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92_SB1854enr SB1854 Enrolled LRB9215370EGfg 1 AN ACT to revise the law by combining multiple enactments 2 and making technical corrections. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 1. Nature of this Act. 6 (a) This Act may be cited as the First 2002 General 7 Revisory Act. 8 (b) This Act is not intended to make any substantive 9 change in the law. It reconciles conflicts that have arisen 10 from multiple amendments and enactments and makes technical 11 corrections and revisions in the law. 12 This Act revises and, where appropriate, renumbers 13 certain Sections that have been added or amended by more than 14 one Public Act. In certain cases in which a repealed Act or 15 Section has been replaced with a successor law, this Act 16 incorporates amendments to the repealed Act or Section into 17 the successor law. This Act also corrects errors, revises 18 cross-references, and deletes obsolete text. 19 (c) In this Act, the reference at the end of each 20 amended Section indicates the sources in the Session Laws of 21 Illinois that were used in the preparation of the text of 22 that Section. The text of the Section included in this Act 23 is intended to reconcile the different versions of the 24 Section found in the Public Acts included in the list of 25 sources, but may not include other versions of the Section to 26 be found in Public Acts not included in the list of sources. 27 The list of sources is not a part of the text of the Section. 28 (d) Public Acts 91-937 through 92-520 were considered in 29 the preparation of the combining revisories included in this 30 Act. Many of those combining revisories contain no striking 31 or underscoring because no additional changes are being made 32 in the material that is being combined. SB1854 Enrolled -2- LRB9215370EGfg 1 Section 4. The Regulatory Sunset Act is amended by 2 changing Sections 4.13 and 4.22 as follows: 3 (5 ILCS 80/4.13) (from Ch. 127, par. 1904.13) 4 Sec. 4.13. Acts repealed on December 31, 2002. The 5 following Acts are repealed on December 31, 2002: 6 The Environmental Health Practitioner Licensing Act. 7 The Naprapathic Practice Act. 8 The Wholesale Drug Distribution Licensing Act. 9 The Dietetic and Nutrition Services Practice Act. 10 The Funeral Directors and Embalmers Licensing Code. 11 The Professional Counselor and Clinical Professional 12 Counselor Licensing Act. 13 (Source: P.A. 88-45; 89-61, eff. 6-30-95; revised 8-22-01.) 14 (5 ILCS 80/4.22) 15 Sec. 4.22. ActsActrepealed on January 1, 2012. The 16 following Acts areAct isrepealed on January 1, 2012:.17 The Detection of Deception Examiners Act. 18 The Home Inspector License Act. 19 The Interior Design Title Act. 20 The Professional Boxing Act. 21 The Real Estate AppraiserAppraisersLicensing Act of 22 2002. 23 The Water Well and Pump Installation Contractor's License 24 Act. 25 (Source: P.A. 92-104, eff. 7-20-01; 92-180, eff. 7-1-02; 26 92-239, eff. 8-3-01; 92-453, eff. 8-21-01; 92-499, eff. 27 1-1-02; 92-500, eff. 12-18-01; revised 12-26-01.) 28 (5 ILCS 80/4.12 rep.) (from Ch. 127, par. 1904.12) 29 Section. 5. The Regulatory Sunset Act is amended by 30 repealing Section 4.12. SB1854 Enrolled -3- LRB9215370EGfg 1 Section 6. The Illinois Administrative Procedure Act is 2 amended by renumbering Section 90 (as added by P.A. 92-405) 3 as follows: 4 (5 ILCS 100/1-90) 5 Sec. 1-90.90.Rulemaking. 6 (a) "Rulemaking" means the process and required 7 documentation for the adoption of Illinois Administrative 8 Code text. 9 (b) Required documentation. 10 (1) At the time of original proposal, rulemaking 11 documentation must consist of a notice page and new, 12 amendatory, or repealed text. New, repealed, and 13 amendatory text must be depicted in the manner required 14 by Secretary of State rule. Amendatory rulemakings must 15 indicate text deletion by striking through all text that 16 is to be omitted and must indicate text addition by 17 underlining all new text. 18 (2) At the time of adoption, documentation must 19 also include pages indicating the text of the new rule, 20 without striking and underlining, for inclusion in the 21 official Secretary of State records, the certification 22 required under Section 5-65(a), and any additional 23 documentation required by Secretary of State rule. 24 (3) For a required rulemaking adopted under Section 25 5-15, an emergency rulemaking under Section 5-45, or a 26 peremptory rulemaking under Section 5-50, the 27 documentation requirements of paragraphs (b)(1) and (2) 28 of this Section apply at the time of adoption. 29 (c) "Background text" means existing text of the 30 Illinois Administrative Code that is part of a rulemaking but 31 is not being amended by the rulemaking. Background text in 32 rulemaking documentation shall match the current text of the 33 Illinois Administrative Code. SB1854 Enrolled -4- LRB9215370EGfg 1 (d) No material that was originally proposed in one 2 rulemaking may be combined with another proposed rulemaking 3 that was initially published without that material. However, 4 this does not preclude separate rulemakings from being 5 combined for publication at the time of adoption as 6 authorized by Secretary of State rule. 7 (Source: P.A. 92-405, eff. 8-16-01; revised 8-21-01.) 8 Section 7. The Freedom of Information Act is amended by 9 changing Sections 2 and 7 as follows: 10 (5 ILCS 140/2) (from Ch. 116, par. 202) 11 Sec. 2. Definitions. As used in this Act: 12 (a) "Public body" means any legislative, executive, 13 administrative, or advisory bodies of the State, state 14 universities and colleges, counties, townships, cities, 15 villages, incorporated towns, school districts and all other 16 municipal corporations, boards, bureaus, committees, or 17 commissions of this State, and any subsidiary bodies of any 18 of the foregoing including but not limited to committees and 19 subcommittees which are supported in whole or in part by tax 20 revenue, or which expend tax revenue. "Public body" does not 21 include a child death review team or the Illinois Child Death 22 Review Teams Executive Council established under the Child 23 Death Review Team Act. 24 (b) "Person" means any individual, corporation, 25 partnership, firm, organization or association, acting 26 individually or as a group. 27 (c) "Public records" means all records, reports, forms, 28 writings, letters, memoranda, books, papers, maps, 29 photographs, microfilms, cards, tapes, recordings, electronic 30 data processing records, recorded information and all other 31 documentary materials, regardless of physical form or 32 characteristics, having been prepared, or having been or SB1854 Enrolled -5- LRB9215370EGfg 1 being used, received, possessed or under the control of any 2 public body. "Public records" includes, but is expressly not 3 limited to: (i) administrative manuals, procedural rules, 4 and instructions to staff, unless exempted by Section 7(p) of 5 this Act; (ii) final opinions and orders made in the 6 adjudication of cases, except an educational institution's 7 adjudication of student or employee grievance or disciplinary 8 cases; (iii) substantive rules; (iv) statements and 9 interpretations of policy which have been adopted by a public 10 body; (v) final planning policies, recommendations, and 11 decisions; (vi) factual reports, inspection reports, and 12 studies whether prepared by or for the public body; (vii) all 13 information in any account, voucher, or contract dealing with 14 the receipt or expenditure of public or other funds of public 15 bodies; (viii) the names, salaries, titles, and dates of 16 employment of all employees and officers of public bodies; 17 (ix) materials containing opinions concerning the rights of 18 the state, the public, a subdivision of state or a local 19 government, or of any private persons; (x) the name of every 20 official and the final records of voting in all proceedings 21 of public bodies; (xi) applications for any contract, permit, 22 grant, or agreement except as exempted from disclosure by 23 subsection (g) of Section 7 of this Act; (xii) each report, 24 document, study, or publication prepared by independent 25 consultants or other independent contractors for the public 26 body; (xiii) all other information required by law to be made 27 available for public inspection or copying; (xiv) information 28 relating to any grant or contract made by or between a public 29 body and another public body or private organization; (xv) 30 waiver documents filed with the State Superintendent of 31 Education or the president of the University of Illinois 32 under Section 30-12.5 of the School Code, concerning nominees 33 for General Assembly scholarships under Sections 30-9, 30-10, 34 and 30-11 of the School Code; (xvi) complaints, results of SB1854 Enrolled -6- LRB9215370EGfg 1 complaints, and Department of Children and Family Services 2 staff findings of licensing violations at day care 3 facilities, provided that personal and identifying 4 information is not released; and (xvii) records, reports, 5 forms, writings, letters, memoranda, books, papers, and other 6 documentary information, regardless of physical form or 7 characteristics, having been prepared, or having been or 8 being used, received, possessed, or under the control of the 9 Illinois Sports Facilities Authority dealing with the receipt 10 or expenditure of public funds or other funds of the 11 Authority in connection with the reconstruction, renovation, 12 remodeling, extension, or improvement of all or substantially 13 all of an existing "facility" as that term is defined in the 14 Illinois Sports Facilities Authority Act. 15 (d) "Copying" means the reproduction of any public 16 record by means of any photographic, electronic, mechanical 17 or other process, device or means. 18 (e) "Head of the public body" means the president, 19 mayor, chairman, presiding officer, director, superintendent, 20 manager, supervisor or individual otherwise holding primary 21 executive and administrative authority for the public body, 22 or such person's duly authorized designee. 23 (f) "News media" means a newspaper or other periodical 24 issued at regular intervals whether in print or electronic 25 format, a news service whether in print or electronic format, 26 a radio station, a television station, a television network, 27 a community antenna television service, or a person or 28 corporation engaged in making news reels or other motion 29 picture news for public showing. 30 (Source: P.A. 91-935, eff. 6-1-01; 92-335, eff. 8-10-01; 31 92-468, eff. 8-22-01; revised 10-10-01.) 32 (5 ILCS 140/7) (from Ch. 116, par. 207) 33 Sec. 7. Exemptions. SB1854 Enrolled -7- LRB9215370EGfg 1 (1) The following shall be exempt from inspection and 2 copying: 3 (a) Information specifically prohibited from 4 disclosure by federal or State law or rules and 5 regulations adopted under federal or State law. 6 (b) Information that, if disclosed, would 7 constitute a clearly unwarranted invasion of personal 8 privacy, unless the disclosure is consented to in writing 9 by the individual subjects of the information. The 10 disclosure of information that bears on the public duties 11 of public employees and officials shall not be considered 12 an invasion of personal privacy. Information exempted 13 under this subsection (b) shall include but is not 14 limited to: 15 (i) files and personal information maintained 16 with respect to clients, patients, residents, 17 students or other individuals receiving social, 18 medical, educational, vocational, financial, 19 supervisory or custodial care or services directly 20 or indirectly from federal agencies or public 21 bodies; 22 (ii) personnel files and personal information 23 maintained with respect to employees, appointees or 24 elected officials of any public body or applicants 25 for those positions; 26 (iii) files and personal information 27 maintained with respect to any applicant, registrant 28 or licensee by any public body cooperating with or 29 engaged in professional or occupational 30 registration, licensure or discipline; 31 (iv) information required of any taxpayer in 32 connection with the assessment or collection of any 33 tax unless disclosure is otherwise required by State 34 statute; and SB1854 Enrolled -8- LRB9215370EGfg 1 (v) information revealing the identity of 2 persons who file complaints with or provide 3 information to administrative, investigative, law 4 enforcement or penal agencies; provided, however, 5 that identification of witnesses to traffic 6 accidents, traffic accident reports, and rescue 7 reports may be provided by agencies of local 8 government, except in a case for which a criminal 9 investigation is ongoing, without constituting a 10 clearly unwarranted per se invasion of personal 11 privacy under this subsection. 12 (c) Records compiled by any public body for 13 administrative enforcement proceedings and any law 14 enforcement or correctional agency for law enforcement 15 purposes or for internal matters of a public body, but 16 only to the extent that disclosure would: 17 (i) interfere with pending or actually and 18 reasonably contemplated law enforcement proceedings 19 conducted by any law enforcement or correctional 20 agency; 21 (ii) interfere with pending administrative 22 enforcement proceedings conducted by any public 23 body; 24 (iii) deprive a person of a fair trial or an 25 impartial hearing; 26 (iv) unavoidably disclose the identity of a 27 confidential source or confidential information 28 furnished only by the confidential source; 29 (v) disclose unique or specialized 30 investigative techniques other than those generally 31 used and known or disclose internal documents of 32 correctional agencies related to detection, 33 observation or investigation of incidents of crime 34 or misconduct; SB1854 Enrolled -9- LRB9215370EGfg 1 (vi) constitute an invasion of personal 2 privacy under subsection (b) of this Section; 3 (vii) endanger the life or physical safety of 4 law enforcement personnel or any other person; or 5 (viii) obstruct an ongoing criminal 6 investigation. 7 (d) Criminal history record information maintained 8 by State or local criminal justice agencies, except the 9 following which shall be open for public inspection and 10 copying: 11 (i) chronologically maintained arrest 12 information, such as traditional arrest logs or 13 blotters; 14 (ii) the name of a person in the custody of a 15 law enforcement agency and the charges for which 16 that person is being held; 17 (iii) court records that are public; 18 (iv) records that are otherwise available 19 under State or local law; or 20 (v) records in which the requesting party is 21 the individual identified, except as provided under 22 part (vii) of paragraph (c) of subsection (1) of 23 this Section. 24 "Criminal history record information" means data 25 identifiable to an individual and consisting of 26 descriptions or notations of arrests, detentions, 27 indictments, informations, pre-trial proceedings, trials, 28 or other formal events in the criminal justice system or 29 descriptions or notations of criminal charges (including 30 criminal violations of local municipal ordinances) and 31 the nature of any disposition arising therefrom, 32 including sentencing, court or correctional supervision, 33 rehabilitation and release. The term does not apply to 34 statistical records and reports in which individuals are SB1854 Enrolled -10- LRB9215370EGfg 1 not identified and from which their identities are not 2 ascertainable, or to information that is for criminal 3 investigative or intelligence purposes. 4 (e) Records that relate to or affect the security 5 of correctional institutions and detention facilities. 6 (f) Preliminary drafts, notes, recommendations, 7 memoranda and other records in which opinions are 8 expressed, or policies or actions are formulated, except 9 that a specific record or relevant portion of a record 10 shall not be exempt when the record is publicly cited and 11 identified by the head of the public body. The exemption 12 provided in this paragraph (f) extends to all those 13 records of officers and agencies of the General Assembly 14 that pertain to the preparation of legislative documents. 15 (g) Trade secrets and commercial or financial 16 information obtained from a person or business where the 17 trade secrets or information are proprietary, privileged 18 or confidential, or where disclosure of the trade secrets 19 or information may cause competitive harm, including all 20 information determined to be confidential under Section 21 4002 of the Technology Advancement and Development Act. 22 Nothing contained in this paragraph (g) shall be 23 construed to prevent a person or business from consenting 24 to disclosure. 25 (h) Proposals and bids for any contract, grant, or 26 agreement, including information which if it were 27 disclosed would frustrate procurement or give an 28 advantage to any person proposing to enter into a 29 contractor agreement with the body, until an award or 30 final selection is made. Information prepared by or for 31 the body in preparation of a bid solicitation shall be 32 exempt until an award or final selection is made. 33 (i) Valuable formulae, computer graphic systems, 34 designs, drawings and research data obtained or produced SB1854 Enrolled -11- LRB9215370EGfg 1 by any public body when disclosure could reasonably be 2 expected to produce private gain or public loss. 3 (j) Test questions, scoring keys and other 4 examination data used to administer an academic 5 examination or determined the qualifications of an 6 applicant for a license or employment. 7 (k) Architects' plans and engineers' technical 8 submissions for projects not constructed or developed in 9 whole or in part with public funds and for projects 10 constructed or developed with public funds, to the extent 11 that disclosure would compromise security. 12 (l) Library circulation and order records 13 identifying library users with specific materials. 14 (m) Minutes of meetings of public bodies closed to 15 the public as provided in the Open Meetings Act until the 16 public body makes the minutes available to the public 17 under Section 2.06 of the Open Meetings Act. 18 (n) Communications between a public body and an 19 attorney or auditor representing the public body that 20 would not be subject to discovery in litigation, and 21 materials prepared or compiled by or for a public body in 22 anticipation of a criminal, civil or administrative 23 proceeding upon the request of an attorney advising the 24 public body, and materials prepared or compiled with 25 respect to internal audits of public bodies. 26 (o) Information received by a primary or secondary 27 school, college or university under its procedures for 28 the evaluation of faculty members by their academic 29 peers. 30 (p) Administrative or technical information 31 associated with automated data processing operations, 32 including but not limited to software, operating 33 protocols, computer program abstracts, file layouts, 34 source listings, object modules, load modules, user SB1854 Enrolled -12- LRB9215370EGfg 1 guides, documentation pertaining to all logical and 2 physical design of computerized systems, employee 3 manuals, and any other information that, if disclosed, 4 would jeopardize the security of the system or its data 5 or the security of materials exempt under this Section. 6 (q) Documents or materials relating to collective 7 negotiating matters between public bodies and their 8 employees or representatives, except that any final 9 contract or agreement shall be subject to inspection and 10 copying. 11 (r) Drafts, notes, recommendations and memoranda 12 pertaining to the financing and marketing transactions of 13 the public body. The records of ownership, registration, 14 transfer, and exchange of municipal debt obligations, and 15 of persons to whom payment with respect to these 16 obligations is made. 17 (s) The records, documents and information relating 18 to real estate purchase negotiations until those 19 negotiations have been completed or otherwise terminated. 20 With regard to a parcel involved in a pending or actually 21 and reasonably contemplated eminent domain proceeding 22 under Article VII of the Code of Civil Procedure, 23 records, documents and information relating to that 24 parcel shall be exempt except as may be allowed under 25 discovery rules adopted by the Illinois Supreme Court. 26 The records, documents and information relating to a real 27 estate sale shall be exempt until a sale is consummated. 28 (t) Any and all proprietary information and records 29 related to the operation of an intergovernmental risk 30 management association or self-insurance pool or jointly 31 self-administered health and accident cooperative or 32 pool. 33 (u) Information concerning a university's 34 adjudication of student or employee grievance or SB1854 Enrolled -13- LRB9215370EGfg 1 disciplinary cases, to the extent that disclosure would 2 reveal the identity of the student or employee and 3 information concerning any public body's adjudication of 4 student or employee grievances or disciplinary cases, 5 except for the final outcome of the cases. 6 (v) Course materials or research materials used by 7 faculty members. 8 (w) Information related solely to the internal 9 personnel rules and practices of a public body. 10 (x) Information contained in or related to 11 examination, operating, or condition reports prepared by, 12 on behalf of, or for the use of a public body responsible 13 for the regulation or supervision of financial 14 institutions or insurance companies, unless disclosure is 15 otherwise required by State law. 16 (y) Information the disclosure of which is 17 restricted under Section 5-108 of the Public Utilities 18 Act. 19 (z) Manuals or instruction to staff that relate to 20 establishment or collection of liability for any State 21 tax or that relate to investigations by a public body to 22 determine violation of any criminal law. 23 (aa) Applications, related documents, and medical 24 records received by the Experimental Organ 25 Transplantation Procedures Board and any and all 26 documents or other records prepared by the Experimental 27 Organ Transplantation Procedures Board or its staff 28 relating to applications it has received. 29 (bb) Insurance or self insurance (including any 30 intergovernmental risk management association or self 31 insurance pool) claims, loss or risk management 32 information, records, data, advice or communications. 33 (cc) Information and records held by the Department 34 of Public Health and its authorized representatives SB1854 Enrolled -14- LRB9215370EGfg 1 relating to known or suspected cases of sexually 2 transmissible disease or any information the disclosure 3 of which is restricted under the Illinois Sexually 4 Transmissible Disease Control Act. 5 (dd) Information the disclosure of which is 6 exempted under Section 30 of the Radon Industry Licensing 7 Act. 8 (ee) Firm performance evaluations under Section 55 9 of the Architectural, Engineering, and Land Surveying 10 Qualifications Based Selection Act. 11 (ff) Security portions of system safety program 12 plans, investigation reports, surveys, schedules, lists, 13 data, or information compiled, collected, or prepared by 14 or for the Regional Transportation Authority under 15 Section 2.11 of the Regional Transportation Authority Act 16 or the St. Clair County Transit District under the 17 Bi-State Transit Safety Act. 18 (gg) Information the disclosure of which is 19 restricted and exempted under Section 50 of the Illinois 20 Prepaid Tuition Act. 21 (hh) Information the disclosure of which is 22 exempted under Section 80 of the State Gift Ban Act. 23 (ii) Beginning July 1, 1999, information that would 24 disclose or might lead to the disclosure of secret or 25 confidential information, codes, algorithms, programs, or 26 private keys intended to be used to create electronic or 27 digital signatures under the Electronic Commerce Security 28 Act. 29 (jj) Information contained in a local emergency 30 energy plan submitted to a municipality in accordance 31 with a local emergency energy plan ordinance that is 32 adopted under Section 11-21.5-5 of the Illinois Municipal 33 Code. 34 (kk) Information and data concerning the SB1854 Enrolled -15- LRB9215370EGfg 1 distribution of surcharge moneys collected and remitted 2 by wireless carriers under the Wireless Emergency 3 Telephone Safety Act. 4 (2) This Section does not authorize withholding of 5 information or limit the availability of records to the 6 public, except as stated in this Section or otherwise 7 provided in this Act. 8 (Source: P.A. 91-137, eff. 7-16-99; 91-357, eff. 7-29-99; 9 91-660, eff. 12-22-99; 92-16, eff. 6-28-01; 92-241, eff. 10 8-3-01; 92-281, eff. 8-7-01; revised 10-2-01.) 11 Section 8. The State Employees Group Insurance Act of 12 1971 is amended by changing Section 3 as follows: 13 (5 ILCS 375/3) (from Ch. 127, par. 523) 14 Sec. 3. Definitions. Unless the context otherwise 15 requires, the following words and phrases as used in this Act 16 shall have the following meanings. The Department may define 17 these and other words and phrases separately for the purpose 18 of implementing specific programs providing benefits under 19 this Act. 20 (a) "Administrative service organization" means any 21 person, firm or corporation experienced in the handling of 22 claims which is fully qualified, financially sound and 23 capable of meeting the service requirements of a contract of 24 administration executed with the Department. 25 (b) "Annuitant" means (1) an employee who retires, or 26 has retired, on or after January 1, 1966 on an immediate 27 annuity under the provisions of Articles 2, 14, 15 (including 28 an employee who has retired under the optional retirement 29 program established under Section 15-158.2), paragraphs (2), 30 (3), or (5) of Section 16-106, or Article 18 of the Illinois 31 Pension Code; (2) any person who was receiving group 32 insurance coverage under this Act as of March 31, 1978 by SB1854 Enrolled -16- LRB9215370EGfg 1 reason of his status as an annuitant, even though the annuity 2 in relation to which such coverage was provided is a 3 proportional annuity based on less than the minimum period of 4 service required for a retirement annuity in the system 5 involved; (3) any person not otherwise covered by this Act 6 who has retired as a participating member under Article 2 of 7 the Illinois Pension Code but is ineligible for the 8 retirement annuity under Section 2-119 of the Illinois 9 Pension Code; (4) the spouse of any person who is receiving a 10 retirement annuity under Article 18 of the Illinois Pension 11 Code and who is covered under a group health insurance 12 program sponsored by a governmental employer other than the 13 State of Illinois and who has irrevocably elected to waive 14 his or her coverage under this Act and to have his or her 15 spouse considered as the "annuitant" under this Act and not 16 as a "dependent"; or (5) an employee who retires, or has 17 retired, from a qualified position, as determined according 18 to rules promulgated by the Director, under a qualified local 19 government or a qualified rehabilitation facility or a 20 qualified domestic violence shelter or service. (For 21 definition of "retired employee", see (p) post). 22 (b-5) "New SERS annuitant" means a person who, on or 23 after January 1, 1998, becomes an annuitant, as defined in 24 subsection (b), by virtue of beginning to receive a 25 retirement annuity under Article 14 of the Illinois Pension 26 Code, and is eligible to participate in the basic program of 27 group health benefits provided for annuitants under this Act. 28 (b-6) "New SURS annuitant" means a person who (1) on or 29 after January 1, 1998, becomes an annuitant, as defined in 30 subsection (b), by virtue of beginning to receive a 31 retirement annuity under Article 15 of the Illinois Pension 32 Code, (2) has not made the election authorized under Section 33 15-135.1 of the Illinois Pension Code, and (3) is eligible to 34 participate in the basic program of group health benefits SB1854 Enrolled -17- LRB9215370EGfg 1 provided for annuitants under this Act. 2 (b-7) "New TRS State annuitant" means a person who, on 3 or after July 1, 1998, becomes an annuitant, as defined in 4 subsection (b), by virtue of beginning to receive a 5 retirement annuity under Article 16 of the Illinois Pension 6 Code based on service as a teacher as defined in paragraph 7 (2), (3), or (5) of Section 16-106 of that Code, and is 8 eligible to participate in the basic program of group health 9 benefits provided for annuitants under this Act. 10 (c) "Carrier" means (1) an insurance company, a 11 corporation organized under the Limited Health Service 12 Organization Act or the Voluntary Health Services Plan Act, a 13 partnership, or other nongovernmental organization, which is 14 authorized to do group life or group health insurance 15 business in Illinois, or (2) the State of Illinois as a 16 self-insurer. 17 (d) "Compensation" means salary or wages payable on a 18 regular payroll by the State Treasurer on a warrant of the 19 State Comptroller out of any State, trust or federal fund, or 20 by the Governor of the State through a disbursing officer of 21 the State out of a trust or out of federal funds, or by any 22 Department out of State, trust, federal or other funds held 23 by the State Treasurer or the Department, to any person for 24 personal services currently performed, and ordinary or 25 accidental disability benefits under Articles 2, 14, 15 26 (including ordinary or accidental disability benefits under 27 the optional retirement program established under Section 28 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or 29 Article 18 of the Illinois Pension Code, for disability 30 incurred after January 1, 1966, or benefits payable under the 31 Workers' Compensation or Occupational Diseases Act or 32 benefits payable under a sick pay plan established in 33 accordance with Section 36 of the State Finance Act. 34 "Compensation" also means salary or wages paid to an employee SB1854 Enrolled -18- LRB9215370EGfg 1 of any qualified local government or qualified rehabilitation 2 facility or a qualified domestic violence shelter or service. 3 (e) "Commission" means the State Employees Group 4 Insurance Advisory Commission authorized by this Act. 5 Commencing July 1, 1984, "Commission" as used in this Act 6 means the Illinois Economic and Fiscal Commission as 7 established by the Legislative Commission Reorganization Act 8 of 1984. 9 (f) "Contributory", when referred to as contributory 10 coverage, shall mean optional coverages or benefits elected 11 by the member toward the cost of which such member makes 12 contribution, or which are funded in whole or in part through 13 the acceptance of a reduction in earnings or the foregoing of 14 an increase in earnings by an employee, as distinguished from 15 noncontributory coverage or benefits which are paid entirely 16 by the State of Illinois without reduction of the member's 17 salary. 18 (g) "Department" means any department, institution, 19 board, commission, officer, court or any agency of the State 20 government receiving appropriations and having power to 21 certify payrolls to the Comptroller authorizing payments of 22 salary and wages against such appropriations as are made by 23 the General Assembly from any State fund, or against trust 24 funds held by the State Treasurer and includes boards of 25 trustees of the retirement systems created by Articles 2, 14, 26 15, 16 and 18 of the Illinois Pension Code. "Department" 27 also includes the Illinois Comprehensive Health Insurance 28 Board, the Board of Examiners established under the Illinois 29 Public Accounting Act, and the Illinois Rural Bond Bank. 30 (h) "Dependent", when the term is used in the context of 31 the health and life plan, means a member's spouse and any 32 unmarried child (1) from birth to age 19 including an adopted 33 child, a child who lives with the member from the time of the 34 filing of a petition for adoption until entry of an order of SB1854 Enrolled -19- LRB9215370EGfg 1 adoption, a stepchild or recognized child who lives with the 2 member in a parent-child relationship, or a child who lives 3 with the member if such member is a court appointed guardian 4 of the child, or (2) age 19 to 23 enrolled as a full-time 5 student in any accredited school, financially dependent upon 6 the member, and eligible to be claimed as a dependent for 7 income tax purposes, or (3) age 19 or over who is mentally or 8 physically handicapped. For the health plan only, the term 9 "dependent" also includes any person enrolled prior to the 10 effective date of this Section who is dependent upon the 11 member to the extent that the member may claim such person as 12 a dependent for income tax deduction purposes; no other such 13 person may be enrolled. For the health plan only, the term 14 "dependent" also includes any person who has received after 15 June 30, 2000 an organ transplant and who is financially 16 dependent upon the member and eligible to be claimed as a 17 dependent for income tax purposes. 18 (i) "Director" means the Director of the Illinois 19 Department of Central Management Services. 20 (j) "Eligibility period" means the period of time a 21 member has to elect enrollment in programs or to select 22 benefits without regard to age, sex or health. 23 (k) "Employee" means and includes each officer or 24 employee in the service of a department who (1) receives his 25 compensation for service rendered to the department on a 26 warrant issued pursuant to a payroll certified by a 27 department or on a warrant or check issued and drawn by a 28 department upon a trust, federal or other fund or on a 29 warrant issued pursuant to a payroll certified by an elected 30 or duly appointed officer of the State or who receives 31 payment of the performance of personal services on a warrant 32 issued pursuant to a payroll certified by a Department and 33 drawn by the Comptroller upon the State Treasurer against 34 appropriations made by the General Assembly from any fund or SB1854 Enrolled -20- LRB9215370EGfg 1 against trust funds held by the State Treasurer, and (2) is 2 employed full-time or part-time in a position normally 3 requiring actual performance of duty during not less than 1/2 4 of a normal work period, as established by the Director in 5 cooperation with each department, except that persons elected 6 by popular vote will be considered employees during the 7 entire term for which they are elected regardless of hours 8 devoted to the service of the State, and (3) except that 9 "employee" does not include any person who is not eligible by 10 reason of such person's employment to participate in one of 11 the State retirement systems under Articles 2, 14, 15 (either 12 the regular Article 15 system or the optional retirement 13 program established under Section 15-158.2) or 18, or under 14 paragraph (2), (3), or (5) of Section 16-106, of the Illinois 15 Pension Code, but such term does include persons who are 16 employed during the 6 month qualifying period under Article 17 14 of the Illinois Pension Code. Such term also includes any 18 person who (1) after January 1, 1966, is receiving ordinary 19 or accidental disability benefits under Articles 2, 14, 15 20 (including ordinary or accidental disability benefits under 21 the optional retirement program established under Section 22 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or 23 Article 18 of the Illinois Pension Code, for disability 24 incurred after January 1, 1966, (2) receives total permanent 25 or total temporary disability under the Workers' Compensation 26 Act or Occupational Disease Act as a result of injuries 27 sustained or illness contracted in the course of employment 28 with the State of Illinois, or (3) is not otherwise covered 29 under this Act and has retired as a participating member 30 under Article 2 of the Illinois Pension Code but is 31 ineligible for the retirement annuity under Section 2-119 of 32 the Illinois Pension Code. However, a person who satisfies 33 the criteria of the foregoing definition of "employee" except 34 that such person is made ineligible to participate in the SB1854 Enrolled -21- LRB9215370EGfg 1 State Universities Retirement System by clause (4) of 2 subsection (a) of Section 15-107 of the Illinois Pension Code 3 is also an "employee" for the purposes of this Act. 4 "Employee" also includes any person receiving or eligible for 5 benefits under a sick pay plan established in accordance with 6 Section 36 of the State Finance Act. "Employee" also includes 7 each officer or employee in the service of a qualified local 8 government, including persons appointed as trustees of 9 sanitary districts regardless of hours devoted to the service 10 of the sanitary district, and each employee in the service of 11 a qualified rehabilitation facility and each full-time 12 employee in the service of a qualified domestic violence 13 shelter or service, as determined according to rules 14 promulgated by the Director. 15 (l) "Member" means an employee, annuitant, retired 16 employee or survivor. 17 (m) "Optional coverages or benefits" means those 18 coverages or benefits available to the member on his or her 19 voluntary election, and at his or her own expense. 20 (n) "Program" means the group life insurance, health 21 benefits and other employee benefits designed and contracted 22 for by the Director under this Act. 23 (o) "Health plan" means a health benefits program 24 offered by the State of Illinois for persons eligible for the 25 plan. 26 (p) "Retired employee" means any person who would be an 27 annuitant as that term is defined herein but for the fact 28 that such person retired prior to January 1, 1966. Such term 29 also includes any person formerly employed by the University 30 of Illinois in the Cooperative Extension Service who would be 31 an annuitant but for the fact that such person was made 32 ineligible to participate in the State Universities 33 Retirement System by clause (4) of subsection (a) of Section 34 15-107 of the Illinois Pension Code. SB1854 Enrolled -22- LRB9215370EGfg 1 (q) "Survivor" means a person receiving an annuity as a 2 survivor of an employee or of an annuitant. "Survivor" also 3 includes: (1) the surviving dependent of a person who 4 satisfies the definition of "employee" except that such 5 person is made ineligible to participate in the State 6 Universities Retirement System by clause (4) of subsection 7 (a) of Section 15-107 of the Illinois Pension Code; and (2) 8 the surviving dependent of any person formerly employed by 9 the University of Illinois in the Cooperative Extension 10 Service who would be an annuitant except for the fact that 11 such person was made ineligible to participate in the State 12 Universities Retirement System by clause (4) of subsection 13 (a) of Section 15-107 of the Illinois Pension Code. 14 (q-5) "New SERS survivor" means a survivor, as defined 15 in subsection (q), whose annuity is paid under Article 14 of 16 the Illinois Pension Code and is based on the death of (i) an 17 employee whose death occurs on or after January 1, 1998, or 18 (ii) a new SERS annuitant as defined in subsection (b-5). 19 (q-6) "New SURS survivor" means a survivor, as defined 20 in subsection (q), whose annuity is paid under Article 15 of 21 the Illinois Pension Code and is based on the death of (i) an 22 employee whose death occurs on or after January 1, 1998, or 23 (ii) a new SURS annuitant as defined in subsection (b-6). 24 (q-7) "New TRS State survivor" means a survivor, as 25 defined in subsection (q), whose annuity is paid under 26 Article 16 of the Illinois Pension Code and is based on the 27 death of (i) an employee who is a teacher as defined in 28 paragraph (2), (3), or (5) of Section 16-106 of that Code and 29 whose death occurs on or after July 1, 1998, or (ii) a new 30 TRS State annuitant as defined in subsection (b-7). 