% gasoline.
4(Source: P.A. 93-17, eff. 6-11-03.)
 
5    (35 ILCS 105/3-44.3 new)
6    Sec. 3-44.3. Mid-range ethanol blend. "Mid-range ethanol
7blend" means a blend of gasoline and denatured ethanol that
8contains not less than 20% but less than 51% denatured ethanol.
 
9    Section 15. The Service Use Tax Act is amended by changing
10Section 3-10 as follows:
 
11    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
12    Sec. 3-10. Rate of tax. Unless otherwise provided in this
13Section, the tax imposed by this Act is at the rate of 6.25% of
14the selling price of tangible personal property transferred as
15an incident to the sale of service, but, for the purpose of
16computing this tax, in no event shall the selling price be less
17than the cost price of the property to the serviceman.
18    Beginning on July 1, 2000 and through December 31, 2000,
19with respect to motor fuel, as defined in Section 1.1 of the
20Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
21the Use Tax Act, the tax is imposed at the rate of 1.25%.
22    With respect to gasohol, as defined in the Use Tax Act, the
23tax imposed by this Act applies to (i) 70% of the selling price

 

 

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1of property transferred as an incident to the sale of service
2on or after January 1, 1990, and before July 1, 2003, (ii) 80%
3of the selling price of property transferred as an incident to
4the sale of service on or after July 1, 2003 and on or before
5June 30, 2015, (iii) 90% of the selling price of property
6transferred as an incident to the sale of service on or after
7July 1, 2015, and on or before December 31, 2018, and (iv)
8(iii) 100% of the selling price thereafter. If, at any time,
9however, the tax under this Act on sales of gasohol, as defined
10in the Use Tax Act, is imposed at the rate of 1.25%, then the
11tax imposed by this Act applies to 100% of the proceeds of
12sales of gasohol made during that time.
13    With respect to mid-range ethanol blends, as defined in the
14Use Tax Act, the tax imposed by this Act applies to (i) 80% of
15the selling price of property transferred as an incident to the
16sale of service on or after July 1, 2015 and on or before
17December 31, 2018 and (ii) 100% of the selling price
18thereafter. If, at any time, however, the tax under this Act on
19sales of mid-range ethanol blends is imposed at the rate of
201.25%, then the tax imposed by this Act applies to 100% of the
21proceeds of sales of mid-range ethanol blends made during that
22time.
23    With respect to majority blended ethanol fuel, as defined
24in the Use Tax Act, the tax imposed by this Act does not apply
25to the selling price of property transferred as an incident to
26the sale of service on or after July 1, 2003 and on or before

 

 

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1December 31, 2018 but applies to 100% of the selling price
2thereafter.
3    With respect to biodiesel blends, as defined in the Use Tax
4Act, with no less than 1% and no more than 10% biodiesel, the
5tax imposed by this Act applies to (i) 80% of the selling price
6of property transferred as an incident to the sale of service
7on or after July 1, 2003 and on or before December 31, 2018 and
8(ii) 100% of the proceeds of the selling price thereafter. If,
9at any time, however, the tax under this Act on sales of
10biodiesel blends, as defined in the Use Tax Act, with no less
11than 1% and no more than 10% biodiesel is imposed at the rate
12of 1.25%, then the tax imposed by this Act applies to 100% of
13the proceeds of sales of biodiesel blends with no less than 1%
14and no more than 10% biodiesel made during that time.
15    With respect to 100% biodiesel, as defined in the Use Tax
16Act, and biodiesel blends, as defined in the Use Tax Act, with
17more than 10% but no more than 99% biodiesel, the tax imposed
18by this Act does not apply to the proceeds of the selling price
19of property transferred as an incident to the sale of service
20on or after July 1, 2003 and on or before December 31, 2018 but
21applies to 100% of the selling price thereafter.
22    At the election of any registered serviceman made for each
23fiscal year, sales of service in which the aggregate annual
24cost price of tangible personal property transferred as an
25incident to the sales of service is less than 35%, or 75% in
26the case of servicemen transferring prescription drugs or

 

 

