Illinois General Assembly - Full Text of SB0777
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Full Text of SB0777  93rd General Assembly

SB0777ham001 93rd General Assembly


093_SB0777ham001











                                     LRB093 03252 DRJ 16929 a

 1                    AMENDMENT TO SENATE BILL 777

 2        AMENDMENT NO.     .  Amend Senate Bill 777  by  replacing
 3    the title with the following:
 4        "AN  ACT in relation to health, which may be known as the
 5    Colleen O'Sullivan Law."; and

 6    by replacing everything after the enacting  clause  with  the
 7    following:

 8        "Section  1.  Short  title.  This Act may be cited as the
 9    Physical Fitness Facility Medical Emergency Preparedness Act.

10        Section 5.  Definitions. In this Act, words  and  phrases
11    have the meanings set forth in the following Sections.

12        Section     5.5.  Automated    external    defibrillator.
13    "Automated  external  defibrillator"  or   "AED"   means   an
14    automated  external defibrillator as defined in the Automated
15    External Defibrillator Act.

16        Section   5.10.  Department.   "Department"   means   the
17    Department of Public Health.

18        Section 5.15.  Director. "Director" means the Director of
 
                            -2-      LRB093 03252 DRJ 16929 a
 1    Public Health.

 2        Section  5.20.  Medical  emergency.  "Medical  emergency"
 3    means the occurrence of a  sudden,  serious,  and  unexpected
 4    sickness  or  injury  that  would  lead  a reasonable person,
 5    possessing an average knowledge of medicine  and  health,  to
 6    believe  that  the  sick or injured person requires urgent or
 7    unscheduled medical care.

 8        Section 5.25.  Physical fitness facility.
 9        (a) "Physical fitness facility" means the following:
10             (1)  Any of the following indoor facilities that  is
11        (i)  owned  or operated by a park district, municipality,
12        or other unit of local  government  or  by  a  public  or
13        private   elementary   or   secondary   school,  college,
14        university,  or  technical  or  trade  school  and   (ii)
15        supervised by one or more persons, other than maintenance
16        or  security  personnel,  employed  by  the unit of local
17        government,  school,  college,  or  university  for   the
18        purpose  of  directly  supervising  the  physical fitness
19        activities  taking  place  at   any   of   these   indoor
20        facilities:  a  swimming  pool;  stadium; athletic field;
21        track and field facility; tennis court; basketball court;
22        or volleyball court; or such facilities located  adjacent
23        thereto.
24             (2)  Except as provided in subsection (b), any other
25        indoor  establishment,  whether  public  or private, that
26        provides   services   or   facilities   for   preserving,
27        maintaining, encouraging, or developing physical  fitness
28        or well-being, including an establishment designated as a
29        "health  club",  "fitness  club", or "exercise gym" or by
30        any other term of similar import.
31        (b)  "Physical  fitness  facility"  does  not  include  a
32    facility located in a hospital or in a hotel or motel, or any
 
                            -3-      LRB093 03252 DRJ 16929 a
 1    outdoor facility. The term also does not include any facility
 2    that does not employ  any  persons  to  provide  instruction,
 3    training, or assistance for persons using the facility.

 4        Section 10.  Medical emergency plan required.
 5        (a)  Before  July  1,  2004,  each  person or entity that
 6    operates  a   physical  fitness  facility  must   adopt   and
 7    implement   a   written   plan   for  responding  to  medical
 8    emergencies that occur at the facility during the  time  that
 9    the facility is open for use by its members or by the public.
10    The  plan  must comply with this Act and rules adopted by the
11    Department to implement this Act. The facility  must  file  a
12    copy of the plan with the Department.
13        (b)  Whenever there is a change in the structure occupied
14    by the facility or in the services provided or offered by the
15    facility  that would materially affect the facility's ability
16    to respond to a medical emergency, the person or entity  must
17    promptly  update  its plan developed under subsection (a) and
18    must file a copy of the updated plan with the Department.

19        Section 15.  Automated external defibrillator required.
20        (a)  By the dates specified in Section 50, every physical
21    fitness facility must have at least one AED on  the  facility
22    premises.    The  Department  shall  adopt  rules  to  ensure
23    coordination with local emergency  medical  services  systems
24    regarding  the  placement and use of AEDs in physical fitness
25    facilities.  The  Department  may  adopt  rules  requiring  a
26    facility to have more than one AED on the premises, based  on
27    factors that include the following:
28             (1)  The size of the area or the number of buildings
29        or floors occupied by the facility.
30             (2)  The  number  of  persons  using  the  facility,
31        excluding spectators.
32        (b)  A  physical  fitness facility must ensure that there
 
                            -4-      LRB093 03252 DRJ 16929 a
 1    is a trained AED user on staff.
 2        (c)  Every physical fitness  facility  must  ensure  that
 3    every  AED  on the facility's premises is properly tested and
 4    maintained  in  accordance  with   rules   adopted   by   the
 5    Department.

 6        Section  20.  Training.  The Department shall adopt rules
 7    to establish programs  to  train  physical  fitness  facility
 8    staff  on  the  role of cardiopulmonary resuscitation and the
 9    use of automated external defibrillators. The rules  must  be
10    consistent  with those adopted by the Department for training
11    AED users under the Automated External Defibrillator Act.

12        Section 25.  Economic incentives.
13        (a)  The  Department  must  work  with  physical  fitness
14    facilities and manufacturers and  distributors  of  automated
15    external  defibrillators to develop a procedure by which 2 or
16    more facilities may submit a joint bid for  the  purchase  of
17    AEDs in order to maximize their purchasing power.
18        (b)  A  private  physical fitness facility that purchases
19    an automated external defibrillator in order to  comply  with
20    this  Act  is  eligible  for  a  tax exemption as provided in
21    Section 3-5 of the Use Tax Act, Section 3-5  of  the  Service
22    Use  Tax  Act, Section 3-5 of the Service Occupation Tax Act,
23    and Section 2-5 of the Retailers' Occupation Tax Act.

24        Section 30.  Inspections. The Department shall inspect  a
25    physical  fitness  facility  in response to a complaint filed
26    with the Department alleging a violation of this Act. For the
27    purpose of ensuring compliance with this Act, the  Department
28    may  inspect  a  physical  fitness facility at other times in
29    accordance with rules adopted by the Department.

30        Section 35.  Penalties for violations.
 
                            -5-      LRB093 03252 DRJ 16929 a
 1        (a)  If a physical fitness facility violates this Act  by
 2    (i)  failing  to  adopt or implement a plan for responding to
 3    medical emergencies under Section 10 or (ii) failing to  have
 4    on the premises an AED or trained AED user as required  under
 5    subsection  (a) or (b) of Section 15, the Director may impose
 6    a civil penalty against the facility as follows:
 7             (1)  At least $250 but less than $500  for  a  first
 8        violation.
 9             (2)  At least $500 but less than $1,000 for a second
10        violation.
11             (3)  At  least  $1,000  for  a  third  or subsequent
12        violation.
13        (b)  The Director may impose a civil penalty  under  this
14    Section only after it provides the following to the facility:
15             (1)  Written notice of the alleged violation.
16             (2)  Written  notice  of  the  facility's  right  to
17        request  an administrative hearing on the question of the
18        alleged violation.
19             (3)  An opportunity to present evidence,  orally  or
20        in  writing  or  both,  on  the  question  of the alleged
21        violation before an impartial hearing examiner  appointed
22        by the Director.
23             (4)  A  written decision from the Director, based on
24        the evidence introduced at the hearing  and  the  hearing
25        examiner's  recommendations,  finding  that  the facility
26        violated this Act and imposing the civil penalty.
27        (c)  The Attorney General may  bring  an  action  in  the
28    circuit court to enforce the collection of a monetary penalty
29    imposed under this Section.

30        Section  40.  Rules.  The Department shall adopt rules to
31    implement this Act.

32        Section 45.  Liability. Nothing  in  this  Act  shall  be
 
                            -6-      LRB093 03252 DRJ 16929 a
 1    construed to either limit or expand the exemptions from civil
 2    liability  in  connection  with  the  purchase  or  use of an
 3    automated external defibrillator that are provided under  the
 4    Automated  External  Defibrillator  Act  or  under  any other
 5    provision of law.  A  right  of  action  does  not  exist  in
 6    connection  with  the use or non-use of an automated external
 7    defibrillator at a facility governed by  this  Act,  provided
 8    that the person, unit of state or local government, or school
 9    district   operating  the  facility  has  adopted  a  medical
10    emergency plan as required under Section 10 of this Act,  has
11    an  automated  external  defibrillator  at  the  facility  as
12    required under Section 15 of this Act, and has maintained the
13    automated external defibrillator in accordance with the rules
14    adopted by the Department.

15        Section  50.  Compliance dates; private and public indoor
16    physical fitness facilities.
17        (a)  Privately-owned indoor physical fitness  facilities.
18    Every  privately-owned  or  operated  indoor physical fitness
19    facility must be in compliance with this  Act  on  or  before
20    July 1, 2004.
21        (b)  Publicly  owned  indoor physical fitness facilities.
22    A public entity  owning  or  operating  4  or  fewer   indoor
23    physical  fitness  facilities  must  have  at  least one such
24    facility in compliance with this Act on  or  before  July  1,
25    2004;  its second facility in compliance by July 1, 2005; its
26    third facility in compliance by July 1, 2006; and its  fourth
27    facility in compliance by July 1, 2007.
28        A  public  entity  owning or operating more than 4 indoor
29    physical fitness facilities must have 25% of those facilities
30    in compliance by July 1, 2004; 50%  of  those  facilities  in
31    compliance  by  July  1,  2005;  75%  of  those facilities in
32    compliance by July 1, 2006; and 100% of those  facilities  in
33    compliance by July 1, 2007.
 
                            -7-      LRB093 03252 DRJ 16929 a
 1        Section  88.  The State Mandates Act is amended by adding
 2    Section 8.27 as follows:

 3        (30 ILCS 805/8.27 new)
 4        Sec. 8.27. Exempt mandate.   Notwithstanding  Sections  6
 5    and  8 of this Act, no reimbursement by the State is required
 6    for  the  implementation  of  any  mandate  created  by  this
 7    amendatory Act of the 93rd General Assembly.