31 (r) "Medical services" means the services provided 32 within the scope of their licenses by practitioners in all 33 categories licensed under the Medical Practice Act of 1987. 34 (s) "Unit of local government" means any county, SB1854 Enrolled -23- LRB9215370EGfg 1 municipality, township, school district (including a 2 combination of school districts under the Intergovernmental 3 Cooperation Act), special district or other unit, designated 4 as a unit of local government by law, which exercises limited 5 governmental powers or powers in respect to limited 6 governmental subjects, any not-for-profit association with a 7 membership that primarily includes townships and township 8 officials, that has duties that include provision of research 9 service, dissemination of information, and other acts for the 10 purpose of improving township government, and that is funded 11 wholly or partly in accordance with Section 85-15 of the 12 Township Code; any not-for-profit corporation or association, 13 with a membership consisting primarily of municipalities, 14 that operates its own utility system, and provides research, 15 training, dissemination of information, or other acts to 16 promote cooperation between and among municipalities that 17 provide utility services and for the advancement of the goals 18 and purposes of its membership; the Southern Illinois 19 Collegiate Common Market, which is a consortium of higher 20 education institutions in Southern Illinois; and the Illinois 21 Association of Park Districts. "Qualified local government" 22 means a unit of local government approved by the Director and 23 participating in a program created under subsection (i) of 24 Section 10 of this Act. 25 (t) "Qualified rehabilitation facility" means any 26 not-for-profit organization that is accredited by the 27 Commission on Accreditation of Rehabilitation Facilities or 28 certified by the Department of Human Services (as successor 29 to the Department of Mental Health and Developmental 30 Disabilities) to provide services to persons with 31 disabilities and which receives funds from the State of 32 Illinois for providing those services, approved by the 33 Director and participating in a program created under 34 subsection (j) of Section 10 of this Act. SB1854 Enrolled -24- LRB9215370EGfg 1 (u) "Qualified domestic violence shelter or service" 2 means any Illinois domestic violence shelter or service and 3 its administrative offices funded by the Department of Human 4 Services (as successor to the Illinois Department of Public 5 Aid), approved by the Director and participating in a program 6 created under subsection (k) of Section 10. 7 (v) "TRS benefit recipient" means a person who: 8 (1) is not a "member" as defined in this Section; 9 and 10 (2) is receiving a monthly benefit or retirement 11 annuity under Article 16 of the Illinois Pension Code; 12 and 13 (3) either (i) has at least 8 years of creditable 14 service under Article 16 of the Illinois Pension Code, or 15 (ii) was enrolled in the health insurance program offered 16 under that Article on January 1, 1996, or (iii) is the 17 survivor of a benefit recipient who had at least 8 years 18 of creditable service under Article 16 of the Illinois 19 Pension Code or was enrolled in the health insurance 20 program offered under that Article on the effective date 21 of this amendatory Act of 1995, or (iv) is a recipient or 22 survivor of a recipient of a disability benefit under 23 Article 16 of the Illinois Pension Code. 24 (w) "TRS dependent beneficiary" means a person who: 25 (1) is not a "member" or "dependent" as defined in 26 this Section; and 27 (2) is a TRS benefit recipient's: (A) spouse, (B) 28 dependent parent who is receiving at least half of his or 29 her support from the TRS benefit recipient, or (C) 30 unmarried natural or adopted child who is (i) under age 31 19, or (ii) enrolled as a full-time student in an 32 accredited school, financially dependent upon the TRS 33 benefit recipient, eligible to be claimed as a dependent 34 for income tax purposes, and either is under age 24 or SB1854 Enrolled -25- LRB9215370EGfg 1 was, on January 1, 1996, participating as a dependent 2 beneficiary in the health insurance program offered under 3 Article 16 of the Illinois Pension Code, or (iii) age 19 4 or over who is mentally or physically handicapped. 5 (x) "Military leave with pay and benefits" refers to 6 individuals in basic training for reserves, special/advanced 7 training, annual training, emergency call up, or activation 8 by the President of the United States with approved pay and 9 benefits. 10 (y) "Military leave without pay and benefits" refers to 11 individuals who enlist for active duty in a regular component 12 of the U.S. Armed Forces or other duty not specified or 13 authorized under military leave with pay and benefits. 14 (z) "Community college benefit recipient" means a person 15 who: 16 (1) is not a "member" as defined in this Section; 17 and 18 (2) is receiving a monthly survivor's annuity or 19 retirement annuity under Article 15 of the Illinois 20 Pension Code; and 21 (3) either (i) was a full-time employee of a 22 community college district or an association of community 23 college boards created under the Public Community College 24 Act (other than an employee whose last employer under 25 Article 15 of the Illinois Pension Code was a community 26 college district subject to Article VII of the Public 27 Community College Act) and was eligible to participate in 28 a group health benefit plan as an employee during the 29 time of employment with a community college district 30 (other than a community college district subject to 31 Article VII of the Public Community College Act) or an 32 association of community college boards, or (ii) is the 33 survivor of a person described in item (i). 34 (aa) "Community college dependent beneficiary" means a SB1854 Enrolled -26- LRB9215370EGfg 1 person who: 2 (1) is not a "member" or "dependent" as defined in 3 this Section; and 4 (2) is a community college benefit recipient's: (A) 5 spouse, (B) dependent parent who is receiving at least 6 half of his or her support from the community college 7 benefit recipient, or (C) unmarried natural or adopted 8 child who is (i) under age 19, or (ii) enrolled as a 9 full-time student in an accredited school, financially 10 dependent upon the community college benefit recipient, 11 eligible to be claimed as a dependent for income tax 12 purposes and under age 23, or (iii) age 19 or over and 13 mentally or physically handicapped. 14 (Source: P.A. 91-390, eff. 7-30-99; 91-395, eff. 7-30-99; 15 91-617, eff. 8-19-99; 92-16, eff. 6-28-01; 92-186, eff. 16 1-1-02; 92-204, eff. 8-1-01; revised 9-19-01.) 17 Section 9. The Civil Administrative Code of Illinois is 18 amended by changing Section 1-5 as follows: 19 (20 ILCS 5/1-5) 20 Sec. 1-5. Articles. The Civil Administrative Code of 21 Illinois consists of the following Articles: 22 Article 1. General Provisions (20 ILCS 5/1-1 and 23 following). 24 Article 5. Departments of State Government Law (20 ILCS 25 5/5-1 and following). 26 Article 50. State Budget Law (15 ILCS 20/). 27 Article 110. Department on Aging Law (20 ILCS 110/). 28 Article 205. Department of Agriculture Law (20 ILCS 29 205/). 30 Article 250. State Fair Grounds Title Law (5 ILCS 620/). 31 Article 310. Department of Human Services (Alcoholism and 32 Substance Abuse) Law (20 ILCS 310/). SB1854 Enrolled -27- LRB9215370EGfg 1 Article 405. Department of Central Management Services 2 Law (20 ILCS 405/). 3 Article 510. Department of Children and Family Services 4 Powers Law (20 ILCS 510/). 5 Article 605. Department of Commerce and Community Affairs 6 Law (20 ILCS 605/). 7 Article 805. Department of Natural Resources 8 (Conservation) Law (20 ILCS 805/). 9 Article 1005. Department of Employment Security Law (20 10 ILCS 1005/). 11 Article 1405. Department of Insurance Law (20 ILCS 12 1405/). 13 Article 1505. Department of Labor Law (20 ILCS 1505/). 14 Article 1710. Department of Human Services (Mental Health 15 and Developmental Disabilities) Law (20 ILCS 1710/). 16 Article 1905. Department of Natural Resources (Mines and 17 Minerals) Law (20 ILCS 1905/). 18 Article 2005. Department of Nuclear Safety Law (20 ILCS 19 2005/). 20 Article 2105. Department of Professional Regulation Law 21 (20 ILCS 2105/). 22 Article 2205. Department of Public Aid Law (20 ILCS 23 2205/). 24 Article 2310. Department of Public Health Powers and 25 Duties Law (20 ILCS 2310/). 26 Article 2505. Department of Revenue Law (20 ILCS 2505/). 27 Article 2510. Certified Audit Program Law (20 ILCS 28 2510/). 29 Article 2605. Department of State Police Law (20 ILCS 30 2605/). 31 Article 2705. Department of Transportation Law (20 ILCS 32 2705/). 33 Article 3000. University of Illinois Exercise of 34 Functions and Duties Law (110 ILCS 355/). SB1854 Enrolled -28- LRB9215370EGfg 1 (Source: P.A. 91-239, eff. 1-1-00; 92-16, eff. 6-28-01; 2 revised 10-10-01.) 3 Section 10. The Illinois Act on the Aging is amended by 4 changing Section 4.01 as follows: 5 (20 ILCS 105/4.01) (from Ch. 23, par. 6104.01) 6 Sec. 4.01. Additional powers and duties of the 7 Department. In addition to powers and duties otherwise 8 provided by law, the Department shall have the following 9 powers and duties: 10 (1) To evaluate all programs, services, and facilities 11 for the aged and for minority senior citizens within the 12 State and determine the extent to which present public or 13 private programs, services and facilities meet the needs of 14 the aged. 15 (2) To coordinate and evaluate all programs, services, 16 and facilities for the Aging and for minority senior citizens 17 presently furnished by State agencies and make appropriate 18 recommendations regarding such services, programs and 19 facilities to the Governor and/or the General Assembly. 20 (3) To function as the sole State agency to develop a 21 comprehensive plan to meet the needs of the State's senior 22 citizens and the State's minority senior citizens. 23 (4) To receive and disburse State and federal funds made 24 available directly to the Department including those funds 25 made available under the Older Americans Act and the Senior 26 Community Service Employment Program for providing services 27 for senior citizens and minority senior citizens or for 28 purposes related thereto, and shall develop and administer 29 any State Plan for the Aging required by federal law. 30 (5) To solicit, accept, hold, and administer in behalf 31 of the State any grants or legacies of money, securities, or 32 property to the State of Illinois for services to senior SB1854 Enrolled -29- LRB9215370EGfg 1 citizens and minority senior citizens or purposes related 2 thereto. 3 (6) To provide consultation and assistance to 4 communities, area agencies on aging, and groups developing 5 local services for senior citizens and minority senior 6 citizens. 7 (7) To promote community education regarding the 8 problems of senior citizens and minority senior citizens 9 through institutes, publications, radio, television and the 10 local press. 11 (8) To cooperate with agencies of the federal government 12 in studies and conferences designed to examine the needs of 13 senior citizens and minority senior citizens and to prepare 14 programs and facilities to meet those needs. 15 (9) To establish and maintain information and referral 16 sources throughout the State when not provided by other 17 agencies. 18 (10) To provide the staff support as may reasonably be 19 required by the Council and the Coordinating Committee of 20 State Agencies Serving Older Persons. 21 (11) To make and enforce rules and regulations necessary 22 and proper to the performance of its duties. 23 (12) To establish and fund programs or projects or 24 experimental facilities that are specially designed as 25 alternatives to institutional care. 26 (13) To develop a training program to train the 27 counselors presently employed by the Department's aging 28 network to provide Medicare beneficiaries with counseling and 29 advocacy in Medicare, private health insurance, and related 30 health care coverage plans. The Department shall report to 31 the General Assembly on the implementation of the training 32 program on or before December 1, 1986. 33 (14) To make a grant to an institution of higher 34 learning to study the feasibility of establishing and SB1854 Enrolled -30- LRB9215370EGfg 1 implementing an affirmative action employment plan for the 2 recruitment, hiring, training and retraining of persons 60 or 3 more years old for jobs for which their employment would not 4 be precluded by law. 5 (15) To present one award annually in each of the 6 categories of community service, education, the performance 7 and graphic arts, and the labor force to outstanding Illinois 8 senior citizens and minority senior citizens in recognition 9 of their individual contributions to either community 10 service, education, the performance and graphic arts, or the 11 labor force. The awards shall be presented to four senior 12 citizens and minority senior citizens selected from a list of 13 44 nominees compiled annually by the Department. Nominations 14 shall be solicited from senior citizens' service providers, 15 area agencies on aging, senior citizens' centers, and senior 16 citizens' organizations. The Department shall consult with 17 the Coordinating Committee of State Agencies Serving Older 18 Persons to determine which of the nominees shall be the 19 recipient in each category of community service. The 20 Department shall establish a central location within the 21 State to be designated as the Senior Illinoisans Hall of Fame 22 for the public display of all the annual awards, or replicas 23 thereof. 24 (16) To establish multipurpose senior centers through 25 area agencies on aging and to fund those new and existing 26 multipurpose senior centers through area agencies on aging, 27 the establishment and funding to begin in such areas of the 28 State as the Department shall designate by rule and as 29 specifically appropriated funds become available. 30 (17) To develop the content and format of the 31 acknowledgment regarding non-recourse reverse mortgage loans 32 under Section 6.1 of the Illinois Banking Act; to provide 33 independent consumer information on reverse mortgages and 34 alternatives; and to refer consumers to independent SB1854 Enrolled -31- LRB9215370EGfg 1 counseling services with expertise in reverse mortgages. 2 (18) To develop a pamphlet in English and Spanish which 3 may be used by physicians licensed to practice medicine in 4 all of its branches pursuant to the Medical Practice Act of 5 1987, pharmacists licensed pursuant to the Pharmacy Practice 6 Act of 1987, and Illinois residents 65 years of age or older 7 for the purpose of assisting physicians, pharmacists, and 8 patients in monitoring prescriptions provided by various 9 physicians and to aid persons 65 years of age or older in 10 complying with directions for proper use of pharmaceutical 11 prescriptions. The pamphlet may provide space for recording 12 information including but not limited to the following: 13 (a) name and telephone number of the patient; 14 (b) name and telephone number of the prescribing 15 physician; 16 (c) date of prescription; 17 (d) name of drug prescribed; 18 (e) directions for patient compliance; and 19 (f) name and telephone number of dispensing 20 pharmacy. 21 In developing the pamphlet, the Department shall consult 22 with the Illinois State Medical Society, the Center for 23 Minority Health Services, the Illinois Pharmacists 24 Association and senior citizens organizations. The 25 Department shall distribute the pamphlets to physicians, 26 pharmacists and persons 65 years of age or older or various 27 senior citizen organizations throughout the State. 28 (19) To conduct a study by April 1, 1994 of the 29 feasibility of implementing the Senior Companion Program 30 throughout the State for the fiscal year beginning July 1, 31 1994. 32 (20) With respect to contracts in effect on July 1, 33 1994, the Department shall increase the grant amounts so that 34 the reimbursement rates paid through the community care SB1854 Enrolled -32- LRB9215370EGfg 1 program for chore housekeeping services and homemakers are at 2 the same rate, which shall be the higher of the 2 rates 3 currently paid. With respect to all contracts entered into, 4 renewed, or extended on or after July 1, 1994, the 5 reimbursement rates paid through the community care program 6 for chore housekeeping services and homemakers shall be the 7 same. 8 (21) From funds appropriated to the Department from the 9 Meals on Wheels Fund, a special fund in the State treasury 10 that is hereby created, and in accordance with State and 11 federal guidelines and the intrastate funding formula, to 12 make grants to area agencies on aging, designated by the 13 Department, for the sole purpose of delivering meals to 14 homebound persons 60 years of age and older. 15 (22) To distribute, through its area agencies on aging, 16 information alerting seniors on safety issues regarding 17 emergency weather conditions, including extreme heat and 18 cold, flooding, tornadoes, electrical storms, and other 19 severe storm weather. The information shall include all 20 necessary instructions for safety and all emergency telephone 21 numbers of organizations that will provide additional 22 information and assistance. 23 (23) To develop guidelines for the organization and 24 implementation of Volunteer Services Credit Programs to be 25 administered by Area Agencies on Aging or community based 26 senior service organizations. The Department shall hold 27 public hearings on the proposed guidelines for public 28 comment, suggestion, and determination of public interest. 29 The guidelines shall be based on the findings of other states 30 and of community organizations in Illinois that are currently 31 operating volunteer services credit programs or demonstration 32 volunteer services credit programs. The Department shall 33 offer guidelines for all aspects of the programs including, 34 but not limited to, the following: SB1854 Enrolled -33- LRB9215370EGfg 1 (a) types of services to be offered by volunteers; 2 (b) types of services to be received upon the 3 redemption of service credits; 4 (c) issues of liability for the volunteers and the 5 administering organizations; 6 (d) methods of tracking service credits earned and 7 service credits redeemed; 8 (e) issues of time limits for redemption of service 9 credits; 10 (f) methods of recruitment of volunteers; 11 (g) utilization of community volunteers, community 12 service groups, and other resources for delivering 13 services to be received by service credit program 14 clients; 15 (h) accountability and assurance that services will 16 be available to individuals who have earned service 17 credits; and 18 (i) volunteer screening and qualifications. 19 The Department shall submit a written copy of the guidelines 20 to the General Assembly by July 1, 1998. 21 (Source: P.A. 89-249, eff. 8-4-95; 89-580, eff. 1-1-97; 22 90-251, eff. 1-1-98; revised 12-07-01.) 23 Section 11. The Children and Family Services Act is 24 amended by changing Section 7 and setting forth and 25 renumbering multiple versions of Section 5d as follows: 26 (20 ILCS 505/5d) 27 Sec. 5d. The Direct Child Welfare Service Employee 28 License Board. 29 (a) For purposes of this Section: 30 (1) "Board" means the Direct Child Welfare Service 31 Employee License Board. 32 (2) "Director" means the Director of Children and SB1854 Enrolled -34- LRB9215370EGfg 1 Family Services. 2 (b) The Direct Child Welfare Service Employee License 3 Board is created within the Department of Children and Family 4 Services and shall consist of 9 members appointed by the 5 Director. The Director shall annually designate a 6 chairperson and vice-chairperson of the Board. The 7 membership of the Board must be composed as follows: (i) 5 8 licensed professionals from the field of human services with 9 a human services degree or equivalent course work as required 10 by rule of the Department and who are in good standing within 11 their profession, at least 2 of which must be employed in the 12 private not-for-profit sector and at least one of which in 13 the public sector; (ii) 2 faculty members of an accredited 14 university who have child welfare experience and are in good 15 standing within their profession and (iii) 2 members of the 16 general public who are not licensed under this Act or a 17 similar rule and will represent consumer interests. 18 In making the first appointments, the Director shall 19 appoint 3 members to serve for a term of one year, 3 members 20 to serve for a term of 2 years, and 3 members to serve for a 21 term of 3 years, or until their successors are appointed and 22 qualified. Their successors shall be appointed to serve 23 3-year terms, or until their successors are appointed and 24 qualified. Appointments to fill unexpired vacancies shall be 25 made in the same manner as original appointments. No member 26 may be reappointed if a reappointment would cause that member 27 to serve on the Board for longer than 6 consecutive years. 28 Board membership must have reasonable representation from 29 different geographic areas of Illinois, and all members must 30 be residents of this State. 31 The Director may terminate the appointment of any member 32 for good cause, including but not limited to (i) unjustified 33 absences from Board meetings or other failure to meet Board 34 responsibilities, (ii) failure to recuse himself or herself SB1854 Enrolled -35- LRB9215370EGfg 1 when required by subsection (c) of this Section or Department 2 rule, or (iii) failure to maintain the professional position 3 required by Department rule. No member of the Board may have 4 a pending or indicated report of child abuse or neglect or a 5 pending complaint or criminal conviction of any of the 6 offenses set forth in paragraph (b) of Section 4.2 of the 7 Child Care Act of 1969. 8 The members of the Board shall receive no compensation 9 for the performance of their duties as members, but each 10 member shall be reimbursed for his or her reasonable and 11 necessary expenses incurred in attending the meetings of the 12 Board. 13 (c) The Board shall make recommendations to the Director 14 regarding licensure rules. Board members must recuse 15 themselves from sitting on any matter involving an employee 16 of a child welfare agency at which the Board member is an 17 employee or contractual employee. The Board shall make a 18 final determination concerning revocation, suspension, or 19 reinstatement of an employee's direct child welfare service 20 license after a hearing conducted under the Department's 21 rules. Upon notification of the manner of the vote to all the 22 members, votes on a final determination may be cast in 23 person, by telephonic or electronic means, or by mail at the 24 discretion of the chairperson. A simple majority of the 25 members appointed and serving is required when Board members 26 vote by mail or by telephonic or electronic means. A 27 majority of the currently appointed and serving Board members 28 constitutes a quorum. A majority of a quorum is required 29 when a recommendation is voted on during a Board meeting. A 30 vacancy in the membership of the Board shall not impair the 31 right of a quorum to perform all the duties of the Board. 32 Board members are not personally liable in any action based 33 upon a disciplinary proceeding or otherwise for any action 34 taken in good faith as a member of the Board. SB1854 Enrolled -36- LRB9215370EGfg 1 (d) The Director may assign Department employees to 2 provide staffing services to the Board. The Department must 3 promulgate any rules necessary to implement and administer 4 the requirements of this Section. 5 (Source: P.A. 92-471, eff. 8-22-01.) 6 (20 ILCS 505/5e) 7 Sec. 5e.5d.Advocacy Office for Children and Families. 8 The Department of Children and Family Services shall 9 establish and maintain an Advocacy Office for Children and 10 Families that shall, in addition to other duties assigned by 11 the Director, receive and respond to complaints that may be 12 filed by children, parents, caretakers, and relatives of 13 children receiving child welfare services from the Department 14 of Children and Family Services or its agents. The 15 Department shall promulgate policies and procedures for 16 filing, processing, investigating, and resolving the 17 complaints. The Department shall make a final report to the 18 complainant of its findings. If a final report is not 19 completed, the Department shall report on its disposition 20 every 30 days. The Advocacy Office shall include a statewide 21 toll-free telephone number that may be used to file 22 complaints, or to obtain information about the delivery of 23 child welfare services by the Department or its agents. This 24 telephone number shall be included in all appropriate notices 25 and handbooks regarding services available through the 26 Department. 27 (Source: P.A. 92-334, eff. 8-10-01; revised 10-17-01.) 28 (20 ILCS 505/7) (from Ch. 23, par. 5007) 29 Sec. 7. Placement of children; considerations. 30 (a) In placing any child under this Act, the Department 31 shall place such child, as far as possible, in the care and 32 custody of some individual holding the same religious belief SB1854 Enrolled -37- LRB9215370EGfg 1 as the parents of the child, or with some child care facility 2 which is operated by persons of like religious faith as the 3 parents of such child. 4 (b) In placing a child under this Act, the Department 5 may place a child with a relative if the Department has 6 reason to believe that the relative will be able to 7 adequately provide for the child's safety and welfare. The 8 Department may not place a child with a relative, with the 9 exception of certain circumstances which may be waived as 10 defined by the Department in rules, if the results of a check 11 of the Law Enforcement Agency Data System (LEADS) identifies 12 a prior criminal conviction of the relative or any adult 13 member of the relative's household for any of the following 14 offenses under the Criminal Code of 1961: 15 (1) murder; 16 (1.1) solicitation of murder; 17 (1.2) solicitation of murder for hire; 18 (1.3) intentional homicide of an unborn child; 19 (1.4) voluntary manslaughter of an unborn child; 20 (1.5) involuntary manslaughter; 21 (1.6) reckless homicide; 22 (1.7) concealment of a homicidal death; 23 (1.8) involuntary manslaughter of an unborn child; 24 (1.9) reckless homicide of an unborn child; 25 (1.10) drug-induced homicide; 26 (2) a sex offense under Article 11, except offenses 27 described in Sections 11-7, 11-8, 11-12, and 11-13; 28 (3) kidnapping; 29 (3.1) aggravated unlawful restraint; 30 (3.2) forcible detention; 31 (3.3) aiding and abetting child abduction; 32 (4) aggravated kidnapping; 33 (5) child abduction; 34 (6) aggravated battery of a child; SB1854 Enrolled -38- LRB9215370EGfg 1 (7) criminal sexual assault; 2 (8) aggravated criminal sexual assault; 3 (8.1) predatory criminal sexual assault of a child; 4 (9) criminal sexual abuse; 5 (10) aggravated sexual abuse; 6 (11) heinous battery; 7 (12) aggravated battery with a firearm; 8 (13) tampering with food, drugs, or cosmetics; 9 (14) drug-induced infliction of great bodily harm; 10 (15) aggravated stalking; 11 (16) home invasion; 12 (17) vehicular invasion; 13 (18) criminal transmission of HIV; 14 (19) criminal abuse or neglect of an elderly or 15 disabled person; 16 (20) child abandonment; 17 (21) endangering the life or health of a child; 18 (22) ritual mutilation; 19 (23) ritualized abuse of a child; 20 (24) an offense in any other state the elements of 21 which are similar and bear a substantial relationship to 22 any of the foregoing offenses. 23 For the purpose of this subsection, "relative" shall include 24 any person, 21 years of age or over, other than the parent, 25 who (i) is currently related to the child in any of the 26 following ways by blood or adoption: grandparent, sibling, 27 great-grandparent, uncle, aunt, nephew, niece, first cousin, 28 second cousin, godparent, great-uncle, or great-aunt; or (ii) 29 is the spouse of such a relative; or (iii) is the child's 30 step-father, step-mother, or adult step-brother or 31 step-sister; "relative" also includes a person related in any 32 of the foregoing ways to a sibling of a child, even though 33 the person is not related to the child, when the child and 34 its sibling are placed together with that person. A relative SB1854 Enrolled -39- LRB9215370EGfg 1 with whom a child is placed pursuant to this subsection may, 2 but is not required to, apply for licensure as a foster 3 family home pursuant to the Child Care Act of 1969; provided, 4 however, that as of July 1, 1995, foster care payments shall 5 be made only to licensed foster family homes pursuant to the 6 terms of Section 5 of this Act. 7 (c) In placing a child under this Act, the Department 8 shall ensure that the child's health, safety, and best 9 interests are met in making a family foster care placement. 10 The Department shall consider the individual needs of the 11 child and the capacity of the prospective foster or adoptive 12 parents to meet the needs of the child. When a child must be 13 placed outside his or her home and cannot be immediately 14 returned to his or her parents or guardian, a comprehensive, 15 individualized assessment shall be performed of that child at 16 which time the needs of the child shall be determined. Only 17 if race, color, or national origin is identified as a 18 legitimate factor in advancing the child's best interests 19 shall it be considered. Race, color, or national origin 20 shall not be routinely considered in making a placement 21 decision. The Department shall make special efforts for the 22 diligent recruitment of potential foster and adoptive 23 families that reflect the ethnic and racial diversity of the 24 children for whom foster and adoptive homes are needed. 25 "Special efforts" shall include contacting and working with 26 community organizations and religious organizations and may 27 include contracting with those organizations, utilizing local 28 media and other local resources, and conducting outreach 29 activities. 30 (c-1) At the time of placement, the Department shall 31 consider concurrent planning, as described in subsection 32 (l-1) of Section 5, so that permanency may occur at the 33 earliest opportunity. Consideration should be given so that 34 if reunification fails or is delayed, the placement made is SB1854 Enrolled -40- LRB9215370EGfg 1 the best available placement to provide permanency for the 2 child. 3 (d) The Department may accept gifts, grants, offers of 4 services, and other contributions to use in making special 5 recruitment efforts. 6 (e) The Department in placing children in adoptive or 7 foster care homes may not, in any policy or practice relating 8 to the placement of children for adoption or foster care, 9 discriminate against any child or prospective adoptive or 10 foster parent on the basis of race. 11 (Source: P.A. 92-192, eff. 1-1-02; 92-328, eff. 1-1-02; 12 92-334, eff. 8-10-01; revised 10-15-01.) 13 Section 12. The Department of Commerce and Community 14 Affairs Law of the Civil Administrative Code of Illinois is 15 amended by changing Sections 605-605 and 605-710 as follows: 16 (20 ILCS 605/605-605) (was 20 ILCS 605/46.57) 17 Sec. 605-605. Illinois Product and Services Exchange Law 18Act. 19 (a) This Section may be cited as the Illinois Product 20 and Services Exchange LawAct. 21 (b) It is hereby found and declared that many large 22 Illinois firms and government agencies are purchasing 23 products and services from vendors in locations other than 24 Illinois, and that there is a need to assist those large 25 businesses and government agencies in locating Illinois 26 vendors who can provide those products and services of equal 27 quality and at comparable or lower costs; it is further found 28 and declared that the purchase of needed products and 29 services within the State by large firms and government 30 agencies would aid the survival and expansion of small 31 businesses in Illinois and help to strengthen the State's 32 economy. SB1854 Enrolled -41- LRB9215370EGfg 1 (c) As used in this Section, "Illinois Product and 2 Services Exchange" means a program aimed at promoting the 3 purchase of goods and services produced in Illinois by firms 4 and government agencies within the State. 5 (d) The Department shall have the authority to establish 6 and administer an Illinois Product and Services Exchange 7 Program, which may include, but is not limited to, the 8 following powers and duties: 9 (1) To accept grants, loans, or appropriations from 10 the federal government or the State or any agency or 11 instrumentality thereof, and to assess fees for any 12 services performed under the Illinois Product and 13 Services Exchange Program, to carry out the Program. 14 (2) To form an Illinois Product and Services 15 Exchange Council, made up of Illinois large firms and 16 small firms to provide advice and counsel in directing a 17 statewide Product and Services Exchange Program. 18 (3) To publicize and advertise to Illinois firms 19 and government agencies the importance and benefits of 20 buying goods and services provided by vendors located 21 within the State. 22 (4) To secure the cooperation of Illinois' large 23 firms, federal, State, and local governments, non-profit 24 agencies, and others to carry out this program. 25 (5) To match the needs for products and services of 26 business firms and government agencies with the 27 capabilities of small Illinois firms that can provide 28 those needed goods and services. 29 (6) To hold purchasing agent seminars, fairs, 30 conferences, and workshops to aid small Illinois 31 businesses in obtaining contracts for goods and services 32 from larger firms and government agencies within the 33 State. 34 (7) To assist business firms and government SB1854 Enrolled -42- LRB9215370EGfg 1 agencies to analyze their buying activities and to find 2 ways to carry out those activities in an effective and 3 economical manner, while promoting subcontract activity 4 with small Illinois firms. 5 (8) To establish manual and electronic buying 6 directories, including stand alone computer data bases 7 that list qualified vendors and procurement 8 opportunities. 9 (9) To promote through other means the use by 10 government agencies and large businesses of products and 11 services produced by small Illinois firms. 12 (10) To subcontract, grant funds, or otherwise 13 participate with qualified private firms, existing 14 procurement centers, or other organizations that have 15 designed programs, approved in accordance with procedures 16 determined by the Department, that are aimed at assisting 17 small Illinois firms obtain contracts for products and 18 services from local government agencies and large 19 Illinois businesses. 20 (11) To develop and administer guidelines for 21 projects that provide assistance to the Department in 22 connection with the Illinois Product and Services 23 Exchange Program. 24 (Source: P.A. 91-239, eff. 1-1-00; revised 1-25-02.) 25 (20 ILCS 605/605-710) 26 Sec. 605-710. Regional tourism development 27 organizations. 28 (a) The Department may, subject to appropriation, 29 provide grants from the Tourism Promotion Fund for the 30 administrative costs of not-for-profit regional tourism 31 development organizations that assist the Department in 32 developing tourism throughout a multi-county geographical 33 area designated by the Department. Regional tourism SB1854 Enrolled -43- LRB9215370EGfg 1 development organizations receiving funds under this Section 2 may be required by the Department to submit to audits of 3 contracts awarded by the Department to determine whether the 4 regional tourism development organization has performed all 5 contractual obligations under those contracts. 6 Every employee of a regional tourism development 7 organization receiving funds under this Section shall 8 disclose to the organization's governing board and to the 9 Department any economic interest that employee may have in 10 any entity with which the regional tourism development 11 organization has contracted or to which the regional tourism 12 development organization has granted funds. 13 (b) The Department, from moneys transferred from the 14 General Revenue Fund to the Tourism Promotion Fund and 15 appropriated from the Tourism Promotion Fund, shall first 16 provide funding of $5,000,000 annually to a governmental 17 entity with at least 2,000,000 square feet of exhibition 18 space that has as part of its duties the promotion of 19 cultural, scientific and trade exhibits and events within a 20 county with a population of more than 3,000,000, to be used 21 for any of the governmental entity's general corporate 22 purposes. 23 (Source: P.A. 92-11, eff. 6-11-01; 92-38, eff. 6-28-01; 24 revised 9-18-01.) 25 Section 13. The Interagency Wetland Policy Act of 1989 26 is amended by changing Section 2-1 as follows: 27 (20 ILCS 830/2-1) (from Ch. 96 1/2, par. 9702-1) 28 Sec. 2-1. Interagency Wetlands Committee. An Interagency 29 Wetlands Committee, chaired by the Director of Natural 30 Resources or his or her representative, is established. The 31 Directors of the following agencies, or their respective 32 representativesrepresentative, shall serve as members of the SB1854 Enrolled -44- LRB9215370EGfg 1 Committee: 2 CapitalCapitolDevelopment Board, 3 Department of Agriculture, 4 Department of Commerce and Community Affairs, 5 Environmental Protection Agency, 6 Department of Transportation, and 7 Historic Preservation Agency. 8 The Interagency Wetlands Committee shall also include 2 9 additional persons with relevant expertise designated by the 10 Director of Natural Resources. 11 The Interagency Wetlands Committee shall advise the 12 Director in the administration of this Act. This will 13 include: 14 (a) Developing rules and regulations for the 15 implementation and administration of this Act. 16 (b) Establishing guidelines for developing 17 individual Agency Action Plans. 18 (c) Developing and adopting technical procedures 19 for the consistent identification, delineation and 20 evaluation of existing wetlands and quantification of 21 their functional values and the evaluation of wetland 22 restoration or creation projects. 23 (d) Developing a research program for wetland 24 function, restoration and creation. 25 (e) Preparing reports, including: 26 (1) A biennial report to the Governor and the 27 General Assembly on the impact of State supported 28 activities on wetlands. 29 (2) A comprehensive report on the status of 30 the State's wetland resources, including 31 recommendations for additional programs, by January 32 15, 1991. 33 (f) Development of educational materials to promote 34 the protection of wetlands. SB1854 Enrolled -45- LRB9215370EGfg 1 (Source: P.A. 89-445, eff. 2-7-96; revised 12-2-01.) 2 Section 14. The Department of State Police Law of the 3 Civil Administrative Code of Illinois is amended by changing 4 Sections 2605-302 and 2605-555 as follows: 5 (20 ILCS 2605/2605-302) (was 20 ILCS 2605/55a in part) 6 Sec. 2605-302. Arrest reports. 7 (a) When an individual is arrested, the following 8 information must be made available to the news media for 9 inspection and copying: 10 (1) Information that identifies the individual, 11 including the name, age, address, and photograph, when 12 and if available. 13 (2) Information detailing any charges relating to 14 the arrest. 15 (3) The time and location of the arrest. 16 (4) The name of the investigating or arresting law 17 enforcement agency. 18 (5) If the individual is incarcerated, the amount 19 of any bail or bond. 20 (6) If the individual is incarcerated, the time and 21 date that the individual was received, discharged, or 22 transferred from the arresting agency's custody. 