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1servicemen engaged in graphic arts production, of the aggregate
2annual total gross receipts from all sales of service, the tax
3imposed by this Act shall be based on the serviceman's cost
4price of the tangible personal property transferred as an
5incident to the sale of those services.
6    The tax shall be imposed at the rate of 1% on food prepared
7for immediate consumption and transferred incident to a sale of
8service subject to this Act or the Service Occupation Tax Act
9by an entity licensed under the Hospital Licensing Act, the
10Nursing Home Care Act, the ID/DD Community Care Act, the
11Specialized Mental Health Rehabilitation Act of 2013, or the
12Child Care Act of 1969. The tax shall also be imposed at the
13rate of 1% on food for human consumption that is to be consumed
14off the premises where it is sold (other than alcoholic
15beverages, soft drinks, and food that has been prepared for
16immediate consumption and is not otherwise included in this
17paragraph) and prescription and nonprescription medicines,
18drugs, medical appliances, modifications to a motor vehicle for
19the purpose of rendering it usable by a disabled person, and
20insulin, urine testing materials, syringes, and needles used by
21diabetics, for human use. For the purposes of this Section,
22until September 1, 2009: the term "soft drinks" means any
23complete, finished, ready-to-use, non-alcoholic drink, whether
24carbonated or not, including but not limited to soda water,
25cola, fruit juice, vegetable juice, carbonated water, and all
26other preparations commonly known as soft drinks of whatever

 

 

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1kind or description that are contained in any closed or sealed
2bottle, can, carton, or container, regardless of size; but
3"soft drinks" does not include coffee, tea, non-carbonated
4water, infant formula, milk or milk products as defined in the
5Grade A Pasteurized Milk and Milk Products Act, or drinks
6containing 50% or more natural fruit or vegetable juice.
7    Notwithstanding any other provisions of this Act,
8beginning September 1, 2009, "soft drinks" means non-alcoholic
9beverages that contain natural or artificial sweeteners. "Soft
10drinks" do not include beverages that contain milk or milk
11products, soy, rice or similar milk substitutes, or greater
12than 50% of vegetable or fruit juice by volume.
13    Until August 1, 2009, and notwithstanding any other
14provisions of this Act, "food for human consumption that is to
15be consumed off the premises where it is sold" includes all
16food sold through a vending machine, except soft drinks and
17food products that are dispensed hot from a vending machine,
18regardless of the location of the vending machine. Beginning
19August 1, 2009, and notwithstanding any other provisions of
20this Act, "food for human consumption that is to be consumed
21off the premises where it is sold" includes all food sold
22through a vending machine, except soft drinks, candy, and food
23products that are dispensed hot from a vending machine,
24regardless of the location of the vending machine.
25    Notwithstanding any other provisions of this Act,
26beginning September 1, 2009, "food for human consumption that

 

 

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1is to be consumed off the premises where it is sold" does not
2include candy. For purposes of this Section, "candy" means a
3preparation of sugar, honey, or other natural or artificial
4sweeteners in combination with chocolate, fruits, nuts or other
5ingredients or flavorings in the form of bars, drops, or
6pieces. "Candy" does not include any preparation that contains
7flour or requires refrigeration.
8    Notwithstanding any other provisions of this Act,
9beginning September 1, 2009, "nonprescription medicines and
10drugs" does not include grooming and hygiene products. For
11purposes of this Section, "grooming and hygiene products"
12includes, but is not limited to, soaps and cleaning solutions,
13shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
14lotions and screens, unless those products are available by
15prescription only, regardless of whether the products meet the
16definition of "over-the-counter-drugs". For the purposes of
17this paragraph, "over-the-counter-drug" means a drug for human
18use that contains a label that identifies the product as a drug
19as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
20label includes:
21        (A) A "Drug Facts" panel; or
22        (B) A statement of the "active ingredient(s)" with a
23    list of those ingredients contained in the compound,
24    substance or preparation.
25    Beginning on January 1, 2014 (the effective date of Public
26Act 98-122), "prescription and nonprescription medicines and

 

 

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1drugs" includes medical cannabis purchased from a registered
2dispensing organization under the Compassionate Use of Medical
3Cannabis Pilot Program Act.
4    If the property that is acquired from a serviceman is
5acquired outside Illinois and used outside Illinois before
6being brought to Illinois for use here and is taxable under
7this Act, the "selling price" on which the tax is computed
8shall be reduced by an amount that represents a reasonable
9allowance for depreciation for the period of prior out-of-state
10use.
11(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-636,
12eff. 6-1-12; 98-104, eff. 7-22-13; 98-122, eff. 1-1-14; 98-756,
13eff. 7-16-14.)
 