 8        Section 90.  The Use  Tax  Act  is  amended  by  changing
 9    Section 3-5 as follows:

10        (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
11        Sec.  3-5.  Exemptions.   Use  of  the following tangible
12    personal property is exempt from the tax imposed by this Act:
13        (1)  Personal  property  purchased  from  a  corporation,
14    society,    association,    foundation,    institution,    or
15    organization, other than a limited liability company, that is
16    organized and operated as a not-for-profit service enterprise
17    for the benefit of persons 65 years of age or  older  if  the
18    personal property was not purchased by the enterprise for the
19    purpose of resale by the enterprise.
20        (2)  Personal  property  purchased  by  a  not-for-profit
21    Illinois  county  fair  association  for  use  in conducting,
22    operating, or promoting the county fair.
23        (3)  Personal property purchased by a not-for-profit arts
24    or cultural organization that establishes, by proof  required
25    by  the Department by rule, that it has received an exemption
26    under Section 501(c)(3) of the Internal Revenue Code and that
27    is organized and operated primarily for the  presentation  or
28    support  of  arts  or  cultural  programming,  activities, or
29    services.  These organizations include, but are  not  limited
30    to,  music  and  dramatic arts organizations such as symphony
31    orchestras and theatrical groups, arts and  cultural  service
 
                            -8-      LRB093 03252 DRJ 16929 a
 1    organizations,    local    arts    councils,    visual   arts
 2    organizations, and media arts organizations. On and after the
 3    effective date of this amendatory Act  of  the  92nd  General
 4    Assembly,  however,  an  entity  otherwise  eligible for this
 5    exemption shall not make tax-free purchases unless it has  an
 6    active identification number issued by the Department.
 7        (4)  Personal  property purchased by a governmental body,
 8    by  a  corporation,  society,  association,  foundation,   or
 9    institution    organized   and   operated   exclusively   for
10    charitable, religious,  or  educational  purposes,  or  by  a
11    not-for-profit corporation, society, association, foundation,
12    institution, or organization that has no compensated officers
13    or employees and that is organized and operated primarily for
14    the recreation of persons 55 years of age or older. A limited
15    liability  company  may  qualify for the exemption under this
16    paragraph only if the limited liability company is  organized
17    and  operated  exclusively  for  educational purposes. On and
18    after July 1, 1987, however, no entity otherwise eligible for
19    this exemption shall make tax-free purchases unless it has an
20    active  exemption  identification  number   issued   by   the
21    Department.
22        (5)  A passenger car that is a replacement vehicle to the
23    extent  that  the purchase price of the car is subject to the
24    Replacement Vehicle Tax.
25        (6)  Graphic  arts  machinery  and  equipment,  including
26    repair  and  replacement  parts,  both  new  and  used,   and
27    including  that  manufactured  on special order, certified by
28    the  purchaser  to  be  used  primarily  for   graphic   arts
29    production,  and  including machinery and equipment purchased
30    for lease.  Equipment includes chemicals or chemicals  acting
31    as catalysts but only if the chemicals or chemicals acting as
32    catalysts effect a direct and immediate change upon a graphic
33    arts product.
34        (7)  Farm chemicals.
 
                            -9-      LRB093 03252 DRJ 16929 a
 1        (8)  Legal  tender,  currency,  medallions,  or  gold  or
 2    silver   coinage   issued  by  the  State  of  Illinois,  the
 3    government of the United States of America, or the government
 4    of any foreign country, and bullion.
 5        (9)  Personal property purchased from a teacher-sponsored
 6    student  organization  affiliated  with  an   elementary   or
 7    secondary school located in Illinois.
 8        (10)  A  motor  vehicle  of  the  first division, a motor
 9    vehicle of the second division that is a self-contained motor
10    vehicle designed or permanently converted to  provide  living
11    quarters  for  recreational,  camping,  or  travel  use, with
12    direct walk through to the living quarters from the  driver's
13    seat,  or  a  motor vehicle of the second division that is of
14    the van configuration designed for the transportation of  not
15    less  than  7  nor  more  than  16  passengers, as defined in
16    Section 1-146 of the Illinois Vehicle Code, that is used  for
17    automobile  renting,  as  defined  in  the Automobile Renting
18    Occupation and Use Tax Act.
19        (11)  Farm machinery and equipment, both  new  and  used,
20    including  that  manufactured  on special order, certified by
21    the purchaser to be used primarily for production agriculture
22    or  State  or  federal   agricultural   programs,   including
23    individual replacement parts for the machinery and equipment,
24    including  machinery  and  equipment purchased for lease, and
25    including implements of husbandry defined in Section 1-130 of
26    the Illinois Vehicle Code, farm  machinery  and  agricultural
27    chemical  and fertilizer spreaders, and nurse wagons required
28    to be registered under Section 3-809 of the Illinois  Vehicle
29    Code,  but  excluding  other  motor  vehicles  required to be
30    registered under the  Illinois  Vehicle  Code.  Horticultural
31    polyhouses  or  hoop houses used for propagating, growing, or
32    overwintering plants shall be considered farm  machinery  and
33    equipment  under this item (11). Agricultural chemical tender
34    tanks and dry boxes shall include units sold separately  from
 
                            -10-     LRB093 03252 DRJ 16929 a
 1    a  motor  vehicle  required  to  be  licensed  and units sold
 2    mounted on a motor vehicle required to  be  licensed  if  the
 3    selling price of the tender is separately stated.
 4        Farm  machinery  and  equipment  shall  include precision
 5    farming equipment  that  is  installed  or  purchased  to  be
 6    installed  on farm machinery and equipment including, but not
 7    limited  to,  tractors,   harvesters,   sprayers,   planters,
 8    seeders,  or spreaders. Precision farming equipment includes,
 9    but is not  limited  to,  soil  testing  sensors,  computers,
10    monitors,  software,  global positioning and mapping systems,
11    and other such equipment.
12        Farm machinery and  equipment  also  includes  computers,
13    sensors,  software,  and  related equipment used primarily in
14    the computer-assisted  operation  of  production  agriculture
15    facilities,  equipment,  and  activities  such  as,  but  not
16    limited  to,  the  collection, monitoring, and correlation of
17    animal and crop data for the purpose  of  formulating  animal
18    diets  and  agricultural chemicals.  This item (11) is exempt
19    from the provisions of Section 3-90.
20        (12)  Fuel and petroleum products sold to or used  by  an
21    air  common  carrier, certified by the carrier to be used for
22    consumption, shipment, or  storage  in  the  conduct  of  its
23    business  as an air common carrier, for a flight destined for
24    or returning from a location or locations outside the  United
25    States  without  regard  to  previous  or subsequent domestic
26    stopovers.
27        (13)  Proceeds of mandatory  service  charges  separately
28    stated  on  customers' bills for the purchase and consumption
29    of food and beverages purchased at retail from a retailer, to
30    the extent that the proceeds of the  service  charge  are  in
31    fact  turned  over as tips or as a substitute for tips to the
32    employees who participate  directly  in  preparing,  serving,
33    hosting  or  cleaning  up  the food or beverage function with
34    respect to which the service charge is imposed.
 
                            -11-     LRB093 03252 DRJ 16929 a
 1        (14)  Oil field  exploration,  drilling,  and  production
 2    equipment, including (i) rigs and parts of rigs, rotary rigs,
 3    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
 4    goods, including casing and drill strings,  (iii)  pumps  and
 5    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
 6    individual  replacement  part  for  oil  field   exploration,
 7    drilling,  and  production  equipment, and (vi) machinery and
 8    equipment purchased for lease; but excluding  motor  vehicles
 9    required to be registered under the Illinois Vehicle Code.
10        (15)  Photoprocessing  machinery and equipment, including
11    repair and replacement parts, both new  and  used,  including
12    that   manufactured   on  special  order,  certified  by  the
13    purchaser to  be  used  primarily  for  photoprocessing,  and
14    including  photoprocessing  machinery and equipment purchased
15    for lease.
16        (16)  Coal  exploration,  mining,   offhighway   hauling,
17    processing, maintenance, and reclamation equipment, including
18    replacement  parts  and  equipment,  and  including equipment
19    purchased for lease, but excluding motor vehicles required to
20    be registered under the Illinois Vehicle Code.
21        (17)  Distillation machinery and  equipment,  sold  as  a
22    unit   or  kit,  assembled  or  installed  by  the  retailer,
23    certified by the user to be used only for the  production  of
24    ethyl alcohol that will be used for consumption as motor fuel
25    or  as  a component of motor fuel for the personal use of the
26    user, and not subject to sale or resale.
27        (18)  Manufacturing   and   assembling   machinery    and
28    equipment  used  primarily in the process of manufacturing or
29    assembling tangible personal property for wholesale or retail
30    sale or lease, whether that sale or lease is made directly by
31    the  manufacturer  or  by  some  other  person,  whether  the
32    materials used in the process are owned by  the  manufacturer
33    or  some  other person, or whether that sale or lease is made
34    apart from or as an incident to the seller's engaging in  the
 
                            -12-     LRB093 03252 DRJ 16929 a
 1    service  occupation of producing machines, tools, dies, jigs,
 2    patterns, gauges, or other similar  items  of  no  commercial
 3    value on special order for a particular purchaser.
 4        (19)  Personal  property  delivered  to  a  purchaser  or
 5    purchaser's donee inside Illinois when the purchase order for
 6    that  personal  property  was  received  by a florist located
 7    outside Illinois who has a florist  located  inside  Illinois
 8    deliver the personal property.
 9        (20)  Semen used for artificial insemination of livestock
10    for direct agricultural production.
11        (21)  Horses, or interests in horses, registered with and
12    meeting  the  requirements  of  any of the Arabian Horse Club
13    Registry of America, Appaloosa Horse Club,  American  Quarter
14    Horse  Association,  United  States  Trotting Association, or
15    Jockey Club, as appropriate, used for purposes of breeding or
16    racing for prizes.
17        (22)  Computers and communications equipment utilized for
18    any hospital purpose and equipment  used  in  the  diagnosis,
19    analysis,  or  treatment  of hospital patients purchased by a
20    lessor who leases the equipment, under a lease of one year or
21    longer executed or in effect at the  time  the  lessor  would
22    otherwise  be  subject  to  the tax imposed by this Act, to a
23    hospital  that  has  been  issued  an  active  tax  exemption
24    identification  number  by the Department under Section 1g of
25    the Retailers' Occupation  Tax  Act.   If  the  equipment  is
26    leased  in  a manner that does not qualify for this exemption
27    or is used in any other non-exempt manner, the  lessor  shall
28    be  liable  for the tax imposed under this Act or the Service
29    Use Tax Act, as the case may be, based  on  the  fair  market
30    value  of  the  property  at  the time the non-qualifying use
31    occurs.  No lessor shall collect or  attempt  to  collect  an
32    amount  (however  designated) that purports to reimburse that
33    lessor for the tax imposed by this Act or the Service Use Tax
34    Act, as the case may be, if the tax has not been paid by  the
 
                            -13-     LRB093 03252 DRJ 16929 a
 1    lessor.  If a lessor improperly collects any such amount from
 2    the  lessee,  the  lessee shall have a legal right to claim a
 3    refund of that amount from the  lessor.   If,  however,  that
 4    amount  is  not  refunded  to  the lessee for any reason, the
 5    lessor is liable to pay that amount to the Department.
 6        (23)  Personal property purchased by a lessor who  leases
 7    the  property,  under a lease of  one year or longer executed
 8    or in effect at  the  time  the  lessor  would  otherwise  be
 9    subject  to  the  tax  imposed by this Act, to a governmental
10    body that has been  issued  an  active  sales  tax  exemption
11    identification  number  by the Department under Section 1g of
12    the Retailers' Occupation Tax Act. If the property is  leased
13    in  a manner that does not qualify for this exemption or used
14    in any other non-exempt manner, the lessor  shall  be  liable
15    for  the  tax  imposed  under this Act or the Service Use Tax
16    Act, as the case may be, based on the fair  market  value  of
17    the  property  at the time the non-qualifying use occurs.  No
18    lessor shall collect or attempt to collect an amount (however
19    designated) that purports to reimburse that  lessor  for  the
20    tax  imposed  by  this Act or the Service Use Tax Act, as the
21    case may be, if the tax has not been paid by the lessor.   If
22    a lessor improperly collects any such amount from the lessee,
23    the lessee shall have a legal right to claim a refund of that
24    amount  from  the  lessor.   If,  however, that amount is not
25    refunded to the lessee for any reason, the lessor  is  liable
26    to pay that amount to the Department.
27        (24)  Beginning  with  taxable  years  ending on or after
28    December 31, 1995 and ending with taxable years ending on  or
29    before  December  31, 2004, personal property that is donated
30    for disaster relief to  be  used  in  a  State  or  federally
31    declared disaster area in Illinois or bordering Illinois by a
32    manufacturer  or retailer that is registered in this State to
33    a   corporation,   society,   association,   foundation,   or
34    institution that  has  been  issued  a  sales  tax  exemption
 