23 (b) The information required by this Section must be 24 made available to the news media for inspection and copying 25 as soon as practicable, but in no event shall the time period 26 exceed 72 hours from the arrest. The information described 27 in items (3), (4), (5), and (6) of subsection (a), however, 28 may be withheld if it is determined that disclosure would (i) 29 interfere with pending or actually and reasonably 30 contemplated law enforcement proceedings conducted by any law 31 enforcement or correctional agency; (ii) endanger the life or 32 physical safety of law enforcement or correctional personnel SB1854 Enrolled -46- LRB9215370EGfg 1 or any other person; or (iii) compromise the security of any 2 correctional facility. 3 (c) For the purposes of this Section, the term "news 4 media" means personnel of a newspaper or other periodical 5 issued at regular intervals whether in print or electronic 6 format, a news service whether in print or electronic format, 7 a radio station, a television station, a television network, 8 a community antenna television service, or a person or 9 corporation engaged in making news reels or other motion 10 picture news for public showing. 11 (d) Each law enforcement or correctional agency may 12 charge fees for arrest records, but in no instance may the 13 fee exceed the actual cost of copying and reproduction. The 14 fees may not include the cost of the labor used to reproduce 15 the arrest record. 16 (e) The provisions of this Section do not supersede the 17 confidentiality provisions for arrest records of the Juvenile 18 Court Act of 1987. 19 (Source: P.A. 91-309, eff. 7-29-99; 92-16, eff. 6-28-01; 20 incorporates 92-335, eff. 8-10-01; revised 9-17-01.) 21 (20 ILCS 2605/2605-555) 22 Sec. 2605-555. Pilot program; Project Exile. 23 (a) The Department shall establish a Project Exile pilot 24 program to combat gun violence. 25 (b) Through the pilot program, the Department, in 26 coordination with local law enforcement agencies, State's 27 Attorneys, and United States Attorneys, shall, to the extent 28 possible, encourage the prosecution in federal court of all 29 persons who illegally use, attempt to use, or threaten to use 30 firearms against the person or property of another, of all 31 persons who use or possess a firearm in connection with a 32 violation of the Cannabis Control Act or the Illinois 33 Controlled Substances Act, all persons who have been SB1854 Enrolled -47- LRB9215370EGfg 1 convicted of a felony under the laws of this State or any 2 other jurisdiction who possess any weapon prohibited under 3 Section 24-1 of the Criminal Code of 1961 or any firearm or 4 any firearm ammunition, and of all persons who use or possess 5 a firearm in connection with a violation of an order of 6 protection issued under the Illinois Domestic Violence Act of 7 1986 or Article 112A of the Code of Criminal Procedure of 8 1963 or in connection with the offense of domestic battery. 9 The program shall also encourage public outreach by law 10 enforcement agencies. 11 (c) There is created the Project Exile Fund, a special 12 fund in the State treasury. Moneys appropriated for the 13 purposes of Project Exile and moneys from any other private 14 or public source, including without limitation grants from 15 the Department of Commerce and Community Affairs, shall be 16 deposited into the Fund. Moneys in the Fund, subject to 17 appropriation, may be used by the Department of State Police 18 to develop and administer the Project Exile pilot program. 19 (d) The Department shall report to the General Assembly 20 by March 1, 2003 regarding the implementation and effects of 21 the Project Exile pilot program and shall by that date make 22 recommendations to the General Assembly for changes in the 23 program that the Department deems appropriate. 24 The requirement for reporting to the General Assembly 25 shall be satisfied by filing copies of the report with the 26 Speaker, the Minority Leader, and the Clerk of the House of 27 Representatives,andwith the President, the Minority Leader, 28 and the Secretary of the Senate, and with the Legislative 29 Research Unit, as required by Section 3.1 of the General 30 Assembly Organization Act, and filing such additional copies 31 with the State Government Report Distribution Center for the 32 General Assembly as is required under paragraph (t) of 33 Section 7 of the State Library Act. 34 (Source: P.A. 92-332, eff. 8-10-01; 92-342, eff. 8-10-01; SB1854 Enrolled -48- LRB9215370EGfg 1 revised 10-15-01.) 2 Section 15. The Criminal Identification Act is amended 3 by changing Section 5 as follows: 4 (20 ILCS 2630/5) (from Ch. 38, par. 206-5) 5 Sec. 5. Arrest reports; expungement. 6 (a) All policing bodies of this State shall furnish to 7 the Department, daily, in the form and detail the Department 8 requires, fingerprints and descriptions of all persons who 9 are arrested on charges of violating any penal statute of 10 this State for offenses that are classified as felonies and 11 Class A or B misdemeanors and of all minors of the age of 10 12 and over who have been arrested for an offense which would be 13 a felony if committed by an adult, and may forward such 14 fingerprints and descriptions for minors arrested for Class A 15 or B misdemeanors. Moving or nonmoving traffic violations 16 under the Illinois Vehicle Code shall not be reported except 17 for violations of Chapter 4, Section 11-204.1, or Section 18 11-501 of that Code. In addition, conservation offenses, as 19 defined in the Supreme Court Rule 501(c), that are classified 20 as Class B misdemeanors shall not be reported. 21 Whenever an adult or minor prosecuted as an adult, not 22 having previously been convicted of any criminal offense or 23 municipal ordinance violation, charged with a violation of a 24 municipal ordinance or a felony or misdemeanor, is acquitted 25 or released without being convicted, whether the acquittal or 26 release occurred before, on, or after the effective date of 27 this amendatory Act of 1991, the Chief Judge of the circuit 28 wherein the charge was brought, any judge of that circuit 29 designated by the Chief Judge, or in counties of less than 30 3,000,000 inhabitants, the presiding trial judge at the 31 defendant's trial may upon verified petition of the defendant 32 order the record of arrest expunged from the official records SB1854 Enrolled -49- LRB9215370EGfg 1 of the arresting authority and the Department and order that 2 the records of the clerk of the circuit court be sealed until 3 further order of the court upon good cause shown and the name 4 of the defendant obliterated on the official index required 5 to be kept by the circuit court clerk under Section 16 of the 6 Clerks of Courts Act, but the order shall not affect any 7 index issued by the circuit court clerk before the entry of 8 the order. The Department may charge the petitioner a fee 9 equivalent to the cost of processing any order to expunge or 10 seal the records, and the fee shall be deposited into the 11 State Police Services Fund. The records of those arrests, 12 however, that result in a disposition of supervision for any 13 offense shall not be expunged from the records of the 14 arresting authority or the Department nor impounded by the 15 court until 2 years after discharge and dismissal of 16 supervision. Those records that result from a supervision 17 for a violation of Section 3-707, 3-708, 3-710, 5-401.3, or 18 11-503 of the Illinois Vehicle Code or a similar provision of 19 a local ordinance, or for a violation of Section 12-3.2, 20 12-15 or 16A-3 of the Criminal Code of 1961, or probation 21 under Section 10 of the Cannabis Control Act, Section 410 of 22 the Illinois Controlled Substances Act, Section 12-4.3(b)(1) 23 and (2) of the Criminal Code of 1961 (as those provisions 24 existed before their deletion by Public Act 89-313), Section 25 10-102 of the Illinois Alcoholism and Other Drug Dependency 26 Act when the judgment of conviction has been vacated, Section 27 40-10 of the Alcoholism and Other Drug Abuse and Dependency 28 Act when the judgment of conviction has been vacated, or 29 Section 10 of the Steroid Control Act shall not be expunged 30 from the records of the arresting authority nor impounded by 31 the court until 5 years after termination of probation or 32 supervision. Those records that result from a supervision 33 for a violation of Section 11-501 of the Illinois Vehicle 34 Code or a similar provision of a local ordinance, shall not SB1854 Enrolled -50- LRB9215370EGfg 1 be expunged. All records set out above may be ordered by the 2 court to be expunged from the records of the arresting 3 authority and impounded by the court after 5 years, but shall 4 not be expunged by the Department, but shall, on court order 5 be sealed by the Department and may be disseminated by the 6 Department only as required by law or to the arresting 7 authority, the State's Attorney, and the court upon a later 8 arrest for the same or a similar offense or for the purpose 9 of sentencing for any subsequent felony. Upon conviction for 10 any offense, the Department of Corrections shall have access 11 to all sealed records of the Department pertaining to that 12 individual. 13 (a-5) Those records maintained by the Department for 14 persons arrested prior to their 17th birthday shall be 15 expunged as provided in Section 5-915 of the Juvenile Court 16 Act of 1987. 17 (b) Whenever a person has been convicted of a crime or 18 of the violation of a municipal ordinance, in the name of a 19 person whose identity he has stolen or otherwise come into 20 possession of, the aggrieved person from whom the identity 21 was stolen or otherwise obtained without authorization, upon 22 learning of the person having been arrested using his 23 identity, may, upon verified petition to the chief judge of 24 the circuit wherein the arrest was made, have a court order 25 entered nunc pro tunc by the chief judge to correct the 26 arrest record, conviction record, if any, and all official 27 records of the arresting authority, the Department, other 28 criminal justice agencies, the prosecutor, and the trial 29 court concerning such arrest, if any, by removing his name 30 from all such records in connection with the arrest and 31 conviction, if any, and by inserting in the records the name 32 of the offender, if known or ascertainable, in lieu of the 33 aggrieved'shasname. The records of the clerk of the 34 circuit court clerk shall be sealed until further order of SB1854 Enrolled -51- LRB9215370EGfg 1 the court upon good cause shown and the name of the aggrieved 2 person obliterated on the official index required to be kept 3 by the circuit court clerk under Section 16 of the Clerks of 4 Courts Act, but the order shall not affect any index issued 5 by the circuit court clerk before the entry of the order. 6 Nothing in this Section shall limit the Department of State 7 Police or other criminal justice agencies or prosecutors from 8 listing under an offender's name the false names he or she 9 has used. For purposes of this Section, convictions for 10 moving and nonmoving traffic violations other than 11 convictions for violations of Chapter 4, Section 11-204.1 or 12 Section 11-501 of the Illinois Vehicle Code shall not be a 13 bar to expunging the record of arrest and court records for 14 violation of a misdemeanor or municipal ordinance. 15 (c) Whenever a person who has been convicted of an 16 offense is granted a pardon by the Governor which 17 specifically authorizes expungement, he may, upon verified 18 petition to the chief judge of the circuit where the person 19 had been convicted, any judge of the circuit designated by 20 the Chief Judge, or in counties of less than 3,000,000 21 inhabitants, the presiding trial judge at the defendant's 22 trial, may have a court order entered expunging the record of 23 arrest from the official records of the arresting authority 24 and order that the records of the clerk of the circuit court 25 and the Department be sealed until further order of the court 26 upon good cause shown or as otherwise provided herein, and 27 the name of the defendant obliterated from the official index 28 requested to be kept by the circuit court clerk under Section 29 16 of the Clerks of Courts Act in connection with the arrest 30 and conviction for the offense for which he had been pardoned 31 but the order shall not affect any index issued by the 32 circuit court clerk before the entry of the order. All 33 records sealed by the Department may be disseminated by the 34 Department only as required by law or to the arresting SB1854 Enrolled -52- LRB9215370EGfg 1 authority, the State's Attorney, and the court upon a later 2 arrest for the same or similar offense or for the purpose of 3 sentencing for any subsequent felony. Upon conviction for 4 any subsequent offense, the Department of Corrections shall 5 have access to all sealed records of the Department 6 pertaining to that individual. Upon entry of the order of 7 expungement, the clerk of the circuit court shall promptly 8 mail a copy of the order to the person who was pardoned. 9 (c-5) Whenever a person has been convicted of criminal 10 sexual assault, aggravated criminal sexual assault, predatory 11 criminal sexual assault of a child, criminal sexual abuse, or 12 aggravated criminal sexual abuse, the victim of that offense 13 may request that the State's Attorney of the county in which 14 the conviction occurred file a verified petition with the 15 presiding trial judge at the defendant's trial to have a 16 court order entered to seal the records of the clerk of the 17 circuit court in connection with the proceedings of the trial 18 court concerning that offense. However, the records of the 19 arresting authority and the Department of State Police 20 concerning the offense shall not be sealed. The court, upon 21 good cause shown, shall make the records of the clerk of the 22 circuit court in connection with the proceedings of the trial 23 court concerning the offense available for public inspection. 24 (d) Notice of the petition for subsections (a), (b), and 25 (c) shall be served upon the State's Attorney or prosecutor 26 charged with the duty of prosecuting the offense, the 27 Department of State Police, the arresting agency and the 28 chief legal officer of the unit of local government affecting 29 the arrest. Unless the State's Attorney or prosecutor, the 30 Department of State Police, the arresting agency or such 31 chief legal officer objects to the petition within 30 days 32 from the date of the notice, the court shall enter an order 33 granting or denying the petition. The clerk of the court 34 shall promptly mail a copy of the order to the person, the SB1854 Enrolled -53- LRB9215370EGfg 1 arresting agency, the prosecutor, the Department of State 2 Police and such other criminal justice agencies as may be 3 ordered by the judge. 4 (e) Nothing herein shall prevent the Department of State 5 Police from maintaining all records of any person who is 6 admitted to probation upon terms and conditions and who 7 fulfills those terms and conditions pursuant to Section 10 of 8 the Cannabis Control Act, Section 410 of the Illinois 9 Controlled Substances Act, Section 12-4.3 of the Criminal 10 Code of 1961, Section 10-102 of the Illinois Alcoholism and 11 Other Drug Dependency Act, Section 40-10 of the Alcoholism 12 and Other Drug Abuse and Dependency Act, or Section 10 of the 13 Steroid Control Act. 14 (f) No court order issued pursuant to the expungement 15 provisions of this Section shall become final for purposes of 16 appeal until 30 days after notice is received by the 17 Department. Any court order contrary to the provisions of 18 this Section is void. 19 (g) Except as otherwise provided in subsection (c-5) of 20 this Section, the court shall not order the sealing or 21 expungement of the arrest records and records of the circuit 22 court clerk of any person granted supervision for or 23 convicted of any sexual offense committed against a minor 24 under 18 years of age. For the purposes of this Section, 25 "sexual offense committed against a minor" includes but is 26 not limited to the offenses of indecent solicitation of a 27 child or criminal sexual abuse when the victim of such 28 offense is under 18 years of age. 29 (Source: P.A. 90-590, eff. 1-1-00; 91-295, eff. 1-1-00; 30 91-357, eff. 7-29-99; revised 12-3-01.) 31 Section 16. The Department of Veterans Affairs Act is 32 amended by changing Section 2 as follows: SB1854 Enrolled -54- LRB9215370EGfg 1 (20 ILCS 2805/2) (from Ch. 126 1/2, par. 67) 2 Sec. 2. Powers and duties. The Department shall have 3 the following powers and duties: 4 To perform such acts at the request of any veteran, or 5 his or her spouse, surviving spouse or dependents as shall be 6 reasonably necessary or reasonably incident to obtaining or 7 endeavoring to obtain for the requester any advantage, 8 benefit or emolument accruing or due to such person under any 9 law of the United States, the State of Illinois or any other 10 state or governmental agency by reason of the service of such 11 veteran, and in pursuance thereof shall: 12 1. Contact veterans, their survivors and dependents 13 and advise them of the benefits of state and federal laws 14 and assist them in obtaining such benefits; 15 2. Establish field offices and direct the 16 activities of the personnel assigned to such offices; 17 3. Create a volunteer field force of accredited 18 representatives, representing educational institutions, 19 labor organizations, veterans organizations, employers, 20 churches, and farm organizations; 21 4. Conduct informational and training services; 22 5. Conduct educational programs through newspapers, 23 periodicals and radio for the specific purpose of 24 disseminating information affecting veterans and their 25 dependents; 26 6. Coordinate the services and activities of all 27 state departments having services and resources affecting 28 veterans and their dependents; 29 7. Encourage and assist in the coordination of 30 agencies within counties giving service to veterans and 31 their dependents; 32 8. Cooperate with veterans organizations and other 33 governmental agencies; 34 9. Make, alter, amend and promulgate reasonable SB1854 Enrolled -55- LRB9215370EGfg 1 rules and procedures for the administration of this Act; 2and3 10. Make and publish annual reports to the Governor 4 regarding the administration and general operation of the 5 Department; and.6 11. Encourage the State to implement more programs 7 to address the wide range of issues faced by Persian Gulf 8 War Veterans, especially those who took part in combat, 9 by creating an official commission to further study 10 Persian Gulf War Diseases. The commission shall consist 11 of 9 members appointed as follows: the Speaker and 12 Minority Leader of the House of Representatives and the 13 President and Minority Leader of the Senate shall each 14 appoint one member from the General Assembly, the 15 Governor shall appoint 4 members to represent veterans' 16 organizations, and the Department shall appoint one 17 member. The commission members shall serve without 18 compensation. 19 The Department may accept and hold on behalf of the 20 State, if for the public interest, a grant, gift, devise or 21 bequest of money or property to the Department made for the 22 general benefit of Illinois veterans, including the conduct 23 of informational and training services by the Department and 24 other authorized purposes of the Department. The Department 25 shall cause each grant, gift, devise or bequest to be kept as 26 a distinct fund and shall invest such funds in the manner 27 provided by the Public Funds Investment Act, as now or 28 hereafter amended, and shall make such reports as may be 29 required by the Comptroller concerning what funds are so held 30 and the manner in which such funds are invested. The 31 Department may make grants from these funds for the general 32 benefit of Illinois veterans. Grants from these funds, 33 except for the funds established under Sections 2.01a and 34 2.03, shall be subject to appropriation. SB1854 Enrolled -56- LRB9215370EGfg 1 The Department has the power to make grants, from funds 2 appropriated from the Korean War Veterans National Museum and 3 Library Fund, to private organizations for the benefit of the 4 Korean War Veterans National Museum and Library. 5 (Source: P.A. 92-198, eff. 8-1-01; revised 9-18-01.) 6 Section 17. The Illinois Development Finance Authority 7 Act is amended by changing Section 5 as follows: 8 (20 ILCS 3505/5) (from Ch. 48, par. 850.05) 9 Sec. 5. All official acts of the Authority shall require 10 the approval of at least 9 members. It shall be the duty of 11 the Authority to promote employment within those areas of the 12 State duly certified from time to time by the Department of 13 Commerce and Community Affairs as areas of critical labor 14 surplus. To this end the Authority shall utilize the powers 15 herein conferred upon it to assist in the development and 16 construction or acquisition of industrial projects within 17 such areas of the State. 18 The Authority is hereby authorized to utilize its powers 19 with respect to prospective industrial projects to be located 20 at any given time within any general areas then currently 21 certified by the Department of Commerce and Community Affairs 22 as areas of critical labor surplus. In addition, upon being 23 requested to utilize its powers with respect to a prospective 24 industrial project to be located outside of any areas then 25 currently certified as areas of critical labor surplus, the 26 Authority may refer such request to the Department of 27 Commerce and Community Affairs for its determination as to 28 whether the proposed location is within any specific area of 29 critical labor surplus not hitherto generally certified. If 30 the proposed location is certified by the Department as being 31 within an area of critical labor surplus, the Authority may 32 similarly utilize its powers with respect to such prospective SB1854 Enrolled -57- LRB9215370EGfg 1 industrial project. 2 In evaluating the eligibility of any prospective 3 industrial project to be located within any area of critical 4 labor surplus, the Authority shall consider,(1) the 5 financial responsibility of the prospective applicant and 6 user, and (2) the relationship between the amount of funds to 7 be provided by exercise of powers of the Authority and the 8 degree to which the project (A) will contribute to creation 9 or retention of employment, including employment in the 10 construction industry, (B) will contribute to the economic 11 development of the area in which the industrial project is 12 located and (C) will produce goods or services for which 13 there is a need or demand. 14 (Source: P.A. 92-212, eff. 8-2-01; revised 12-3-01.) 15 Section 18. The State Finance Act is amended by setting 16 forth and renumbering multiple versions of Sections 5.545, 17 5.546, and 6z-51 as follows: 18 (30 ILCS 105/5.543) 19 Sec. 5.543.5.545.The Energy Infrastructure Fund. 20 (Source: P.A. 92-12, eff. 7-1-01; revised 10-19-01.) 21 (30 ILCS 105/5.544) 22 Sec. 5.544.5.546.The Energy Efficiency Investment Fund. 23 (Source: P.A. 92-12, eff. 6-30-01; revised 10-19-01.) 24 (30 ILCS 105/5.545) 25 Sec. 5.545. The Digital Divide Elimination Fund. 26 (Source: P.A. 92-22, eff. 6-30-01.) 27 (30 ILCS 105/5.546) 28 Sec. 5.546. The Digital Divide Elimination Infrastructure 29 Fund. SB1854 Enrolled -58- LRB9215370EGfg 1 (Source: P.A. 92-22, eff. 6-30-01.) 2 (30 ILCS 105/5.547) 3 Sec. 5.547.5.545.The Medical Special Purposes Trust 4 Fund. 5 (Source: P.A. 92-37, eff. 7-1-01; revised 10-19-01.) 6 (30 ILCS 105/5.548) 7 Sec. 5.548.5.545.The Child Support Administrative 8 Fund. 9 (Source: P.A. 92-44, eff. 7-1-01; revised 19-19-01.) 10 (30 ILCS 105/5.552) 11 Sec. 5.552.5.545.The ICCB Adult Education Fund. 12 (Source: P.A. 92-49, eff. 7-9-01; revised 10-19-01.) 13 (30 ILCS 105/5.553) 14 Sec. 5.553.5.545.The Medicaid Buy-In Program Revolving 15 Fund. 16 (Source: P.A. 92-163, eff. 7-25-01; revised 10-19-01.) 17 (30 ILCS 105/5.554) 18 Sec. 5.554.5.545.The Korean War Veterans National 19 Museum and Library Fund. 20 (Source: P.A. 92-198, eff. 8-1-01; revised 10-19-01.) 21 (30 ILCS 105/5.555) 22 Sec. 5.555.5.545.The Corporate Headquarters Relocation 23 Assistance Fund. 24 (Source: P.A. 92-207, eff. 8-1-01; revised 10-19-01.) 25 (30 ILCS 105/5.556) 26 Sec. 5.556.5.545.The Statewide Economic Development 27 Fund. SB1854 Enrolled -59- LRB9215370EGfg 1 (Source: P.A. 92-208, eff. 8-2-01; revised 10-19-01.) 2 (30 ILCS 105/5.557) 3 Sec. 5.557.5.545.The Real Estate Audit Fund. 4 (Source: P.A. 92-217, eff. 8-2-01; revised 10-19-01.) 5 (30 ILCS 105/5.558) 6 Sec. 5.558.5.545.The Home Inspector Administration 7 Fund. 8 (Source: P.A. 92-239, eff. 8-3-01; revised 10-19-01.) 9 (30 ILCS 105/5.559) 10 Sec. 5.559.5.545. 5.546.The Project Exile Fund. 11 (Source: P.A. 92-332, eff. 8-10-01; 92-342, eff. 8-10-01; 12 revised 10-19-01.) 13 (30 ILCS 105/5.560) 14 Sec. 5.560.5.545.The Illinois AgriFIRST Program Fund. 15 (Source: P.A. 92-346, eff. 8-14-01; revised 10-19-01.) 16 (30 ILCS 105/5.561) 17 Sec. 5.561.5.545.The Secretary of State DUI 18 Administration Fund. 19 (Source: P.A. 92-418, eff. 8-17-01; revised 10-19-01.) 20 (30 ILCS 105/5.562) 21 Sec. 5.562.5.545.The Illinois Future Teacher Corps 22 Scholarship Fund. 23 (Source: P.A. 92-445, eff. 8-17-01; revised 10-19-01.) 24 (30 ILCS 105/5.563) 25 Sec. 5.563.5.545.The Illinois Animal Abuse Fund. 26 (Source: P.A. 92-454, eff. 1-1-02; revised 10-19-01.) SB1854 Enrolled -60- LRB9215370EGfg 1 (30 ILCS 105/5.564) 2 Sec. 5.564.5.545.The Marine Corps Scholarship Fund. 3 (Source: P.A. 92-467, eff. 1-1-02; revised 10-19-01.) 4 (30 ILCS 105/5.565) 5 Sec. 5.565.5.545.The Chicago and Northeast Illinois 6 District Council of Carpenters Fund. 7 (Source: P.A. 92-477, eff. 1-1-02; revised 10-19-01.) 8 (30 ILCS 105/5.566) 9 Sec. 5.566.5.545.The Brownfields Site Restoration 10 Program Fund. Subsections (b) and (c) of Section 5 of this 11 Act do not apply to this Fund. 12 (Source: P.A. 92-486, eff. 1-1-02; revised 10-19-01.) 13 (30 ILCS 105/5.567) 14 Sec. 5.567.5.545.The Secretary of State Police Services 15 Fund. 16 (Source: P.A. 92-501, eff. 12-19-01; revised 12-28-01.) 17 (30 ILCS 105/5.568) 18 (This Section may contain text from a Public Act with a 19 delayed effective date) 20 Sec. 5.568.5.545.The Pet Overpopulation Control Fund. 21 (Source: P.A. 92-520, eff. 6-1-02; revised 1-16-02.) 22 (30 ILCS 105/6z-51) 23 Sec. 6z-51. Budget Stabilization Fund. 24 (a) The Budget Stabilization Fund, a special fund in the 25 State Treasury, shall consist of moneys appropriated or 26 transferred to that Fund, as provided in Section 6z-43 and as 27 otherwise provided by law. 28 (b) The State Comptroller may direct the State Treasurer 29 to transfer moneys from the Budget Stabilization Fund to the SB1854 Enrolled -61- LRB9215370EGfg 1 General Revenue Fund in order to meet deficits resulting from 2 timing variations between disbursements and the receipt of 3 funds within a fiscal year. Any moneys so borrowed shall be 4 repaid by June 30 of the fiscal year in which they were 5 borrowed. 6 (Source: P.A. 92-11, eff. 6-11-01.) 7 (30 ILCS 105/6z-54) 8 Sec. 6z-54.6z-51.The Energy Infrastructure Fund. 9 (a) The Energy Infrastructure Fund is created as a 10 special fund in the State treasury. 11 (b) Money in the Energy Infrastructure Fund shall, if 12 and when the State of Illinois issues any bonded indebtedness 13 for financial assistance to new electric generating 14 facilities, as provided in Section 605-332 of the Department 15 of Commerce and Community Affairs Law of the Civil 16 Administrative Code of Illinois, be set aside and used for 17 the purpose of paying and discharging annually the principal 18 and interest on that bonded indebtedness then due and 19 payable, and for no other purpose. 20 In addition to other transfers to the General Obligation 21 Bond Retirement and Interest Fund made pursuant to Section 15 22 of the General Obligation Bond Act, upon each delivery of 23 bonds issued for financial assistance to new electric 24 generating facilities under Section 605-332 of the Department 25 of Commerce and Community Affairs Law of the Civil 26 Administrative Code of Illinois, the State Comptroller shall 27 compute and certify to the State Treasurer the total amount 28 of principal and interest, and premium, if any, on such bonds 29 during the then current and each succeeding fiscal year. On 30 or before the last day of each month, the State Treasurer and 31 the State Comptroller shall transfer from the Energy 32 Infrastructure Fund to the General Obligation Bond Retirement 33 and Interest Fund an amount sufficient to pay the aggregate SB1854 Enrolled -62- LRB9215370EGfg 1 of the principal of, interest on, and premium, if any, on the 2 bonds payable on their next payment date, divided by the 3 number of monthly transfers occurring between the last 4 previous payment date (or the delivery date if no payment 5 date has yet occurred) and the next succeeding payment date. 6 (c) To the extent that moneys in the Energy 7 Infrastructure Fund, in the opinion of the Governor and the 8 Director of the Bureau of the Budget, are in excess of 125% 9 of the maximum debt service in any fiscal year, such surplus 10 shall, subject to appropriation, be used by the Department of 11 Commerce and Community Affairs for financial assistance under 12 other coal development programs administered by the 13 Department, in accordance with the rules of the Department or 14 for other State purposes subject to appropriation. 15 (Source: P.A. 92-12, eff. 7-1-01; revised 10-17-01.) 16 (30 ILCS 105/6z-55) 17 Sec. 6z-55.6z-51.Statewide Economic Development Fund. 18(a)The Statewide Economic Development Fund is created as a 19 special fund in the State treasury. Moneys in the Fund shall 20 be used, subject to appropriation, for the purpose of 21 statewide economic development activities. 22 (Source: P.A. 92-208, eff. 8-2-01; revised 10-17-01.) 23 Section 19. The State Real Property Leasing Act is 24 amended by changing Section 1.5 as follows: 25 (30 ILCS 562/1.5) 26 Sec. 1.5. Leasing to tax delinquents prohibited. A 27 State agency shall not lease any real property to a person 28 who is delinquent in paying any real property taxes on a 29 leasehold estate under Section 9-195 of the Property Tax 30 Code. If a State agency receives noticeunder Section 21-6331of the Property Tax Codethat a lessee of property under the SB1854 Enrolled -63- LRB9215370EGfg 1 agency's control is delinquent in paying property taxes, the 2 agency shall notify the lessee that the lessee has 60 days to 3 pay the delinquent taxes, plus penalties and interest, if 4 any, or the lease shall be terminated. If the lessee fails 5 to submit proof to the agency that the lessee has paid the 6 taxes, penalties, and interest, the agency shall terminate 7 the lease. A person whose lease was terminated under this 8 Section is not allowed to lease State-owned real property or 9 bid on a lease for State-owned real property for a period of 10 2 years after the termination of the lease. 11 Within60 days after the effective date of this Act and12within60 days after entering into an agreement to lease 13 State-owned real property, the State agency leasing the 14 State-owned real property shall notify the county clerk of 15 the county in which the real property is located of the name 16 and mailing address of the lessee. 17 (Source: P.A. 88-676, eff. 12-14-94; revised 12-13-01.) 18 Section 20. The State Property Control Act is amended by 19 changing Section 1.02 as follows: 20 (30 ILCS 605/1.02) (from Ch. 127, par. 133b3) 21 Sec. 1.02. "Property" means State owned property and 22 includes all real estate, with the exception of rights of way 23 for State water resource and highway improvements, traffic 24 signs and traffic signals, and with the exception of common 25 school property; and all tangible personal property with the 26 exception of properties specifically exempted by the 27 administrator, provided that any property originally 28 classified as real property which has been detached from its 29 structure shall be classified as personal property. 30 "Property" does not include property owned by the 31 Illinois Medical District Commission and leased or occupied 32 by others for purposes permitted under the Illinois Medical SB1854 Enrolled -64- LRB9215370EGfg 1 District Act. "Property" also does not include property 2 owned and held by the Illinois Medical District Commission 3 for redevelopment. 4 "Property" does not includethatproperty described under 5 Section 5 of Public Act 92-371this amendatory Act of the692nd General Assemblywith respect to depositing the net 7 proceeds from the sale or exchange of the property as 8 provided in Section 10 of thatthis amendatoryActof the992nd General Assembly. 10 (Source: P.A. 92-371, eff. 8-15-01; revised 10-9-01.) 11 Section 21. The Downstate Public Transportation Act is 12 amended by changing Section 2-2.04 as follows: 13 (30 ILCS 740/2-2.04) (from Ch. 111 2/3, par. 662.04) 14 Sec. 2-2.04. "Eligible operating expenses" means all 15 expenses required for public transportation, including 16 employee wages and benefits, materials, fuels, supplies, 17 rental of facilities, taxes other than income taxes, payment 18 made for debt service (including principal and interest) on 19 publicly owned equipment or facilities, and any other 20 expenditure which is an operating expense according to 21 standard accounting practices for the providing of public 22 transportation. Eligible operating expenses shall not include 23 allowances: (a) for depreciation whether funded or unfunded; 24 (b) for amortization of any intangible costs; (c) for debt 25 service on capital acquired with the assistance of capital 26 grant funds provided by the State of Illinois; (d) for 27 profits or return on investment; (e) for excessive payment to 28 associated entities; (f) for Comprehensive Employment 29 Training Act expenses; (g) for costs reimbursed under 30 Sections 6 and 8 of the "Urban Mass Transportation Act of 31 1964", as amended; (h) for entertainment expenses; (i) for 32 charter expenses; (j) for fines and penalties; (k) for SB1854 Enrolled -65- LRB9215370EGfg 1 charitable donations; (l) for interest expense on long term 2 borrowing and debt retirement other than on publicly owned 3 equipment or facilities; (m) for income taxes; or (n) for 4 such other expenses as the Department may determine 5 consistent with federal Department of Transportation 6 regulations or requirements. 7 With respect to participants other than any Metro-East 8 Transit District participant and those receiving federal 9 research development and demonstration funds pursuant to 10 Section 6 of the "Urban Mass Transportation Act of 1964", as 11 amended, during the fiscal year ending June 30, 1979, the 12 maximum eligible operating expenses for any such participant 13 in any fiscal year after Fiscal Year 1980 shall be the amount 14 appropriated for such participant for the fiscal year ending 15 June 30, 1980, plus in each year a 10% increase over the 16 maximum established for the preceding fiscal year. For 17 Fiscal Year 1980 the maximum eligible operating expenses for 18 any such participant shall be the amount of projected 19 operating expenses upon which the appropriation for such 20 participant for Fiscal Year 1980 is based. 21 With respect to participants receiving federal research 22 development and demonstration operating assistance funds for 23 operating assistance pursuant to Section 6 of the "Urban Mass 24 Transportation Act of 1964", as amended, during the fiscal 25 year ending June 30, 1979, the maximum eligible operating 26 expenses for any such participant in any fiscal year after 27 Fiscal Year 1980 shall not exceed such participant's eligible 28 operating expenses for the fiscal year ending June 30, 1980, 29 plus in each year a 10% increase over the maximum established 30 for the preceding fiscal year. For Fiscal Year 1980, the 31 maximum eligible operating expenses for any such participant 32 shall be the eligible operating expenses incurred during such 33 fiscal year, or projected operating expenses upon which the 34 appropriation for such participant for the Fiscal Year 1980 SB1854 Enrolled -66- LRB9215370EGfg 1 is based; whichever is less. 2 With respect to all participants other than any 3 Metro-East Transit District participant, the maximum eligible 4 operating expenses for any such participant in any fiscal 5 year after Fiscal Year 1985 shall be the amount appropriated 6 for such participant for the fiscal year ending June 30, 7 1985, plus in each year a 10% increase over the maximum 8 established for the preceding year. For Fiscal Year 1985, 9 the maximum eligible operating expenses for any such 10 participant shall be the amount of projected operating 11 expenses upon which the appropriation for such participant 12 for Fiscal Year 1985 is based. 13 With respect to any mass transit district participant 14 that has increased its district boundaries by annexing 15 counties since 1998 and is maintaining a level of local 16 financial support, including all income and revenues, equal 17 to or greater than the level in the State fiscal year ending 18 June 30, 2001, the maximum eligible operating expenses for 19 any State fiscal year after 2002 shall be the amount 20 appropriated for that participant for the State fiscal year 21 ending June 30, 2002, plus, in each State fiscal year, a 10% 22 increase over the preceding State fiscal year. For State 23 fiscal year 2002, the maximum eligible operating expenses for 24 any such participant shall be the amount of projected 25 operating expenses upon which the appropriation for that 26 participant for State fiscal year 2002 is based. For that 27 participant, eligible operating expenses for State fiscal 28 year 2002 in excess of the eligible operating expenses for 29 the State fiscal year ending June 30, 2001, plus 10%, must 30 be attributed to the provision of services in the newly 31 annexed counties. 32 With respect to a participant that receives an initial 33 appropriation in State fiscal year 2002, the maximum eligible 34 operating expenses for any State fiscal year after 2003 shall SB1854 Enrolled -67- LRB9215370EGfg 1 be the amount appropriated for that participant for the State 2 fiscal year ending June 30, 2003, plus, in each year, a 10% 3 increase over the preceding year. For State fiscal year 4 2003, the maximum eligible operating expenses for any such 5 participant shall be the amount of projected operating 6 expenses upon which the appropriation for that participant 7 for State fiscal year 2003 is based., or Fiscal Year 20028 (Source: P.A. 92-258, eff. 8-7-01; 92-464, eff. 8-22-01; 9 revised 10-15-01.) 10 Section 22. The State Mandates Act is amended by 11 changing Sections 8.24 and 8.25 as follows: 12 (30 ILCS 805/8.24) 13 Sec. 8.24.8.25.Exempt mandate. Notwithstanding 14 Sections 6 and 8 of this Act, no reimbursement by the State 15 is required for the implementation of any mandate created by 16 Public Act 91-699, 91-722, 91-834, 91-852, 91-870, 91-885, 17 91-887,or91-897, 91-939, or 91-954.this amendatory Act of18the 91st General Assembly.19 (Source: P.A. 91-699, eff. 1-1-01; 91-722, eff. 6-2-00; 20 91-834, eff. 1-1-01; 91-852, eff. 6-22-00; 91-870, eff. 21 6-22-00; 91-885, eff. 7-6-00; 91-887, eff. 7-6-00; 91-897, 22 eff. 7-6-00; 91-939, eff. 2-1-01; 91-954, eff. 1-1-02; 92-16, 23 eff. 6-28-01; revised 7-23-01.) 24 (30 ILCS 805/8.25) 25 Sec. 8.25. Exempt mandate. Notwithstanding Sections 6 26 and 8 of this Act, no reimbursement by the State is required 27 for the implementation of any mandate created by Public Act 28 92-36, 92-50, 92-52, 92-53, 92-166, 92-281, 92-382, 92-388, 29 92-416, 92-424, or 92-465.this amendatory Act of the 92nd30General Assembly.31 (Source: P.A. 92-36, eff. 6-28-01; 92-50, eff. 7-12-01; SB1854 Enrolled -68- LRB9215370EGfg 1 92-52, eff. 7-12-01; 92-53, eff. 7-12-01; 92-166, eff. 2 1-1-02; 92-281, eff. 8-7-01; 92-382, eff. 8-16-01; 92-388, 3 eff. 1-1-02; 92-416, eff. 8-17-01; 92-424, eff. 8-17-01; 4 92-465, eff. 1-1-02; revised 10-17-01.) 