14    Section 20. The Service Occupation Tax Act is amended by
15changing Section 3-10 as follows:
 
16    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
17    Sec. 3-10. Rate of tax. Unless otherwise provided in this
18Section, the tax imposed by this Act is at the rate of 6.25% of
19the "selling price", as defined in Section 2 of the Service Use
20Tax Act, of the tangible personal property. For the purpose of
21computing this tax, in no event shall the "selling price" be
22less than the cost price to the serviceman of the tangible
23personal property transferred. The selling price of each item
24of tangible personal property transferred as an incident of a

 

 

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1sale of service may be shown as a distinct and separate item on
2the serviceman's billing to the service customer. If the
3selling price is not so shown, the selling price of the
4tangible personal property is deemed to be 50% of the
5serviceman's entire billing to the service customer. When,
6however, a serviceman contracts to design, develop, and produce
7special order machinery or equipment, the tax imposed by this
8Act shall be based on the serviceman's cost price of the
9tangible personal property transferred incident to the
10completion of the contract.
11    Beginning on July 1, 2000 and through December 31, 2000,
12with respect to motor fuel, as defined in Section 1.1 of the
13Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
14the Use Tax Act, the tax is imposed at the rate of 1.25%.
15    With respect to gasohol, as defined in the Use Tax Act, the
16tax imposed by this Act shall apply to (i) 70% of the cost
17price of property transferred as an incident to the sale of
18service on or after January 1, 1990, and before July 1, 2003,
19(ii) 80% of the selling price of property transferred as an
20incident to the sale of service on or after July 1, 2003 and on
21or before June 30, 2015, (iii) 90% of the selling price of
22property transferred as an incident to the sale of service on
23or after July 1, 2015, and on or before December 31, 2018, and
24(iv) (iii) 100% of the cost price thereafter. If, at any time,
25however, the tax under this Act on sales of gasohol, as defined
26in the Use Tax Act, is imposed at the rate of 1.25%, then the

 

 

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1tax imposed by this Act applies to 100% of the proceeds of
2sales of gasohol made during that time.
3    With respect to mid-range ethanol blends, as defined in the
4Use Tax Act, the tax imposed by this Act applies to (i) 80% of
5the selling price of property transferred as an incident to the
6sale of service on or after July 1, 2015 and on or before
7December 31, 2018 and (ii) 100% of the selling price
8thereafter. If, at any time, however, the tax under this Act on
9sales of mid-range ethanol blends is imposed at the rate of
101.25%, then the tax imposed by this Act applies to 100% of the
11proceeds of sales of mid-range ethanol blends made during that
12time.
13    With respect to majority blended ethanol fuel, as defined
14in the Use Tax Act, the tax imposed by this Act does not apply
15to the selling price of property transferred as an incident to
16the sale of service on or after July 1, 2003 and on or before
17December 31, 2018 but applies to 100% of the selling price
18thereafter.
19    With respect to biodiesel blends, as defined in the Use Tax
20Act, with no less than 1% and no more than 10% biodiesel, the
21tax imposed by this Act applies to (i) 80% of the selling price
22of property transferred as an incident to the sale of service
23on or after July 1, 2003 and on or before December 31, 2018 and
24(ii) 100% of the proceeds of the selling price thereafter. If,
25at any time, however, the tax under this Act on sales of
26biodiesel blends, as defined in the Use Tax Act, with no less

 

 

09900HB3378ham001- 20 -LRB099 08472 HLH 32967 a

1than 1% and no more than 10% biodiesel is imposed at the rate
2of 1.25%, then the tax imposed by this Act applies to 100% of
3the proceeds of sales of biodiesel blends with no less than 1%
4and no more than 10% biodiesel made during that time.
5    With respect to 100% biodiesel, as defined in the Use Tax
6Act, and biodiesel blends, as defined in the Use Tax Act, with
7more than 10% but no more than 99% biodiesel material, the tax
8imposed by this Act does not apply to the proceeds of the
9selling price of property transferred as an incident to the
10sale of service on or after July 1, 2003 and on or before
11December 31, 2018 but applies to 100% of the selling price
12thereafter.
13    At the election of any registered serviceman made for each
14fiscal year, sales of service in which the aggregate annual
15cost price of tangible personal property transferred as an
16incident to the sales of service is less than 35%, or 75% in
17the case of servicemen transferring prescription drugs or
18servicemen engaged in graphic arts production, of the aggregate
19annual total gross receipts from all sales of service, the tax
20imposed by this Act shall be based on the serviceman's cost
21price of the tangible personal property transferred incident to
22the sale of those services.
23    The tax shall be imposed at the rate of 1% on food prepared
24for immediate consumption and transferred incident to a sale of
25service subject to this Act or the Service Occupation Tax Act
26by an entity licensed under the Hospital Licensing Act, the