                            -14-     LRB093 03252 DRJ 16929 a
 1    identification  number by the Department that assists victims
 2    of the disaster who reside within the declared disaster area.
 3        (25)  Beginning with taxable years  ending  on  or  after
 4    December  31, 1995 and ending with taxable years ending on or
 5    before December 31, 2004, personal property that is  used  in
 6    the  performance  of  infrastructure  repairs  in this State,
 7    including but not limited to  municipal  roads  and  streets,
 8    access  roads,  bridges,  sidewalks,  waste disposal systems,
 9    water and  sewer  line  extensions,  water  distribution  and
10    purification  facilities,  storm water drainage and retention
11    facilities, and sewage treatment facilities, resulting from a
12    State or federally declared disaster in Illinois or bordering
13    Illinois  when  such  repairs  are  initiated  on  facilities
14    located in the declared disaster area within 6  months  after
15    the disaster.
16        (26)  Beginning   July   1,  1999,  game  or  game  birds
17    purchased at a "game breeding and hunting preserve  area"  or
18    an  "exotic game hunting area" as those terms are used in the
19    Wildlife Code or at  a  hunting  enclosure  approved  through
20    rules  adopted  by the Department of Natural Resources.  This
21    paragraph is exempt from the provisions of Section 3-90.
22        (27)  A motor vehicle, as that term is defined in Section
23    1-146 of the Illinois Vehicle Code,  that  is  donated  to  a
24    corporation, limited liability company, society, association,
25    foundation,   or   institution  that  is  determined  by  the
26    Department to  be  organized  and  operated  exclusively  for
27    educational  purposes.    For  purposes of this exemption, "a
28    corporation, limited liability company, society, association,
29    foundation, or institution organized and operated exclusively
30    for educational  purposes"  means  all  tax-supported  public
31    schools, private schools that offer systematic instruction in
32    useful  branches  of  learning  by  methods  common to public
33    schools  and  that  compare  favorably  in  their  scope  and
34    intensity with the course of study presented in tax-supported
 
                            -15-     LRB093 03252 DRJ 16929 a
 1    schools, and vocational or technical  schools  or  institutes
 2    organized  and  operated  exclusively  to provide a course of
 3    study of not less than  6  weeks  duration  and  designed  to
 4    prepare  individuals to follow a trade or to pursue a manual,
 5    technical, mechanical, industrial,  business,  or  commercial
 6    occupation.
 7        (28)  Beginning  January  1,  2000,   personal  property,
 8    including  food, purchased through fundraising events for the
 9    benefit of  a  public  or  private  elementary  or  secondary
10    school,  a  group  of  those  schools,  or one or more school
11    districts if the events are sponsored by an entity recognized
12    by the school district that consists primarily of  volunteers
13    and  includes  parents  and  teachers of the school children.
14    This paragraph does not apply to fundraising events  (i)  for
15    the benefit of private home instruction or (ii) for which the
16    fundraising  entity  purchases  the personal property sold at
17    the events from another individual or entity  that  sold  the
18    property  for the purpose of resale by the fundraising entity
19    and that profits from the sale  to  the  fundraising  entity.
20    This paragraph is exempt from the provisions of Section 3-90.
21        (29)  Beginning  January 1, 2000 and through December 31,
22    2001, new or used automatic vending machines that prepare and
23    serve hot food and beverages,  including  coffee,  soup,  and
24    other  items,  and  replacement  parts  for  these  machines.
25    Beginning  January  1,  2002, machines and parts for machines
26    used  in  commercial,  coin-operated  amusement  and  vending
27    business if a use or occupation tax  is  paid  on  the  gross
28    receipts   derived   from   the   use   of   the  commercial,
29    coin-operated amusement and vending machines. This  paragraph
30    is exempt from the provisions of Section 3-90.
31        (30)  Food  for  human consumption that is to be consumed
32    off the premises where  it  is  sold  (other  than  alcoholic
33    beverages,  soft  drinks, and food that has been prepared for
34    immediate consumption) and prescription  and  nonprescription
 
                            -16-     LRB093 03252 DRJ 16929 a
 1    medicines,  drugs,  medical  appliances,  and  insulin, urine
 2    testing materials, syringes, and needles used  by  diabetics,
 3    for  human  use, when purchased for use by a person receiving
 4    medical assistance under Article 5 of the Illinois Public Aid
 5    Code who resides in a licensed long-term  care  facility,  as
 6    defined in the Nursing Home Care Act.
 7        (31)  Beginning  on the effective date of this amendatory
 8    Act   of   the   92nd   General   Assembly,   computers   and
 9    communications equipment utilized for  any  hospital  purpose
10    and  equipment  used in the diagnosis, analysis, or treatment
11    of hospital patients purchased by a  lessor  who  leases  the
12    equipment, under a lease of one year or longer executed or in
13    effect  at  the time the lessor would otherwise be subject to
14    the tax imposed by this Act, to  a  hospital  that  has  been
15    issued  an  active tax exemption identification number by the
16    Department under Section 1g of the Retailers' Occupation  Tax
17    Act.   If  the  equipment is leased in a manner that does not
18    qualify for this exemption or is used in any other  nonexempt
19    manner,  the lessor shall be liable for the tax imposed under
20    this Act or the Service Use Tax Act,  as  the  case  may  be,
21    based  on  the  fair market value of the property at the time
22    the nonqualifying use occurs.  No  lessor  shall  collect  or
23    attempt  to  collect  an  amount  (however  designated)  that
24    purports to reimburse that lessor for the tax imposed by this
25    Act  or  the  Service Use Tax Act, as the case may be, if the
26    tax has not been paid by the lessor.  If a lessor  improperly
27    collects  any  such  amount from the lessee, the lessee shall
28    have a legal right to claim a refund of that amount from  the
29    lessor.   If,  however,  that  amount  is not refunded to the
30    lessee for any reason, the  lessor  is  liable  to  pay  that
31    amount  to  the Department. This paragraph is exempt from the
32    provisions of Section 3-90.
33        (32)  Beginning on the effective date of this  amendatory
34    Act of the 92nd General Assembly, personal property purchased
 
                            -17-     LRB093 03252 DRJ 16929 a
 1    by  a  lessor  who  leases the property, under a lease of one
 2    year or longer executed or in effect at the time  the  lessor
 3    would otherwise be subject to the tax imposed by this Act, to
 4    a  governmental body that has been issued an active sales tax
 5    exemption  identification  number  by  the  Department  under
 6    Section 1g of the Retailers'  Occupation  Tax  Act.   If  the
 7    property is leased in a manner that does not qualify for this
 8    exemption  or  used in any other nonexempt manner, the lessor
 9    shall be liable for the tax imposed under  this  Act  or  the
10    Service  Use  Tax  Act, as the case may be, based on the fair
11    market value of the property at the  time  the  nonqualifying
12    use occurs.  No lessor shall collect or attempt to collect an
13    amount  (however  designated) that purports to reimburse that
14    lessor for the tax imposed by this Act or the Service Use Tax
15    Act, as the case may be, if the tax has not been paid by  the
16    lessor.  If a lessor improperly collects any such amount from
17    the  lessee,  the  lessee shall have a legal right to claim a
18    refund of that amount from the  lessor.   If,  however,  that
19    amount  is  not  refunded  to  the lessee for any reason, the
20    lessor is liable to pay that amount to the Department.   This
21    paragraph is exempt from the provisions of Section 3-90.
22        (33)  Beginning  January  1, 2004 and ending December 31,
23    2007,  automated  external  defibrillators  purchased  by   a
24    physical  fitness  facility for the purpose of complying with
25    the Physical Fitness Facility Medical Emergency  Preparedness
26    Act, up to a maximum exemption of $300 per year. For purposes
27    of  this  paragraph  (33),  "physical  fitness  facility"  is
28    defined as in the Physical Fitness Facility Medical Emergency
29    Preparedness  Act,  except that the term does not include any
30    facility that is  owned  or  operated  by  a  unit  of  local
31    government or a public school, college, or university.
32    (Source:  P.A.  91-51,  eff.  6-30-99;  91-200, eff. 7-20-99;
33    91-439, eff.  8-6-99;  91-637,  eff.  8-20-99;  91-644,  eff.
34    8-20-99;  91-901,  eff.  1-1-01;  92-35, eff. 7-1-01; 92-227,
 
                            -18-     LRB093 03252 DRJ 16929 a
 1    eff. 8-2-01; 92-337,  eff.  8-10-01;  92-484,  eff.  8-23-01;
 2    92-651, eff. 7-11-02.)

 3        Section  91.  The  Service  Use  Tax  Act  is  amended by
 4    changing Section 3-5 as follows:

 5        (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
 6        Sec. 3-5.  Exemptions.  Use  of  the  following  tangible
 7    personal property is exempt from the tax imposed by this Act:
 8        (1)  Personal  property  purchased  from  a  corporation,
 9    society,    association,    foundation,    institution,    or
10    organization, other than a limited liability company, that is
11    organized and operated as a not-for-profit service enterprise
12    for  the  benefit  of persons 65 years of age or older if the
13    personal property was not purchased by the enterprise for the
14    purpose of resale by the enterprise.
15        (2)  Personal property purchased by a non-profit Illinois
16    county fair association for use in conducting, operating,  or
17    promoting the county fair.
18        (3)  Personal property purchased by a not-for-profit arts
19    or  cultural organization that establishes, by proof required
20    by the Department by rule, that it has received an  exemption
21    under Section 501(c)(3) of the Internal Revenue Code and that
22    is  organized  and operated primarily for the presentation or
23    support of  arts  or  cultural  programming,  activities,  or
24    services.   These  organizations include, but are not limited
25    to, music and dramatic arts organizations  such  as  symphony
26    orchestras  and  theatrical groups, arts and cultural service
27    organizations,   local    arts    councils,    visual    arts
28    organizations, and media arts organizations. On and after the
29    effective  date  of  this  amendatory Act of the 92nd General
30    Assembly, however, an  entity  otherwise  eligible  for  this
31    exemption  shall not make tax-free purchases unless it has an
32    active identification number issued by the Department.
 