5 Section 23. The Illinois Income Tax Act is amended by 6 changing Sections 201, 203, 509, and 510 and setting forth 7 and renumbering multiple versions of Section 507V as follows: 8 (35 ILCS 5/201) (from Ch. 120, par. 2-201) 9 Sec. 201. Tax Imposed. 10 (a) In general. A tax measured by net income is hereby 11 imposed on every individual, corporation, trust and estate 12 for each taxable year ending after July 31, 1969 on the 13 privilege of earning or receiving income in or as a resident 14 of this State. Such tax shall be in addition to all other 15 occupation or privilege taxes imposed by this State or by any 16 municipal corporation or political subdivision thereof. 17 (b) Rates. The tax imposed by subsection (a) of this 18 Section shall be determined as follows, except as adjusted by 19 subsection (d-1): 20 (1) In the case of an individual, trust or estate, 21 for taxable years ending prior to July 1, 1989, an amount 22 equal to 2 1/2% of the taxpayer's net income for the 23 taxable year. 24 (2) In the case of an individual, trust or estate, 25 for taxable years beginning prior to July 1, 1989 and 26 ending after June 30, 1989, an amount equal to the sum of 27 (i) 2 1/2% of the taxpayer's net income for the period 28 prior to July 1, 1989, as calculated under Section 202.3, 29 and (ii) 3% of the taxpayer's net income for the period 30 after June 30, 1989, as calculated under Section 202.3. 31 (3) In the case of an individual, trust or estate, 32 for taxable years beginning after June 30, 1989, an SB1854 Enrolled -69- LRB9215370EGfg 1 amount equal to 3% of the taxpayer's net income for the 2 taxable year. 3 (4) (Blank). 4 (5) (Blank). 5 (6) In the case of a corporation, for taxable years 6 ending prior to July 1, 1989, an amount equal to 4% of 7 the taxpayer's net income for the taxable year. 8 (7) In the case of a corporation, for taxable years 9 beginning prior to July 1, 1989 and ending after June 30, 10 1989, an amount equal to the sum of (i) 4% of the 11 taxpayer's net income for the period prior to July 1, 12 1989, as calculated under Section 202.3, and (ii) 4.8% of 13 the taxpayer's net income for the period after June 30, 14 1989, as calculated under Section 202.3. 15 (8) In the case of a corporation, for taxable years 16 beginning after June 30, 1989, an amount equal to 4.8% of 17 the taxpayer's net income for the taxable year. 18 (c) Personal Property Tax Replacement Income Tax. 19 Beginning on July 1, 1979 and thereafter, in addition to such 20 income tax, there is also hereby imposed the Personal 21 Property Tax Replacement Income Tax measured by net income on 22 every corporation (including Subchapter S corporations), 23 partnership and trust, for each taxable year ending after 24 June 30, 1979. Such taxes are imposed on the privilege of 25 earning or receiving income in or as a resident of this 26 State. The Personal Property Tax Replacement Income Tax 27 shall be in addition to the income tax imposed by subsections 28 (a) and (b) of this Section and in addition to all other 29 occupation or privilege taxes imposed by this State or by any 30 municipal corporation or political subdivision thereof. 31 (d) Additional Personal Property Tax Replacement Income 32 Tax Rates. The personal property tax replacement income tax 33 imposed by this subsection and subsection (c) of this Section 34 in the case of a corporation, other than a Subchapter S SB1854 Enrolled -70- LRB9215370EGfg 1 corporation and except as adjusted by subsection (d-1), shall 2 be an additional amount equal to 2.85% of such taxpayer's net 3 income for the taxable year, except that beginning on January 4 1, 1981, and thereafter, the rate of 2.85% specified in this 5 subsection shall be reduced to 2.5%, and in the case of a 6 partnership, trust or a Subchapter S corporation shall be an 7 additional amount equal to 1.5% of such taxpayer's net income 8 for the taxable year. 9 (d-1) Rate reduction for certain foreign insurers. In 10 the case of a foreign insurer, as defined by Section 35A-5 of 11 the Illinois Insurance Code, whose state or country of 12 domicile imposes on insurers domiciled in Illinois a 13 retaliatory tax (excluding any insurer whose premiums from 14 reinsurance assumed are 50% or more of its total insurance 15 premiums as determined under paragraph (2) of subsection (b) 16 of Section 304, except that for purposes of this 17 determination premiums from reinsurance do not include 18 premiums from inter-affiliate reinsurance arrangements), 19 beginning with taxable years ending on or after December 31, 20 1999, the sum of the rates of tax imposed by subsections (b) 21 and (d) shall be reduced (but not increased) to the rate at 22 which the total amount of tax imposed under this Act, net of 23 all credits allowed under this Act, shall equal (i) the total 24 amount of tax that would be imposed on the foreign insurer's 25 net income allocable to Illinois for the taxable year by such 26 foreign insurer's state or country of domicile if that net 27 income were subject to all income taxes and taxes measured by 28 net income imposed by such foreign insurer's state or country 29 of domicile, net of all credits allowed or (ii) a rate of 30 zero if no such tax is imposed on such income by the foreign 31 insurer's state of domicile. For the purposes of this 32 subsection (d-1), an inter-affiliate includes a mutual 33 insurer under common management. 34 (1) For the purposes of subsection (d-1), in no SB1854 Enrolled -71- LRB9215370EGfg 1 event shall the sum of the rates of tax imposed by 2 subsections (b) and (d) be reduced below the rate at 3 which the sum of: 4 (A) the total amount of tax imposed on such 5 foreign insurer under this Act for a taxable year, 6 net of all credits allowed under this Act, plus 7 (B) the privilege tax imposed by Section 409 8 of the Illinois Insurance Code, the fire insurance 9 company tax imposed by Section 12 of the Fire 10 Investigation Act, and the fire department taxes 11 imposed under Section 11-10-1 of the Illinois 12 Municipal Code, 13 equals 1.25% of the net taxable premiums written for the 14 taxable year, as described by subsection (1) of Section 15 409 of the Illinois Insurance Code. This paragraph will 16 in no event increase the rates imposed under subsections 17 (b) and (d). 18 (2) Any reduction in the rates of tax imposed by 19 this subsection shall be applied first against the rates 20 imposed by subsection (b) and only after the tax imposed 21 by subsection (a) net of all credits allowed under this 22 Section other than the credit allowed under subsection 23 (i) has been reduced to zero, against the rates imposed 24 by subsection (d). 25 This subsection (d-1) is exempt from the provisions of 26 Section 250. 27 (e) Investment credit. A taxpayer shall be allowed a 28 credit against the Personal Property Tax Replacement Income 29 Tax for investment in qualified property. 30 (1) A taxpayer shall be allowed a credit equal to 31 .5% of the basis of qualified property placed in service 32 during the taxable year, provided such property is placed 33 in service on or after July 1, 1984. There shall be 34 allowed an additional credit equal to .5% of the basis of SB1854 Enrolled -72- LRB9215370EGfg 1 qualified property placed in service during the taxable 2 year, provided such property is placed in service on or 3 after July 1, 1986, and the taxpayer's base employment 4 within Illinois has increased by 1% or more over the 5 preceding year as determined by the taxpayer's employment 6 records filed with the Illinois Department of Employment 7 Security. Taxpayers who are new to Illinois shall be 8 deemed to have met the 1% growth in base employment for 9 the first year in which they file employment records with 10 the Illinois Department of Employment Security. The 11 provisions added to this Section by Public Act 85-1200 12 (and restored by Public Act 87-895) shall be construed as 13 declaratory of existing law and not as a new enactment. 14 If, in any year, the increase in base employment within 15 Illinois over the preceding year is less than 1%, the 16 additional credit shall be limited to that percentage 17 times a fraction, the numerator of which is .5% and the 18 denominator of which is 1%, but shall not exceed .5%. 19 The investment credit shall not be allowed to the extent 20 that it would reduce a taxpayer's liability in any tax 21 year below zero, nor may any credit for qualified 22 property be allowed for any year other than the year in 23 which the property was placed in service in Illinois. For 24 tax years ending on or after December 31, 1987, and on or 25 before December 31, 1988, the credit shall be allowed for 26 the tax year in which the property is placed in service, 27 or, if the amount of the credit exceeds the tax liability 28 for that year, whether it exceeds the original liability 29 or the liability as later amended, such excess may be 30 carried forward and applied to the tax liability of the 5 31 taxable years following the excess credit years if the 32 taxpayer (i) makes investments which cause the creation 33 of a minimum of 2,000 full-time equivalent jobs in 34 Illinois, (ii) is located in an enterprise zone SB1854 Enrolled -73- LRB9215370EGfg 1 established pursuant to the Illinois Enterprise Zone Act 2 and (iii) is certified by the Department of Commerce and 3 Community Affairs as complying with the requirements 4 specified in clause (i) and (ii) by July 1, 1986. The 5 Department of Commerce and Community Affairs shall notify 6 the Department of Revenue of all such certifications 7 immediately. For tax years ending after December 31, 8 1988, the credit shall be allowed for the tax year in 9 which the property is placed in service, or, if the 10 amount of the credit exceeds the tax liability for that 11 year, whether it exceeds the original liability or the 12 liability as later amended, such excess may be carried 13 forward and applied to the tax liability of the 5 taxable 14 years following the excess credit years. The credit shall 15 be applied to the earliest year for which there is a 16 liability. If there is credit from more than one tax year 17 that is available to offset a liability, earlier credit 18 shall be applied first. 19 (2) The term "qualified property" means property 20 which: 21 (A) is tangible, whether new or used, 22 including buildings and structural components of 23 buildings and signs that are real property, but not 24 including land or improvements to real property that 25 are not a structural component of a building such as 26 landscaping, sewer lines, local access roads, 27 fencing, parking lots, and other appurtenances; 28 (B) is depreciable pursuant to Section 167 of 29 the Internal Revenue Code, except that "3-year 30 property" as defined in Section 168(c)(2)(A) of that 31 Code is not eligible for the credit provided by this 32 subsection (e); 33 (C) is acquired by purchase as defined in 34 Section 179(d) of the Internal Revenue Code; SB1854 Enrolled -74- LRB9215370EGfg 1 (D) is used in Illinois by a taxpayer who is 2 primarily engaged in manufacturing, or in mining 3 coal or fluorite, or in retailing; and 4 (E) has not previously been used in Illinois 5 in such a manner and by such a person as would 6 qualify for the credit provided by this subsection 7 (e) or subsection (f). 8 (3) For purposes of this subsection (e), 9 "manufacturing" means the material staging and production 10 of tangible personal property by procedures commonly 11 regarded as manufacturing, processing, fabrication, or 12 assembling which changes some existing material into new 13 shapes, new qualities, or new combinations. For purposes 14 of this subsection (e) the term "mining" shall have the 15 same meaning as the term "mining" in Section 613(c) of 16 the Internal Revenue Code. For purposes of this 17 subsection (e), the term "retailing" means the sale of 18 tangible personal property or services rendered in 19 conjunction with the sale of tangible consumer goods or 20 commodities. 21 (4) The basis of qualified property shall be the 22 basis used to compute the depreciation deduction for 23 federal income tax purposes. 24 (5) If the basis of the property for federal income 25 tax depreciation purposes is increased after it has been 26 placed in service in Illinois by the taxpayer, the amount 27 of such increase shall be deemed property placed in 28 service on the date of such increase in basis. 29 (6) The term "placed in service" shall have the 30 same meaning as under Section 46 of the Internal Revenue 31 Code. 32 (7) If during any taxable year, any property ceases 33 to be qualified property in the hands of the taxpayer 34 within 48 months after being placed in service, or the SB1854 Enrolled -75- LRB9215370EGfg 1 situs of any qualified property is moved outside Illinois 2 within 48 months after being placed in service, the 3 Personal Property Tax Replacement Income Tax for such 4 taxable year shall be increased. Such increase shall be 5 determined by (i) recomputing the investment credit which 6 would have been allowed for the year in which credit for 7 such property was originally allowed by eliminating such 8 property from such computation and, (ii) subtracting such 9 recomputed credit from the amount of credit previously 10 allowed. For the purposes of this paragraph (7), a 11 reduction of the basis of qualified property resulting 12 from a redetermination of the purchase price shall be 13 deemed a disposition of qualified property to the extent 14 of such reduction. 15 (8) Unless the investment credit is extended by 16 law, the basis of qualified property shall not include 17 costs incurred after December 31, 2003, except for costs 18 incurred pursuant to a binding contract entered into on 19 or before December 31, 2003. 20 (9) Each taxable year ending before December 31, 21 2000, a partnership may elect to pass through to its 22 partners the credits to which the partnership is entitled 23 under this subsection (e) for the taxable year. A 24 partner may use the credit allocated to him or her under 25 this paragraph only against the tax imposed in 26 subsections (c) and (d) of this Section. If the 27 partnership makes that election, those credits shall be 28 allocated among the partners in the partnership in 29 accordance with the rules set forth in Section 704(b) of 30 the Internal Revenue Code, and the rules promulgated 31 under that Section, and the allocated amount of the 32 credits shall be allowed to the partners for that taxable 33 year. The partnership shall make this election on its 34 Personal Property Tax Replacement Income Tax return for SB1854 Enrolled -76- LRB9215370EGfg 1 that taxable year. The election to pass through the 2 credits shall be irrevocable. 3 For taxable years ending on or after December 31, 4 2000, a partner that qualifies its partnership for a 5 subtraction under subparagraph (I) of paragraph (2) of 6 subsection (d) of Section 203 or a shareholder that 7 qualifies a Subchapter S corporation for a subtraction 8 under subparagraph (S) of paragraph (2) of subsection (b) 9 of Section 203 shall be allowed a credit under this 10 subsection (e) equal to its share of the credit earned 11 under this subsection (e) during the taxable year by the 12 partnership or Subchapter S corporation, determined in 13 accordance with the determination of income and 14 distributive share of income under Sections 702 and 704 15 and Subchapter S of the Internal Revenue Code. This 16 paragraph is exempt from the provisions of Section 250. 17 (f) Investment credit; Enterprise Zone. 18 (1) A taxpayer shall be allowed a credit against 19 the tax imposed by subsections (a) and (b) of this 20 Section for investment in qualified property which is 21 placed in service in an Enterprise Zone created pursuant 22 to the Illinois Enterprise Zone Act. For partners, 23 shareholders of Subchapter S corporations, and owners of 24 limited liability companies, if the liability company is 25 treated as a partnership for purposes of federal and 26 State income taxation, there shall be allowed a credit 27 under this subsection (f) to be determined in accordance 28 with the determination of income and distributive share 29 of income under Sections 702 and 704 and Subchapter S of 30 the Internal Revenue Code. The credit shall be .5% of 31 the basis for such property. The credit shall be 32 available only in the taxable year in which the property 33 is placed in service in the Enterprise Zone and shall not 34 be allowed to the extent that it would reduce a SB1854 Enrolled -77- LRB9215370EGfg 1 taxpayer's liability for the tax imposed by subsections 2 (a) and (b) of this Section to below zero. For tax years 3 ending on or after December 31, 1985, the credit shall be 4 allowed for the tax year in which the property is placed 5 in service, or, if the amount of the credit exceeds the 6 tax liability for that year, whether it exceeds the 7 original liability or the liability as later amended, 8 such excess may be carried forward and applied to the tax 9 liability of the 5 taxable years following the excess 10 credit year. The credit shall be applied to the earliest 11 year for which there is a liability. If there is credit 12 from more than one tax year that is available to offset a 13 liability, the credit accruing first in time shall be 14 applied first. 15 (2) The term qualified property means property 16 which: 17 (A) is tangible, whether new or used, 18 including buildings and structural components of 19 buildings; 20 (B) is depreciable pursuant to Section 167 of 21 the Internal Revenue Code, except that "3-year 22 property" as defined in Section 168(c)(2)(A) of that 23 Code is not eligible for the credit provided by this 24 subsection (f); 25 (C) is acquired by purchase as defined in 26 Section 179(d) of the Internal Revenue Code; 27 (D) is used in the Enterprise Zone by the 28 taxpayer; and 29 (E) has not been previously used in Illinois 30 in such a manner and by such a person as would 31 qualify for the credit provided by this subsection 32 (f) or subsection (e). 33 (3) The basis of qualified property shall be the 34 basis used to compute the depreciation deduction for SB1854 Enrolled -78- LRB9215370EGfg 1 federal income tax purposes. 2 (4) If the basis of the property for federal income 3 tax depreciation purposes is increased after it has been 4 placed in service in the Enterprise Zone by the taxpayer, 5 the amount of such increase shall be deemed property 6 placed in service on the date of such increase in basis. 7 (5) The term "placed in service" shall have the 8 same meaning as under Section 46 of the Internal Revenue 9 Code. 10 (6) If during any taxable year, any property ceases 11 to be qualified property in the hands of the taxpayer 12 within 48 months after being placed in service, or the 13 situs of any qualified property is moved outside the 14 Enterprise Zone within 48 months after being placed in 15 service, the tax imposed under subsections (a) and (b) of 16 this Section for such taxable year shall be increased. 17 Such increase shall be determined by (i) recomputing the 18 investment credit which would have been allowed for the 19 year in which credit for such property was originally 20 allowed by eliminating such property from such 21 computation, and (ii) subtracting such recomputed credit 22 from the amount of credit previously allowed. For the 23 purposes of this paragraph (6), a reduction of the basis 24 of qualified property resulting from a redetermination of 25 the purchase price shall be deemed a disposition of 26 qualified property to the extent of such reduction. 27 (g) Jobs Tax Credit; Enterprise Zone and Foreign Trade 28 Zone or Sub-Zone. 29 (1) A taxpayer conducting a trade or business in an 30 enterprise zone or a High Impact Business designated by 31 the Department of Commerce and Community Affairs 32 conducting a trade or business in a federally designated 33 Foreign Trade Zone or Sub-Zone shall be allowed a credit 34 against the tax imposed by subsections (a) and (b) of SB1854 Enrolled -79- LRB9215370EGfg 1 this Section in the amount of $500 per eligible employee 2 hired to work in the zone during the taxable year. 3 (2) To qualify for the credit: 4 (A) the taxpayer must hire 5 or more eligible 5 employees to work in an enterprise zone or federally 6 designated Foreign Trade Zone or Sub-Zone during the 7 taxable year; 8 (B) the taxpayer's total employment within the 9 enterprise zone or federally designated Foreign 10 Trade Zone or Sub-Zone must increase by 5 or more 11 full-time employees beyond the total employed in 12 that zone at the end of the previous tax year for 13 which a jobs tax credit under this Section was 14 taken, or beyond the total employed by the taxpayer 15 as of December 31, 1985, whichever is later; and 16 (C) the eligible employees must be employed 17 180 consecutive days in order to be deemed hired for 18 purposes of this subsection. 19 (3) An "eligible employee" means an employee who 20 is: 21 (A) Certified by the Department of Commerce 22 and Community Affairs as "eligible for services" 23 pursuant to regulations promulgated in accordance 24 with Title II of the Job Training Partnership Act, 25 Training Services for the Disadvantaged or Title III 26 of the Job Training Partnership Act, Employment and 27 Training Assistance for Dislocated Workers Program. 28 (B) Hired after the enterprise zone or 29 federally designated Foreign Trade Zone or Sub-Zone 30 was designated or the trade or business was located 31 in that zone, whichever is later. 32 (C) Employed in the enterprise zone or Foreign 33 Trade Zone or Sub-Zone. An employee is employed in 34 an enterprise zone or federally designated Foreign SB1854 Enrolled -80- LRB9215370EGfg 1 Trade Zone or Sub-Zone if his services are rendered 2 there or it is the base of operations for the 3 services performed. 4 (D) A full-time employee working 30 or more 5 hours per week. 6 (4) For tax years ending on or after December 31, 7 1985 and prior to December 31, 1988, the credit shall be 8 allowed for the tax year in which the eligible employees 9 are hired. For tax years ending on or after December 31, 10 1988, the credit shall be allowed for the tax year 11 immediately following the tax year in which the eligible 12 employees are hired. If the amount of the credit exceeds 13 the tax liability for that year, whether it exceeds the 14 original liability or the liability as later amended, 15 such excess may be carried forward and applied to the tax 16 liability of the 5 taxable years following the excess 17 credit year. The credit shall be applied to the earliest 18 year for which there is a liability. If there is credit 19 from more than one tax year that is available to offset a 20 liability, earlier credit shall be applied first. 21 (5) The Department of Revenue shall promulgate such 22 rules and regulations as may be deemed necessary to carry 23 out the purposes of this subsection (g). 24 (6) The credit shall be available for eligible 25 employees hired on or after January 1, 1986. 26 (h) Investment credit; High Impact Business. 27 (1) Subject to subsections (b) and (b-5) of Section 28 5.5 of the Illinois Enterprise Zone Act, a taxpayer shall 29 be allowed a credit against the tax imposed by 30 subsections (a) and (b) of this Section for investment in 31 qualified property which is placed in service by a 32 Department of Commerce and Community Affairs designated 33 High Impact Business. The credit shall be .5% of the 34 basis for such property. The credit shall not be SB1854 Enrolled -81- LRB9215370EGfg 1 available (i) until the minimum investments in qualified 2 property set forth in subdivision (a)(3)(A) of Section 3 5.5 of the Illinois Enterprise Zone Act have been 4 satisfied or (ii) until the time authorized in subsection 5 (b-5) of the Illinois Enterprise Zone Act for entities 6 designated as High Impact Businesses under subdivisions 7 (a)(3)(B), (a)(3)(C), and (a)(3)(D) of Section 5.5 of the 8 Illinois Enterprise Zone Act, and shall not be allowed to 9 the extent that it would reduce a taxpayer's liability 10 for the tax imposed by subsections (a) and (b) of this 11 Section to below zero. The credit applicable to such 12 investments shall be taken in the taxable year in which 13 such investments have been completed. The credit for 14 additional investments beyond the minimum investment by a 15 designated high impact business authorized under 16 subdivision (a)(3)(A) of Section 5.5 of the Illinois 17 Enterprise Zone Act shall be available only in the 18 taxable year in which the property is placed in service 19 and shall not be allowed to the extent that it would 20 reduce a taxpayer's liability for the tax imposed by 21 subsections (a) and (b) of this Section to below zero. 22 For tax years ending on or after December 31, 1987, the 23 credit shall be allowed for the tax year in which the 24 property is placed in service, or, if the amount of the 25 credit exceeds the tax liability for that year, whether 26 it exceeds the original liability or the liability as 27 later amended, such excess may be carried forward and 28 applied to the tax liability of the 5 taxable years 29 following the excess credit year. The credit shall be 30 applied to the earliest year for which there is a 31 liability. If there is credit from more than one tax 32 year that is available to offset a liability, the credit 33 accruing first in time shall be applied first. 34 Changes made in this subdivision (h)(1) by Public SB1854 Enrolled -82- LRB9215370EGfg 1 Act 88-670 restore changes made by Public Act 85-1182 and 2 reflect existing law. 3 (2) The term qualified property means property 4 which: 5 (A) is tangible, whether new or used, 6 including buildings and structural components of 7 buildings; 8 (B) is depreciable pursuant to Section 167 of 9 the Internal Revenue Code, except that "3-year 10 property" as defined in Section 168(c)(2)(A) of that 11 Code is not eligible for the credit provided by this 12 subsection (h); 13 (C) is acquired by purchase as defined in 14 Section 179(d) of the Internal Revenue Code; and 15 (D) is not eligible for the Enterprise Zone 16 Investment Credit provided by subsection (f) of this 17 Section. 18 (3) The basis of qualified property shall be the 19 basis used to compute the depreciation deduction for 20 federal income tax purposes. 21 (4) If the basis of the property for federal income 22 tax depreciation purposes is increased after it has been 23 placed in service in a federally designated Foreign Trade 24 Zone or Sub-Zone located in Illinois by the taxpayer, the 25 amount of such increase shall be deemed property placed 26 in service on the date of such increase in basis. 27 (5) The term "placed in service" shall have the 28 same meaning as under Section 46 of the Internal Revenue 29 Code. 30 (6) If during any taxable year ending on or before 31 December 31, 1996, any property ceases to be qualified 32 property in the hands of the taxpayer within 48 months 33 after being placed in service, or the situs of any 34 qualified property is moved outside Illinois within 48 SB1854 Enrolled -83- LRB9215370EGfg 1 months after being placed in service, the tax imposed 2 under subsections (a) and (b) of this Section for such 3 taxable year shall be increased. Such increase shall be 4 determined by (i) recomputing the investment credit which 5 would have been allowed for the year in which credit for 6 such property was originally allowed by eliminating such 7 property from such computation, and (ii) subtracting such 8 recomputed credit from the amount of credit previously 9 allowed. For the purposes of this paragraph (6), a 10 reduction of the basis of qualified property resulting 11 from a redetermination of the purchase price shall be 12 deemed a disposition of qualified property to the extent 13 of such reduction. 14 (7) Beginning with tax years ending after December 15 31, 1996, if a taxpayer qualifies for the credit under 16 this subsection (h) and thereby is granted a tax 17 abatement and the taxpayer relocates its entire facility 18 in violation of the explicit terms and length of the 19 contract under Section 18-183 of the Property Tax Code, 20 the tax imposed under subsections (a) and (b) of this 21 Section shall be increased for the taxable year in which 22 the taxpayer relocated its facility by an amount equal to 23 the amount of credit received by the taxpayer under this 24 subsection (h). 25 (i) Credit for Personal Property Tax Replacement Income 26 Tax. A credit shall be allowed against the tax imposed by 27 subsections (a) and (b) of this Section for the tax imposed 28 by subsections (c) and (d) of this Section. This credit 29 shall be computed by multiplying the tax imposed by 30 subsections (c) and (d) of this Section by a fraction, the 31 numerator of which is base income allocable to Illinois and 32 the denominator of which is Illinois base income, and further 33 multiplying the product by the tax rate imposed by 34 subsections (a) and (b) of this Section. SB1854 Enrolled -84- LRB9215370EGfg 1 Any credit earned on or after December 31, 1986 under 2 this subsection which is unused in the year the credit is 3 computed because it exceeds the tax liability imposed by 4 subsections (a) and (b) for that year (whether it exceeds the 5 original liability or the liability as later amended) may be 6 carried forward and applied to the tax liability imposed by 7 subsections (a) and (b) of the 5 taxable years following the 8 excess credit year. This credit shall be applied first to 9 the earliest year for which there is a liability. If there 10 is a credit under this subsection from more than one tax year 11 that is available to offset a liability the earliest credit 12 arising under this subsection shall be applied first. 13 If, during any taxable year ending on or after December 14 31, 1986, the tax imposed by subsections (c) and (d) of this 15 Section for which a taxpayer has claimed a credit under this 16 subsection (i) is reduced, the amount of credit for such tax 17 shall also be reduced. Such reduction shall be determined by 18 recomputing the credit to take into account the reduced tax 19 imposed by subsectionssubsection(c) and (d). If any 20 portion of the reduced amount of credit has been carried to a 21 different taxable year, an amended return shall be filed for 22 such taxable year to reduce the amount of credit claimed. 23 (j) Training expense credit. Beginning with tax years 24 ending on or after December 31, 1986, a taxpayer shall be 25 allowed a credit against the tax imposed by subsections 26subsection(a) and (b) under this Section for all amounts 27 paid or accrued, on behalf of all persons employed by the 28 taxpayer in Illinois or Illinois residents employed outside 29 of Illinois by a taxpayer, for educational or vocational 30 training in semi-technical or technical fields or 31 semi-skilled or skilled fields, which were deducted from 32 gross income in the computation of taxable income. The 33 credit against the tax imposed by subsections (a) and (b) 34 shall be 1.6% of such training expenses. For partners, SB1854 Enrolled -85- LRB9215370EGfg 1 shareholders of subchapter S corporations, and owners of 2 limited liability companies, if the liability company is 3 treated as a partnership for purposes of federal and State 4 income taxation, there shall be allowed a credit under this 5 subsection (j) to be determined in accordance with the 6 determination of income and distributive share of income 7 under Sections 702 and 704 and subchapter S of the Internal 8 Revenue Code. 9 Any credit allowed under this subsection which is unused 10 in the year the credit is earned may be carried forward to 11 each of the 5 taxable years following the year for which the 12 credit is first computed until it is used. This credit shall 13 be applied first to the earliest year for which there is a 14 liability. If there is a credit under this subsection from 15 more than one tax year that is available to offset a 16 liability the earliest credit arising under this subsection 17 shall be applied first. 18 (k) Research and development credit. 19 Beginning with tax years ending after July 1, 1990, a 20 taxpayer shall be allowed a credit against the tax imposed by 21 subsections (a) and (b) of this Section for increasing 22 research activities in this State. The credit allowed 23 against the tax imposed by subsections (a) and (b) shall be 24 equal to 6 1/2% of the qualifying expenditures for increasing 25 research activities in this State. For partners, 26 shareholders of subchapter S corporations, and owners of 27 limited liability companies, if the liability company is 28 treated as a partnership for purposes of federal and State 29 income taxation, there shall be allowed a credit under this 30 subsection to be determined in accordance with the 31 determination of income and distributive share of income 32 under Sections 702 and 704 and subchapter S of the Internal 33 Revenue Code. 34 For purposes of this subsection, "qualifying SB1854 Enrolled -86- LRB9215370EGfg 1 expenditures" means the qualifying expenditures as defined 2 for the federal credit for increasing research activities 3 which would be allowable under Section 41 of the Internal 4 Revenue Code and which are conducted in this State, 5 "qualifying expenditures for increasing research activities 6 in this State" means the excess of qualifying expenditures 7 for the taxable year in which incurred over qualifying 8 expenditures for the base period, "qualifying expenditures 9 for the base period" means the average of the qualifying 10 expenditures for each year in the base period, and "base 11 period" means the 3 taxable years immediately preceding the 12 taxable year for which the determination is being made. 13 Any credit in excess of the tax liability for the taxable 14 year may be carried forward. A taxpayer may elect to have the 15 unused credit shown on its final completed return carried 16 over as a credit against the tax liability for the following 17 5 taxable years or until it has been fully used, whichever 18 occurs first. 19 If an unused credit is carried forward to a given year 20 from 2 or more earlier years, that credit arising in the 21 earliest year will be applied first against the tax liability 22 for the given year. If a tax liability for the given year 23 still remains, the credit from the next earliest year will 24 then be applied, and so on, until all credits have been used 25 or no tax liability for the given year remains. Any 26 remaining unused credit or credits then will be carried 27 forward to the next following year in which a tax liability 28 is incurred, except that no credit can be carried forward to 29 a year which is more than 5 years after the year in which the 30 expense for which the credit is given was incurred. 31 Unless extended by law, the credit shall not include 32 costs incurred after December 31, 2004, except for costs 33 incurred pursuant to a binding contract entered into on or 34 before December 31, 2004. SB1854 Enrolled -87- LRB9215370EGfg 1 No inference shall be drawn from this amendatory Act of 2 the 91st General Assembly in construing this Section for 3 taxable years beginning before January 1, 1999. 4 (l) Environmental Remediation Tax Credit. 5 (i) For tax years ending after December 31, 1997 6 and on or before December 31, 2001, a taxpayer shall be 7 allowed a credit against the tax imposed by subsections 8 (a) and (b) of this Section for certain amounts paid for 9 unreimbursed eligible remediation costs, as specified in 10 this subsection. For purposes of this Section, 11 "unreimbursed eligible remediation costs" means costs 12 approved by the Illinois Environmental Protection Agency 13 ("Agency") under Section 58.14 of the Environmental 14 Protection Act that were paid in performing environmental 15 remediation at a site for which a No Further Remediation 16 Letter was issued by the Agency and recorded under 17 Section 58.10 of the Environmental Protection Act. The 18 credit must be claimed for the taxable year in which 19 Agency approval of the eligible remediation costs is 20 granted. The credit is not available to any taxpayer if 21 the taxpayer or any related party caused or contributed 22 to, in any material respect, a release of regulated 23 substances on, in, or under the site that was identified 24 and addressed by the remedial action pursuant to the Site 25 Remediation Program of the Environmental Protection Act. 26 After the Pollution Control Board rules are adopted 27 pursuant to the Illinois Administrative Procedure Act for 28 the administration and enforcement of Section 58.9 of the 29 Environmental Protection Act, determinations as to credit 30 availability for purposes of this Section shall be made 31 consistent with those rules. For purposes of this 32 Section, "taxpayer" includes a person whose tax 33 attributes the taxpayer has succeeded to under Section 34 381 of the Internal Revenue Code and "related party" SB1854 Enrolled -88- LRB9215370EGfg 1 includes the persons disallowed a deduction for losses by 2 paragraphs (b), (c), and (f)(1) of Section 267 of the 3 Internal Revenue Code by virtue of being a related 4 taxpayer, as well as any of its partners. The credit 5 allowed against the tax imposed by subsections (a) and 6 (b) shall be equal to 25% of the unreimbursed eligible 7 remediation costs in excess of $100,000 per site, except 8 that the $100,000 threshold shall not apply to any site 9 contained in an enterprise zone as determined by the 10 Department of Commerce and Community Affairs. The total 11 credit allowed shall not exceed $40,000 per year with a 12 maximum total of $150,000 per site. For partners and 13 shareholders of subchapter S corporations, there shall be 14 allowed a credit under this subsection to be determined 15 in accordance with the determination of income and 16 distributive share of income under Sections 702 and 704 17 and subchapter S of the Internal Revenue Code. 18 (ii) A credit allowed under this subsection that is 19 unused in the year the credit is earned may be carried 20 forward to each of the 5 taxable years following the year 21 for which the credit is first earned until it is used. 22 The term "unused credit" does not include any amounts of 23 unreimbursed eligible remediation costs in excess of the 24 maximum credit per site authorized under paragraph (i). 25 This credit shall be applied first to the earliest year 26 for which there is a liability. If there is a credit 27 under this subsection from more than one tax year that is 28 available to offset a liability, the earliest credit 29 arising under this subsection shall be applied first. A 30 credit allowed under this subsection may be sold to a 31 buyer as part of a sale of all or part of the remediation 32 site for which the credit was granted. The purchaser of 33 a remediation site and the tax credit shall succeed to 34 the unused credit and remaining carry-forward period of SB1854 Enrolled -89- LRB9215370EGfg 1 the seller. To perfect the transfer, the assignor shall 2 record the transfer in the chain of title for the site 3 and provide written notice to the Director of the 4 Illinois Department of Revenue of the assignor's intent 5 to sell the remediation site and the amount of the tax 6 credit to be transferred as a portion of the sale. In no 7 event may a credit be transferred to any taxpayer if the 8 taxpayer or a related party would not be eligible under 9 the provisions of subsection (i). 10 (iii) For purposes of this Section, the term "site" 11 shall have the same meaning as under Section 58.2 of the 12 Environmental Protection Act. 13 (m) Education expense credit. 