 

 

09900HB3378ham001- 21 -LRB099 08472 HLH 32967 a

1Nursing Home Care Act, the ID/DD Community Care Act, the
2Specialized Mental Health Rehabilitation Act of 2013, or the
3Child Care Act of 1969. The tax shall also be imposed at the
4rate of 1% on food for human consumption that is to be consumed
5off the premises where it is sold (other than alcoholic
6beverages, soft drinks, and food that has been prepared for
7immediate consumption and is not otherwise included in this
8paragraph) and prescription and nonprescription medicines,
9drugs, medical appliances, modifications to a motor vehicle for
10the purpose of rendering it usable by a disabled person, and
11insulin, urine testing materials, syringes, and needles used by
12diabetics, for human use. For the purposes of this Section,
13until September 1, 2009: the term "soft drinks" means any
14complete, finished, ready-to-use, non-alcoholic drink, whether
15carbonated or not, including but not limited to soda water,
16cola, fruit juice, vegetable juice, carbonated water, and all
17other preparations commonly known as soft drinks of whatever
18kind or description that are contained in any closed or sealed
19can, carton, or container, regardless of size; but "soft
20drinks" does not include coffee, tea, non-carbonated water,
21infant formula, milk or milk products as defined in the Grade A
22Pasteurized Milk and Milk Products Act, or drinks containing
2350% or more natural fruit or vegetable juice.
24    Notwithstanding any other provisions of this Act,
25beginning September 1, 2009, "soft drinks" means non-alcoholic
26beverages that contain natural or artificial sweeteners. "Soft

 

 

09900HB3378ham001- 22 -LRB099 08472 HLH 32967 a

1drinks" do not include beverages that contain milk or milk
2products, soy, rice or similar milk substitutes, or greater
3than 50% of vegetable or fruit juice by volume.
4    Until August 1, 2009, and notwithstanding any other
5provisions of this Act, "food for human consumption that is to
6be consumed off the premises where it is sold" includes all
7food sold through a vending machine, except soft drinks and
8food products that are dispensed hot from a vending machine,
9regardless of the location of the vending machine. Beginning
10August 1, 2009, and notwithstanding any other provisions of
11this Act, "food for human consumption that is to be consumed
12off the premises where it is sold" includes all food sold
13through a vending machine, except soft drinks, candy, and food
14products that are dispensed hot from a vending machine,
15regardless of the location of the vending machine.
16    Notwithstanding any other provisions of this Act,
17beginning September 1, 2009, "food for human consumption that
18is to be consumed off the premises where it is sold" does not
19include candy. For purposes of this Section, "candy" means a
20preparation of sugar, honey, or other natural or artificial
21sweeteners in combination with chocolate, fruits, nuts or other
22ingredients or flavorings in the form of bars, drops, or
23pieces. "Candy" does not include any preparation that contains
24flour or requires refrigeration.
25    Notwithstanding any other provisions of this Act,
26beginning September 1, 2009, "nonprescription medicines and

 

 

09900HB3378ham001- 23 -LRB099 08472 HLH 32967 a

1drugs" does not include grooming and hygiene products. For
2purposes of this Section, "grooming and hygiene products"
3includes, but is not limited to, soaps and cleaning solutions,
4shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
5lotions and screens, unless those products are available by
6prescription only, regardless of whether the products meet the
7definition of "over-the-counter-drugs". For the purposes of
8this paragraph, "over-the-counter-drug" means a drug for human
9use that contains a label that identifies the product as a drug
10as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
11label includes:
12        (A) A "Drug Facts" panel; or
13        (B) A statement of the "active ingredient(s)" with a
14    list of those ingredients contained in the compound,
15    substance or preparation.
16    Beginning on January 1, 2014 (the effective date of Public
17Act 98-122), "prescription and nonprescription medicines and
18drugs" includes medical cannabis purchased from a registered
19dispensing organization under the Compassionate Use of Medical
20Cannabis Pilot Program Act.
21(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-636,
22eff. 6-1-12; 98-104, eff. 7-22-13; 98-122, eff. 1-1-14; 98-756,
23eff. 7-16-14.)
 