                            -19-     LRB093 03252 DRJ 16929 a
 1        (4)  Legal  tender,  currency,  medallions,  or  gold  or
 2    silver  coinage  issued  by  the  State  of   Illinois,   the
 3    government of the United States of America, or the government
 4    of any foreign country, and bullion.
 5        (5)  Graphic  arts  machinery  and  equipment,  including
 6    repair   and  replacement  parts,  both  new  and  used,  and
 7    including that manufactured on special order or purchased for
 8    lease, certified by the purchaser to be  used  primarily  for
 9    graphic  arts  production.  Equipment  includes  chemicals or
10    chemicals acting as catalysts but only if  the  chemicals  or
11    chemicals  acting  as catalysts effect a direct and immediate
12    change upon a graphic arts product.
13        (6)  Personal property purchased from a teacher-sponsored
14    student  organization  affiliated  with  an   elementary   or
15    secondary school located in Illinois.
16        (7)  Farm  machinery  and  equipment,  both new and used,
17    including that manufactured on special  order,  certified  by
18    the purchaser to be used primarily for production agriculture
19    or   State   or   federal  agricultural  programs,  including
20    individual replacement parts for the machinery and equipment,
21    including machinery and equipment purchased  for  lease,  and
22    including implements of husbandry defined in Section 1-130 of
23    the  Illinois  Vehicle  Code, farm machinery and agricultural
24    chemical and fertilizer spreaders, and nurse wagons  required
25    to  be registered under Section 3-809 of the Illinois Vehicle
26    Code, but excluding  other  motor  vehicles  required  to  be
27    registered  under  the  Illinois  Vehicle Code. Horticultural
28    polyhouses or hoop houses used for propagating,  growing,  or
29    overwintering  plants  shall be considered farm machinery and
30    equipment under this item (7). Agricultural  chemical  tender
31    tanks  and dry boxes shall include units sold separately from
32    a motor vehicle  required  to  be  licensed  and  units  sold
33    mounted  on  a  motor  vehicle required to be licensed if the
34    selling price of the tender is separately stated.
 
                            -20-     LRB093 03252 DRJ 16929 a
 1        Farm machinery  and  equipment  shall  include  precision
 2    farming  equipment  that  is  installed  or  purchased  to be
 3    installed on farm machinery and equipment including, but  not
 4    limited   to,   tractors,   harvesters,  sprayers,  planters,
 5    seeders, or spreaders. Precision farming equipment  includes,
 6    but  is  not  limited  to,  soil  testing sensors, computers,
 7    monitors, software, global positioning and  mapping  systems,
 8    and other such equipment.
 9        Farm  machinery  and  equipment  also includes computers,
10    sensors, software, and related equipment  used  primarily  in
11    the  computer-assisted  operation  of  production agriculture
12    facilities,  equipment,  and  activities  such  as,  but  not
13    limited to, the collection, monitoring,  and  correlation  of
14    animal  and  crop  data for the purpose of formulating animal
15    diets and agricultural chemicals.  This item  (7)  is  exempt
16    from the provisions of Section 3-75.
17        (8)  Fuel  and  petroleum  products sold to or used by an
18    air common carrier, certified by the carrier to be  used  for
19    consumption,  shipment,  or  storage  in  the  conduct of its
20    business as an air common carrier, for a flight destined  for
21    or  returning from a location or locations outside the United
22    States without regard  to  previous  or  subsequent  domestic
23    stopovers.
24        (9)  Proceeds  of  mandatory  service  charges separately
25    stated on customers' bills for the purchase  and  consumption
26    of food and beverages acquired as an incident to the purchase
27    of  a  service  from  a  serviceman,  to  the extent that the
28    proceeds of the service charge are in  fact  turned  over  as
29    tips  or  as  a  substitute  for  tips  to  the employees who
30    participate  directly  in  preparing,  serving,  hosting   or
31    cleaning  up  the  food  or beverage function with respect to
32    which the service charge is imposed.
33        (10)  Oil field  exploration,  drilling,  and  production
34    equipment, including (i) rigs and parts of rigs, rotary rigs,
 
                            -21-     LRB093 03252 DRJ 16929 a
 1    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
 2    goods, including casing and drill strings,  (iii)  pumps  and
 3    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
 4    individual  replacement  part  for  oil  field   exploration,
 5    drilling,  and  production  equipment, and (vi) machinery and
 6    equipment purchased for lease; but excluding  motor  vehicles
 7    required to be registered under the Illinois Vehicle Code.
 8        (11)  Proceeds from the sale of photoprocessing machinery
 9    and  equipment,  including repair and replacement parts, both
10    new and used, including that manufactured on  special  order,
11    certified   by   the  purchaser  to  be  used  primarily  for
12    photoprocessing, and including photoprocessing machinery  and
13    equipment purchased for lease.
14        (12)  Coal   exploration,   mining,  offhighway  hauling,
15    processing, maintenance, and reclamation equipment, including
16    replacement parts  and  equipment,  and  including  equipment
17    purchased for lease, but excluding motor vehicles required to
18    be registered under the Illinois Vehicle Code.
19        (13)  Semen used for artificial insemination of livestock
20    for direct agricultural production.
21        (14)  Horses, or interests in horses, registered with and
22    meeting  the  requirements  of  any of the Arabian Horse Club
23    Registry of America, Appaloosa Horse Club,  American  Quarter
24    Horse  Association,  United  States  Trotting Association, or
25    Jockey Club, as appropriate, used for purposes of breeding or
26    racing for prizes.
27        (15)  Computers and communications equipment utilized for
28    any hospital purpose and equipment  used  in  the  diagnosis,
29    analysis,  or  treatment  of hospital patients purchased by a
30    lessor who leases the equipment, under a lease of one year or
31    longer executed or in effect at the  time  the  lessor  would
32    otherwise  be  subject  to  the tax imposed by this Act, to a
33    hospital  that  has  been  issued  an  active  tax  exemption
34    identification number by the Department under Section  1g  of
 
                            -22-     LRB093 03252 DRJ 16929 a
 1    the Retailers' Occupation Tax Act. If the equipment is leased
 2    in  a  manner  that does not qualify for this exemption or is
 3    used in any other non-exempt  manner,  the  lessor  shall  be
 4    liable for the tax imposed under this Act or the Use Tax Act,
 5    as  the  case  may  be, based on the fair market value of the
 6    property at the  time  the  non-qualifying  use  occurs.   No
 7    lessor shall collect or attempt to collect an amount (however
 8    designated)  that  purports  to reimburse that lessor for the
 9    tax imposed by this Act or the Use Tax Act, as the  case  may
10    be,  if the tax has not been paid by the lessor.  If a lessor
11    improperly collects any such  amount  from  the  lessee,  the
12    lessee  shall  have  a  legal right to claim a refund of that
13    amount from the lessor.  If,  however,  that  amount  is  not
14    refunded  to  the lessee for any reason, the lessor is liable
15    to pay that amount to the Department.
16        (16)  Personal property purchased by a lessor who  leases
17    the property, under a lease of one year or longer executed or
18    in  effect  at the time the lessor would otherwise be subject
19    to the tax imposed by this Act, to a governmental  body  that
20    has been issued an active tax exemption identification number
21    by   the  Department  under  Section  1g  of  the  Retailers'
22    Occupation Tax Act.  If the property is leased  in  a  manner
23    that  does  not  qualify for this exemption or is used in any
24    other non-exempt manner, the lessor shall be liable  for  the
25    tax  imposed  under  this Act or the Use Tax Act, as the case
26    may be, based on the fair market value of the property at the
27    time the non-qualifying use occurs.  No lessor shall  collect
28    or  attempt  to  collect  an amount (however designated) that
29    purports to reimburse that lessor for the tax imposed by this
30    Act or the Use Tax Act, as the case may be, if  the  tax  has
31    not been paid by the lessor.  If a lessor improperly collects
32    any  such  amount  from  the  lessee, the lessee shall have a
33    legal right to claim a refund of that amount from the lessor.
34    If, however, that amount is not refunded to  the  lessee  for
 
                            -23-     LRB093 03252 DRJ 16929 a
 1    any  reason,  the  lessor is liable to pay that amount to the
 2    Department.
 3        (17)  Beginning with taxable years  ending  on  or  after
 4    December  31, 1995 and ending with taxable years ending on or
 5    before December 31, 2004, personal property that  is  donated
 6    for  disaster  relief  to  be  used  in  a State or federally
 7    declared disaster area in Illinois or bordering Illinois by a
 8    manufacturer or retailer that is registered in this State  to
 9    a   corporation,   society,   association,   foundation,   or
10    institution  that  has  been  issued  a  sales  tax exemption
11    identification number by the Department that assists  victims
12    of the disaster who reside within the declared disaster area.
13        (18)  Beginning  with  taxable  years  ending on or after
14    December 31, 1995 and ending with taxable years ending on  or
15    before  December  31, 2004, personal property that is used in
16    the performance of  infrastructure  repairs  in  this  State,
17    including  but  not  limited  to municipal roads and streets,
18    access roads, bridges,  sidewalks,  waste  disposal  systems,
19    water  and  sewer  line  extensions,  water  distribution and
20    purification facilities, storm water drainage  and  retention
21    facilities, and sewage treatment facilities, resulting from a
22    State or federally declared disaster in Illinois or bordering
23    Illinois  when  such  repairs  are  initiated  on  facilities
24    located  in  the declared disaster area within 6 months after
25    the disaster.
26        (19)  Beginning  July  1,  1999,  game  or   game   birds
27    purchased  at  a "game breeding and hunting preserve area" or
28    an "exotic game hunting area" as those terms are used in  the
29    Wildlife  Code  or  at  a  hunting enclosure approved through
30    rules adopted by the Department of Natural  Resources.   This
31    paragraph is exempt from the provisions of Section 3-75.
32        (20)  A motor vehicle, as that term is defined in Section
33    1-146  of  the  Illinois  Vehicle  Code, that is donated to a
34    corporation, limited liability company, society, association,
 
                            -24-     LRB093 03252 DRJ 16929 a
 1    foundation,  or  institution  that  is  determined   by   the
 2    Department  to  be  organized  and  operated  exclusively for
 3    educational purposes.  For purposes  of  this  exemption,  "a
 4    corporation, limited liability company, society, association,
 5    foundation, or institution organized and operated exclusively
 6    for  educational  purposes"  means  all  tax-supported public
 7    schools, private schools that offer systematic instruction in
 8    useful branches of  learning  by  methods  common  to  public
 9    schools  and  that  compare  favorably  in  their  scope  and
10    intensity with the course of study presented in tax-supported
11    schools,  and  vocational  or technical schools or institutes
12    organized and operated exclusively to  provide  a  course  of
13    study  of  not  less  than  6  weeks duration and designed to
14    prepare individuals to follow a trade or to pursue a  manual,
15    technical,  mechanical,  industrial,  business, or commercial
16    occupation.
17        (21)  Beginning  January  1,  2000,   personal  property,
18    including food, purchased through fundraising events for  the
19    benefit  of  a  public  or  private  elementary  or secondary
20    school, a group of those  schools,  or  one  or  more  school
21    districts if the events are sponsored by an entity recognized
22    by  the school district that consists primarily of volunteers
23    and includes parents and teachers  of  the  school  children.
24    This  paragraph  does not apply to fundraising events (i) for
25    the benefit of private home instruction or (ii) for which the
26    fundraising entity purchases the personal  property  sold  at
27    the  events  from  another individual or entity that sold the
28    property for the purpose of resale by the fundraising  entity
29    and  that  profits  from  the sale to the fundraising entity.
30    This paragraph is exempt from the provisions of Section 3-75.
31        (22)  Beginning January 1, 2000 and through December  31,
32    2001, new or used automatic vending machines that prepare and
33    serve  hot  food  and  beverages, including coffee, soup, and
34    other  items,  and  replacement  parts  for  these  machines.
 