14 Beginning with tax years ending after December 31, 1999, 15 a taxpayer who is the custodian of one or more qualifying 16 pupils shall be allowed a credit against the tax imposed by 17 subsections (a) and (b) of this Section for qualified 18 education expenses incurred on behalf of the qualifying 19 pupils. The credit shall be equal to 25% of qualified 20 education expenses, but in no event may the total credit 21 under this Section claimed by a family that is the custodian 22 of qualifying pupils exceed $500. In no event shall a credit 23 under this subsection reduce the taxpayer's liability under 24 this Act to less than zero. This subsection is exempt from 25 the provisions of Section 250 of this Act. 26 For purposes of this subsection:;27 "Qualifying pupils" means individuals who (i) are 28 residents of the State of Illinois, (ii) are under the age of 29 21 at the close of the school year for which a credit is 30 sought, and (iii) during the school year for which a credit 31 is sought were full-time pupils enrolled in a kindergarten 32 through twelfth grade education program at any school, as 33 defined in this subsection. 34 "Qualified education expense" means the amount incurred SB1854 Enrolled -90- LRB9215370EGfg 1 on behalf of a qualifying pupil in excess of $250 for 2 tuition, book fees, and lab fees at the school in which the 3 pupil is enrolled during the regular school year. 4 "School" means any public or nonpublic elementary or 5 secondary school in Illinois that is in compliance with Title 6 VI of the Civil Rights Act of 1964 and attendance at which 7 satisfies the requirements of Section 26-1 of the School 8 Code, except that nothing shall be construed to require a 9 child to attend any particular public or nonpublic school to 10 qualify for the credit under this Section. 11 "Custodian" means, with respect to qualifying pupils, an 12 Illinois resident who is a parent, the parents, a legal 13 guardian, or the legal guardians of the qualifying pupils. 14 (Source: P.A. 91-9, eff. 1-1-00; 91-357, eff. 7-29-99; 15 91-643, eff. 8-20-99; 91-644, eff. 8-20-99; 91-860, eff. 16 6-22-00; 91-913, eff. 1-1-01; 92-12, eff. 7-1-01; 92-16, eff. 17 6-28-01; revised 12-3-01.) 18 (35 ILCS 5/203) (from Ch. 120, par. 2-203) 19 Sec. 203. Base income defined. 20 (a) Individuals. 21 (1) In general. In the case of an individual, base 22 income means an amount equal to the taxpayer's adjusted 23 gross income for the taxable year as modified by 24 paragraph (2). 25 (2) Modifications. The adjusted gross income 26 referred to in paragraph (1) shall be modified by adding 27 thereto the sum of the following amounts: 28 (A) An amount equal to all amounts paid or 29 accrued to the taxpayer as interest or dividends 30 during the taxable year to the extent excluded from 31 gross income in the computation of adjusted gross 32 income, except stock dividends of qualified public 33 utilities described in Section 305(e) of the SB1854 Enrolled -91- LRB9215370EGfg 1 Internal Revenue Code; 2 (B) An amount equal to the amount of tax 3 imposed by this Act to the extent deducted from 4 gross income in the computation of adjusted gross 5 income for the taxable year; 6 (C) An amount equal to the amount received 7 during the taxable year as a recovery or refund of 8 real property taxes paid with respect to the 9 taxpayer's principal residence under the Revenue Act 10 of 1939 and for which a deduction was previously 11 taken under subparagraph (L) of this paragraph (2) 12 prior to July 1, 1991, the retrospective application 13 date of Article 4 of Public Act 87-17. In the case 14 of multi-unit or multi-use structures and farm 15 dwellings, the taxes on the taxpayer's principal 16 residence shall be that portion of the total taxes 17 for the entire property which is attributable to 18 such principal residence; 19 (D) An amount equal to the amount of the 20 capital gain deduction allowable under the Internal 21 Revenue Code, to the extent deducted from gross 22 income in the computation of adjusted gross income; 23 (D-5) An amount, to the extent not included in 24 adjusted gross income, equal to the amount of money 25 withdrawn by the taxpayer in the taxable year from a 26 medical care savings account and the interest earned 27 on the account in the taxable year of a withdrawal 28 pursuant to subsection (b) of Section 20 of the 29 Medical Care Savings Account Act or subsection (b) 30 of Section 20 of the Medical Care Savings Account 31 Act of 2000; and 32 (D-10) For taxable years ending after December 33 31, 1997, an amount equal to any eligible 34 remediation costs that the individual deducted in SB1854 Enrolled -92- LRB9215370EGfg 1 computing adjusted gross income and for which the 2 individual claims a credit under subsection (l) of 3 Section 201; 4 and by deducting from the total so obtained the sum of 5 the following amounts: 6 (E) For taxable years ending before December 7 31, 2001, any amount included in such total in 8 respect of any compensation (including but not 9 limited to any compensation paid or accrued to a 10 serviceman while a prisoner of war or missing in 11 action) paid to a resident by reason of being on 12 active duty in the Armed Forces of the United States 13 and in respect of any compensation paid or accrued 14 to a resident who as a governmental employee was a 15 prisoner of war or missing in action, and in respect 16 of any compensation paid to a resident in 1971 or 17 thereafter for annual training performed pursuant to 18 Sections 502 and 503, Title 32, United States Code 19 as a member of the Illinois National Guard. For 20 taxable years ending on or after December 31, 2001, 21 any amount included in such total in respect of any 22 compensation (including but not limited to any 23 compensation paid or accrued to a serviceman while a 24 prisoner of war or missing in action) paid to a 25 resident by reason of being a member of any 26 component of the Armed Forces of the United States 27 and in respect of any compensation paid or accrued 28 to a resident who as a governmental employee was a 29 prisoner of war or missing in action, and in respect 30 of any compensation paid to a resident in 2001 or 31 thereafter by reason of being a member of the 32 Illinois National Guard. The provisions of this 33 amendatory Act of the 92nd General Assembly are 34 exempt from the provisions of Section 250; SB1854 Enrolled -93- LRB9215370EGfg 1 (F) An amount equal to all amounts included in 2 such total pursuant to the provisions of Sections 3 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and 4 408 of the Internal Revenue Code, or included in 5 such total as distributions under the provisions of 6 any retirement or disability plan for employees of 7 any governmental agency or unit, or retirement 8 payments to retired partners, which payments are 9 excluded in computing net earnings from self 10 employment by Section 1402 of the Internal Revenue 11 Code and regulations adopted pursuant thereto; 12 (G) The valuation limitation amount; 13 (H) An amount equal to the amount of any tax 14 imposed by this Act which was refunded to the 15 taxpayer and included in such total for the taxable 16 year; 17 (I) An amount equal to all amounts included in 18 such total pursuant to the provisions of Section 111 19 of the Internal Revenue Code as a recovery of items 20 previously deducted from adjusted gross income in 21 the computation of taxable income; 22 (J) An amount equal to those dividends 23 included in such total which were paid by a 24 corporation which conducts business operations in an 25 Enterprise Zone or zones created under the Illinois 26 Enterprise Zone Act, and conducts substantially all 27 of its operations in an Enterprise Zone or zones; 28 (K) An amount equal to those dividends 29 included in such total that were paid by a 30 corporation that conducts business operations in a 31 federally designated Foreign Trade Zone or Sub-Zone 32 and that is designated a High Impact Business 33 located in Illinois; provided that dividends 34 eligible for the deduction provided in subparagraph SB1854 Enrolled -94- LRB9215370EGfg 1 (J) of paragraph (2) of this subsection shall not be 2 eligible for the deduction provided under this 3 subparagraph (K); 4 (L) For taxable years ending after December 5 31, 1983, an amount equal to all social security 6 benefits and railroad retirement benefits included 7 in such total pursuant to Sections 72(r) and 86 of 8 the Internal Revenue Code; 9 (M) With the exception of any amounts 10 subtracted under subparagraph (N), an amount equal 11 to the sum of all amounts disallowed as deductions 12 by (i) Sections 171(a) (2), and 265(2) of the 13 Internal Revenue Code of 1954, as now or hereafter 14 amended, and all amounts of expenses allocable to 15 interest and disallowed as deductions by Section 16 265(1) of the Internal Revenue Code of 1954, as now 17 or hereafter amended; and (ii) for taxable years 18 ending on or after August 13, 1999, Sections 19 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the 20 Internal Revenue Code; the provisions of this 21 subparagraph are exempt from the provisions of 22 Section 250; 23 (N) An amount equal to all amounts included in 24 such total which are exempt from taxation by this 25 State either by reason of its statutes or 26 Constitution or by reason of the Constitution, 27 treaties or statutes of the United States; provided 28 that, in the case of any statute of this State that 29 exempts income derived from bonds or other 30 obligations from the tax imposed under this Act, the 31 amount exempted shall be the interest net of bond 32 premium amortization; 33 (O) An amount equal to any contribution made 34 to a job training project established pursuant to SB1854 Enrolled -95- LRB9215370EGfg 1 the Tax Increment Allocation Redevelopment Act; 2 (P) An amount equal to the amount of the 3 deduction used to compute the federal income tax 4 credit for restoration of substantial amounts held 5 under claim of right for the taxable year pursuant 6 to Section 1341 of the Internal Revenue Code of 7 1986; 8 (Q) An amount equal to any amounts included in 9 such total, received by the taxpayer as an 10 acceleration in the payment of life, endowment or 11 annuity benefits in advance of the time they would 12 otherwise be payable as an indemnity for a terminal 13 illness; 14 (R) An amount equal to the amount of any 15 federal or State bonus paid to veterans of the 16 Persian Gulf War; 17 (S) An amount, to the extent included in 18 adjusted gross income, equal to the amount of a 19 contribution made in the taxable year on behalf of 20 the taxpayer to a medical care savings account 21 established under the Medical Care Savings Account 22 Act or the Medical Care Savings Account Act of 2000 23 to the extent the contribution is accepted by the 24 account administrator as provided in that Act; 25 (T) An amount, to the extent included in 26 adjusted gross income, equal to the amount of 27 interest earned in the taxable year on a medical 28 care savings account established under the Medical 29 Care Savings Account Act or the Medical Care Savings 30 Account Act of 2000 on behalf of the taxpayer, other 31 than interest added pursuant to item (D-5) of this 32 paragraph (2); 33 (U) For one taxable year beginning on or after 34 January 1, 1994, an amount equal to the total amount SB1854 Enrolled -96- LRB9215370EGfg 1 of tax imposed and paid under subsections (a) and 2 (b) of Section 201 of this Act on grant amounts 3 received by the taxpayer under the Nursing Home 4 Grant Assistance Act during the taxpayer's taxable 5 years 1992 and 1993; 6 (V) Beginning with tax years ending on or 7 after December 31, 1995 and ending with tax years 8 ending on or before December 31, 2004, an amount 9 equal to the amount paid by a taxpayer who is a 10 self-employed taxpayer, a partner of a partnership, 11 or a shareholder in a Subchapter S corporation for 12 health insurance or long-term care insurance for 13 that taxpayer or that taxpayer's spouse or 14 dependents, to the extent that the amount paid for 15 that health insurance or long-term care insurance 16 may be deducted under Section 213 of the Internal 17 Revenue Code of 1986, has not been deducted on the 18 federal income tax return of the taxpayer, and does 19 not exceed the taxable income attributable to that 20 taxpayer's income, self-employment income, or 21 Subchapter S corporation income; except that no 22 deduction shall be allowed under this item (V) if 23 the taxpayer is eligible to participate in any 24 health insurance or long-term care insurance plan of 25 an employer of the taxpayer or the taxpayer's 26 spouse. The amount of the health insurance and 27 long-term care insurance subtracted under this item 28 (V) shall be determined by multiplying total health 29 insurance and long-term care insurance premiums paid 30 by the taxpayer times a number that represents the 31 fractional percentage of eligible medical expenses 32 under Section 213 of the Internal Revenue Code of 33 1986 not actually deducted on the taxpayer's federal 34 income tax return; SB1854 Enrolled -97- LRB9215370EGfg 1 (W) For taxable years beginning on or after 2 January 1, 1998, all amounts included in the 3 taxpayer's federal gross income in the taxable year 4 from amounts converted from a regular IRA to a Roth 5 IRA. This paragraph is exempt from the provisions of 6 Section 250; 7 (X) For taxable year 1999 and thereafter, an 8 amount equal to the amount of any (i) distributions, 9 to the extent includible in gross income for federal 10 income tax purposes, made to the taxpayer because of 11 his or her status as a victim of persecution for 12 racial or religious reasons by Nazi Germany or any 13 other Axis regime or as an heir of the victim and 14 (ii) items of income, to the extent includible in 15 gross income for federal income tax purposes, 16 attributable to, derived from or in any way related 17 to assets stolen from, hidden from, or otherwise 18 lost to a victim of persecution for racial or 19 religious reasons by Nazi Germany or any other Axis 20 regime immediately prior to, during, and immediately 21 after World War II, including, but not limited to, 22 interest on the proceeds receivable as insurance 23 under policies issued to a victim of persecution for 24 racial or religious reasons by Nazi Germany or any 25 other Axis regime by European insurance companies 26 immediately prior to and during World War II; 27 provided, however, this subtraction from federal 28 adjusted gross income does not apply to assets 29 acquired with such assets or with the proceeds from 30 the sale of such assets; provided, further, this 31 paragraph shall only apply to a taxpayer who was the 32 first recipient of such assets after their recovery 33 and who is a victim of persecution for racial or 34 religious reasons by Nazi Germany or any other Axis SB1854 Enrolled -98- LRB9215370EGfg 1 regime or as an heir of the victim. The amount of 2 and the eligibility for any public assistance, 3 benefit, or similar entitlement is not affected by 4 the inclusion of items (i) and (ii) of this 5 paragraph in gross income for federal income tax 6 purposes. This paragraph is exempt from the 7 provisions of Section 250; and 8 (Y) For taxable years beginning on or after 9 January 1, 2002, moneys contributed in the taxable 10 year to a College Savings Pool account under Section 11 16.5 of the State Treasurer Act. This subparagraph 12 (Y) is exempt from the provisions of Section 250. 13 (b) Corporations. 14 (1) In general. In the case of a corporation, base 15 income means an amount equal to the taxpayer's taxable 16 income for the taxable year as modified by paragraph (2). 17 (2) Modifications. The taxable income referred to 18 in paragraph (1) shall be modified by adding thereto the 19 sum of the following amounts: 20 (A) An amount equal to all amounts paid or 21 accrued to the taxpayer as interest and all 22 distributions received from regulated investment 23 companies during the taxable year to the extent 24 excluded from gross income in the computation of 25 taxable income; 26 (B) An amount equal to the amount of tax 27 imposed by this Act to the extent deducted from 28 gross income in the computation of taxable income 29 for the taxable year; 30 (C) In the case of a regulated investment 31 company, an amount equal to the excess of (i) the 32 net long-term capital gain for the taxable year, 33 over (ii) the amount of the capital gain dividends 34 designated as such in accordance with Section SB1854 Enrolled -99- LRB9215370EGfg 1 852(b)(3)(C) of the Internal Revenue Code and any 2 amount designated under Section 852(b)(3)(D) of the 3 Internal Revenue Code, attributable to the taxable 4 year (this amendatory Act of 1995 (Public Act 89-89) 5 is declarative of existing law and is not a new 6 enactment); 7 (D) The amount of any net operating loss 8 deduction taken in arriving at taxable income, other 9 than a net operating loss carried forward from a 10 taxable year ending prior to December 31, 1986; 11 (E) For taxable years in which a net operating 12 loss carryback or carryforward from a taxable year 13 ending prior to December 31, 1986 is an element of 14 taxable income under paragraph (1) of subsection (e) 15 or subparagraph (E) of paragraph (2) of subsection 16 (e), the amount by which addition modifications 17 other than those provided by this subparagraph (E) 18 exceeded subtraction modifications in such earlier 19 taxable year, with the following limitations applied 20 in the order that they are listed: 21 (i) the addition modification relating to 22 the net operating loss carried back or forward 23 to the taxable year from any taxable year 24 ending prior to December 31, 1986 shall be 25 reduced by the amount of addition modification 26 under this subparagraph (E) which related to 27 that net operating loss and which was taken 28 into account in calculating the base income of 29 an earlier taxable year, and 30 (ii) the addition modification relating 31 to the net operating loss carried back or 32 forward to the taxable year from any taxable 33 year ending prior to December 31, 1986 shall 34 not exceed the amount of such carryback or SB1854 Enrolled -100- LRB9215370EGfg 1 carryforward; 2 For taxable years in which there is a net 3 operating loss carryback or carryforward from more 4 than one other taxable year ending prior to December 5 31, 1986, the addition modification provided in this 6 subparagraph (E) shall be the sum of the amounts 7 computed independently under the preceding 8 provisions of this subparagraph (E) for each such 9 taxable year; and 10 (E-5) For taxable years ending after December 11 31, 1997, an amount equal to any eligible 12 remediation costs that the corporation deducted in 13 computing adjusted gross income and for which the 14 corporation claims a credit under subsection (l) of 15 Section 201; 16 and by deducting from the total so obtained the sum of 17 the following amounts: 18 (F) An amount equal to the amount of any tax 19 imposed by this Act which was refunded to the 20 taxpayer and included in such total for the taxable 21 year; 22 (G) An amount equal to any amount included in 23 such total under Section 78 of the Internal Revenue 24 Code; 25 (H) In the case of a regulated investment 26 company, an amount equal to the amount of exempt 27 interest dividends as defined in subsection (b) (5) 28 of Section 852 of the Internal Revenue Code, paid to 29 shareholders for the taxable year; 30 (I) With the exception of any amounts 31 subtracted under subparagraph (J), an amount equal 32 to the sum of all amounts disallowed as deductions 33 by (i) Sections 171(a) (2), and 265(a)(2) and 34 amounts disallowed as interest expense by Section SB1854 Enrolled -101- LRB9215370EGfg 1 291(a)(3) of the Internal Revenue Code, as now or 2 hereafter amended, and all amounts of expenses 3 allocable to interest and disallowed as deductions 4 by Section 265(a)(1) of the Internal Revenue Code, 5 as now or hereafter amended; and (ii) for taxable 6 years ending on or after August 13, 1999, Sections 7 171(a)(2), 265, 280C, 291(a)(3), and 832(b)(5)(B)(i) 8 of the Internal Revenue Code; the provisions of this 9 subparagraph are exempt from the provisions of 10 Section 250; 11 (J) An amount equal to all amounts included in 12 such total which are exempt from taxation by this 13 State either by reason of its statutes or 14 Constitution or by reason of the Constitution, 15 treaties or statutes of the United States; provided 16 that, in the case of any statute of this State that 17 exempts income derived from bonds or other 18 obligations from the tax imposed under this Act, the 19 amount exempted shall be the interest net of bond 20 premium amortization; 21 (K) An amount equal to those dividends 22 included in such total which were paid by a 23 corporation which conducts business operations in an 24 Enterprise Zone or zones created under the Illinois 25 Enterprise Zone Act and conducts substantially all 26 of its operations in an Enterprise Zone or zones; 27 (L) An amount equal to those dividends 28 included in such total that were paid by a 29 corporation that conducts business operations in a 30 federally designated Foreign Trade Zone or Sub-Zone 31 and that is designated a High Impact Business 32 located in Illinois; provided that dividends 33 eligible for the deduction provided in subparagraph 34 (K) of paragraph 2 of this subsection shall not be SB1854 Enrolled -102- LRB9215370EGfg 1 eligible for the deduction provided under this 2 subparagraph (L); 3 (M) For any taxpayer that is a financial 4 organization within the meaning of Section 304(c) of 5 this Act, an amount included in such total as 6 interest income from a loan or loans made by such 7 taxpayer to a borrower, to the extent that such a 8 loan is secured by property which is eligible for 9 the Enterprise Zone Investment Credit. To determine 10 the portion of a loan or loans that is secured by 11 property eligible for a Section 201(f) investment 12 credit to the borrower, the entire principal amount 13 of the loan or loans between the taxpayer and the 14 borrower should be divided into the basis of the 15 Section 201(f) investment credit property which 16 secures the loan or loans, using for this purpose 17 the original basis of such property on the date that 18 it was placed in service in the Enterprise Zone. 19 The subtraction modification available to taxpayer 20 in any year under this subsection shall be that 21 portion of the total interest paid by the borrower 22 with respect to such loan attributable to the 23 eligible property as calculated under the previous 24 sentence; 25 (M-1) For any taxpayer that is a financial 26 organization within the meaning of Section 304(c) of 27 this Act, an amount included in such total as 28 interest income from a loan or loans made by such 29 taxpayer to a borrower, to the extent that such a 30 loan is secured by property which is eligible for 31 the High Impact Business Investment Credit. To 32 determine the portion of a loan or loans that is 33 secured by property eligible for a Section 201(h) 34 investment credit to the borrower, the entire SB1854 Enrolled -103- LRB9215370EGfg 1 principal amount of the loan or loans between the 2 taxpayer and the borrower should be divided into the 3 basis of the Section 201(h) investment credit 4 property which secures the loan or loans, using for 5 this purpose the original basis of such property on 6 the date that it was placed in service in a 7 federally designated Foreign Trade Zone or Sub-Zone 8 located in Illinois. No taxpayer that is eligible 9 for the deduction provided in subparagraph (M) of 10 paragraph (2) of this subsection shall be eligible 11 for the deduction provided under this subparagraph 12 (M-1). The subtraction modification available to 13 taxpayers in any year under this subsection shall be 14 that portion of the total interest paid by the 15 borrower with respect to such loan attributable to 16 the eligible property as calculated under the 17 previous sentence; 18 (N) Two times any contribution made during the 19 taxable year to a designated zone organization to 20 the extent that the contribution (i) qualifies as a 21 charitable contribution under subsection (c) of 22 Section 170 of the Internal Revenue Code and (ii) 23 must, by its terms, be used for a project approved 24 by the Department of Commerce and Community Affairs 25 under Section 11 of the Illinois Enterprise Zone 26 Act; 27 (O) An amount equal to: (i) 85% for taxable 28 years ending on or before December 31, 1992, or, a 29 percentage equal to the percentage allowable under 30 Section 243(a)(1) of the Internal Revenue Code of 31 1986 for taxable years ending after December 31, 32 1992, of the amount by which dividends included in 33 taxable income and received from a corporation that 34 is not created or organized under the laws of the SB1854 Enrolled -104- LRB9215370EGfg 1 United States or any state or political subdivision 2 thereof, including, for taxable years ending on or 3 after December 31, 1988, dividends received or 4 deemed received or paid or deemed paid under 5 Sections 951 through 964 of the Internal Revenue 6 Code, exceed the amount of the modification provided 7 under subparagraph (G) of paragraph (2) of this 8 subsection (b) which is related to such dividends; 9 plus (ii) 100% of the amount by which dividends, 10 included in taxable income and received, including, 11 for taxable years ending on or after December 31, 12 1988, dividends received or deemed received or paid 13 or deemed paid under Sections 951 through 964 of the 14 Internal Revenue Code, from any such corporation 15 specified in clause (i) that would but for the 16 provisions of Section 1504 (b) (3) of the Internal 17 Revenue Code be treated as a member of the 18 affiliated group which includes the dividend 19 recipient, exceed the amount of the modification 20 provided under subparagraph (G) of paragraph (2) of 21 this subsection (b) which is related to such 22 dividends; 23 (P) An amount equal to any contribution made 24 to a job training project established pursuant to 25 the Tax Increment Allocation Redevelopment Act; 26 (Q) An amount equal to the amount of the 27 deduction used to compute the federal income tax 28 credit for restoration of substantial amounts held 29 under claim of right for the taxable year pursuant 30 to Section 1341 of the Internal Revenue Code of 31 1986; 32 (R) In the case of an attorney-in-fact with 33 respect to whom an interinsurer or a reciprocal 34 insurer has made the election under Section 835 of SB1854 Enrolled -105- LRB9215370EGfg 1 the Internal Revenue Code, 26 U.S.C. 835, an amount 2 equal to the excess, if any, of the amounts paid or 3 incurred by that interinsurer or reciprocal insurer 4 in the taxable year to the attorney-in-fact over the 5 deduction allowed to that interinsurer or reciprocal 6 insurer with respect to the attorney-in-fact under 7 Section 835(b) of the Internal Revenue Code for the 8 taxable year; and 9 (S) For taxable years ending on or after 10 December 31, 1997, in the case of a Subchapter S 11 corporation, an amount equal to all amounts of 12 income allocable to a shareholder subject to the 13 Personal Property Tax Replacement Income Tax imposed 14 by subsections (c) and (d) of Section 201 of this 15 Act, including amounts allocable to organizations 16 exempt from federal income tax by reason of Section 17 501(a) of the Internal Revenue Code. This 18 subparagraph (S) is exempt from the provisions of 19 Section 250. 20 (3) Special rule. For purposes of paragraph (2) 21 (A), "gross income" in the case of a life insurance 22 company, for tax years ending on and after December 31, 23 1994, shall mean the gross investment income for the 24 taxable year. 25 (c) Trusts and estates. 26 (1) In general. In the case of a trust or estate, 27 base income means an amount equal to the taxpayer's 28 taxable income for the taxable year as modified by 29 paragraph (2). 30 (2) Modifications. Subject to the provisions of 31 paragraph (3), the taxable income referred to in 32 paragraph (1) shall be modified by adding thereto the sum 33 of the following amounts: 34 (A) An amount equal to all amounts paid or SB1854 Enrolled -106- LRB9215370EGfg 1 accrued to the taxpayer as interest or dividends 2 during the taxable year to the extent excluded from 3 gross income in the computation of taxable income; 4 (B) In the case of (i) an estate, $600; (ii) a 5 trust which, under its governing instrument, is 6 required to distribute all of its income currently, 7 $300; and (iii) any other trust, $100, but in each 8 such case, only to the extent such amount was 9 deducted in the computation of taxable income; 10 (C) An amount equal to the amount of tax 11 imposed by this Act to the extent deducted from 12 gross income in the computation of taxable income 13 for the taxable year; 14 (D) The amount of any net operating loss 15 deduction taken in arriving at taxable income, other 16 than a net operating loss carried forward from a 17 taxable year ending prior to December 31, 1986; 18 (E) For taxable years in which a net operating 19 loss carryback or carryforward from a taxable year 20 ending prior to December 31, 1986 is an element of 21 taxable income under paragraph (1) of subsection (e) 22 or subparagraph (E) of paragraph (2) of subsection 23 (e), the amount by which addition modifications 24 other than those provided by this subparagraph (E) 25 exceeded subtraction modifications in such taxable 26 year, with the following limitations applied in the 27 order that they are listed: 28 (i) the addition modification relating to 29 the net operating loss carried back or forward 30 to the taxable year from any taxable year 31 ending prior to December 31, 1986 shall be 32 reduced by the amount of addition modification 33 under this subparagraph (E) which related to 34 that net operating loss and which was taken SB1854 Enrolled -107- LRB9215370EGfg 1 into account in calculating the base income of 2 an earlier taxable year, and 3 (ii) the addition modification relating 4 to the net operating loss carried back or 5 forward to the taxable year from any taxable 6 year ending prior to December 31, 1986 shall 7 not exceed the amount of such carryback or 8 carryforward; 9 For taxable years in which there is a net 10 operating loss carryback or carryforward from more 11 than one other taxable year ending prior to December 12 31, 1986, the addition modification provided in this 13 subparagraph (E) shall be the sum of the amounts 14 computed independently under the preceding 15 provisions of this subparagraph (E) for each such 16 taxable year; 17 (F) For taxable years ending on or after 18 January 1, 1989, an amount equal to the tax deducted 19 pursuant to Section 164 of the Internal Revenue Code 20 if the trust or estate is claiming the same tax for 21 purposes of the Illinois foreign tax credit under 22 Section 601 of this Act; 23 (G) An amount equal to the amount of the 24 capital gain deduction allowable under the Internal 25 Revenue Code, to the extent deducted from gross 26 income in the computation of taxable income; and 27 (G-5) For taxable years ending after December 28 31, 1997, an amount equal to any eligible 29 remediation costs that the trust or estate deducted 30 in computing adjusted gross income and for which the 31 trust or estate claims a credit under subsection (l) 32 of Section 201; 33 and by deducting from the total so obtained the sum of 34 the following amounts: SB1854 Enrolled -108- LRB9215370EGfg 1 (H) An amount equal to all amounts included in 2 such total pursuant to the provisions of Sections 3 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 4 408 of the Internal Revenue Code or included in such 5 total as distributions under the provisions of any 6 retirement or disability plan for employees of any 7 governmental agency or unit, or retirement payments 8 to retired partners, which payments are excluded in 9 computing net earnings from self employment by 10 Section 1402 of the Internal Revenue Code and 11 regulations adopted pursuant thereto; 12 (I) The valuation limitation amount; 13 (J) An amount equal to the amount of any tax 14 imposed by this Act which was refunded to the 15 taxpayer and included in such total for the taxable 16 year; 17 (K) An amount equal to all amounts included in 18 taxable income as modified by subparagraphs (A), 19 (B), (C), (D), (E), (F) and (G) which are exempt 20 from taxation by this State either by reason of its 21 statutes or Constitution or by reason of the 22 Constitution, treaties or statutes of the United 23 States; provided that, in the case of any statute of 24 this State that exempts income derived from bonds or 25 other obligations from the tax imposed under this 26 Act, the amount exempted shall be the interest net 27 of bond premium amortization; 28 (L) With the exception of any amounts 29 subtracted under subparagraph (K), an amount equal 30 to the sum of all amounts disallowed as deductions 31 by (i) Sections 171(a) (2) and 265(a)(2) of the 32 Internal Revenue Code, as now or hereafter amended, 33 and all amounts of expenses allocable to interest 34 and disallowed as deductions by Section 265(1) of SB1854 Enrolled -109- LRB9215370EGfg 1 the Internal Revenue Code of 1954, as now or 2 hereafter amended; and (ii) for taxable years ending 3 on or after August 13, 1999, Sections 171(a)(2), 4 265, 280C, and 832(b)(5)(B)(i) of the Internal 5 Revenue Code; the provisions of this subparagraph 6 are exempt from the provisions of Section 250; 7 (M) An amount equal to those dividends 8 included in such total which were paid by a 9 corporation which conducts business operations in an 10 Enterprise Zone or zones created under the Illinois 11 Enterprise Zone Act and conducts substantially all 12 of its operations in an Enterprise Zone or Zones; 13 (N) An amount equal to any contribution made 14 to a job training project established pursuant to 15 the Tax Increment Allocation Redevelopment Act; 16 (O) An amount equal to those dividends 17 included in such total that were paid by a 18 corporation that conducts business operations in a 19 federally designated Foreign Trade Zone or Sub-Zone 20 and that is designated a High Impact Business 21 located in Illinois; provided that dividends 22 eligible for the deduction provided in subparagraph 23 (M) of paragraph (2) of this subsection shall not be 24 eligible for the deduction provided under this 25 subparagraph (O); 26 (P) An amount equal to the amount of the 27 deduction used to compute the federal income tax 28 credit for restoration of substantial amounts held 29 under claim of right for the taxable year pursuant 30 to Section 1341 of the Internal Revenue Code of 31 1986; and 32 (Q) For taxable year 1999 and thereafter, an 33 amount equal to the amount of any (i) distributions, 34 to the extent includible in gross income for federal SB1854 Enrolled -110- LRB9215370EGfg 1 income tax purposes, made to the taxpayer because of 2 his or her status as a victim of persecution for 3 racial or religious reasons by Nazi Germany or any 4 other Axis regime or as an heir of the victim and 5 (ii) items of income, to the extent includible in 6 gross income for federal income tax purposes, 7 attributable to, derived from or in any way related 8 to assets stolen from, hidden from, or otherwise 9 lost to a victim of persecution for racial or 10 religious reasons by Nazi Germany or any other Axis 11 regime immediately prior to, during, and immediately 12 after World War II, including, but not limited to, 13 interest on the proceeds receivable as insurance 14 under policies issued to a victim of persecution for 15 racial or religious reasons by Nazi Germany or any 16 other Axis regime by European insurance companies 17 immediately prior to and during World War II; 18 provided, however, this subtraction from federal 19 adjusted gross income does not apply to assets 20 acquired with such assets or with the proceeds from 21 the sale of such assets; provided, further, this 22 paragraph shall only apply to a taxpayer who was the 23 first recipient of such assets after their recovery 24 and who is a victim of persecution for racial or 25 religious reasons by Nazi Germany or any other Axis 26 regime or as an heir of the victim. The amount of 27 and the eligibility for any public assistance, 28 benefit, or similar entitlement is not affected by 29 the inclusion of items (i) and (ii) of this 30 paragraph in gross income for federal income tax 31 purposes. This paragraph is exempt from the 32 provisions of Section 250. 33 (3) Limitation. The amount of any modification 34 otherwise required under this subsection shall, under SB1854 Enrolled -111- LRB9215370EGfg 1 regulations prescribed by the Department, be adjusted by 2 any amounts included therein which were properly paid, 3 credited, or required to be distributed, or permanently 4 set aside for charitable purposes pursuant to Internal 5 Revenue Code Section 642(c) during the taxable year. 6 (d) Partnerships. 7 (1) In general. In the case of a partnership, base 8 income means an amount equal to the taxpayer's taxable 9 income for the taxable year as modified by paragraph (2). 10 (2) Modifications. The taxable income referred to 11 in paragraph (1) shall be modified by adding thereto the 12 sum of the following amounts: 13 (A) An amount equal to all amounts paid or 14 accrued to the taxpayer as interest or dividends 15 during the taxable year to the extent excluded from 16 gross income in the computation of taxable income; 17 (B) An amount equal to the amount of tax 18 imposed by this Act to the extent deducted from 19 gross income for the taxable year; 20 (C) The amount of deductions allowed to the 21 partnership pursuant to Section 707 (c) of the 22 Internal Revenue Code in calculating its taxable 23 income; and 24 (D) An amount equal to the amount of the 25 capital gain deduction allowable under the Internal 26 Revenue Code, to the extent deducted from gross 27 income in the computation of taxable income; 28 and by deducting from the total so obtained the following 29 amounts: 30 (E) The valuation limitation amount; 31 (F) An amount equal to the amount of any tax 32 imposed by this Act which was refunded to the 33 taxpayer and included in such total for the taxable 34 year; SB1854 Enrolled -112- LRB9215370EGfg 1 (G) An amount equal to all amounts included in 2 taxable income as modified by subparagraphs (A), 3 (B), (C) and (D) which are exempt from taxation by 4 this State either by reason of its statutes or 5 Constitution or by reason of the Constitution, 6 treaties or statutes of the United States; provided 7 that, in the case of any statute of this State that 8 exempts income derived from bonds or other 9 obligations from the tax imposed under this Act, the 10 amount exempted shall be the interest net of bond 11 premium amortization; 12 (H) Any income of the partnership which 13 constitutes personal service income as defined in 14 Section 1348 (b) (1) of the Internal Revenue Code 15 (as in effect December 31, 1981) or a reasonable 16 allowance for compensation paid or accrued for 17 services rendered by partners to the partnership, 18 whichever is greater; 19 (I) An amount equal to all amounts of income 20 distributable to an entity subject to the Personal 21 Property Tax Replacement Income Tax imposed by 22 subsections (c) and (d) of Section 201 of this Act 23 including amounts distributable to organizations 24 exempt from federal income tax by reason of Section 25 501(a) of the Internal Revenue Code; 26 (J) With the exception of any amounts 27 subtracted under subparagraph (G), an amount equal 28 to the sum of all amounts disallowed as deductions 29 by (i) Sections 171(a) (2), and 265(2) of the 30 Internal Revenue Code of 1954, as now or hereafter 31 amended, and all amounts of expenses allocable to 32 interest and disallowed as deductions by Section 33 265(1) of the Internal Revenue Code, as now or 34 hereafter amended; and (ii) for taxable years ending SB1854 Enrolled -113- LRB9215370EGfg 1 on or after August 13, 1999, Sections 171(a)(2), 2 265, 280C, and 832(b)(5)(B)(i) of the Internal 3 Revenue Code; the provisions of this subparagraph 4 are exempt from the provisions of Section 250; 5 (K) An amount equal to those dividends 6 included in such total which were paid by a 7 corporation which conducts business operations in an 8 Enterprise Zone or zones created under the Illinois 9 Enterprise Zone Act, enacted by the 82nd General 10 Assembly, and which does not conduct such operations 11 other than in an Enterprise Zone or Zones; 12 (L) An amount equal to any contribution made 13 to a job training project established pursuant to 14 the Real Property Tax Increment Allocation 15 Redevelopment Act; 16 (M) An amount equal to those dividends 17 included in such total that were paid by a 18 corporation that conducts business operations in a 19 federally designated Foreign Trade Zone or Sub-Zone 20 and that is designated a High Impact Business 21 located in Illinois; provided that dividends 22 eligible for the deduction provided in subparagraph 23 (K) of paragraph (2) of this subsection shall not be 24 eligible for the deduction provided under this 25 subparagraph (M); and 26 (N) An amount equal to the amount of the 27 deduction used to compute the federal income tax 28 credit for restoration of substantial amounts held 29 under claim of right for the taxable year pursuant 30 to Section 1341 of the Internal Revenue Code of 31 1986. 