24    Section 25. The Retailers' Occupation Tax Act is amended by
25changing Section 2-10 as follows:
 

 

 

09900HB3378ham001- 24 -LRB099 08472 HLH 32967 a

1    (35 ILCS 120/2-10)
2    Sec. 2-10. Rate of tax. Unless otherwise provided in this
3Section, the tax imposed by this Act is at the rate of 6.25% of
4gross receipts from sales of tangible personal property made in
5the course of business.
6    Beginning on July 1, 2000 and through December 31, 2000,
7with respect to motor fuel, as defined in Section 1.1 of the
8Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
9the Use Tax Act, the tax is imposed at the rate of 1.25%.
10    Beginning on August 6, 2010 through August 15, 2010, with
11respect to sales tax holiday items as defined in Section 2-8 of
12this Act, the tax is imposed at the rate of 1.25%.
13    Within 14 days after the effective date of this amendatory
14Act of the 91st General Assembly, each retailer of motor fuel
15and gasohol shall cause the following notice to be posted in a
16prominently visible place on each retail dispensing device that
17is used to dispense motor fuel or gasohol in the State of
18Illinois: "As of July 1, 2000, the State of Illinois has
19eliminated the State's share of sales tax on motor fuel and
20gasohol through December 31, 2000. The price on this pump
21should reflect the elimination of the tax." The notice shall be
22printed in bold print on a sign that is no smaller than 4
23inches by 8 inches. The sign shall be clearly visible to
24customers. Any retailer who fails to post or maintain a
25required sign through December 31, 2000 is guilty of a petty

 

 

09900HB3378ham001- 25 -LRB099 08472 HLH 32967 a

1offense for which the fine shall be $500 per day per each
2retail premises where a violation occurs.
3    With respect to gasohol, as defined in the Use Tax Act, the
4tax imposed by this Act applies to (i) 70% of the proceeds of
5sales made on or after January 1, 1990, and before July 1,
62003, (ii) 80% of the proceeds of sales made on or after July
71, 2003 and on or before June 30, 2015, (iii) 90% of the
8proceeds of sales made on or after July 1, 2015 and on or
9before December 31, 2018, and (iv) (iii) 100% of the proceeds
10of sales made thereafter. If, at any time, however, the tax
11under this Act on sales of gasohol, as defined in the Use Tax
12Act, is imposed at the rate of 1.25%, then the tax imposed by
13this Act applies to 100% of the proceeds of sales of gasohol
14made during that time.
15    With respect to mid-range ethanol blends, as defined in the
16Use Tax Act, the tax imposed by this Act applies to (i) 80% of
17the proceeds of sales made on or after July 1, 2015 and on or
18before December 31, 2018 and (ii) 100% of the proceeds of sales
19made thereafter. If, at any time, however, the tax under this
20Act on sales of mid-range ethanol blends is imposed at the rate
21of 1.25%, then the tax imposed by this Act applies to 100% of
22the proceeds of sales of mid-range ethanol blends made during
23that time.
24    With respect to majority blended ethanol fuel, as defined
25in the Use Tax Act, the tax imposed by this Act does not apply
26to the proceeds of sales made on or after July 1, 2003 and on or

 

 

09900HB3378ham001- 26 -LRB099 08472 HLH 32967 a

1before December 31, 2018 but applies to 100% of the proceeds of
2sales made thereafter.
3    With respect to biodiesel blends, as defined in the Use Tax
4Act, with no less than 1% and no more than 10% biodiesel, the
5tax imposed by this Act applies to (i) 80% of the proceeds of
6sales made on or after July 1, 2003 and on or before December
731, 2018 and (ii) 100% of the proceeds of sales made
8thereafter. If, at any time, however, the tax under this Act on
9sales of biodiesel blends, as defined in the Use Tax Act, with
10no less than 1% and no more than 10% biodiesel is imposed at
11the rate of 1.25%, then the tax imposed by this Act applies to
12100% of the proceeds of sales of biodiesel blends with no less
13than 1% and no more than 10% biodiesel made during that time.
14    With respect to 100% biodiesel, as defined in the Use Tax
15Act, and biodiesel blends, as defined in the Use Tax Act, with
16more than 10% but no more than 99% biodiesel, the tax imposed
17by this Act does not apply to the proceeds of sales made on or
18after July 1, 2003 and on or before December 31, 2018 but
19applies to 100% of the proceeds of sales made thereafter.
20    With respect to food for human consumption that is to be
21consumed off the premises where it is sold (other than
22alcoholic beverages, soft drinks, and food that has been
23prepared for immediate consumption) and prescription and
24nonprescription medicines, drugs, medical appliances,
25modifications to a motor vehicle for the purpose of rendering
26it usable by a disabled person, and insulin, urine testing