                            -25-     LRB093 03252 DRJ 16929 a
 1    Beginning January 1, 2002, machines and  parts  for  machines
 2    used  in  commercial,  coin-operated  amusement  and  vending
 3    business  if  a  use  or  occupation tax is paid on the gross
 4    receipts  derived   from   the   use   of   the   commercial,
 5    coin-operated  amusement and vending machines. This paragraph
 6    is exempt from the provisions of Section 3-75.
 7        (23)  Food for human consumption that is to  be  consumed
 8    off  the  premises  where  it  is  sold (other than alcoholic
 9    beverages, soft drinks, and food that has been  prepared  for
10    immediate  consumption)  and prescription and nonprescription
11    medicines, drugs,  medical  appliances,  and  insulin,  urine
12    testing  materials,  syringes, and needles used by diabetics,
13    for human use, when purchased for use by a  person  receiving
14    medical assistance under Article 5 of the Illinois Public Aid
15    Code  who  resides  in a licensed long-term care facility, as
16    defined in the Nursing Home Care Act.
17        (24)    Beginning  on  the   effective   date   of   this
18    amendatory  Act  of  the 92nd General Assembly, computers and
19    communications equipment utilized for  any  hospital  purpose
20    and  equipment  used in the diagnosis, analysis, or treatment
21    of hospital patients purchased by a  lessor  who  leases  the
22    equipment, under a lease of one year or longer executed or in
23    effect  at  the time the lessor would otherwise be subject to
24    the tax imposed by this Act, to  a  hospital  that  has  been
25    issued  an  active tax exemption identification number by the
26    Department under Section 1g of the Retailers' Occupation  Tax
27    Act.   If  the  equipment is leased in a manner that does not
28    qualify for this exemption or is used in any other  nonexempt
29    manner,  the lessor shall be liable for the tax imposed under
30    this Act or the Use Tax Act, as the case may be, based on the
31    fair  market  value  of  the  property  at   the   time   the
32    nonqualifying  use occurs. No lessor shall collect or attempt
33    to collect an amount (however designated)  that  purports  to
34    reimburse  that lessor for the tax imposed by this Act or the
 
                            -26-     LRB093 03252 DRJ 16929 a
 1    Use Tax Act, as the case may be, if the tax has not been paid
 2    by the lessor.  If a  lessor  improperly  collects  any  such
 3    amount  from  the lessee, the lessee shall have a legal right
 4    to claim a refund  of  that  amount  from  the  lessor.   If,
 5    however,  that  amount  is not refunded to the lessee for any
 6    reason, the lessor is  liable  to  pay  that  amount  to  the
 7    Department.  This  paragraph is exempt from the provisions of
 8    Section 3-75.
 9        (25)  Beginning on the effective date of this  amendatory
10    Act of the 92nd General Assembly, personal property purchased
11    by  a  lessor  who  leases the property, under a lease of one
12    year or longer executed or in effect at the time  the  lessor
13    would otherwise be subject to the tax imposed by this Act, to
14    a  governmental  body  that  has  been  issued  an active tax
15    exemption  identification  number  by  the  Department  under
16    Section 1g of the Retailers'  Occupation  Tax  Act.   If  the
17    property is leased in a manner that does not qualify for this
18    exemption  or  is  used  in  any  other nonexempt manner, the
19    lessor shall be liable for the tax imposed under this Act  or
20    the Use Tax Act, as the case may be, based on the fair market
21    value  of  the  property  at  the  time the nonqualifying use
22    occurs.  No lessor shall collect or  attempt  to  collect  an
23    amount  (however  designated) that purports to reimburse that
24    lessor for the tax imposed by this Act or the Use Tax Act, as
25    the case may be, if the tax has not been paid by the  lessor.
26    If  a  lessor  improperly  collects  any such amount from the
27    lessee, the lessee shall have a legal right to claim a refund
28    of that amount from the lessor.  If, however, that amount  is
29    not  refunded  to  the  lessee  for any reason, the lessor is
30    liable to pay that amount to the Department.  This  paragraph
31    is exempt from the provisions of Section 3-75.
32        (26)    Beginning January 1, 2004 and ending December 31,
33    2007,  automated  external  defibrillators  purchased  by   a
34    physical  fitness  facility for the purpose of complying with
 
                            -27-     LRB093 03252 DRJ 16929 a
 1    the Physical Fitness Facility Medical Emergency  Preparedness
 2    Act, up to a maximum exemption of $300 per year. For purposes
 3    of  this  paragraph  (26),  "physical  fitness  facility"  is
 4    defined as in the Physical Fitness Facility Medical Emergency
 5    Preparedness  Act,  except that the term does not include any
 6    facility that is  owned  or  operated  by  a  unit  of  local
 7    government or a public school, college, or university.
 8    (Source:  P.A.  91-51,  eff.  6-30-99;  91-200, eff. 7-20-99;
 9    91-439, eff.  8-6-99;  91-637,  eff.  8-20-99;  91-644,  eff.
10    8-20-99;  92-16,  eff.  6-28-01;  92-35, eff. 7-1-01; 92-227,
11    eff. 8-2-01; 92-337,  eff.  8-10-01;  92-484,  eff.  8-23-01;
12    92-651, eff. 7-11-02.)

13        Section 92.  The Service Occupation Tax Act is amended by
14    changing Section 3-5 as follows:

15        (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
16        Sec.  3-5.  Exemptions.   The following tangible personal
17    property is exempt from the tax imposed by this Act:
18        (1)  Personal property sold by  a  corporation,  society,
19    association,  foundation, institution, or organization, other
20    than a limited  liability  company,  that  is  organized  and
21    operated  as  a  not-for-profit  service  enterprise  for the
22    benefit of persons 65 years of age or older if  the  personal
23    property  was not purchased by the enterprise for the purpose
24    of resale by the enterprise.
25        (2)  Personal  property  purchased  by  a  not-for-profit
26    Illinois county  fair  association  for  use  in  conducting,
27    operating, or promoting the county fair.
28        (3)  Personal  property  purchased  by any not-for-profit
29    arts or cultural  organization  that  establishes,  by  proof
30    required  by  the Department by rule, that it has received an
31    exemption  under Section 501(c)(3) of  the  Internal  Revenue
32    Code  and  that  is  organized and operated primarily for the
 
                            -28-     LRB093 03252 DRJ 16929 a
 1    presentation or support  of  arts  or  cultural  programming,
 2    activities,  or  services.   These organizations include, but
 3    are not limited to, music  and  dramatic  arts  organizations
 4    such  as  symphony orchestras and theatrical groups, arts and
 5    cultural service organizations, local arts  councils,  visual
 6    arts  organizations,  and  media  arts  organizations. On and
 7    after the effective date of this amendatory Act of  the  92nd
 8    General  Assembly,  however, an entity otherwise eligible for
 9    this exemption shall not make tax-free  purchases  unless  it
10    has an active identification number issued by the Department.
11        (4)  Legal  tender,  currency,  medallions,  or  gold  or
12    silver   coinage   issued  by  the  State  of  Illinois,  the
13    government of the United States of America, or the government
14    of any foreign country, and bullion.
15        (5)  Graphic  arts  machinery  and  equipment,  including
16    repair  and  replacement  parts,  both  new  and  used,   and
17    including that manufactured on special order or purchased for
18    lease,  certified  by  the purchaser to be used primarily for
19    graphic arts  production.  Equipment  includes  chemicals  or
20    chemicals  acting  as  catalysts but only if the chemicals or
21    chemicals acting as catalysts effect a direct  and  immediate
22    change upon a graphic arts product.
23        (6)  Personal   property   sold  by  a  teacher-sponsored
24    student  organization  affiliated  with  an   elementary   or
25    secondary school located in Illinois.
26        (7)  Farm  machinery  and  equipment,  both new and used,
27    including that manufactured on special  order,  certified  by
28    the purchaser to be used primarily for production agriculture
29    or   State   or   federal  agricultural  programs,  including
30    individual replacement parts for the machinery and equipment,
31    including machinery and equipment purchased  for  lease,  and
32    including implements of husbandry defined in Section 1-130 of
33    the  Illinois  Vehicle  Code, farm machinery and agricultural
34    chemical and fertilizer spreaders, and nurse wagons  required
 
                            -29-     LRB093 03252 DRJ 16929 a
 1    to  be registered under Section 3-809 of the Illinois Vehicle
 2    Code, but excluding  other  motor  vehicles  required  to  be
 3    registered  under  the  Illinois  Vehicle Code. Horticultural
 4    polyhouses or hoop houses used for propagating,  growing,  or
 5    overwintering  plants  shall be considered farm machinery and
 6    equipment under this item (7). Agricultural  chemical  tender
 7    tanks  and dry boxes shall include units sold separately from
 8    a motor vehicle  required  to  be  licensed  and  units  sold
 9    mounted  on  a  motor  vehicle required to be licensed if the
10    selling price of the tender is separately stated.
11        Farm machinery  and  equipment  shall  include  precision
12    farming  equipment  that  is  installed  or  purchased  to be
13    installed on farm machinery and equipment including, but  not
14    limited   to,   tractors,   harvesters,  sprayers,  planters,
15    seeders, or spreaders. Precision farming equipment  includes,
16    but  is  not  limited  to,  soil  testing sensors, computers,
17    monitors, software, global positioning and  mapping  systems,
18    and other such equipment.
19        Farm  machinery  and  equipment  also includes computers,
20    sensors, software, and related equipment  used  primarily  in
21    the  computer-assisted  operation  of  production agriculture
22    facilities,  equipment,  and  activities  such  as,  but  not
23    limited to, the collection, monitoring,  and  correlation  of
24    animal  and  crop  data for the purpose of formulating animal
25    diets and agricultural chemicals.  This item  (7)  is  exempt
26    from the provisions of Section 3-55.
27        (8)  Fuel  and  petroleum  products sold to or used by an
28    air common carrier, certified by the carrier to be  used  for
29    consumption,  shipment,  or  storage  in  the  conduct of its
30    business as an air common carrier, for a flight destined  for
31    or  returning from a location or locations outside the United
32    States without regard  to  previous  or  subsequent  domestic
33    stopovers.
34        (9)  Proceeds  of  mandatory  service  charges separately
 