32 (e) Gross income; adjusted gross income; taxable income. 33 (1) In general. Subject to the provisions of 34 paragraph (2) and subsection (b) (3), for purposes of SB1854 Enrolled -114- LRB9215370EGfg 1 this Section and Section 803(e), a taxpayer's gross 2 income, adjusted gross income, or taxable income for the 3 taxable year shall mean the amount of gross income, 4 adjusted gross income or taxable income properly 5 reportable for federal income tax purposes for the 6 taxable year under the provisions of the Internal Revenue 7 Code. Taxable income may be less than zero. However, for 8 taxable years ending on or after December 31, 1986, net 9 operating loss carryforwards from taxable years ending 10 prior to December 31, 1986, may not exceed the sum of 11 federal taxable income for the taxable year before net 12 operating loss deduction, plus the excess of addition 13 modifications over subtraction modifications for the 14 taxable year. For taxable years ending prior to December 15 31, 1986, taxable income may never be an amount in excess 16 of the net operating loss for the taxable year as defined 17 in subsections (c) and (d) of Section 172 of the Internal 18 Revenue Code, provided that when taxable income of a 19 corporation (other than a Subchapter S corporation), 20 trust, or estate is less than zero and addition 21 modifications, other than those provided by subparagraph 22 (E) of paragraph (2) of subsection (b) for corporations 23 or subparagraph (E) of paragraph (2) of subsection (c) 24 for trusts and estates, exceed subtraction modifications, 25 an addition modification must be made under those 26 subparagraphs for any other taxable year to which the 27 taxable income less than zero (net operating loss) is 28 applied under Section 172 of the Internal Revenue Code or 29 under subparagraph (E) of paragraph (2) of this 30 subsection (e) applied in conjunction with Section 172 of 31 the Internal Revenue Code. 32 (2) Special rule. For purposes of paragraph (1) of 33 this subsection, the taxable income properly reportable 34 for federal income tax purposes shall mean: SB1854 Enrolled -115- LRB9215370EGfg 1 (A) Certain life insurance companies. In the 2 case of a life insurance company subject to the tax 3 imposed by Section 801 of the Internal Revenue Code, 4 life insurance company taxable income, plus the 5 amount of distribution from pre-1984 policyholder 6 surplus accounts as calculated under Section 815a of 7 the Internal Revenue Code; 8 (B) Certain other insurance companies. In the 9 case of mutual insurance companies subject to the 10 tax imposed by Section 831 of the Internal Revenue 11 Code, insurance company taxable income; 12 (C) Regulated investment companies. In the 13 case of a regulated investment company subject to 14 the tax imposed by Section 852 of the Internal 15 Revenue Code, investment company taxable income; 16 (D) Real estate investment trusts. In the 17 case of a real estate investment trust subject to 18 the tax imposed by Section 857 of the Internal 19 Revenue Code, real estate investment trust taxable 20 income; 21 (E) Consolidated corporations. In the case of 22 a corporation which is a member of an affiliated 23 group of corporations filing a consolidated income 24 tax return for the taxable year for federal income 25 tax purposes, taxable income determined as if such 26 corporation had filed a separate return for federal 27 income tax purposes for the taxable year and each 28 preceding taxable year for which it was a member of 29 an affiliated group. For purposes of this 30 subparagraph, the taxpayer's separate taxable income 31 shall be determined as if the election provided by 32 Section 243(b) (2) of the Internal Revenue Code had 33 been in effect for all such years; 34 (F) Cooperatives. In the case of a SB1854 Enrolled -116- LRB9215370EGfg 1 cooperative corporation or association, the taxable 2 income of such organization determined in accordance 3 with the provisions of Section 1381 through 1388 of 4 the Internal Revenue Code; 5 (G) Subchapter S corporations. In the case 6 of: (i) a Subchapter S corporation for which there 7 is in effect an election for the taxable year under 8 Section 1362 of the Internal Revenue Code, the 9 taxable income of such corporation determined in 10 accordance with Section 1363(b) of the Internal 11 Revenue Code, except that taxable income shall take 12 into account those items which are required by 13 Section 1363(b)(1) of the Internal Revenue Code to 14 be separately stated; and (ii) a Subchapter S 15 corporation for which there is in effect a federal 16 election to opt out of the provisions of the 17 Subchapter S Revision Act of 1982 and have applied 18 instead the prior federal Subchapter S rules as in 19 effect on July 1, 1982, the taxable income of such 20 corporation determined in accordance with the 21 federal Subchapter S rules as in effect on July 1, 22 1982; and 23 (H) Partnerships. In the case of a 24 partnership, taxable income determined in accordance 25 with Section 703 of the Internal Revenue Code, 26 except that taxable income shall take into account 27 those items which are required by Section 703(a)(1) 28 to be separately stated but which would be taken 29 into account by an individual in calculating his 30 taxable income. 31 (f) Valuation limitation amount. 32 (1) In general. The valuation limitation amount 33 referred to in subsections (a) (2) (G), (c) (2) (I) and 34 (d)(2) (E) is an amount equal to: SB1854 Enrolled -117- LRB9215370EGfg 1 (A) The sum of the pre-August 1, 1969 2 appreciation amounts (to the extent consisting of 3 gain reportable under the provisions of Section 1245 4 or 1250 of the Internal Revenue Code) for all 5 property in respect of which such gain was reported 6 for the taxable year; plus 7 (B) The lesser of (i) the sum of the 8 pre-August 1, 1969 appreciation amounts (to the 9 extent consisting of capital gain) for all property 10 in respect of which such gain was reported for 11 federal income tax purposes for the taxable year, or 12 (ii) the net capital gain for the taxable year, 13 reduced in either case by any amount of such gain 14 included in the amount determined under subsection 15 (a) (2) (F) or (c) (2) (H). 16 (2) Pre-August 1, 1969 appreciation amount. 17 (A) If the fair market value of property 18 referred to in paragraph (1) was readily 19 ascertainable on August 1, 1969, the pre-August 1, 20 1969 appreciation amount for such property is the 21 lesser of (i) the excess of such fair market value 22 over the taxpayer's basis (for determining gain) for 23 such property on that date (determined under the 24 Internal Revenue Code as in effect on that date), or 25 (ii) the total gain realized and reportable for 26 federal income tax purposes in respect of the sale, 27 exchange or other disposition of such property. 28 (B) If the fair market value of property 29 referred to in paragraph (1) was not readily 30 ascertainable on August 1, 1969, the pre-August 1, 31 1969 appreciation amount for such property is that 32 amount which bears the same ratio to the total gain 33 reported in respect of the property for federal 34 income tax purposes for the taxable year, as the SB1854 Enrolled -118- LRB9215370EGfg 1 number of full calendar months in that part of the 2 taxpayer's holding period for the property ending 3 July 31, 1969 bears to the number of full calendar 4 months in the taxpayer's entire holding period for 5 the property. 6 (C) The Department shall prescribe such 7 regulations as may be necessary to carry out the 8 purposes of this paragraph. 9 (g) Double deductions. Unless specifically provided 10 otherwise, nothing in this Section shall permit the same item 11 to be deducted more than once. 12 (h) Legislative intention. Except as expressly provided 13 by this Section there shall be no modifications or 14 limitations on the amounts of income, gain, loss or deduction 15 taken into account in determining gross income, adjusted 16 gross income or taxable income for federal income tax 17 purposes for the taxable year, or in the amount of such items 18 entering into the computation of base income and net income 19 under this Act for such taxable year, whether in respect of 20 property values as of August 1, 1969 or otherwise. 21 (Source: P.A. 91-192, eff. 7-20-99; 91-205, eff. 7-20-99; 22 91-357, eff. 7-29-99; 91-541, eff. 8-13-99; 91-676, eff. 23 12-23-99; 91-845, eff. 6-22-00; 91-913, eff. 1-1-01; 92-16, 24 eff. 6-28-01; 92-244, eff. 8-3-01; 92-439, eff. 8-17-01; 25 revised 9-21-01.) 26 (35 ILCS 5/507V) 27 Sec. 507V. National World War II Memorial Fund checkoff. 28 The Department must print on its standard individual income 29 tax form a provision indicating that if the taxpayer wishes 30 to contribute to the National World War II Memorial Fund, as 31 authorized by this amendatory Act of the 91st General 32 Assembly, he or she may do so by stating the amount of the SB1854 Enrolled -119- LRB9215370EGfg 1 contribution (not less than $1) on the return and that the 2 contribution will reduce the taxpayer's refund or increase 3 the amount of payment to accompany the return. Failure to 4 remit any amount of increased payment reduces the 5 contribution accordingly. This Section does not apply to any 6 amended return. 7 (Source: P.A. 91-833, eff. 1-1-01; 91-836, eff. 1-1-01.) 8 (35 ILCS 5/507W) 9 Sec. 507W.507V.Korean War Veterans National Museum and 10 Library Fund checkoff. Beginning with taxable years ending 11 on or after December 31, 2001, the Department shall print on 12 its standard individual income tax form a provision 13 indicating that if the taxpayer wishes to contribute to the 14 Korean War Veterans National Museum and Library Fund, as 15 authorized by this amendatory Act of the 92nd General 16 Assembly, he or she may do so by stating the amount of the 17 contribution (not less than $1) on the return and that the 18 contribution will reduce the taxpayer's refund or increase 19 the amount of payment to accompany the return. Failure to 20 remit any amount of increased payment shall reduce the 21 contribution accordingly. This Section shall not apply to 22 any amended return. 23 (Source: P.A. 92-198, eff. 8-1-01; revised 10-17-01.) 24 (35 ILCS 5/509) (from Ch. 120, par. 5-509) 25 (Text of Section before amendment by P.A. 92-84) 26 Sec. 509. Tax checkoff explanations. All individual 27 income tax return forms shall contain appropriate 28 explanations and spaces to enable the taxpayers to designate 29 contributions to the Child Abuse Prevention Fund, to the 30 Community Health Center Care Fund, to the Illinois Wildlife 31 Preservation Fund as required by the Illinois Non-Game 32 Wildlife Protection Act, to the Alzheimer's Disease Research SB1854 Enrolled -120- LRB9215370EGfg 1 Fund as required by the Alzheimer's Disease Research Act, to 2 the Assistance to the Homeless Fund as required by this Act, 3 to the Heritage Preservation Fund as required by the Heritage 4 Preservation Act, to the Child Care Expansion Program Fund as 5 required by the Child Care Expansion Program Act, to the Ryan 6 White AIDS Victims Assistance Fund, to the Assistive 7 Technology for Persons with Disabilities Fund, to the 8 Domestic Violence Shelter and Service Fund, to the United 9 States Olympians Assistance Fund, to the Youth Drug Abuse 10 Prevention Fund, to the Persian Gulf Conflict Veterans Fund, 11 to the Literacy Advancement Fund, to the Ryan White Pediatric 12 and Adult AIDS Fund, to the Illinois Special Olympics 13 Checkoff Fund, to the Penny Severns Breast and Cervical 14 Cancer Research Fund, to the Korean War Memorial Fund, to the 15 Heart Disease Treatment and Prevention Fund, to the 16 Hemophilia Treatment Fund, to the Mental Health Research 17 Fund, to the Children's Cancer Fund, to the American Diabetes 18 Association Fund, to the National World War II Memorial Fund, 19 to the Prostate Cancer Research Fund, to the Korean War 20 Veterans National Museum and Library Fund, and to the Meals 21 on Wheels Fund. Each form shall contain a statement that the 22 contributions will reduce the taxpayer's refund or increase 23 the amount of payment to accompany the return. Failure to 24 remit any amount of increased payment shall reduce the 25 contribution accordingly. 26 If, on October 1 of any year, the total contributions to 27 any one of the funds made under this Section do not equal 28 $100,000 or more, the explanations and spaces for designating 29 contributions to the fund shall be removed from the 30 individual income tax return forms for the following and all 31 subsequent years and all subsequent contributions to the fund 32 shall be refunded to the taxpayer. 33 (Source: P.A. 91-104, eff. 7-13-99; 91-107, eff. 7-13-99; 34 91-357, eff. 7-29-99; 91-833, eff. 1-1-01; 91-836, eff. SB1854 Enrolled -121- LRB9215370EGfg 1 1-1-01; 92-198, eff. 8-1-01.) 2 (Text of Section after amendment by P.A. 92-84) 3 Sec. 509. Tax checkoff explanations. All individual 4 income tax return forms shall contain appropriate 5 explanations and spaces to enable the taxpayers to designate 6 contributions to the Child Abuse Prevention Fund, to the 7 Illinois Wildlife Preservation Fund as required by the 8 Illinois Non-Game Wildlife Protection Act, to the Alzheimer's 9 Disease Research Fund as required by the Alzheimer's Disease 10 Research Act, to the Assistance to the Homeless Fund as 11 required by this Act, to the Penny Severns Breast and 12 Cervical Cancer Research Fund, to the National World War II 13 Memorial Fund,andto the Prostate Cancer Research Fund, and 14 to the Korean War Veterans National Museum and Library Fund,. 15 Each form shall contain a statement that the contributions 16 will reduce the taxpayer's refund or increase the amount of 17 payment to accompany the return. Failure to remit any amount 18 of increased payment shall reduce the contribution 19 accordingly. 20 If, on October 1 of any year, the total contributions to 21 any one of the funds made under this Section do not equal 22 $100,000 or more, the explanations and spaces for designating 23 contributions to the fund shall be removed from the 24 individual income tax return forms for the following and all 25 subsequent years and all subsequent contributions to the fund 26 shall be refunded to the taxpayer. 27 (Source: P.A. 91-104, eff. 7-13-99; 91-107, eff. 7-13-99; 28 91-357, eff. 7-29-99; 91-833, eff. 1-1-01; 91-836, eff. 29 1-1-01; 92-84, eff. 7-1-02; 92-198, eff. 8-1-01; revised 30 9-12-01.) 31 (35 ILCS 5/510) (from Ch. 120, par. 5-510) 32 (Text of Section before amendment by P.A. 92-84) 33 Sec. 510. Determination of amounts contributed. The SB1854 Enrolled -122- LRB9215370EGfg 1 Department shall determine the total amount contributed to 2 each of the following: the Child Abuse Prevention Fund, the 3 Illinois Wildlife Preservation Fund, the Community Health 4 Center Care Fund, the Assistance to the Homeless Fund, the 5 Alzheimer's Disease Research Fund, the Heritage Preservation 6 Fund, the Child Care Expansion Program Fund, the Ryan White 7 AIDS Victims Assistance Fund, the Assistive Technology for 8 Persons with Disabilities Fund, the Domestic Violence Shelter 9 and Service Fund, the United States Olympians Assistance 10 Fund, the Youth Drug Abuse Prevention Fund, the Persian Gulf 11 Conflict Veterans Fund, the Literacy Advancement Fund, the 12 Ryan White Pediatric and Adult AIDS Fund, the Illinois 13 Special Olympics Checkoff Fund, the Penny Severns Breast and 14 Cervical Cancer Research Fund, the Korean War Memorial Fund, 15 the Heart Disease Treatment and Prevention Fund, the 16 Hemophilia Treatment Fund, the Mental Health Research Fund, 17 the Children's Cancer Fund, the American Diabetes 18 Association Fund, the National World War II Memorial Fund, 19 the Prostate Cancer Research Fund, the Korean War Veterans 20 National Museum and Library Fund, and the Meals on Wheels 21 Fund; and shall notify the State Comptroller and the State 22 Treasurer of the amounts to be transferred from the General 23 Revenue Fund to each fund, and upon receipt of such 24 notification the State Treasurer and Comptroller shall 25 transfer the amounts. 26 (Source: P.A. 91-104, eff. 7-13-99; 91-107, eff. 7-13-99; 27 91-833, eff. 1-1-01; 91-836, eff. 1-1-01; 92-198, eff. 28 8-1-01.) 29 (Text of Section after amendment by P.A. 92-84) 30 Sec. 510. Determination of amounts contributed. The 31 Department shall determine the total amount contributed to 32 each of the following: the Child Abuse Prevention Fund, the 33 Illinois Wildlife Preservation Fund, the Assistance to the SB1854 Enrolled -123- LRB9215370EGfg 1 Homeless Fund, the Alzheimer's Disease Research Fund, the 2 Penny Severns Breast and Cervical Cancer Research Fund, the 3 National World War II Memorial Fund,andthe Prostate Cancer 4 Research Fund, and the Korean War Veterans National Museum 5 and Library Fund,; and shall notify the State Comptroller and 6 the State Treasurer of the amounts to be transferred from the 7 General Revenue Fund to each fund, and upon receipt of such 8 notification the State Treasurer and Comptroller shall 9 transfer the amounts. 10 (Source: P.A. 91-104, eff. 7-13-99; 91-107, eff. 7-13-99; 11 91-833, eff. 1-1-01; 91-836, eff. 1-1-01; 92-84, eff. 7-1-02; 12 92-198, eff. 8-1-01; revised 9-12-01.) 13 Section 24. The Economic Development for a Growing 14 Economy Tax Credit Act is amended by changing Section 5-5 as 15 follows: 16 (35 ILCS 10/5-5) 17 Sec. 5-5. Definitions. As used in this Act: 18 "Agreement" means the Agreement between a Taxpayer and 19 the Department under the provisions of Section 5-50 of this 20 Act. 21 "Applicant" means a Taxpayer that is operating a business 22 located or that the Taxpayer plans to locate within the State 23 of Illinois and that is engaged in interstate or intrastate 24 commerce for the purpose of manufacturing, processing, 25 assembling, warehousing, or distributing products, conducting 26 research and development, providing tourism services, or 27 providing services in interstate commerce, office industries, 28 or agricultural processing, but excluding retail, retail 29 food, health, or professional services. "Applicant" does not 30 include a Taxpayer who closes or substantially reduces an 31 operation at one location in the State and relocates 32 substantially the same operation to another location in the SB1854 Enrolled -124- LRB9215370EGfg 1 State. This does not prohibit a Taxpayer from expanding its 2 operations at another location in the State, provided that 3 existing operations of a similar nature located within the 4 State are not closed or substantially reduced. This also 5 does not prohibit a Taxpayer from moving its operations from 6 one location in the State to another location in the State 7 for the purpose of expanding the operation provided that the 8 Department determines that expansion cannot reasonably be 9 accommodated within the municipality in which the business is 10 located, or in the case of a business located in an 11 incorporated area of the county, within the county in which 12 the business is located, after conferring with the chief 13 elected official of the municipality or county and taking 14 into consideration any evidence offered by the municipality 15 or county regarding the ability to accommodate expansion 16 within the municipality or county. 17 "Committee" means the Illinois Business Investment 18 Committee created under Section 5-25 of this Act within the 19 Illinois Economic Development Board. 20 "Credit" means the amount agreed to between the 21 Department and Applicant under this Act, but not to exceed 22 the Incremental Income Tax attributable to the Applicant's 23 project. 24 "Department" means the Department of Commerce and 25 Community Affairs. 26 "Director" means the Director of Commerce and Community 27 Affairs. 28 "Full-time Employee" means an individual who is employed 29 for consideration for at least 35 hours each week or who 30 renders any other standard of service generally accepted by 31 industry custom or practice as full-time employment. 32 "Incremental Income Tax" means the total amount withheld 33 during the taxable year from the compensation of New 34 Employees under Article 7 of the Illinois Income Tax Act SB1854 Enrolled -125- LRB9215370EGfg 1 arising from employment at a project that is the subject of 2 an Agreement. 3 "New Employee" means: 4 (a) A Full-time Employee first employed by a 5 Taxpayer in the project that is the subject of an 6 Agreement and who is hired after the Taxpayer enters into 7 the tax credit Agreement. 8 (b) The term "New Employee" does not include: 9 (1) an employee of the Taxpayer who performs a 10 job that was previously performed by another 11 employee, if that job existed for at least 6 months 12 before hiring the employee; 13 (2) an employee of the Taxpayer who was 14 previously employed in Illinois by a Related Member 15 of the Taxpayer and whose employment was shifted to 16 the Taxpayer after the Taxpayer entered into the tax 17 credit Agreement; or 18 (3) a child, grandchild, parent, or spouse, 19 other than a spouse who is legally separated from 20 the individual, of any individual who has a direct 21 or an indirect ownership interest of at least 5% in 22 the profits, capital, or value of the Taxpayer. 23 (c) Notwithstanding paragraph (1) of subsection 24 (b), an employee may be considered a New Employee under 25 the Agreement if the employee performs a job that was 26 previously performed by an employee who was: 27 (1) treated under the Agreement as a New 28 Employee; and 29 (2) promoted by the Taxpayer to another job. 30 (d) Notwithstanding subsection (a), the Department 31 may award Credit to an Applicant with respect to an 32 employee hired prior to the date of the Agreement if: 33 (1) the Applicant is in receipt of a letter 34 from the Department stating an intent to enter into SB1854 Enrolled -126- LRB9215370EGfg 1 a credit Agreement; 2 (2) the letter described in paragraph (1) is 3 issued by the Department not later than 15 days 4 after the effective date of this Act; and 5 (3) the employee was hired after the date the 6 letter described in paragraph (1) was issued. 7 "Noncompliance Date" means, in the case of a Taxpayer 8 that is not complying with the requirements of the Agreement 9 or the provisions of this Act, the day following the last 10 date upon which the Taxpayer was in compliance with the 11 requirements of the Agreement and the provisions of this Act, 12 as determined by the Director, pursuant to Section 5-65. 13 "Pass Through Entity" means an entity that is exempt from 14 the tax under subsection (b) or (c) of Section 205 of the 15 Illinois Income Tax Act. 16 "Related Member" means a person that, with respect to the 17 Taxpayer during any portion of the taxable year, is any one 18 of the following: 19 (1) An individual stockholder, if the stockholder 20 and the members of the stockholder's family (as defined 21 in Section 318 of the Internal Revenue Code) own 22 directly, indirectly, beneficially, or constructively, in 23 the aggregate, at least 50% of the value of the 24 Taxpayer's outstanding stock. 25 (2) A partnership, estate, or trust and any partner 26 or beneficiary, if the partnership, estate, or trust, and 27 its partners or beneficiaries own directly, indirectly, 28 beneficially, or constructively, in the aggregate, at 29 least 50% of the profits, capitalcapitol, stock, or 30 value of the Taxpayer. 31 (3) A corporation, and any party related to the 32 corporation in a manner that would require an attribution 33 of stock from the corporation to the party or from the 34 party to the corporation under the attribution rules of SB1854 Enrolled -127- LRB9215370EGfg 1 Section 318 of the Internal Revenue Code, if the Taxpayer 2 owns directly, indirectly, beneficially, or 3 constructively at least 50% of the value of the 4 corporation's outstanding stock. 5 (4) A corporation and any party related to that 6 corporation in a manner that would require an attribution 7 of stock from the corporation to the party or from the 8 party to the corporation under the attribution rules of 9 Section 318 of the Internal Revenue Code, if the 10 corporation and all such related parties own in the 11 aggregate at least 50% of the profits, capital, stock, or 12 value of the Taxpayer. 13 (5) A person to or from whom there is attribution 14 of stock ownership in accordance with Section 1563(e) of 15 the Internal Revenue Code, except, for purposes of 16 determining whether a person is a Related Member under 17 this paragraph, 20% shall be substituted for 5% wherever 18 5% appears in Section 1563(e) of the Internal Revenue 19 Code. 20 "Taxpayer" means an individual, corporation, partnership, 21 or other entity that has any Illinois Income Tax liability. 22 (Source: P.A. 91-476, eff. 8-11-99; revised 12-04-01.) 23 Section 25. The Use Tax Act is amended by changing 24 Sections 3-5 and 9 as follows: 25 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5) 26 Sec. 3-5. Exemptions. Use of the following tangible 27 personal property is exempt from the tax imposed by this Act: 28 (1) Personal property purchased from a corporation, 29 society, association, foundation, institution, or 30 organization, other than a limited liability company, that is 31 organized and operated as a not-for-profit service enterprise 32 for the benefit of persons 65 years of age or older if the SB1854 Enrolled -128- LRB9215370EGfg 1 personal property was not purchased by the enterprise for the 2 purpose of resale by the enterprise. 3 (2) Personal property purchased by a not-for-profit 4 Illinois county fair association for use in conducting, 5 operating, or promoting the county fair. 6 (3) Personal property purchased by a not-for-profit arts 7 or cultural organization that establishes, by proof required 8 by the Department by rule, that it has received an exemption 9 under Section 501(c)(3) of the Internal Revenue Code and that 10 is organized and operated primarily for the presentation or 11 support of arts or cultural programming, activities, or 12 services. These organizations include, but are not limited 13 to, music and dramatic arts organizations such as symphony 14 orchestras and theatrical groups, arts and cultural service 15 organizations, local arts councils, visual arts 16 organizations, and media arts organizations. On and after the 17 effective date of this amendatory Act of the 92nd General 18 Assembly, however, an entity otherwise eligible for this 19 exemption shall not make tax-free purchases unless it has an 20 active identification number issued by the Department. 21 (4) Personal property purchased by a governmental body, 22 by a corporation, society, association, foundation, or 23 institution organized and operated exclusively for 24 charitable, religious, or educational purposes, or by a 25 not-for-profit corporation, society, association, foundation, 26 institution, or organization that has no compensated officers 27 or employees and that is organized and operated primarily for 28 the recreation of persons 55 years of age or older. A limited 29 liability company may qualify for the exemption under this 30 paragraph only if the limited liability company is organized 31 and operated exclusively for educational purposes. On and 32 after July 1, 1987, however, no entity otherwise eligible for 33 this exemption shall make tax-free purchases unless it has an 34 active exemption identification number issued by the SB1854 Enrolled -129- LRB9215370EGfg 1 Department. 2 (5) A passenger car that is a replacement vehicle to the 3 extent that the purchase price of the car is subject to the 4 Replacement Vehicle Tax. 5 (6) Graphic arts machinery and equipment, including 6 repair and replacement parts, both new and used, and 7 including that manufactured on special order, certified by 8 the purchaser to be used primarily for graphic arts 9 production, and including machinery and equipment purchased 10 for lease. Equipment includes chemicals or chemicals acting 11 as catalysts but only if the chemicals or chemicals acting as 12 catalysts effect a direct and immediate change upon a graphic 13 arts product. 14 (7) Farm chemicals. 15 (8) Legal tender, currency, medallions, or gold or 16 silver coinage issued by the State of Illinois, the 17 government of the United States of America, or the government 18 of any foreign country, and bullion. 19 (9) Personal property purchased from a teacher-sponsored 20 student organization affiliated with an elementary or 21 secondary school located in Illinois. 22 (10) A motor vehicle of the first division, a motor 23 vehicle of the second division that is a self-contained motor 24 vehicle designed or permanently converted to provide living 25 quarters for recreational, camping, or travel use, with 26 direct walk through to the living quarters from the driver's 27 seat, or a motor vehicle of the second division that is of 28 the van configuration designed for the transportation of not 29 less than 7 nor more than 16 passengers, as defined in 30 Section 1-146 of the Illinois Vehicle Code, that is used for 31 automobile renting, as defined in the Automobile Renting 32 Occupation and Use Tax Act. 33 (11) Farm machinery and equipment, both new and used, 34 including that manufactured on special order, certified by SB1854 Enrolled -130- LRB9215370EGfg 1 the purchaser to be used primarily for production agriculture 2 or State or federal agricultural programs, including 3 individual replacement parts for the machinery and equipment, 4 including machinery and equipment purchased for lease, and 5 including implements of husbandry defined in Section 1-130 of 6 the Illinois Vehicle Code, farm machinery and agricultural 7 chemical and fertilizer spreaders, and nurse wagons required 8 to be registered under Section 3-809 of the Illinois Vehicle 9 Code, but excluding other motor vehicles required to be 10 registered under the Illinois Vehicle Code. Horticultural 11 polyhouses or hoop houses used for propagating, growing, or 12 overwintering plants shall be considered farm machinery and 13 equipment under this item (11). Agricultural chemical tender 14 tanks and dry boxes shall include units sold separately from 15 a motor vehicle required to be licensed and units sold 16 mounted on a motor vehicle required to be licensed if the 17 selling price of the tender is separately stated. 18 Farm machinery and equipment shall include precision 19 farming equipment that is installed or purchased to be 20 installed on farm machinery and equipment including, but not 21 limited to, tractors, harvesters, sprayers, planters, 22 seeders, or spreaders. Precision farming equipment includes, 23 but is not limited to, soil testing sensors, computers, 24 monitors, software, global positioning and mapping systems, 25 and other such equipment. 26 Farm machinery and equipment also includes computers, 27 sensors, software, and related equipment used primarily in 28 the computer-assisted operation of production agriculture 29 facilities, equipment, and activities such as, but not 30 limited to, the collection, monitoring, and correlation of 31 animal and crop data for the purpose of formulating animal 32 diets and agricultural chemicals. This item (11) is exempt 33 from the provisions of Section 3-90. 34 (12) Fuel and petroleum products sold to or used by an SB1854 Enrolled -131- LRB9215370EGfg 1 air common carrier, certified by the carrier to be used for 2 consumption, shipment, or storage in the conduct of its 3 business as an air common carrier, for a flight destined for 4 or returning from a location or locations outside the United 5 States without regard to previous or subsequent domestic 6 stopovers. 7 (13) Proceeds of mandatory service charges separately 8 stated on customers' bills for the purchase and consumption 9 of food and beverages purchased at retail from a retailer, to 10 the extent that the proceeds of the service charge are in 11 fact turned over as tips or as a substitute for tips to the 12 employees who participate directly in preparing, serving, 13 hosting or cleaning up the food or beverage function with 14 respect to which the service charge is imposed. 15 (14) Oil field exploration, drilling, and production 16 equipment, including (i) rigs and parts of rigs, rotary rigs, 17 cable tool rigs, and workover rigs, (ii) pipe and tubular 18 goods, including casing and drill strings, (iii) pumps and 19 pump-jack units, (iv) storage tanks and flow lines, (v) any 20 individual replacement part for oil field exploration, 21 drilling, and production equipment, and (vi) machinery and 22 equipment purchased for lease; but excluding motor vehicles 23 required to be registered under the Illinois Vehicle Code. 24 (15) Photoprocessing machinery and equipment, including 25 repair and replacement parts, both new and used, including 26 that manufactured on special order, certified by the 27 purchaser to be used primarily for photoprocessing, and 28 including photoprocessing machinery and equipment purchased 29 for lease. 30 (16) Coal exploration, mining, offhighway hauling, 31 processing, maintenance, and reclamation equipment, including 32 replacement parts and equipment, and including equipment 33 purchased for lease, but excluding motor vehicles required to 34 be registered under the Illinois Vehicle Code. SB1854 Enrolled -132- LRB9215370EGfg 1 (17) Distillation machinery and equipment, sold as a 2 unit or kit, assembled or installed by the retailer, 3 certified by the user to be used only for the production of 4 ethyl alcohol that will be used for consumption as motor fuel 5 or as a component of motor fuel for the personal use of the 6 user, and not subject to sale or resale. 7 (18) Manufacturing and assembling machinery and 8 equipment used primarily in the process of manufacturing or 9 assembling tangible personal property for wholesale or retail 10 sale or lease, whether that sale or lease is made directly by 11 the manufacturer or by some other person, whether the 12 materials used in the process are owned by the manufacturer 13 or some other person, or whether that sale or lease is made 14 apart from or as an incident to the seller's engaging in the 15 service occupation of producing machines, tools, dies, jigs, 16 patterns, gauges, or other similar items of no commercial 17 value on special order for a particular purchaser. 18 (19) Personal property delivered to a purchaser or 19 purchaser's donee inside Illinois when the purchase order for 20 that personal property was received by a florist located 21 outside Illinois who has a florist located inside Illinois 22 deliver the personal property. 23 (20) Semen used for artificial insemination of livestock 24 for direct agricultural production. 25 (21) Horses, or interests in horses, registered with and 26 meeting the requirements of any of the Arabian Horse Club 27 Registry of America, Appaloosa Horse Club, American Quarter 28 Horse Association, United States Trotting Association, or 29 Jockey Club, as appropriate, used for purposes of breeding or 30 racing for prizes. 31 (22) Computers and communications equipment utilized for 32 any hospital purpose and equipment used in the diagnosis, 33 analysis, or treatment of hospital patients purchased by a 34 lessor who leases the equipment, under a lease of one year or SB1854 Enrolled -133- LRB9215370EGfg 1 longer executed or in effect at the time the lessor would 2 otherwise be subject to the tax imposed by this Act, to a 3 hospital that has been issued an active tax exemption 4 identification number by the Department under Section 1g of 5 the Retailers' Occupation Tax Act. If the equipment is 6 leased in a manner that does not qualify for this exemption 7 or is used in any other non-exempt manner, the lessor shall 8 be liable for the tax imposed under this Act or the Service 9 Use Tax Act, as the case may be, based on the fair market 10 value of the property at the time the non-qualifying use 11 occurs. No lessor shall collect or attempt to collect an 12 amount (however designated) that purports to reimburse that 13 lessor for the tax imposed by this Act or the Service Use Tax 14 Act, as the case may be, if the tax has not been paid by the 15 lessor. If a lessor improperly collects any such amount from 16 the lessee, the lessee shall have a legal right to claim a 17 refund of that amount from the lessor. If, however, that 18 amount is not refunded to the lessee for any reason, the 19 lessor is liable to pay that amount to the Department. 20 (23) Personal property purchased by a lessor who leases 21 the property, under a lease of one year or longer executed 22 or in effect at the time the lessor would otherwise be 23 subject to the tax imposed by this Act, to a governmental 24 body that has been issued an active sales tax exemption 25 identification number by the Department under Section 1g of 26 the Retailers' Occupation Tax Act. If the property is leased 27 in a manner that does not qualify for this exemption or used 28 in any other non-exempt manner, the lessor shall be liable 29 for the tax imposed under this Act or the Service Use Tax 30 Act, as the case may be, based on the fair market value of 31 the property at the time the non-qualifying use occurs. No 32 lessor shall collect or attempt to collect an amount (however 33 designated) that purports to reimburse that lessor for the 34 tax imposed by this Act or the Service Use Tax Act, as the SB1854 Enrolled -134- LRB9215370EGfg 1 case may be, if the tax has not been paid by the lessor. If 2 a lessor improperly collects any such amount from the lessee, 3 the lessee shall have a legal right to claim a refund of that 4 amount from the lessor. If, however, that amount is not 5 refunded to the lessee for any reason, the lessor is liable 6 to pay that amount to the Department. 7 (24) Beginning with taxable years ending on or after 8 December 31, 1995 and ending with taxable years ending on or 9 before December 31, 2004, personal property that is donated 10 for disaster relief to be used in a State or federally 11 declared disaster area in Illinois or bordering Illinois by a 12 manufacturer or retailer that is registered in this State to 13 a corporation, society, association, foundation, or 14 institution that has been issued a sales tax exemption 15 identification number by the Department that assists victims 16 of the disaster who reside within the declared disaster area. 17 (25) 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 used in 20 the performance of infrastructure repairs in this State, 21 including but not limited to municipal roads and streets, 22 access roads, bridges, sidewalks, waste disposal systems, 23 water and sewer line extensions, water distribution and 24 purification facilities, storm water drainage and retention 25 facilities, and sewage treatment facilities, resulting from a 26 State or federally declared disaster in Illinois or bordering 27 Illinois when such repairs are initiated on facilities 28 located in the declared disaster area within 6 months after 29 the disaster. 