 

 

09900HB3378ham001- 27 -LRB099 08472 HLH 32967 a

1materials, syringes, and needles used by diabetics, for human
2use, the tax is imposed at the rate of 1%. For the purposes of
3this Section, until September 1, 2009: the term "soft drinks"
4means any complete, finished, ready-to-use, non-alcoholic
5drink, whether carbonated or not, including but not limited to
6soda water, cola, fruit juice, vegetable juice, carbonated
7water, and all other preparations commonly known as soft drinks
8of whatever kind or description that are contained in any
9closed or sealed bottle, can, carton, or container, regardless
10of size; but "soft drinks" does not include coffee, tea,
11non-carbonated water, infant formula, milk or milk products as
12defined in the Grade A Pasteurized Milk and Milk Products Act,
13or drinks containing 50% or more natural fruit or vegetable
14juice.
15    Notwithstanding any other provisions of this Act,
16beginning September 1, 2009, "soft drinks" means non-alcoholic
17beverages that contain natural or artificial sweeteners. "Soft
18drinks" do not include beverages that contain milk or milk
19products, soy, rice or similar milk substitutes, or greater
20than 50% of vegetable or fruit juice by volume.
21    Until August 1, 2009, and notwithstanding any other
22provisions of this Act, "food for human consumption that is to
23be consumed off the premises where it is sold" includes all
24food sold through a vending machine, except soft drinks and
25food products that are dispensed hot from a vending machine,
26regardless of the location of the vending machine. Beginning

 

 

09900HB3378ham001- 28 -LRB099 08472 HLH 32967 a

1August 1, 2009, and notwithstanding any other provisions of
2this Act, "food for human consumption that is to be consumed
3off the premises where it is sold" includes all food sold
4through a vending machine, except soft drinks, candy, and food
5products that are dispensed hot from a vending machine,
6regardless of the location of the vending machine.
7    Notwithstanding any other provisions of this Act,
8beginning September 1, 2009, "food for human consumption that
9is to be consumed off the premises where it is sold" does not
10include candy. For purposes of this Section, "candy" means a
11preparation of sugar, honey, or other natural or artificial
12sweeteners in combination with chocolate, fruits, nuts or other
13ingredients or flavorings in the form of bars, drops, or
14pieces. "Candy" does not include any preparation that contains
15flour or requires refrigeration.
16    Notwithstanding any other provisions of this Act,
17beginning September 1, 2009, "nonprescription medicines and
18drugs" does not include grooming and hygiene products. For
19purposes of this Section, "grooming and hygiene products"
20includes, but is not limited to, soaps and cleaning solutions,
21shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
22lotions and screens, unless those products are available by
23prescription only, regardless of whether the products meet the
24definition of "over-the-counter-drugs". For the purposes of
25this paragraph, "over-the-counter-drug" means a drug for human
26use that contains a label that identifies the product as a drug

 

 

09900HB3378ham001- 29 -LRB099 08472 HLH 32967 a

1as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
2label includes:
3        (A) A "Drug Facts" panel; or
4        (B) A statement of the "active ingredient(s)" with a
5    list of those ingredients contained in the compound,
6    substance or preparation.
7    Beginning on the effective date of this amendatory Act of
8the 98th General Assembly, "prescription and nonprescription
9medicines and drugs" includes medical cannabis purchased from a
10registered dispensing organization under the Compassionate Use
11of Medical Cannabis Pilot Program Act.
12(Source: P.A. 97-636, eff. 6-1-12; 98-122, eff. 1-1-14.)
 
13    Section 30. The School Code is amended by adding Section
142-3.65b as follows:
 
15    (105 ILCS 5/2-3.65b new)
16    Sec. 2-3.65b. Grants for agriculture education programs.
17Subject to appropriation, the State Board of Education may
18award grants to public schools in the State to fund agriculture
19education programs. The annual aggregate amount of grants
20awarded under this Section may not exceed $2,000,000 in any
21State fiscal year.
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.".