                            -30-     LRB093 03252 DRJ 16929 a
 1    stated on customers' bills for the purchase  and  consumption
 2    of food and beverages, to the extent that the proceeds of the
 3    service  charge  are  in  fact  turned  over  as tips or as a
 4    substitute for tips to the employees who participate directly
 5    in preparing, serving, hosting or cleaning  up  the  food  or
 6    beverage function with respect to which the service charge is
 7    imposed.
 8        (10)  Oil  field  exploration,  drilling,  and production
 9    equipment, including (i) rigs and parts of rigs, rotary rigs,
10    cable tool rigs, and workover rigs,  (ii)  pipe  and  tubular
11    goods,  including  casing  and drill strings, (iii) pumps and
12    pump-jack units, (iv) storage tanks and flow lines,  (v)  any
13    individual   replacement  part  for  oil  field  exploration,
14    drilling, and production equipment, and  (vi)  machinery  and
15    equipment  purchased  for lease; but excluding motor vehicles
16    required to be registered under the Illinois Vehicle Code.
17        (11)  Photoprocessing machinery and equipment,  including
18    repair  and  replacement  parts, both new and used, including
19    that  manufactured  on  special  order,  certified   by   the
20    purchaser  to  be  used  primarily  for  photoprocessing, and
21    including photoprocessing machinery and  equipment  purchased
22    for lease.
23        (12)  Coal   exploration,   mining,  offhighway  hauling,
24    processing, maintenance, and reclamation equipment, including
25    replacement parts  and  equipment,  and  including  equipment
26    purchased for lease, but excluding motor vehicles required to
27    be registered under the Illinois Vehicle Code.
28        (13)  Food  for  human consumption that is to be consumed
29    off the premises where  it  is  sold  (other  than  alcoholic
30    beverages,  soft  drinks  and food that has been prepared for
31    immediate consumption) and prescription and  non-prescription
32    medicines,  drugs,  medical  appliances,  and  insulin, urine
33    testing materials, syringes, and needles used  by  diabetics,
34    for  human  use, when purchased for use by a person receiving
 
                            -31-     LRB093 03252 DRJ 16929 a
 1    medical assistance under Article 5 of the Illinois Public Aid
 2    Code who resides in a licensed long-term  care  facility,  as
 3    defined in the Nursing Home Care Act.
 4        (14)  Semen used for artificial insemination of livestock
 5    for direct agricultural production.
 6        (15)  Horses, or interests in horses, registered with and
 7    meeting  the  requirements  of  any of the Arabian Horse Club
 8    Registry of America, Appaloosa Horse Club,  American  Quarter
 9    Horse  Association,  United  States  Trotting Association, or
10    Jockey Club, as appropriate, used for purposes of breeding or
11    racing for prizes.
12        (16)  Computers and communications equipment utilized for
13    any hospital purpose and equipment  used  in  the  diagnosis,
14    analysis,  or treatment of hospital patients sold to a lessor
15    who leases the equipment, under a lease of one year or longer
16    executed or in effect at the  time  of  the  purchase,  to  a
17    hospital  that  has  been  issued  an  active  tax  exemption
18    identification  number  by the Department under Section 1g of
19    the Retailers' Occupation Tax Act.
20        (17)  Personal property sold to a lessor who  leases  the
21    property,  under a lease of one year or longer executed or in
22    effect at the time of the purchase, to  a  governmental  body
23    that  has  been issued an active tax exemption identification
24    number by the Department under Section 1g of  the  Retailers'
25    Occupation Tax Act.
26        (18)  Beginning  with  taxable  years  ending on or after
27    December 31, 1995 and ending with taxable years ending on  or
28    before  December  31, 2004, personal property that is donated
29    for disaster relief to  be  used  in  a  State  or  federally
30    declared disaster area in Illinois or bordering Illinois by a
31    manufacturer  or retailer that is registered in this State to
32    a   corporation,   society,   association,   foundation,   or
33    institution that  has  been  issued  a  sales  tax  exemption
34    identification  number by the Department that assists victims
 
                            -32-     LRB093 03252 DRJ 16929 a
 1    of the disaster who reside within the declared disaster area.
 2        (19)  Beginning with taxable years  ending  on  or  after
 3    December  31, 1995 and ending with taxable years ending on or
 4    before December 31, 2004, personal property that is  used  in
 5    the  performance  of  infrastructure  repairs  in this State,
 6    including but not limited to  municipal  roads  and  streets,
 7    access  roads,  bridges,  sidewalks,  waste disposal systems,
 8    water and  sewer  line  extensions,  water  distribution  and
 9    purification  facilities,  storm water drainage and retention
10    facilities, and sewage treatment facilities, resulting from a
11    State or federally declared disaster in Illinois or bordering
12    Illinois  when  such  repairs  are  initiated  on  facilities
13    located in the declared disaster area within 6  months  after
14    the disaster.
15        (20)  Beginning  July 1, 1999, game or game birds sold at
16    a "game breeding and hunting preserve  area"  or  an  "exotic
17    game  hunting  area"  as those terms are used in the Wildlife
18    Code or at a hunting enclosure approved through rules adopted
19    by the Department of Natural Resources.   This  paragraph  is
20    exempt from the provisions of Section 3-55.
21        (21)  A motor vehicle, as that term is defined in Section
22    1-146  of  the  Illinois  Vehicle  Code, that is donated to a
23    corporation, limited liability company, society, association,
24    foundation,  or  institution  that  is  determined   by   the
25    Department  to  be  organized  and  operated  exclusively for
26    educational purposes.  For purposes  of  this  exemption,  "a
27    corporation, limited liability company, society, association,
28    foundation, or institution organized and operated exclusively
29    for  educational  purposes"  means  all  tax-supported public
30    schools, private schools that offer systematic instruction in
31    useful branches of  learning  by  methods  common  to  public
32    schools  and  that  compare  favorably  in  their  scope  and
33    intensity with the course of study presented in tax-supported
34    schools,  and  vocational  or technical schools or institutes
 
                            -33-     LRB093 03252 DRJ 16929 a
 1    organized and operated exclusively to  provide  a  course  of
 2    study  of  not  less  than  6  weeks duration and designed to
 3    prepare individuals to follow a trade or to pursue a  manual,
 4    technical,  mechanical,  industrial,  business, or commercial
 5    occupation.
 6        (22)  Beginning  January  1,  2000,   personal  property,
 7    including food, purchased through fundraising events for  the
 8    benefit  of  a  public  or  private  elementary  or secondary
 9    school, a group of those  schools,  or  one  or  more  school
10    districts if the events are sponsored by an entity recognized
11    by  the school district that consists primarily of volunteers
12    and includes parents and teachers  of  the  school  children.
13    This  paragraph  does not apply to fundraising events (i) for
14    the benefit of private home instruction or (ii) for which the
15    fundraising entity purchases the personal  property  sold  at
16    the  events  from  another individual or entity that sold the
17    property for the purpose of resale by the fundraising  entity
18    and  that  profits  from  the sale to the fundraising entity.
19    This paragraph is exempt from the provisions of Section 3-55.
20        (23)  Beginning January 1, 2000 and through December  31,
21    2001, new or used automatic vending machines that prepare and
22    serve  hot  food  and  beverages, including coffee, soup, and
23    other  items,  and  replacement  parts  for  these  machines.
24    Beginning January 1, 2002, machines and  parts  for  machines
25    used  in  commercial,  coin-operated  amusement  and  vending
26    business  if  a  use  or  occupation tax is paid on the gross
27    receipts  derived   from   the   use   of   the   commercial,
28    coin-operated amusement and vending machines.  This paragraph
29    is exempt from the provisions of Section 3-55.
30        (24)  Beginning  on the effective date of this amendatory
31    Act   of   the   92nd   General   Assembly,   computers   and
32    communications equipment utilized for  any  hospital  purpose
33    and  equipment  used in the diagnosis, analysis, or treatment
34    of  hospital  patients  sold  to  a  lessor  who  leases  the
 
                            -34-     LRB093 03252 DRJ 16929 a
 1    equipment, under a lease of one year or longer executed or in
 2    effect at the time of the purchase, to a  hospital  that  has
 3    been  issued an active tax exemption identification number by
 4    the Department under Section 1g of the Retailers'  Occupation
 5    Tax  Act.   This  paragraph  is exempt from the provisions of
 6    Section 3-55.
 7        (25)  Beginning on the effective date of this  amendatory
 8    Act of the 92nd General Assembly, personal property sold to a
 9    lessor  who leases the property, under a lease of one year or
10    longer executed or in effect at the time of the purchase,  to
11    a  governmental  body  that  has  been  issued  an active tax
12    exemption  identification  number  by  the  Department  under
13    Section 1g  of  the  Retailers'  Occupation  Tax  Act.   This
14    paragraph is exempt from the provisions of Section 3-55.
15        (26)  Beginning  on  January  1,  2002, tangible personal
16    property purchased from an Illinois retailer  by  a  taxpayer
17    engaged  in centralized purchasing activities in Illinois who
18    will, upon receipt of the property in  Illinois,  temporarily
19    store  the  property  in  Illinois  (i)  for  the  purpose of
20    subsequently transporting it outside this State  for  use  or
21    consumption  thereafter solely outside this State or (ii) for
22    the purpose of being processed, fabricated,  or  manufactured
23    into,  attached  to,  or  incorporated  into  other  tangible
24    personal  property  to  be transported outside this State and
25    thereafter used or consumed solely outside this  State.   The
26    Director  of  Revenue  shall,  pursuant  to  rules adopted in
27    accordance with the Illinois  Administrative  Procedure  Act,
28    issue  a  permit  to  any  taxpayer in good standing with the
29    Department who is  eligible  for  the  exemption  under  this
30    paragraph  (26).  The permit issued under this paragraph (26)
31    shall authorize the holder, to the extent and in  the  manner
32    specified  in  the  rules adopted under this Act, to purchase
33    tangible personal property from a retailer  exempt  from  the
34    taxes  imposed  by  this  Act.   Taxpayers shall maintain all
 
                            -35-     LRB093 03252 DRJ 16929 a
 1    necessary books and  records  to  substantiate  the  use  and
 2    consumption of all such tangible personal property outside of
 3    the State of Illinois.
 4        (27)  Beginning  January  1, 2004 and ending December 31,
 5    2007,  automated  external  defibrillators  purchased  by   a
 6    physical  fitness  facility for the purpose of complying with
 7    the Physical Fitness Facility Medical Emergency  Preparedness
 8    Act, up to a maximum exemption of $300 per year. For purposes
 9    of  this  paragraph  (27),  "physical  fitness  facility"  is
10    defined as in the Physical Fitness Facility Medical Emergency
11    Preparedness  Act,  except that the term does not include any
12    facility that is  owned  or  operated  by  a  unit  of  local
13    government or a public school, college, or university.
14    (Source: P.A.  91-51,  eff.  6-30-99;  91-200,  eff. 7-20-99;
15    91-439, eff.  8-6-99;  91-533,  eff.  8-13-99;  91-637,  eff.
16    8-20-99;  91-644,  eff.  8-20-99; 92-16, eff. 6-28-01; 92-35,
17    eff. 7-1-01;  92-227,  eff.  8-2-01;  92-337,  eff.  8-10-01;
18    92-484,  eff.  8-23-01;  92-488,  eff.  8-23-01; 92-651, eff.
19    7-11-02.)