30 (26) Beginning July 1, 1999, game or game birds 31 purchased at a "game breeding and hunting preserve area" or 32 an "exotic game hunting area" as those terms are used in the 33 Wildlife Code or at a hunting enclosure approved through 34 rules adopted by the Department of Natural Resources. This SB1854 Enrolled -135- LRB9215370EGfg 1 paragraph is exempt from the provisions of Section 3-90. 2 (27) A motor vehicle, as that term is defined in Section 3 1-146 of the Illinois Vehicle Code, that is donated to a 4 corporation, limited liability company, society, association, 5 foundation, or institution that is determined by the 6 Department to be organized and operated exclusively for 7 educational purposes. For purposes of this exemption, "a 8 corporation, limited liability company, society, association, 9 foundation, or institution organized and operated exclusively 10 for educational purposes" means all tax-supported public 11 schools, private schools that offer systematic instruction in 12 useful branches of learning by methods common to public 13 schools and that compare favorably in their scope and 14 intensity with the course of study presented in tax-supported 15 schools, and vocational or technical schools or institutes 16 organized and operated exclusively to provide a course of 17 study of not less than 6 weeks duration and designed to 18 prepare individuals to follow a trade or to pursue a manual, 19 technical, mechanical, industrial, business, or commercial 20 occupation. 21 (28) Beginning January 1, 2000, personal property, 22 including food, purchased through fundraising events for the 23 benefit of a public or private elementary or secondary 24 school, a group of those schools, or one or more school 25 districts if the events are sponsored by an entity recognized 26 by the school district that consists primarily of volunteers 27 and includes parents and teachers of the school children. 28 This paragraph does not apply to fundraising events (i) for 29 the benefit of private home instruction or (ii) for which the 30 fundraising entity purchases the personal property sold at 31 the events from another individual or entity that sold the 32 property for the purpose of resale by the fundraising entity 33 and that profits from the sale to the fundraising entity. 34 This paragraph is exempt from the provisions of Section 3-90. SB1854 Enrolled -136- LRB9215370EGfg 1 (29) Beginning January 1, 2000 and through December 31, 2 2001, new or used automatic vending machines that prepare and 3 serve hot food and beverages, including coffee, soup, and 4 other items, and replacement parts for these machines. 5 Beginning January 1, 2002, machines and parts for machines 6 used in commercial, coin-operated amusement and vending 7 business if a use or occupation tax is paid on the gross 8 receipts derived from the use of the commercial, 9 coin-operated amusement and vending machines. This paragraph 10 is exempt from the provisions of Section 3-90. 11 (30) Food for human consumption that is to be consumed 12 off the premises where it is sold (other than alcoholic 13 beverages, soft drinks, and food that has been prepared for 14 immediate consumption) and prescription and nonprescription 15 medicines, drugs, medical appliances, and insulin, urine 16 testing materials, syringes, and needles used by diabetics, 17 for human use, when purchased for use by a person receiving 18 medical assistance under Article 5 of the Illinois Public Aid 19 Code who resides in a licensed long-term care facility, as 20 defined in the Nursing Home Care Act. 21 (31) Beginning on the effective date of this amendatory 22 Act of the 92nd General Assembly, computers and 23 communications equipment utilized for any hospital purpose 24 and equipment used in the diagnosis, analysis, or treatment 25 of hospital patients purchased by a lessor who leases the 26 equipment, under a lease of one year or longer executed or in 27 effect at the time the lessor would otherwise be subject to 28 the tax imposed by this Act, to a hospital that has been 29 issued an active tax exemption identification number by the 30 Department under Section 1g of the Retailers' Occupation Tax 31 Act. If the equipment is leased in a manner that does not 32 qualify for this exemption or is used in any other nonexempt 33 manner, the lessor shall be liable for the tax imposed under 34 this Act or the Service Use Tax Act, as the case may be, SB1854 Enrolled -137- LRB9215370EGfg 1 based on the fair market value of the property at the time 2 the nonqualifying use occurs. No lessor shall collect or 3 attempt to collect an amount (however designated) that 4 purports to reimburse that lessor for the tax imposed by this 5 Act or the Service Use Tax Act, as the case may be, if the 6 tax has not been paid by the lessor. If a lessor improperly 7 collects any such amount from the lessee, the lessee shall 8 have a legal right to claim a refund of that amount from the 9 lessor. If, however, that amount is not refunded to the 10 lessee for any reason, the lessor is liable to pay that 11 amount to the Department. This paragraph is exempt from the 12 provisions of Section 3-90. 13 (32) Beginning on the effective date of this amendatory 14 Act of the 92nd General Assembly, personal property purchased 15 by a lessor who leases the property, under a lease of one 16 year or longer executed or in effect at the time the lessor 17 would otherwise be subject to the tax imposed by this Act, to 18 a governmental body that has been issued an active sales tax 19 exemption identification number by the Department under 20 Section 1g of the Retailers' Occupation Tax Act. If the 21 property is leased in a manner that does not qualify for this 22 exemption or used in any other nonexempt manner, the lessor 23 shall be liable for the tax imposed under this Act or the 24 Service Use Tax Act, as the case may be, based on the fair 25 market value of the property at the time the nonqualifying 26 use occurs. No lessor shall collect or attempt to collect an 27 amount (however designated) that purports to reimburse that 28 lessor for the tax imposed by this Act or the Service Use Tax 29 Act, as the case may be, if the tax has not been paid by the 30 lessor. If a lessor improperly collects any such amount from 31 the lessee, the lessee shall have a legal right to claim a 32 refund of that amount from the lessor. If, however, that 33 amount is not refunded to the lessee for any reason, the 34 lessor is liable to pay that amount to the Department. This SB1854 Enrolled -138- LRB9215370EGfg 1 paragraph is exempt from the provisions of Section 3-90. 2 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97; 3 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff. 4 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644, 5 eff. 8-20-99; 91-901, eff. 1-1-01; 92-35, eff. 7-1-01; 6 92-227, eff. 8-2-01; 92-337, eff. 8-10-01; 92-484, eff. 7 8-23-01; revised 10-10-01.) 8 (35 ILCS 105/9) (from Ch. 120, par. 439.9) 9 Sec. 9. Except as to motor vehicles, watercraft, 10 aircraft, and trailers that are required to be registered 11 with an agency of this State, each retailer required or 12 authorized to collect the tax imposed by this Act shall pay 13 to the Department the amount of such tax (except as otherwise 14 provided) at the time when he is required to file his return 15 for the period during which such tax was collected, less a 16 discount of 2.1% prior to January 1, 1990, and 1.75% on and 17 after January 1, 1990, or $5 per calendar year, whichever is 18 greater, which is allowed to reimburse the retailer for 19 expenses incurred in collecting the tax, keeping records, 20 preparing and filing returns, remitting the tax and supplying 21 data to the Department on request. In the case of retailers 22 who report and pay the tax on a transaction by transaction 23 basis, as provided in this Section, such discount shall be 24 taken with each such tax remittance instead of when such 25 retailer files his periodic return. A retailer need not 26 remit that part of any tax collected by him to the extent 27 that he is required to remit and does remit the tax imposed 28 by the Retailers' Occupation Tax Act, with respect to the 29 sale of the same property. 30 Where such tangible personal property is sold under a 31 conditional sales contract, or under any other form of sale 32 wherein the payment of the principal sum, or a part thereof, 33 is extended beyond the close of the period for which the SB1854 Enrolled -139- LRB9215370EGfg 1 return is filed, the retailer, in collecting the tax (except 2 as to motor vehicles, watercraft, aircraft, and trailers that 3 are required to be registered with an agency of this State), 4 may collect for each tax return period, only the tax 5 applicable to that part of the selling price actually 6 received during such tax return period. 7 Except as provided in this Section, on or before the 8 twentieth day of each calendar month, such retailer shall 9 file a return for the preceding calendar month. Such return 10 shall be filed on forms prescribed by the Department and 11 shall furnish such information as the Department may 12 reasonably require. 13 The Department may require returns to be filed on a 14 quarterly basis. If so required, a return for each calendar 15 quarter shall be filed on or before the twentieth day of the 16 calendar month following the end of such calendar quarter. 17 The taxpayer shall also file a return with the Department for 18 each of the first two months of each calendar quarter, on or 19 before the twentieth day of the following calendar month, 20 stating: 21 1. The name of the seller; 22 2. The address of the principal place of business 23 from which he engages in the business of selling tangible 24 personal property at retail in this State; 25 3. The total amount of taxable receipts received by 26 him during the preceding calendar month from sales of 27 tangible personal property by him during such preceding 28 calendar month, including receipts from charge and time 29 sales, but less all deductions allowed by law; 30 4. The amount of credit provided in Section 2d of 31 this Act; 32 5. The amount of tax due; 33 5-5. The signature of the taxpayer; and 34 6. Such other reasonable information as the SB1854 Enrolled -140- LRB9215370EGfg 1 Department may require. 2 If a taxpayer fails to sign a return within 30 days after 3 the proper notice and demand for signature by the Department, 4 the return shall be considered valid and any amount shown to 5 be due on the return shall be deemed assessed. 6 Beginning October 1, 1993, a taxpayer who has an average 7 monthly tax liability of $150,000 or more shall make all 8 payments required by rules of the Department by electronic 9 funds transfer. Beginning October 1, 1994, a taxpayer who has 10 an average monthly tax liability of $100,000 or more shall 11 make all payments required by rules of the Department by 12 electronic funds transfer. Beginning October 1, 1995, a 13 taxpayer who has an average monthly tax liability of $50,000 14 or more shall make all payments required by rules of the 15 Department by electronic funds transfer. Beginning October 1, 16 2000, a taxpayer who has an annual tax liability of $200,000 17 or more shall make all payments required by rules of the 18 Department by electronic funds transfer. The term "annual 19 tax liability" shall be the sum of the taxpayer's liabilities 20 under this Act, and under all other State and local 21 occupation and use tax laws administered by the Department, 22 for the immediately preceding calendar year. The term 23 "average monthly tax liability" means the sum of the 24 taxpayer's liabilities under this Act, and under all other 25 State and local occupation and use tax laws administered by 26 the Department, for the immediately preceding calendar year 27 divided by 12. Beginning on October 1, 2002, a taxpayer who 28 has a tax liability in the amount set forth in subsection (b) 29 of Section 2505-210 of the Department of Revenue Law shall 30 make all payments required by rules of the Department by 31 electronic funds transfer. 32 Before August 1 of each year beginning in 1993, the 33 Department shall notify all taxpayers required to make 34 payments by electronic funds transfer. All taxpayers required SB1854 Enrolled -141- LRB9215370EGfg 1 to make payments by electronic funds transfer shall make 2 those payments for a minimum of one year beginning on October 3 1. 4 Any taxpayer not required to make payments by electronic 5 funds transfer may make payments by electronic funds transfer 6 with the permission of the Department. 7 All taxpayers required to make payment by electronic 8 funds transfer and any taxpayers authorized to voluntarily 9 make payments by electronic funds transfer shall make those 10 payments in the manner authorized by the Department. 11 The Department shall adopt such rules as are necessary to 12 effectuate a program of electronic funds transfer and the 13 requirements of this Section. 14 Before October 1, 2000, if the taxpayer's average monthly 15 tax liability to the Department under this Act, the 16 Retailers' Occupation Tax Act, the Service Occupation Tax 17 Act, the Service Use Tax Act was $10,000 or more during the 18 preceding 4 complete calendar quarters, he shall file a 19 return with the Department each month by the 20th day of the 20 month next following the month during which such tax 21 liability is incurred and shall make payments to the 22 Department on or before the 7th, 15th, 22nd and last day of 23 the month during which such liability is incurred. On and 24 after October 1, 2000, if the taxpayer's average monthly tax 25 liability to the Department under this Act, the Retailers' 26 Occupation Tax Act, the Service Occupation Tax Act, and the 27 Service Use Tax Act was $20,000 or more during the preceding 28 4 complete calendar quarters, he shall file a return with the 29 Department each month by the 20th day of the month next 30 following the month during which such tax liability is 31 incurred and shall make payment to the Department on or 32 before the 7th, 15th, 22nd and last day of the month during 33 which such liability is incurred. If the month during which 34 such tax liability is incurred began prior to January 1, SB1854 Enrolled -142- LRB9215370EGfg 1 1985, each payment shall be in an amount equal to 1/4 of the 2 taxpayer's actual liability for the month or an amount set by 3 the Department not to exceed 1/4 of the average monthly 4 liability of the taxpayer to the Department for the preceding 5 4 complete calendar quarters (excluding the month of highest 6 liability and the month of lowest liability in such 4 quarter 7 period). If the month during which such tax liability is 8 incurred begins on or after January 1, 1985, and prior to 9 January 1, 1987, each payment shall be in an amount equal to 10 22.5% of the taxpayer's actual liability for the month or 11 27.5% of the taxpayer's liability for the same calendar month 12 of the preceding year. If the month during which such tax 13 liability is incurred begins on or after January 1, 1987, and 14 prior to January 1, 1988, each payment shall be in an amount 15 equal to 22.5% of the taxpayer's actual liability for the 16 month or 26.25% of the taxpayer's liability for the same 17 calendar month of the preceding year. If the month during 18 which such tax liability is incurred begins on or after 19 January 1, 1988, and prior to January 1, 1989, or begins on 20 or after January 1, 1996, each payment shall be in an amount 21 equal to 22.5% of the taxpayer's actual liability for the 22 month or 25% of the taxpayer's liability for the same 23 calendar month of the preceding year. If the month during 24 which such tax liability is incurred begins on or after 25 January 1, 1989, and prior to January 1, 1996, each payment 26 shall be in an amount equal to 22.5% of the taxpayer's actual 27 liability for the month or 25% of the taxpayer's liability 28 for the same calendar month of the preceding year or 100% of 29 the taxpayer's actual liability for the quarter monthly 30 reporting period. The amount of such quarter monthly 31 payments shall be credited against the final tax liability of 32 the taxpayer's return for that month. Before October 1, 33 2000, once applicable, the requirement of the making of 34 quarter monthly payments to the Department shall continue SB1854 Enrolled -143- LRB9215370EGfg 1 until such taxpayer's average monthly liability to the 2 Department during the preceding 4 complete calendar quarters 3 (excluding the month of highest liability and the month of 4 lowest liability) is less than $9,000, or until such 5 taxpayer's average monthly liability to the Department as 6 computed for each calendar quarter of the 4 preceding 7 complete calendar quarter period is less than $10,000. 8 However, if a taxpayer can show the Department that a 9 substantial change in the taxpayer's business has occurred 10 which causes the taxpayer to anticipate that his average 11 monthly tax liability for the reasonably foreseeable future 12 will fall below the $10,000 threshold stated above, then such 13 taxpayer may petition the Department for change in such 14 taxpayer's reporting status. On and after October 1, 2000, 15 once applicable, the requirement of the making of quarter 16 monthly payments to the Department shall continue until such 17 taxpayer's average monthly liability to the Department during 18 the preceding 4 complete calendar quarters (excluding the 19 month of highest liability and the month of lowest liability) 20 is less than $19,000 or until such taxpayer's average monthly 21 liability to the Department as computed for each calendar 22 quarter of the 4 preceding complete calendar quarter period 23 is less than $20,000. However, if a taxpayer can show the 24 Department that a substantial change in the taxpayer's 25 business has occurred which causes the taxpayer to anticipate 26 that his average monthly tax liability for the reasonably 27 foreseeable future will fall below the $20,000 threshold 28 stated above, then such taxpayer may petition the Department 29 for a change in such taxpayer's reporting status. The 30 Department shall change such taxpayer's reporting status 31 unless it finds that such change is seasonal in nature and 32 not likely to be long term. If any such quarter monthly 33 payment is not paid at the time or in the amount required by 34 this Section, then the taxpayer shall be liable for penalties SB1854 Enrolled -144- LRB9215370EGfg 1 and interest on the difference between the minimum amount due 2 and the amount of such quarter monthly payment actually and 3 timely paid, except insofar as the taxpayer has previously 4 made payments for that month to the Department in excess of 5 the minimum payments previously due as provided in this 6 Section. The Department shall make reasonable rules and 7 regulations to govern the quarter monthly payment amount and 8 quarter monthly payment dates for taxpayers who file on other 9 than a calendar monthly basis. 10 If any such payment provided for in this Section exceeds 11 the taxpayer's liabilities under this Act, the Retailers' 12 Occupation Tax Act, the Service Occupation Tax Act and the 13 Service Use Tax Act, as shown by an original monthly return, 14 the Department shall issue to the taxpayer a credit 15 memorandum no later than 30 days after the date of payment, 16 which memorandum may be submitted by the taxpayer to the 17 Department in payment of tax liability subsequently to be 18 remitted by the taxpayer to the Department or be assigned by 19 the taxpayer to a similar taxpayer under this Act, the 20 Retailers' Occupation Tax Act, the Service Occupation Tax Act 21 or the Service Use Tax Act, in accordance with reasonable 22 rules and regulations to be prescribed by the Department, 23 except that if such excess payment is shown on an original 24 monthly return and is made after December 31, 1986, no credit 25 memorandum shall be issued, unless requested by the taxpayer. 26 If no such request is made, the taxpayer may credit such 27 excess payment against tax liability subsequently to be 28 remitted by the taxpayer to the Department under this Act, 29 the Retailers' Occupation Tax Act, the Service Occupation Tax 30 Act or the Service Use Tax Act, in accordance with reasonable 31 rules and regulations prescribed by the Department. If the 32 Department subsequently determines that all or any part of 33 the credit taken was not actually due to the taxpayer, the 34 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced SB1854 Enrolled -145- LRB9215370EGfg 1 by 2.1% or 1.75% of the difference between the credit taken 2 and that actually due, and the taxpayer shall be liable for 3 penalties and interest on such difference. 4 If the retailer is otherwise required to file a monthly 5 return and if the retailer's average monthly tax liability to 6 the Department does not exceed $200, the Department may 7 authorize his returns to be filed on a quarter annual basis, 8 with the return for January, February, and March of a given 9 year being due by April 20 of such year; with the return for 10 April, May and June of a given year being due by July 20 of 11 such year; with the return for July, August and September of 12 a given year being due by October 20 of such year, and with 13 the return for October, November and December of a given year 14 being due by January 20 of the following year. 15 If the retailer is otherwise required to file a monthly 16 or quarterly return and if the retailer's average monthly tax 17 liability to the Department does not exceed $50, the 18 Department may authorize his returns to be filed on an annual 19 basis, with the return for a given year being due by January 20 20 of the following year. 21 Such quarter annual and annual returns, as to form and 22 substance, shall be subject to the same requirements as 23 monthly returns. 24 Notwithstanding any other provision in this Act 25 concerning the time within which a retailer may file his 26 return, in the case of any retailer who ceases to engage in a 27 kind of business which makes him responsible for filing 28 returns under this Act, such retailer shall file a final 29 return under this Act with the Department not more than one 30 month after discontinuing such business. 31 In addition, with respect to motor vehicles, watercraft, 32 aircraft, and trailers that are required to be registered 33 with an agency of this State, every retailer selling this 34 kind of tangible personal property shall file, with the SB1854 Enrolled -146- LRB9215370EGfg 1 Department, upon a form to be prescribed and supplied by the 2 Department, a separate return for each such item of tangible 3 personal property which the retailer sells, except that if, 4 in the same transaction, (i) a retailer of aircraft, 5 watercraft, motor vehicles or trailers transfers more than 6 one aircraft, watercraft, motor vehicle or trailer to another 7 aircraft, watercraft, motor vehicle or trailer retailer for 8 the purpose of resale or (ii) a retailer of aircraft, 9 watercraft, motor vehicles, or trailers transfers more than 10 one aircraft, watercraft, motor vehicle, or trailer to a 11 purchaser for use as a qualifying rolling stock as provided 12 in Section 3-55 of this Act, then that seller may report the 13 transfer of all the aircraft, watercraft, motor vehicles or 14 trailers involved in that transaction to the Department on 15 the same uniform invoice-transaction reporting return form. 16 For purposes of this Section, "watercraft" means a Class 2, 17 Class 3, or Class 4 watercraft as defined in Section 3-2 of 18 the Boat Registration and Safety Act, a personal watercraft, 19 or any boat equipped with an inboard motor. 20 The transaction reporting return in the case of motor 21 vehicles or trailers that are required to be registered with 22 an agency of this State, shall be the same document as the 23 Uniform Invoice referred to in Section 5-402 of the Illinois 24 Vehicle Code and must show the name and address of the 25 seller; the name and address of the purchaser; the amount of 26 the selling price including the amount allowed by the 27 retailer for traded-in property, if any; the amount allowed 28 by the retailer for the traded-in tangible personal property, 29 if any, to the extent to which Section 2 of this Act allows 30 an exemption for the value of traded-in property; the balance 31 payable after deducting such trade-in allowance from the 32 total selling price; the amount of tax due from the retailer 33 with respect to such transaction; the amount of tax collected 34 from the purchaser by the retailer on such transaction (or SB1854 Enrolled -147- LRB9215370EGfg 1 satisfactory evidence that such tax is not due in that 2 particular instance, if that is claimed to be the fact); the 3 place and date of the sale; a sufficient identification of 4 the property sold; such other information as is required in 5 Section 5-402 of the Illinois Vehicle Code, and such other 6 information as the Department may reasonably require. 7 The transaction reporting return in the case of 8 watercraft and aircraft must show the name and address of the 9 seller; the name and address of the purchaser; the amount of 10 the selling price including the amount allowed by the 11 retailer for traded-in property, if any; the amount allowed 12 by the retailer for the traded-in tangible personal property, 13 if any, to the extent to which Section 2 of this Act allows 14 an exemption for the value of traded-in property; the balance 15 payable after deducting such trade-in allowance from the 16 total selling price; the amount of tax due from the retailer 17 with respect to such transaction; the amount of tax collected 18 from the purchaser by the retailer on such transaction (or 19 satisfactory evidence that such tax is not due in that 20 particular instance, if that is claimed to be the fact); the 21 place and date of the sale, a sufficient identification of 22 the property sold, and such other information as the 23 Department may reasonably require. 24 Such transaction reporting return shall be filed not 25 later than 20 days after the date of delivery of the item 26 that is being sold, but may be filed by the retailer at any 27 time sooner than that if he chooses to do so. The 28 transaction reporting return and tax remittance or proof of 29 exemption from the tax that is imposed by this Act may be 30 transmitted to the Department by way of the State agency with 31 which, or State officer with whom, the tangible personal 32 property must be titled or registered (if titling or 33 registration is required) if the Department and such agency 34 or State officer determine that this procedure will expedite SB1854 Enrolled -148- LRB9215370EGfg 1 the processing of applications for title or registration. 2 With each such transaction reporting return, the retailer 3 shall remit the proper amount of tax due (or shall submit 4 satisfactory evidence that the sale is not taxable if that is 5 the case), to the Department or its agents, whereupon the 6 Department shall issue, in the purchaser's name, a tax 7 receipt (or a certificate of exemption if the Department is 8 satisfied that the particular sale is tax exempt) which such 9 purchaser may submit to the agency with which, or State 10 officer with whom, he must title or register the tangible 11 personal property that is involved (if titling or 12 registration is required) in support of such purchaser's 13 application for an Illinois certificate or other evidence of 14 title or registration to such tangible personal property. 15 No retailer's failure or refusal to remit tax under this 16 Act precludes a user, who has paid the proper tax to the 17 retailer, from obtaining his certificate of title or other 18 evidence of title or registration (if titling or registration 19 is required) upon satisfying the Department that such user 20 has paid the proper tax (if tax is due) to the retailer. The 21 Department shall adopt appropriate rules to carry out the 22 mandate of this paragraph. 23 If the user who would otherwise pay tax to the retailer 24 wants the transaction reporting return filed and the payment 25 of tax or proof of exemption made to the Department before 26 the retailer is willing to take these actions and such user 27 has not paid the tax to the retailer, such user may certify 28 to the fact of such delay by the retailer, and may (upon the 29 Department being satisfied of the truth of such 30 certification) transmit the information required by the 31 transaction reporting return and the remittance for tax or 32 proof of exemption directly to the Department and obtain his 33 tax receipt or exemption determination, in which event the 34 transaction reporting return and tax remittance (if a tax SB1854 Enrolled -149- LRB9215370EGfg 1 payment was required) shall be credited by the Department to 2 the proper retailer's account with the Department, but 3 without the 2.1% or 1.75% discount provided for in this 4 Section being allowed. When the user pays the tax directly 5 to the Department, he shall pay the tax in the same amount 6 and in the same form in which it would be remitted if the tax 7 had been remitted to the Department by the retailer. 8 Where a retailer collects the tax with respect to the 9 selling price of tangible personal property which he sells 10 and the purchaser thereafter returns such tangible personal 11 property and the retailer refunds the selling price thereof 12 to the purchaser, such retailer shall also refund, to the 13 purchaser, the tax so collected from the purchaser. When 14 filing his return for the period in which he refunds such tax 15 to the purchaser, the retailer may deduct the amount of the 16 tax so refunded by him to the purchaser from any other use 17 tax which such retailer may be required to pay or remit to 18 the Department, as shown by such return, if the amount of the 19 tax to be deducted was previously remitted to the Department 20 by such retailer. If the retailer has not previously 21 remitted the amount of such tax to the Department, he is 22 entitled to no deduction under this Act upon refunding such 23 tax to the purchaser. 24 Any retailer filing a return under this Section shall 25 also include (for the purpose of paying tax thereon) the 26 total tax covered by such return upon the selling price of 27 tangible personal property purchased by him at retail from a 28 retailer, but as to which the tax imposed by this Act was not 29 collected from the retailer filing such return, and such 30 retailer shall remit the amount of such tax to the Department 31 when filing such return. 32 If experience indicates such action to be practicable, 33 the Department may prescribe and furnish a combination or 34 joint return which will enable retailers, who are required to SB1854 Enrolled -150- LRB9215370EGfg 1 file returns hereunder and also under the Retailers' 2 Occupation Tax Act, to furnish all the return information 3 required by both Acts on the one form. 4 Where the retailer has more than one business registered 5 with the Department under separate registration under this 6 Act, such retailer may not file each return that is due as a 7 single return covering all such registered businesses, but 8 shall file separate returns for each such registered 9 business. 10 Beginning January 1, 1990, each month the Department 11 shall pay into the State and Local Sales Tax Reform Fund, a 12 special fund in the State Treasury which is hereby created, 13 the net revenue realized for the preceding month from the 1% 14 tax on sales of food for human consumption which is to be 15 consumed off the premises where it is sold (other than 16 alcoholic beverages, soft drinks and food which has been 17 prepared for immediate consumption) and prescription and 18 nonprescription medicines, drugs, medical appliances and 19 insulin, urine testing materials, syringes and needles used 20 by diabetics. 21 Beginning January 1, 1990, each month the Department 22 shall pay into the County and Mass Transit District Fund 4% 23 of the net revenue realized for the preceding month from the 24 6.25% general rate on the selling price of tangible personal 25 property which is purchased outside Illinois at retail from a 26 retailer and which is titled or registered by an agency of 27 this State's government. 28 Beginning January 1, 1990, each month the Department 29 shall pay into the State and Local Sales Tax Reform Fund, a 30 special fund in the State Treasury, 20% of the net revenue 31 realized for the preceding month from the 6.25% general rate 32 on the selling price of tangible personal property, other 33 than tangible personal property which is purchased outside 34 Illinois at retail from a retailer and which is titled or SB1854 Enrolled -151- LRB9215370EGfg 1 registered by an agency of this State's government. 2 Beginning August 1, 2000, each month the Department shall 3 pay into the State and Local Sales Tax Reform Fund 100% of 4 the net revenue realized for the preceding month from the 5 1.25% rate on the selling price of motor fuel and gasohol. 6 Beginning January 1, 1990, each month the Department 7 shall pay into the Local Government Tax Fund 16% of the net 8 revenue realized for the preceding month from the 6.25% 9 general rate on the selling price of tangible personal 10 property which is purchased outside Illinois at retail from a 11 retailer and which is titled or registered by an agency of 12 this State's government. 13 Of the remainder of the moneys received by the Department 14 pursuant to this Act, (a) 1.75% thereof shall be paid into 15 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 16 and on and after July 1, 1989, 3.8% thereof shall be paid 17 into the Build Illinois Fund; provided, however, that if in 18 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 19 as the case may be, of the moneys received by the Department 20 and required to be paid into the Build Illinois Fund pursuant 21 to Section 3 of the Retailers' Occupation Tax Act, Section 9 22 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 23 Section 9 of the Service Occupation Tax Act, such Acts being 24 hereinafter called the "Tax Acts" and such aggregate of 2.2% 25 or 3.8%, as the case may be, of moneys being hereinafter 26 called the "Tax Act Amount", and (2) the amount transferred 27 to the Build Illinois Fund from the State and Local Sales Tax 28 Reform Fund shall be less than the Annual Specified Amount 29 (as defined in Section 3 of the Retailers' Occupation Tax 30 Act), an amount equal to the difference shall be immediately 31 paid into the Build Illinois Fund from other moneys received 32 by the Department pursuant to the Tax Acts; and further 33 provided, that if on the last business day of any month the 34 sum of (1) the Tax Act Amount required to be deposited into SB1854 Enrolled -152- LRB9215370EGfg 1 the Build Illinois Bond Account in the Build Illinois Fund 2 during such month and (2) the amount transferred during such 3 month to the Build Illinois Fund from the State and Local 4 Sales Tax Reform Fund shall have been less than 1/12 of the 5 Annual Specified Amount, an amount equal to the difference 6 shall be immediately paid into the Build Illinois Fund from 7 other moneys received by the Department pursuant to the Tax 8 Acts; and, further provided, that in no event shall the 9 payments required under the preceding proviso result in 10 aggregate payments into the Build Illinois Fund pursuant to 11 this clause (b) for any fiscal year in excess of the greater 12 of (i) the Tax Act Amount or (ii) the Annual Specified Amount 13 for such fiscal year; and, further provided, that the amounts 14 payable into the Build Illinois Fund under this clause (b) 15 shall be payable only until such time as the aggregate amount 16 on deposit under each trust indenture securing Bonds issued 17 and outstanding pursuant to the Build Illinois Bond Act is 18 sufficient, taking into account any future investment income, 19 to fully provide, in accordance with such indenture, for the 20 defeasance of or the payment of the principal of, premium, if 21 any, and interest on the Bonds secured by such indenture and 22 on any Bonds expected to be issued thereafter and all fees 23 and costs payable with respect thereto, all as certified by 24 the Director of the Bureau of the Budget. If on the last 25 business day of any month in which Bonds are outstanding 26 pursuant to the Build Illinois Bond Act, the aggregate of the 27 moneys deposited in the Build Illinois Bond Account in the 28 Build Illinois Fund in such month shall be less than the 29 amount required to be transferred in such month from the 30 Build Illinois Bond Account to the Build Illinois Bond 31 Retirement and Interest Fund pursuant to Section 13 of the 32 Build Illinois Bond Act, an amount equal to such deficiency 33 shall be immediately paid from other moneys received by the 34 Department pursuant to the Tax Acts to the Build Illinois SB1854 Enrolled -153- LRB9215370EGfg 1 Fund; provided, however, that any amounts paid to the Build 2 Illinois Fund in any fiscal year pursuant to this sentence 3 shall be deemed to constitute payments pursuant to clause (b) 4 of the preceding sentence and shall reduce the amount 5 otherwise payable for such fiscal year pursuant to clause (b) 6 of the preceding sentence. The moneys received by the 7 Department pursuant to this Act and required to be deposited 8 into the Build Illinois Fund are subject to the pledge, claim 9 and charge set forth in Section 12 of the Build Illinois Bond 10 Act. 11 Subject to payment of amounts into the Build Illinois 12 Fund as provided in the preceding paragraph or in any 13 amendment thereto hereafter enacted, the following specified 14 monthly installment of the amount requested in the 15 certificate of the Chairman of the Metropolitan Pier and 16 Exposition Authority provided under Section 8.25f of the 17 State Finance Act, but not in excess of the sums designated 18 as "Total Deposit", shall be deposited in the aggregate from 19 collections under Section 9 of the Use Tax Act, Section 9 of 20 the Service Use Tax Act, Section 9 of the Service Occupation 21 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 22 into the McCormick Place Expansion Project Fund in the 23 specified fiscal years. 24 Fiscal Year Total Deposit 25 1993 $0 26 1994 53,000,000 27 1995 58,000,000 28 1996 61,000,000 29 1997 64,000,000 30 1998 68,000,000 31 1999 71,000,000 32 2000 75,000,000 33 2001 80,000,000 34 2002 93,000,000 SB1854 Enrolled -154- LRB9215370EGfg 1 2003 99,000,000 2 2004 103,000,000 3 2005 108,000,000 4 2006 113,000,000 5 2007 119,000,000 6 2008 126,000,000 7 2009 132,000,000 8 2010 139,000,000 9 2011 146,000,000 10 2012 153,000,000 11 2013 161,000,000 12 2014 170,000,000 13 2015 179,000,000 14 2016 189,000,000 15 2017 199,000,000 16 2018 210,000,000 17 2019 221,000,000 18 2020 233,000,000 19 2021 246,000,000 20 2022 260,000,000 21 2023 and 275,000,000 22 each fiscal year 23 thereafter that bonds 24 are outstanding under 25 Section 13.2 of the 26 Metropolitan Pier and 27 Exposition Authority 28 Act, but not after fiscal year 2042. 29 Beginning July 20, 1993 and in each month of each fiscal 30 year thereafter, one-eighth of the amount requested in the 31 certificate of the Chairman of the Metropolitan Pier and 32 Exposition Authority for that fiscal year, less the amount 33 deposited into the McCormick Place Expansion Project Fund by 34 the State Treasurer in the respective month under subsection SB1854 Enrolled -155- LRB9215370EGfg 1 (g) of Section 13 of the Metropolitan Pier and Exposition 2 Authority Act, plus cumulative deficiencies in the deposits 3 required under this Section for previous months and years, 4 shall be deposited into the McCormick Place Expansion Project 5 Fund, until the full amount requested for the fiscal year, 6 but not in excess of the amount specified above as "Total 7 Deposit", has been deposited. 