20        Section 93.  The Retailers' Occupation Tax Act is amended
21    by changing Section 2-5 as follows:

22        (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
23        Sec. 2-5.  Exemptions.  Gross receipts from proceeds from
24    the sale of the  following  tangible  personal  property  are
25    exempt from the tax imposed by this Act:
26        (1)  Farm chemicals.
27        (2)  Farm  machinery  and  equipment,  both new and used,
28    including that manufactured on special  order,  certified  by
29    the purchaser to be used primarily for production agriculture
30    or   State   or   federal  agricultural  programs,  including
31    individual replacement parts for the machinery and equipment,
32    including machinery and equipment purchased  for  lease,  and
 
                            -36-     LRB093 03252 DRJ 16929 a
 1    including implements of husbandry defined in Section 1-130 of
 2    the  Illinois  Vehicle  Code, farm machinery and agricultural
 3    chemical and fertilizer spreaders, and nurse wagons  required
 4    to  be registered under Section 3-809 of the Illinois Vehicle
 5    Code, but excluding  other  motor  vehicles  required  to  be
 6    registered  under  the  Illinois  Vehicle Code. Horticultural
 7    polyhouses or hoop houses used for propagating,  growing,  or
 8    overwintering  plants  shall be considered farm machinery and
 9    equipment under this item (2). Agricultural  chemical  tender
10    tanks  and dry boxes shall include units sold separately from
11    a motor vehicle  required  to  be  licensed  and  units  sold
12    mounted  on  a  motor vehicle required to be licensed, if the
13    selling price of the tender is separately stated.
14        Farm machinery  and  equipment  shall  include  precision
15    farming  equipment  that  is  installed  or  purchased  to be
16    installed on farm machinery and equipment including, but  not
17    limited   to,   tractors,   harvesters,  sprayers,  planters,
18    seeders, or spreaders. Precision farming equipment  includes,
19    but  is  not  limited  to,  soil  testing sensors, computers,
20    monitors, software, global positioning and  mapping  systems,
21    and other such equipment.
22        Farm  machinery  and  equipment  also includes computers,
23    sensors, software, and related equipment  used  primarily  in
24    the  computer-assisted  operation  of  production agriculture
25    facilities,  equipment,  and  activities  such  as,  but  not
26    limited to, the collection, monitoring,  and  correlation  of
27    animal  and  crop  data for the purpose of formulating animal
28    diets and agricultural chemicals.  This item  (7)  is  exempt
29    from the provisions of Section 2-70.
30        (3)  Distillation machinery and equipment, sold as a unit
31    or  kit, assembled or installed by the retailer, certified by
32    the user to be used only for the production of ethyl  alcohol
33    that  will  be  used  for  consumption  as motor fuel or as a
34    component of motor fuel for the personal use of the user, and
 
                            -37-     LRB093 03252 DRJ 16929 a
 1    not subject to sale or resale.
 2        (4)  Graphic  arts  machinery  and  equipment,  including
 3    repair  and  replacement  parts,  both  new  and  used,   and
 4    including that manufactured on special order or purchased for
 5    lease,  certified  by  the purchaser to be used primarily for
 6    graphic arts  production.  Equipment  includes  chemicals  or
 7    chemicals  acting  as  catalysts but only if the chemicals or
 8    chemicals acting as catalysts effect a direct  and  immediate
 9    change upon a graphic arts product.
10        (5)  A  motor  vehicle  of  the  first  division, a motor
11    vehicle of the second division that is a self-contained motor
12    vehicle designed or permanently converted to  provide  living
13    quarters  for  recreational,  camping,  or  travel  use, with
14    direct walk through access to the living  quarters  from  the
15    driver's seat, or a motor vehicle of the second division that
16    is  of  the van configuration designed for the transportation
17    of not less than 7 nor more than 16 passengers, as defined in
18    Section 1-146 of the Illinois Vehicle Code, that is used  for
19    automobile  renting,  as  defined  in  the Automobile Renting
20    Occupation and Use Tax Act.
21        (6)  Personal  property  sold  by   a   teacher-sponsored
22    student   organization   affiliated  with  an  elementary  or
23    secondary school located in Illinois.
24        (7)  Proceeds of that portion of the selling price  of  a
25    passenger car the sale of which is subject to the Replacement
26    Vehicle Tax.
27        (8)  Personal  property  sold  to an Illinois county fair
28    association for use in conducting,  operating,  or  promoting
29    the county fair.
30        (9)  Personal  property  sold to a not-for-profit arts or
31    cultural organization that establishes, by proof required  by
32    the  Department  by  rule,  that it has received an exemption
33    under Section 501(c)(3) of the Internal Revenue Code and that
34    is organized and operated primarily for the  presentation  or
 
                            -38-     LRB093 03252 DRJ 16929 a
 1    support  of  arts  or  cultural  programming,  activities, or
 2    services.  These organizations include, but are  not  limited
 3    to,  music  and  dramatic arts organizations such as symphony
 4    orchestras and theatrical groups, arts and  cultural  service
 5    organizations,    local    arts    councils,    visual   arts
 6    organizations, and media arts organizations. On and after the
 7    effective date of this amendatory Act  of  the  92nd  General
 8    Assembly,  however,  an  entity  otherwise  eligible for this
 9    exemption shall not make tax-free purchases unless it has  an
10    active identification number issued by the Department.
11        (10)  Personal  property  sold by a corporation, society,
12    association, foundation, institution, or organization,  other
13    than  a  limited  liability  company,  that  is organized and
14    operated as  a  not-for-profit  service  enterprise  for  the
15    benefit  of  persons 65 years of age or older if the personal
16    property was not purchased by the enterprise for the  purpose
17    of resale by the enterprise.
18        (11)  Personal property sold to a governmental body, to a
19    corporation, society, association, foundation, or institution
20    organized and operated exclusively for charitable, religious,
21    or  educational purposes, or to a not-for-profit corporation,
22    society,    association,    foundation,    institution,    or
23    organization that has no compensated  officers  or  employees
24    and   that  is  organized  and  operated  primarily  for  the
25    recreation of persons 55 years of age  or  older.  A  limited
26    liability  company  may  qualify for the exemption under this
27    paragraph only if the limited liability company is  organized
28    and  operated  exclusively  for  educational purposes. On and
29    after July 1, 1987, however, no entity otherwise eligible for
30    this exemption shall make tax-free purchases unless it has an
31    active identification number issued by the Department.
32        (12)  Personal property sold to interstate  carriers  for
33    hire  for  use as rolling stock moving in interstate commerce
34    or to lessors under leases of one year or longer executed  or
 
                            -39-     LRB093 03252 DRJ 16929 a
 1    in  effect at the time of purchase by interstate carriers for
 2    hire for use as rolling stock moving in  interstate  commerce
 3    and  equipment  operated  by  a  telecommunications provider,
 4    licensed as a common carrier by  the  Federal  Communications
 5    Commission,  which  is permanently installed in or affixed to
 6    aircraft moving in interstate commerce.
 7        (13)  Proceeds from sales to owners, lessors, or shippers
 8    of tangible personal property that is utilized by  interstate
 9    carriers  for  hire  for  use  as  rolling  stock  moving  in
10    interstate    commerce    and   equipment   operated   by   a
11    telecommunications provider, licensed as a common carrier  by
12    the  Federal  Communications Commission, which is permanently
13    installed in or affixed  to  aircraft  moving  in  interstate
14    commerce.
15        (14)  Machinery  and  equipment  that will be used by the
16    purchaser, or a lessee of the  purchaser,  primarily  in  the
17    process  of  manufacturing  or  assembling  tangible personal
18    property for wholesale or retail sale or lease,  whether  the
19    sale or lease is made directly by the manufacturer or by some
20    other  person,  whether the materials used in the process are
21    owned by the manufacturer or some other  person,  or  whether
22    the sale or lease is made apart from or as an incident to the
23    seller's  engaging  in  the  service  occupation of producing
24    machines, tools,  dies,  jigs,  patterns,  gauges,  or  other
25    similar  items  of no commercial value on special order for a
26    particular purchaser.
27        (15)  Proceeds of mandatory  service  charges  separately
28    stated  on  customers'  bills for purchase and consumption of
29    food and beverages, to the extent that the  proceeds  of  the
30    service  charge  are  in  fact  turned  over  as tips or as a
31    substitute for tips to the employees who participate directly
32    in preparing, serving, hosting or cleaning  up  the  food  or
33    beverage function with respect to which the service charge is
34    imposed.
 
                            -40-     LRB093 03252 DRJ 16929 a
 1        (16)  Petroleum  products  sold  to  a  purchaser  if the
 2    seller is prohibited by federal law from charging tax to  the
 3    purchaser.
 4        (17)  Tangible personal property sold to a common carrier
 5    by rail or motor that receives the physical possession of the
 6    property  in  Illinois  and  that transports the property, or
 7    shares with another common carrier in the  transportation  of
 8    the  property,  out of Illinois on a standard uniform bill of
 9    lading showing the seller of the property as the  shipper  or
10    consignor  of the property to a destination outside Illinois,
11    for use outside Illinois.
12        (18)  Legal tender,  currency,  medallions,  or  gold  or
13    silver   coinage   issued  by  the  State  of  Illinois,  the
14    government of the United States of America, or the government
15    of any foreign country, and bullion.
16        (19)  Oil field  exploration,  drilling,  and  production
17    equipment, including (i) rigs and parts of rigs, rotary rigs,
18    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
19    goods, including casing and drill strings,  (iii)  pumps  and
20    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
21    individual  replacement  part  for  oil  field   exploration,
22    drilling,  and  production  equipment, and (vi) machinery and
23    equipment purchased for lease; but excluding  motor  vehicles
24    required to be registered under the Illinois Vehicle Code.
25        (20)  Photoprocessing  machinery and equipment, including
26    repair and replacement parts, both new  and  used,  including
27    that   manufactured   on  special  order,  certified  by  the
28    purchaser to  be  used  primarily  for  photoprocessing,  and
29    including  photoprocessing  machinery and equipment purchased
30    for lease.
31        (21)  Coal  exploration,  mining,   offhighway   hauling,
32    processing, maintenance, and reclamation equipment, including
33    replacement  parts  and  equipment,  and  including equipment
34    purchased for lease, but excluding motor vehicles required to
 
                            -41-     LRB093 03252 DRJ 16929 a
 1    be registered under the Illinois Vehicle Code.
 2        (22)  Fuel and petroleum products sold to or used  by  an
 3    air  carrier,  certified  by  the  carrier  to  be  used  for
 4    consumption,  shipment,  or  storage  in  the  conduct of its
 5    business as an air common carrier, for a flight destined  for
 6    or  returning from a location or locations outside the United
 7    States without regard  to  previous  or  subsequent  domestic
 8    stopovers.
 9        (23)  A  transaction  in  which  the  purchase  order  is
10    received  by  a  florist who is located outside Illinois, but
11    who has a florist located in Illinois deliver the property to
12    the purchaser or the purchaser's donee in Illinois.
13        (24)  Fuel consumed or used in the  operation  of  ships,
14    barges,  or  vessels  that  are  used primarily in or for the
15    transportation of property or the conveyance of  persons  for
16    hire  on  rivers  bordering  on  this  State  if  the fuel is
17    delivered by the seller to the purchaser's  barge,  ship,  or
18    vessel while it is afloat upon that bordering river.
19        (25)  A motor vehicle sold in this State to a nonresident
20    even though the motor vehicle is delivered to the nonresident
21    in  this  State,  if the motor vehicle is not to be titled in
22    this State, and if a drive-away permit is issued to the motor
23    vehicle as provided in Section 3-603 of the Illinois  Vehicle
24    Code or if the nonresident purchaser has vehicle registration
25    plates to transfer to the motor vehicle upon returning to his
26    or  her home state.  The issuance of the drive-away permit or
27    having the out-of-state registration plates to be transferred
28    is prima facie evidence that the motor vehicle  will  not  be
29    titled in this State.
30        (26)  Semen used for artificial insemination of livestock
31    for direct agricultural production.
32        (27)  Horses, or interests in horses, registered with and
33    meeting  the  requirements  of  any of the Arabian Horse Club
34    Registry of America, Appaloosa Horse Club,  American  Quarter
 
                            -42-     LRB093 03252 DRJ 16929 a
 1    Horse  Association,  United  States  Trotting Association, or
 2    Jockey Club, as appropriate, used for purposes of breeding or
 3    racing for prizes.
 4        (28)  Computers and communications equipment utilized for
 5    any hospital purpose and equipment  used  in  the  diagnosis,
 6    analysis,  or treatment of hospital patients sold to a lessor
 7    who leases the equipment, under a lease of one year or longer
 8    executed or in effect at the  time  of  the  purchase,  to  a
 9    hospital  that  has  been  issued  an  active  tax  exemption
10    identification  number  by the Department under Section 1g of
11    this Act.
12        (29)  Personal property sold to a lessor who  leases  the
13    property,  under a lease of one year or longer executed or in
14    effect at the time of the purchase, to  a  governmental  body
15    that  has  been issued an active tax exemption identification
16    number by the Department under Section 1g of this Act.
17        (30)  Beginning with taxable years  ending  on  or  after
18    December  31, 1995 and ending with taxable years ending on or
19    before December 31, 2004, personal property that  is  donated
20    for  disaster  relief  to  be  used  in  a State or federally
21    declared disaster area in Illinois or bordering Illinois by a
22    manufacturer or retailer that is registered in this State  to
23    a   corporation,   society,   association,   foundation,   or
24    institution  that  has  been  issued  a  sales  tax exemption
25    identification number by the Department that assists  victims
26    of the disaster who reside within the declared disaster area.
27        (31)  Beginning  with  taxable  years  ending on or after
28    December 31, 1995 and ending with taxable years ending on  or
29    before  December  31, 2004, personal property that is used in
30    the performance of  infrastructure  repairs  in  this  State,
31    including  but  not  limited  to municipal roads and streets,
32    access roads, bridges,  sidewalks,  waste  disposal  systems,
33    water  and  sewer  line  extensions,  water  distribution and
34    purification facilities, storm water drainage  and  retention
 
                            -43-     LRB093 03252 DRJ 16929 a
 1    facilities, and sewage treatment facilities, resulting from a
 2    State or federally declared disaster in Illinois or bordering
 3    Illinois  when  such  repairs  are  initiated  on  facilities
 4    located  in  the declared disaster area within 6 months after
 5    the disaster.
 6        (32)  Beginning July 1, 1999, game or game birds sold  at
 7    a  "game  breeding  and  hunting preserve area" or an "exotic
 8    game hunting area" as those terms are used  in  the  Wildlife
 9    Code or at a hunting enclosure approved through rules adopted
10    by  the  Department  of Natural Resources.  This paragraph is
11    exempt from the provisions of Section 2-70.
12        (33)  A motor vehicle, as that term is defined in Section
13    1-146 of the Illinois Vehicle Code,  that  is  donated  to  a
14    corporation, limited liability company, society, association,
15    foundation,   or   institution  that  is  determined  by  the
16    Department to  be  organized  and  operated  exclusively  for
17    educational  purposes.   For  purposes  of this exemption, "a
18    corporation, limited liability company, society, association,
19    foundation, or institution organized and operated exclusively
20    for educational  purposes"  means  all  tax-supported  public
21    schools, private schools that offer systematic instruction in
22    useful  branches  of  learning  by  methods  common to public
23    schools  and  that  compare  favorably  in  their  scope  and
24    intensity with the course of study presented in tax-supported
25    schools, and vocational or technical  schools  or  institutes
26    organized  and  operated  exclusively  to provide a course of
27    study of not less than  6  weeks  duration  and  designed  to
28    prepare  individuals to follow a trade or to pursue a manual,
29    technical, mechanical, industrial,  business,  or  commercial
30    occupation.
31        (34)  Beginning   January  1,  2000,  personal  property,
32    including food, purchased through fundraising events for  the
33    benefit  of  a  public  or  private  elementary  or secondary
34    school, a group of those  schools,  or  one  or  more  school
 
                            -44-     LRB093 03252 DRJ 16929 a
 1    districts if the events are sponsored by an entity recognized
 2    by  the school district that consists primarily of volunteers
 3    and includes parents and teachers  of  the  school  children.
 4    This  paragraph  does not apply to fundraising events (i) for
 5    the benefit of private home instruction or (ii) for which the
 6    fundraising entity purchases the personal  property  sold  at
 7    the  events  from  another individual or entity that sold the
 8    property for the purpose of resale by the fundraising  entity
 9    and  that  profits  from  the sale to the fundraising entity.
10    This paragraph is exempt from the provisions of Section 2-70.
11        (35)  Beginning January 1, 2000 and through December  31,
12    2001, new or used automatic vending machines that prepare and
13    serve  hot  food  and  beverages, including coffee, soup, and
14    other  items,  and  replacement  parts  for  these  machines.
15    Beginning January 1, 2002, machines and  parts  for  machines
16    used  in  commercial,  coin-operated  amusement  and  vending
17    business  if  a  use  or  occupation tax is paid on the gross
18    receipts  derived   from   the   use   of   the   commercial,
19    coin-operated amusement and vending machines.  This paragraph
20    is exempt from the provisions of Section 2-70.
21        (35-5)  (36)  Food  for  human  consumption that is to be
22    consumed off the  premises  where  it  is  sold  (other  than
23    alcoholic  beverages,  soft  drinks,  and  food that has been
24    prepared for  immediate  consumption)  and  prescription  and
25    nonprescription  medicines,  drugs,  medical  appliances, and
26    insulin, urine testing materials, syringes, and needles  used
27    by  diabetics,  for  human  use,  when purchased for use by a
28    person receiving medical assistance under Article  5  of  the
29    Illinois  Public Aid Code who resides in a licensed long-term
30    care facility, as defined in the Nursing Home Care Act.
31        (36)  Beginning August 2, 2001 on the effective  date  of
32    this  amendatory  Act of the 92nd General Assembly, computers
33    and  communications  equipment  utilized  for  any   hospital
34    purpose  and  equipment  used  in the diagnosis, analysis, or
 
                            -45-     LRB093 03252 DRJ 16929 a
 1    treatment of hospital patients sold to a  lessor  who  leases
 2    the  equipment,  under a lease of one year or longer executed
 3    or in effect at the time of the purchase, to a hospital  that
 4    has been issued an active tax exemption identification number
 5    by  the  Department  under  Section  1g  of  this  Act.  This
 6    paragraph is exempt from the provisions of Section 2-70.
 7        (37)  Beginning August 2, 2001 on the effective  date  of
 8    this  amendatory  Act  of the 92nd General Assembly, personal
 9    property sold to a lessor who leases the  property,  under  a
10    lease of one year or longer executed or in effect at the time
11    of  the purchase, to a governmental body that has been issued
12    an  active  tax  exemption  identification  number   by   the
13    Department  under  Section 1g of this Act.  This paragraph is
14    exempt from the provisions of Section 2-70.
15        (38)  Beginning on January  1,  2002,  tangible  personal
16    property  purchased  from  an Illinois retailer by a taxpayer
17    engaged in centralized purchasing activities in Illinois  who
18    will,  upon  receipt of the property in Illinois, temporarily
19    store the  property  in  Illinois  (i)  for  the  purpose  of
20    subsequently  transporting  it  outside this State for use or
21    consumption thereafter solely outside this State or (ii)  for
22    the  purpose  of being processed, fabricated, or manufactured
23    into,  attached  to,  or  incorporated  into  other  tangible
24    personal property to be transported outside  this  State  and
25    thereafter  used  or consumed solely outside this State.  The
26    Director of Revenue  shall,  pursuant  to  rules  adopted  in
27    accordance  with  the  Illinois Administrative Procedure Act,
28    issue a permit to any taxpayer  in  good  standing  with  the
29    Department  who  is  eligible  for  the  exemption under this
30    paragraph (38).  The permit issued under this paragraph  (38)
31    shall  authorize  the holder, to the extent and in the manner
32    specified in the rules adopted under this  Act,  to  purchase
33    tangible  personal  property  from a retailer exempt from the
34    taxes imposed by this  Act.   Taxpayers  shall  maintain  all
 
                            -46-     LRB093 03252 DRJ 16929 a
 1    necessary  books  and  records  to  substantiate  the use and
 2    consumption of all such tangible personal property outside of
 3    the State of Illinois.
 4        (39)  Beginning January 1, 2004 and ending  December  31,
 5    2007,   automated  external  defibrillators  purchased  by  a
 6    physical fitness facility for the purpose of  complying  with
 7    the  Physical Fitness Facility Medical Emergency Preparedness
 8    Act, up to  a  maximum  exemption  of  $300  per  year.   For
 9    purposes  of this paragraph (39), "physical fitness facility"
10    is defined  as  in  the  Physical  Fitness  Facility  Medical
11    Emergency  Preparedness  Act,  except  that the term does not
12    include any facility that is owned or operated by a  unit  of
13    local government or a public school, college, or university.
14    (Source: P.A.  91-51,  eff.  6-30-99;  91-200,  eff. 7-20-99;
15    91-439, eff.  8-6-99;  91-533,  eff.  8-13-99;  91-637,  eff.
16    8-20-99;  91-644,  eff. 8-20-99;  92-16, eff. 6-28-01; 92-35,
17    eff. 7-1-01;  92-227,  eff.  8-2-01;  92-337,  eff.  8-10-01;
18    92-484,  eff.  8-23-01;  92-488,  eff.  8-23-01; 92-651, eff.
19    7-11-02; 92-680, eff. 7-16-02; revised 1-26-03.)

20        Section 95.  The Automated External Defibrillator Act  is
21    amended by changing Section 30 as follows:

22        (410 ILCS 4/30)
23        Sec. 30. Exemption from civil liability.
24        (a)  A   physician   licensed  in  Illinois  to  practice
25    medicine in all its branches who authorizes the  purchase  of
26    an  automated  external defibrillator is not liable for civil
27    damages as a result of any act or  omission  arising  out  of
28    authorizing   the   purchase   of   an   automated   external
29    defibrillator,  except  for  willful or wanton misconduct, if
30    the requirements of this Act are met.
31        (b)  An individual or entity providing  training  in  the
32    use  of  automated  external defibrillators is not liable for
 
                            -47-     LRB093 03252 DRJ 16929 a
 1    civil damages as a result of any act  or  omission  involving
 2    the  use  of  an automated external defibrillator, except for
 3    willful or wanton misconduct, if the requirements of this Act
 4    are met.
 5        (c)  A person, unit of  State  or  local  government,  or
 6    school  district  owning, occupying, or managing the premises
 7    where an automated external defibrillator is located  is  not
 8    liable  for  civil damages as a result of any act or omission
 9    involving the use of  an  automated  external  defibrillator,
10    except  for willful or wanton misconduct, if the requirements
11    of this Act are met.
12        (d)  An A trained  AED  user  is  not  liable  for  civil
13    damages  as a result of any act or omission involving the use
14    of  an  automated  external  defibrillator  in  an  emergency
15    situation, except for willful or wanton  misconduct,  if  the
16    requirements of this Act are met.
17        (e)  This Section does not apply to a public hospital.
18    (Source: P.A. 91-524, eff. 1-1-00.)".