8 Subject to payment of amounts into the Build Illinois 9 Fund and the McCormick Place Expansion Project Fund pursuant 10 to the preceding paragraphs or in any amendment thereto 11 hereafter enacted, each month the Department shall pay into 12 the Local Government Distributive Fund .4% of the net revenue 13 realized for the preceding month from the 5% general rate, or 14 .4% of 80% of the net revenue realized for the preceding 15 month from the 6.25% general rate, as the case may be, on the 16 selling price of tangible personal property which amount 17 shall, subject to appropriation, be distributed as provided 18 in Section 2 of the State Revenue Sharing Act. No payments or 19 distributions pursuant to this paragraph shall be made if the 20 tax imposed by this Act on photoprocessing products is 21 declared unconstitutional, or if the proceeds from such tax 22 are unavailable for distribution because of litigation. 23 Subject to payment of amounts into the Build Illinois 24 Fund, the McCormick Place Expansion Project Fund, and the 25 Local Government Distributive Fund pursuant to the preceding 26 paragraphs or in any amendments thereto hereafter enacted, 27 beginning July 1, 1993, the Department shall each month pay 28 into the Illinois Tax Increment Fund 0.27% of 80% of the net 29 revenue realized for the preceding month from the 6.25% 30 general rate on the selling price of tangible personal 31 property. 32 Subject to payment of amounts into the Build Illinois 33 Fund, the McCormick Place Expansion Project Fund, and the 34 Local Government Distributive Fund pursuant to the preceding SB1854 Enrolled -156- LRB9215370EGfg 1 paragraphs or in any amendments thereto hereafter enacted, 2 beginning with the receipt of the first report of taxes paid 3 by an eligible business and continuing for a 25-year period, 4 the Department shall each month pay into the Energy 5 Infrastructure Fund 80% of the net revenue realized from the 6 6.25% general rate on the selling price of Illinois-mined 7 coal that was sold to an eligible business. For purposes of 8 this paragraph, the term "eligible business" means a new 9 electric generating facility certified pursuant to Section 10 605-332 of the Department of Commerce and Community Affairs 11 Law of the Civil Administrative Code of Illinois. 12 Of the remainder of the moneys received by the Department 13 pursuant to this Act, 75% thereof shall be paid into the 14 State Treasury and 25% shall be reserved in a special account 15 and used only for the transfer to the Common School Fund as 16 part of the monthly transfer from the General Revenue Fund in 17 accordance with Section 8a of the State Finance Act. 18 As soon as possible after the first day of each month, 19 upon certification of the Department of Revenue, the 20 Comptroller shall order transferred and the Treasurer shall 21 transfer from the General Revenue Fund to the Motor Fuel Tax 22 Fund an amount equal to 1.7% of 80% of the net revenue 23 realized under this Act for the second preceding month. 24 Beginning April 1, 2000, this transfer is no longer required 25 and shall not be made. 26 Net revenue realized for a month shall be the revenue 27 collected by the State pursuant to this Act, less the amount 28 paid out during that month as refunds to taxpayers for 29 overpayment of liability. 30 For greater simplicity of administration, manufacturers, 31 importers and wholesalers whose products are sold at retail 32 in Illinois by numerous retailers, and who wish to do so, may 33 assume the responsibility for accounting and paying to the 34 Department all tax accruing under this Act with respect to SB1854 Enrolled -157- LRB9215370EGfg 1 such sales, if the retailers who are affected do not make 2 written objection to the Department to this arrangement. 3 (Source: P.A. 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 4 91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 91-872, eff. 5 7-1-00; 91-901, eff. 1-1-01; 92-12, eff. 7-1-01; 92-16, eff. 6 6-28-01; 92-208, eff. 8-2-01; 92-492, eff. 1-1-02; revised 7 9-14-01.) 8 Section 26. The Service Use Tax Act is amended by 9 changing Sections 3-5 and 9 as follows: 10 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5) 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 non-profit Illinois 21 county fair association for use in conducting, operating, or 22 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 32 organizations, local arts councils, visual arts SB1854 Enrolled -158- LRB9215370EGfg 1 organizations, and media arts organizations. On and after the 2 effective date of this amendatory Act of the 92nd General 3 Assembly, however, an entity otherwise eligible for this 4 exemption shall not make tax-free purchases unless it has an 5 active identification number issued by the Department. 6 (4) Legal tender, currency, medallions, or gold or 7 silver coinage issued by the State of Illinois, the 8 government of the United States of America, or the government 9 of any foreign country, and bullion. 10 (5) Graphic arts machinery and equipment, including 11 repair and replacement parts, both new and used, and 12 including that manufactured on special order or purchased for 13 lease, certified by the purchaser to be used primarily for 14 graphic arts production. Equipment includes chemicals or 15 chemicals acting as catalysts but only if the chemicals or 16 chemicals acting as catalysts effect a direct and immediate 17 change upon a graphic arts product. 18 (6) Personal property purchased from a teacher-sponsored 19 student organization affiliated with an elementary or 20 secondary school located in Illinois. 21 (7) Farm machinery and equipment, both new and used, 22 including that manufactured on special order, certified by 23 the purchaser to be used primarily for production agriculture 24 or State or federal agricultural programs, including 25 individual replacement parts for the machinery and equipment, 26 including machinery and equipment purchased for lease, and 27 including implements of husbandry defined in Section 1-130 of 28 the Illinois Vehicle Code, farm machinery and agricultural 29 chemical and fertilizer spreaders, and nurse wagons required 30 to be registered under Section 3-809 of the Illinois Vehicle 31 Code, but excluding other motor vehicles required to be 32 registered under the Illinois Vehicle Code. Horticultural 33 polyhouses or hoop houses used for propagating, growing, or 34 overwintering plants shall be considered farm machinery and SB1854 Enrolled -159- LRB9215370EGfg 1 equipment under this item (7). Agricultural chemical tender 2 tanks and dry boxes shall include units sold separately from 3 a motor vehicle required to be licensed and units sold 4 mounted on a motor vehicle required to be licensed if the 5 selling price of the tender is separately stated. 6 Farm machinery and equipment shall include precision 7 farming equipment that is installed or purchased to be 8 installed on farm machinery and equipment including, but not 9 limited to, tractors, harvesters, sprayers, planters, 10 seeders, or spreaders. Precision farming equipment includes, 11 but is not limited to, soil testing sensors, computers, 12 monitors, software, global positioning and mapping systems, 13 and other such equipment. 14 Farm machinery and equipment also includes computers, 15 sensors, software, and related equipment used primarily in 16 the computer-assisted operation of production agriculture 17 facilities, equipment, and activities such as, but not 18 limited to, the collection, monitoring, and correlation of 19 animal and crop data for the purpose of formulating animal 20 diets and agricultural chemicals. This item (7) is exempt 21 from the provisions of Section 3-75. 22 (8) Fuel and petroleum products sold to or used by an 23 air common carrier, certified by the carrier to be used for 24 consumption, shipment, or storage in the conduct of its 25 business as an air common carrier, for a flight destined for 26 or returning from a location or locations outside the United 27 States without regard to previous or subsequent domestic 28 stopovers. 29 (9) Proceeds of mandatory service charges separately 30 stated on customers' bills for the purchase and consumption 31 of food and beverages acquired as an incident to the purchase 32 of a service from a serviceman, to the extent that the 33 proceeds of the service charge are in fact turned over as 34 tips or as a substitute for tips to the employees who SB1854 Enrolled -160- LRB9215370EGfg 1 participate directly in preparing, serving, hosting or 2 cleaning up the food or beverage function with respect to 3 which the service charge is imposed. 4 (10) Oil field exploration, drilling, and production 5 equipment, including (i) rigs and parts of rigs, rotary rigs, 6 cable tool rigs, and workover rigs, (ii) pipe and tubular 7 goods, including casing and drill strings, (iii) pumps and 8 pump-jack units, (iv) storage tanks and flow lines, (v) any 9 individual replacement part for oil field exploration, 10 drilling, and production equipment, and (vi) machinery and 11 equipment purchased for lease; but excluding motor vehicles 12 required to be registered under the Illinois Vehicle Code. 13 (11) Proceeds from the sale of photoprocessing machinery 14 and equipment, including repair and replacement parts, both 15 new and used, including that manufactured on special order, 16 certified by the purchaser to be used primarily for 17 photoprocessing, and including photoprocessing machinery and 18 equipment purchased for lease. 19 (12) Coal exploration, mining, offhighway hauling, 20 processing, maintenance, and reclamation equipment, including 21 replacement parts and equipment, and including equipment 22 purchased for lease, but excluding motor vehicles required to 23 be registered under the Illinois Vehicle Code. 24 (13) Semen used for artificial insemination of livestock 25 for direct agricultural production. 26 (14) Horses, or interests in horses, registered with and 27 meeting the requirements of any of the Arabian Horse Club 28 Registry of America, Appaloosa Horse Club, American Quarter 29 Horse Association, United States Trotting Association, or 30 Jockey Club, as appropriate, used for purposes of breeding or 31 racing for prizes. 32 (15) Computers and communications equipment utilized for 33 any hospital purpose and equipment used in the diagnosis, 34 analysis, or treatment of hospital patients purchased by a SB1854 Enrolled -161- LRB9215370EGfg 1 lessor who leases the equipment, under a lease of one year or 2 longer executed or in effect at the time the lessor would 3 otherwise be subject to the tax imposed by this Act, to a 4 hospital that has been issued an active tax exemption 5 identification number by the Department under Section 1g of 6 the Retailers' Occupation Tax Act. If the equipment is leased 7 in a manner that does not qualify for this exemption or is 8 used in any other non-exempt manner, the lessor shall be 9 liable for the tax imposed under this Act or the Use Tax Act, 10 as the case may be, based on the fair market value of the 11 property at the time the non-qualifying use occurs. No 12 lessor shall collect or attempt to collect an amount (however 13 designated) that purports to reimburse that lessor for the 14 tax imposed by this Act or the Use Tax Act, as the case may 15 be, if the tax has not been paid by the lessor. If a lessor 16 improperly collects any such amount from the lessee, the 17 lessee shall have a legal right to claim a refund of that 18 amount from the lessor. If, however, that amount is not 19 refunded to the lessee for any reason, the lessor is liable 20 to pay that amount to the Department. 21 (16) Personal property purchased by a lessor who leases 22 the property, under a lease of one year or longer executed or 23 in effect at the time the lessor would otherwise be subject 24 to the tax imposed by this Act, to a governmental body that 25 has been issued an active tax exemption identification number 26 by the Department under Section 1g of the Retailers' 27 Occupation Tax Act. If the property is leased in a manner 28 that does not qualify for this exemption or is used in any 29 other non-exempt manner, the lessor shall be liable for the 30 tax imposed under this Act or the Use Tax Act, as the case 31 may be, based on the fair market value of the property at the 32 time the non-qualifying use occurs. No lessor shall collect 33 or attempt to collect an amount (however designated) that 34 purports to reimburse that lessor for the tax imposed by this SB1854 Enrolled -162- LRB9215370EGfg 1 Act or the Use Tax Act, as the case may be, if the tax has 2 not been paid by the lessor. If a lessor improperly collects 3 any such amount from the lessee, the lessee shall have a 4 legal right to claim a refund of that amount from the lessor. 5 If, however, that amount is not refunded to the lessee for 6 any reason, the lessor is liable to pay that amount to the 7 Department. 8 (17) Beginning with taxable years ending on or after 9 December 31, 1995 and ending with taxable years ending on or 10 before December 31, 2004, personal property that is donated 11 for disaster relief to be used in a State or federally 12 declared disaster area in Illinois or bordering Illinois by a 13 manufacturer or retailer that is registered in this State to 14 a corporation, society, association, foundation, or 15 institution that has been issued a sales tax exemption 16 identification number by the Department that assists victims 17 of the disaster who reside within the declared disaster area. 18 (18) Beginning with taxable years ending on or after 19 December 31, 1995 and ending with taxable years ending on or 20 before December 31, 2004, personal property that is used in 21 the performance of infrastructure repairs in this State, 22 including but not limited to municipal roads and streets, 23 access roads, bridges, sidewalks, waste disposal systems, 24 water and sewer line extensions, water distribution and 25 purification facilities, storm water drainage and retention 26 facilities, and sewage treatment facilities, resulting from a 27 State or federally declared disaster in Illinois or bordering 28 Illinois when such repairs are initiated on facilities 29 located in the declared disaster area within 6 months after 30 the disaster. 31 (19) Beginning July 1, 1999, game or game birds 32 purchased at a "game breeding and hunting preserve area" or 33 an "exotic game hunting area" as those terms are used in the 34 Wildlife Code or at a hunting enclosure approved through SB1854 Enrolled -163- LRB9215370EGfg 1 rules adopted by the Department of Natural Resources. This 2 paragraph is exempt from the provisions of Section 3-75. 3 (20) A motor vehicle, as that term is defined in Section 4 1-146 of the Illinois Vehicle Code, that is donated to a 5 corporation, limited liability company, society, association, 6 foundation, or institution that is determined by the 7 Department to be organized and operated exclusively for 8 educational purposes. For purposes of this exemption, "a 9 corporation, limited liability company, society, association, 10 foundation, or institution organized and operated exclusively 11 for educational purposes" means all tax-supported public 12 schools, private schools that offer systematic instruction in 13 useful branches of learning by methods common to public 14 schools and that compare favorably in their scope and 15 intensity with the course of study presented in tax-supported 16 schools, and vocational or technical schools or institutes 17 organized and operated exclusively to provide a course of 18 study of not less than 6 weeks duration and designed to 19 prepare individuals to follow a trade or to pursue a manual, 20 technical, mechanical, industrial, business, or commercial 21 occupation. 22 (21) Beginning January 1, 2000, personal property, 23 including food, purchased through fundraising events for the 24 benefit of a public or private elementary or secondary 25 school, a group of those schools, or one or more school 26 districts if the events are sponsored by an entity recognized 27 by the school district that consists primarily of volunteers 28 and includes parents and teachers of the school children. 29 This paragraph does not apply to fundraising events (i) for 30 the benefit of private home instruction or (ii) for which the 31 fundraising entity purchases the personal property sold at 32 the events from another individual or entity that sold the 33 property for the purpose of resale by the fundraising entity 34 and that profits from the sale to the fundraising entity. SB1854 Enrolled -164- LRB9215370EGfg 1 This paragraph is exempt from the provisions of Section 3-75. 2 (22) Beginning January 1, 2000 and through December 31, 3 2001, new or used automatic vending machines that prepare and 4 serve hot food and beverages, including coffee, soup, and 5 other items, and replacement parts for these machines. 6 Beginning January 1, 2002, machines and parts for machines 7 used in commercial, coin-operated amusement and vending 8 business if a use or occupation tax is paid on the gross 9 receipts derived from the use of the commercial, 10 coin-operated amusement and vending machines. This paragraph 11 is exempt from the provisions of Section 3-75. 12 (23) Food for human consumption that is to be consumed 13 off the premises where it is sold (other than alcoholic 14 beverages, soft drinks, and food that has been prepared for 15 immediate consumption) and prescription and nonprescription 16 medicines, drugs, medical appliances, and insulin, urine 17 testing materials, syringes, and needles used by diabetics, 18 for human use, when purchased for use by a person receiving 19 medical assistance under Article 5 of the Illinois Public Aid 20 Code who resides in a licensed long-term care facility, as 21 defined in the Nursing Home Care Act. 22 (24)(23)Beginning on the effective date of this 23 amendatory Act of the 92nd General Assembly, computers and 24 communications equipment utilized for any hospital purpose 25 and equipment used in the diagnosis, analysis, or treatment 26 of hospital patients purchased by a lessor who leases the 27 equipment, under a lease of one year or longer executed or in 28 effect at the time the lessor would otherwise be subject to 29 the tax imposed by this Act, to a hospital that has been 30 issued an active tax exemption identification number by the 31 Department under Section 1g of the Retailers' Occupation Tax 32 Act. If the equipment is leased in a manner that does not 33 qualify for this exemption or is used in any other nonexempt 34 manner, the lessor shall be liable for the tax imposed under SB1854 Enrolled -165- LRB9215370EGfg 1 this Act or the Use Tax Act, as the case may be, based on the 2 fair market value of the property at the time the 3 nonqualifying use occurs. No lessor shall collect or attempt 4 to collect an amount (however designated) that purports to 5 reimburse that lessor for the tax imposed by this Act or the 6 Use Tax Act, as the case may be, if the tax has not been paid 7 by the lessor. If a lessor improperly collects any such 8 amount from the lessee, the lessee shall have a legal right 9 to claim a refund of that amount from the lessor. If, 10 however, that amount is not refunded to the lessee for any 11 reason, the lessor is liable to pay that amount to the 12 Department. This paragraph is exempt from the provisions of 13 Section 3-75. 14 (25)(24)Beginning on the effective date of this 15 amendatory Act of the 92nd General Assembly, personal 16 property purchased by a lessor who leases the property, under 17 a lease of one year or longer executed or in effect at the 18 time the lessor would otherwise be subject to the tax imposed 19 by this Act, to a governmental body that has been issued an 20 active tax exemption identification number by the Department 21 under Section 1g of the Retailers' Occupation Tax Act. If 22 the property is leased in a manner that does not qualify for 23 this exemption or is used in any other nonexempt manner, the 24 lessor shall be liable for the tax imposed under this Act or 25 the Use Tax Act, as the case may be, based on the fair market 26 value of the property at the time the nonqualifying use 27 occurs. No lessor shall collect or attempt to collect an 28 amount (however designated) that purports to reimburse that 29 lessor for the tax imposed by this Act or the Use Tax Act, as 30 the case may be, if the tax has not been paid by the lessor. 31 If a lessor improperly collects any such amount from the 32 lessee, the lessee shall have a legal right to claim a refund 33 of that amount from the lessor. If, however, that amount is 34 not refunded to the lessee for any reason, the lessor is SB1854 Enrolled -166- LRB9215370EGfg 1 liable to pay that amount to the Department. This paragraph 2 is exempt from the provisions of Section 3-75. 3 (Source: P.A. 91-51, eff. 6-30-99; 91-200, eff. 7-20-99; 4 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644, eff. 5 8-20-99; 92-16, eff. 6-28-01; 92-35, eff. 7-1-01; 92-227, 6 eff. 8-2-01; 92-337, eff. 8-10-01; 92-484, eff. 8-23-01; 7 revised 10-10-01.) 8 (35 ILCS 110/9) (from Ch. 120, par. 439.39) 9 Sec. 9. Each serviceman required or authorized to 10 collect the tax herein imposed shall pay to the Department 11 the amount of such tax (except as otherwise provided) at the 12 time when he is required to file his return for the period 13 during which such tax was collected, less a discount of 2.1% 14 prior to January 1, 1990 and 1.75% on and after January 1, 15 1990, or $5 per calendar year, whichever is greater, which is 16 allowed to reimburse the serviceman for expenses incurred in 17 collecting the tax, keeping records, preparing and filing 18 returns, remitting the tax and supplying data to the 19 Department on request. A serviceman need not remit that part 20 of any tax collected by him to the extent that he is required 21 to pay and does pay the tax imposed by the Service Occupation 22 Tax Act with respect to his sale of service involving the 23 incidental transfer by him of the same property. 24 Except as provided hereinafter in this Section, on or 25 before the twentieth day of each calendar month, such 26 serviceman shall file a return for the preceding calendar 27 month in accordance with reasonable Rules and Regulations to 28 be promulgated by the Department. Such return shall be filed 29 on a form prescribed by the Department and shall contain such 30 information as the Department may reasonably require. 31 The Department may require returns to be filed on a 32 quarterly basis. If so required, a return for each calendar 33 quarter shall be filed on or before the twentieth day of the SB1854 Enrolled -167- LRB9215370EGfg 1 calendar month following the end of such calendar quarter. 2 The taxpayer shall also file a return with the Department for 3 each of the first two months of each calendar quarter, on or 4 before the twentieth day of the following calendar month, 5 stating: 6 1. The name of the seller; 7 2. The address of the principal place of business 8 from which he engages in business as a serviceman in this 9 State; 10 3. The total amount of taxable receipts received by 11 him during the preceding calendar month, including 12 receipts from charge and time sales, but less all 13 deductions allowed by law; 14 4. The amount of credit provided in Section 2d of 15 this Act; 16 5. The amount of tax due; 17 5-5. The signature of the taxpayer; and 18 6. Such other reasonable information as the 19 Department may require. 20 If a taxpayer fails to sign a return within 30 days after 21 the proper notice and demand for signature by the Department, 22 the return shall be considered valid and any amount shown to 23 be due on the return shall be deemed assessed. 24 Beginning October 1, 1993, a taxpayer who has an average 25 monthly tax liability of $150,000 or more shall make all 26 payments required by rules of the Department by electronic 27 funds transfer. Beginning October 1, 1994, a taxpayer who 28 has an average monthly tax liability of $100,000 or more 29 shall make all payments required by rules of the Department 30 by electronic funds transfer. Beginning October 1, 1995, a 31 taxpayer who has an average monthly tax liability of $50,000 32 or more shall make all payments required by rules of the 33 Department by electronic funds transfer. Beginning October 1, 34 2000, a taxpayer who has an annual tax liability of $200,000 SB1854 Enrolled -168- LRB9215370EGfg 1 or more shall make all payments required by rules of the 2 Department by electronic funds transfer. The term "annual 3 tax liability" shall be the sum of the taxpayer's liabilities 4 under this Act, and under all other State and local 5 occupation and use tax laws administered by the Department, 6 for the immediately preceding calendar year. The term 7 "average monthly tax liability" means the sum of the 8 taxpayer's liabilities under this Act, and under all other 9 State and local occupation and use tax laws administered by 10 the Department, for the immediately preceding calendar year 11 divided by 12. Beginning on October 1, 2002, a taxpayer who 12 has a tax liability in the amount set forth in subsection (b) 13 of Section 2505-210 of the Department of Revenue Law shall 14 make all payments required by rules of the Department by 15 electronic funds transfer. 16 Before August 1 of each year beginning in 1993, the 17 Department shall notify all taxpayers required to make 18 payments by electronic funds transfer. All taxpayers required 19 to make payments by electronic funds transfer shall make 20 those payments for a minimum of one year beginning on October 21 1. 22 Any taxpayer not required to make payments by electronic 23 funds transfer may make payments by electronic funds transfer 24 with the permission of the Department. 25 All taxpayers required to make payment by electronic 26 funds transfer and any taxpayers authorized to voluntarily 27 make payments by electronic funds transfer shall make those 28 payments in the manner authorized by the Department. 29 The Department shall adopt such rules as are necessary to 30 effectuate a program of electronic funds transfer and the 31 requirements of this Section. 32 If the serviceman is otherwise required to file a monthly 33 return and if the serviceman's average monthly tax liability 34 to the Department does not exceed $200, the Department may SB1854 Enrolled -169- LRB9215370EGfg 1 authorize his returns to be filed on a quarter annual basis, 2 with the return for January, February and March of a given 3 year being due by April 20 of such year; with the return for 4 April, May and June of a given year being due by July 20 of 5 such year; with the return for July, August and September of 6 a given year being due by October 20 of such year, and with 7 the return for October, November and December of a given year 8 being due by January 20 of the following year. 9 If the serviceman is otherwise required to file a monthly 10 or quarterly return and if the serviceman's average monthly 11 tax liability to the Department does not exceed $50, the 12 Department may authorize his returns to be filed on an annual 13 basis, with the return for a given year being due by January 14 20 of the following year. 15 Such quarter annual and annual returns, as to form and 16 substance, shall be subject to the same requirements as 17 monthly returns. 18 Notwithstanding any other provision in this Act 19 concerning the time within which a serviceman may file his 20 return, in the case of any serviceman who ceases to engage in 21 a kind of business which makes him responsible for filing 22 returns under this Act, such serviceman shall file a final 23 return under this Act with the Department not more than 1 24 month after discontinuing such business. 25 Where a serviceman collects the tax with respect to the 26 selling price of property which he sells and the purchaser 27 thereafter returns such property and the serviceman refunds 28 the selling price thereof to the purchaser, such serviceman 29 shall also refund, to the purchaser, the tax so collected 30 from the purchaser. When filing his return for the period in 31 which he refunds such tax to the purchaser, the serviceman 32 may deduct the amount of the tax so refunded by him to the 33 purchaser from any other Service Use Tax, Service Occupation 34 Tax, retailers' occupation tax or use tax which such SB1854 Enrolled -170- LRB9215370EGfg 1 serviceman may be required to pay or remit to the Department, 2 as shown by such return, provided that the amount of the tax 3 to be deducted shall previously have been remitted to the 4 Department by such serviceman. If the serviceman shall not 5 previously have remitted the amount of such tax to the 6 Department, he shall be entitled to no deduction hereunder 7 upon refunding such tax to the purchaser. 8 Any serviceman filing a return hereunder shall also 9 include the total tax upon the selling price of tangible 10 personal property purchased for use by him as an incident to 11 a sale of service, and such serviceman shall remit the amount 12 of such tax to the Department when filing such return. 13 If experience indicates such action to be practicable, 14 the Department may prescribe and furnish a combination or 15 joint return which will enable servicemen, who are required 16 to file returns hereunder and also under the Service 17 Occupation Tax Act, to furnish all the return information 18 required by both Acts on the one form. 19 Where the serviceman has more than one business 20 registered with the Department under separate registration 21 hereunder, such serviceman shall not file each return that is 22 due as a single return covering all such registered 23 businesses, but shall file separate returns for each such 24 registered business. 25 Beginning January 1, 1990, each month the Department 26 shall pay into the State and Local Tax Reform Fund, a special 27 fund in the State Treasury, the net revenue realized for the 28 preceding month from the 1% tax on sales of food for human 29 consumption which is to be consumed off the premises where it 30 is sold (other than alcoholic beverages, soft drinks and food 31 which has been prepared for immediate consumption) and 32 prescription and nonprescription medicines, drugs, medical 33 appliances and insulin, urine testing materials, syringes and 34 needles used by diabetics. SB1854 Enrolled -171- LRB9215370EGfg 1 Beginning January 1, 1990, each month the Department 2 shall pay into the State and Local Sales Tax Reform Fund 20% 3 of the net revenue realized for the preceding month from the 4 6.25% general rate on transfers of tangible personal 5 property, other than tangible personal property which is 6 purchased outside Illinois at retail from a retailer and 7 which is titled or registered by an agency of this State's 8 government. 9 Beginning August 1, 2000, each month the Department shall 10 pay into the State and Local Sales Tax Reform Fund 100% of 11 the net revenue realized for the preceding month from the 12 1.25% rate on the selling price of motor fuel and gasohol. 13 Of the remainder of the moneys received by the Department 14 pursuant to this Act, (a) 1.75% thereof shall be paid into 15 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 16 and on and after July 1, 1989, 3.8% thereof shall be paid 17 into the Build Illinois Fund; provided, however, that if in 18 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 19 as the case may be, of the moneys received by the Department 20 and required to be paid into the Build Illinois Fund pursuant 21 to Section 3 of the Retailers' Occupation Tax Act, Section 9 22 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 23 Section 9 of the Service Occupation Tax Act, such Acts being 24 hereinafter called the "Tax Acts" and such aggregate of 2.2% 25 or 3.8%, as the case may be, of moneys being hereinafter 26 called the "Tax Act Amount", and (2) the amount transferred 27 to the Build Illinois Fund from the State and Local Sales Tax 28 Reform Fund shall be less than the Annual Specified Amount 29 (as defined in Section 3 of the Retailers' Occupation Tax 30 Act), an amount equal to the difference shall be immediately 31 paid into the Build Illinois Fund from other moneys received 32 by the Department pursuant to the Tax Acts; and further 33 provided, that if on the last business day of any month the 34 sum of (1) the Tax Act Amount required to be deposited into SB1854 Enrolled -172- LRB9215370EGfg 1 the Build Illinois Bond Account in the Build Illinois Fund 2 during such month and (2) the amount transferred during such 3 month to the Build Illinois Fund from the State and Local 4 Sales Tax Reform Fund shall have been less than 1/12 of the 5 Annual Specified Amount, an amount equal to the difference 6 shall be immediately paid into the Build Illinois Fund from 7 other moneys received by the Department pursuant to the Tax 8 Acts; and, further provided, that in no event shall the 9 payments required under the preceding proviso result in 10 aggregate payments into the Build Illinois Fund pursuant to 11 this clause (b) for any fiscal year in excess of the greater 12 of (i) the Tax Act Amount or (ii) the Annual Specified Amount 13 for such fiscal year; and, further provided, that the amounts 14 payable into the Build Illinois Fund under this clause (b) 15 shall be payable only until such time as the aggregate amount 16 on deposit under each trust indenture securing Bonds issued 17 and outstanding pursuant to the Build Illinois Bond Act is 18 sufficient, taking into account any future investment income, 19 to fully provide, in accordance with such indenture, for the 20 defeasance of or the payment of the principal of, premium, if 21 any, and interest on the Bonds secured by such indenture and 22 on any Bonds expected to be issued thereafter and all fees 23 and costs payable with respect thereto, all as certified by 24 the Director of the Bureau of the Budget. If on the last 25 business day of any month in which Bonds are outstanding 26 pursuant to the Build Illinois Bond Act, the aggregate of the 27 moneys deposited in the Build Illinois Bond Account in the 28 Build Illinois Fund in such month shall be less than the 29 amount required to be transferred in such month from the 30 Build Illinois Bond Account to the Build Illinois Bond 31 Retirement and Interest Fund pursuant to Section 13 of the 32 Build Illinois Bond Act, an amount equal to such deficiency 33 shall be immediately paid from other moneys received by the 34 Department pursuant to the Tax Acts to the Build Illinois SB1854 Enrolled -173- LRB9215370EGfg 1 Fund; provided, however, that any amounts paid to the Build 2 Illinois Fund in any fiscal year pursuant to this sentence 3 shall be deemed to constitute payments pursuant to clause (b) 4 of the preceding sentence and shall reduce the amount 5 otherwise payable for such fiscal year pursuant to clause (b) 6 of the preceding sentence. The moneys received by the 7 Department pursuant to this Act and required to be deposited 8 into the Build Illinois Fund are subject to the pledge, claim 9 and charge set forth in Section 12 of the Build Illinois Bond 10 Act. 11 Subject to payment of amounts into the Build Illinois 12 Fund as provided in the preceding paragraph or in any 13 amendment thereto hereafter enacted, the following specified 14 monthly installment of the amount requested in the 15 certificate of the Chairman of the Metropolitan Pier and 16 Exposition Authority provided under Section 8.25f of the 17 State Finance Act, but not in excess of the sums designated 18 as "Total Deposit", shall be deposited in the aggregate from 19 collections under Section 9 of the Use Tax Act, Section 9 of 20 the Service Use Tax Act, Section 9 of the Service Occupation 21 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 22 into the McCormick Place Expansion Project Fund in the 23 specified fiscal years. 24 Fiscal Year Total Deposit 25 1993 $0 26 1994 53,000,000 27 1995 58,000,000 28 1996 61,000,000 29 1997 64,000,000 30 1998 68,000,000 31 1999 71,000,000 32 2000 75,000,000 33 2001 80,000,000 34 2002 93,000,000 SB1854 Enrolled -174- LRB9215370EGfg 1 2003 99,000,000 2 2004 103,000,000 3 2005 108,000,000 4 2006 113,000,000 5 2007 119,000,000 6 2008 126,000,000 7 2009 132,000,000 8 2010 139,000,000 9 2011 146,000,000 10 2012 153,000,000 11 2013 161,000,000 12 2014 170,000,000 13 2015 179,000,000 14 2016 189,000,000 15 2017 199,000,000 16 2018 210,000,000 17 2019 221,000,000 18 2020 233,000,000 19 2021 246,000,000 20 2022 260,000,000 21 2023 and 275,000,000 22 each fiscal year 23 thereafter that bonds 24 are outstanding under 25 Section 13.2 of the 26 Metropolitan Pier and 27 Exposition Authority Act, 28 but not after fiscal year 2042. 29 Beginning July 20, 1993 and in each month of each fiscal 30 year thereafter, one-eighth of the amount requested in the 31 certificate of the Chairman of the Metropolitan Pier and 32 Exposition Authority for that fiscal year, less the amount 33 deposited into the McCormick Place Expansion Project Fund by 34 the State Treasurer in the respective month under subsection SB1854 Enrolled -175- LRB9215370EGfg 1 (g) of Section 13 of the Metropolitan Pier and Exposition 2 Authority Act, plus cumulative deficiencies in the deposits 3 required under this Section for previous months and years, 4 shall be deposited into the McCormick Place Expansion Project 5 Fund, until the full amount requested for the fiscal year, 6 but not in excess of the amount specified above as "Total 7 Deposit", has been deposited. 8 Subject to payment of amounts into the Build Illinois 9 Fund and the McCormick Place Expansion Project Fund pursuant 10 to the preceding paragraphs or in any amendment thereto 11 hereafter enacted, each month the Department shall pay into 12 the Local Government Distributive Fund 0.4% of the net 13 revenue realized for the preceding month from the 5% general 14 rate or 0.4% of 80% of the net revenue realized for the 15 preceding month from the 6.25% general rate, as the case may 16 be, on the selling price of tangible personal property which 17 amount shall, subject to appropriation, be distributed as 18 provided in Section 2 of the State Revenue Sharing Act. No 19 payments or distributions pursuant to this paragraph shall be 20 made if the tax imposed by this Act on photo processing 21 products is declared unconstitutional, or if the proceeds 22 from such tax are unavailable for distribution because of 23 litigation. 24 Subject to payment of amounts into the Build Illinois 25 Fund, the McCormick Place Expansion Project Fund, and the 26 Local Government Distributive Fund pursuant to the preceding 27 paragraphs or in any amendments thereto hereafter enacted, 28 beginning July 1, 1993, the Department shall each month pay 29 into the Illinois Tax Increment Fund 0.27% of 80% of the net 30 revenue realized for the preceding month from the 6.25% 31 general rate on the selling price of tangible personal 32 property. 33 Subject to payment of amounts into the Build Illinois 34 Fund, the McCormick Place Expansion Project Fund, and the SB1854 Enrolled -176- LRB9215370EGfg 1 Local Government Distributive Fund pursuant to the preceding 2 paragraphs or in any amendments thereto hereafter enacted, 3 beginning with the receipt of the first report of taxes paid 4 by an eligible business and continuing for a 25-year period, 5 the Department shall each month pay into the Energy 6 Infrastructure Fund 80% of the net revenue realized from the 7 6.25% general rate on the selling price of Illinois-mined 8 coal that was sold to an eligible business. For purposes of 9 this paragraph, the term "eligible business" means a new 10 electric generating facility certified pursuant to Section 11 605-332 of the Department of Commerce and Community Affairs 12 Law of the Civil Administrative Code of Illinois. 13 All remaining moneys received by the Department pursuant 14 to this Act shall be paid into the General Revenue Fund of 15 the State Treasury. 16 As soon as possible after the first day of each month, 17 upon certification of the Department of Revenue, the 18 Comptroller shall order transferred and the Treasurer shall 19 transfer from the General Revenue Fund to the Motor Fuel Tax 20 Fund an amount equal to 1.7% of 80% of the net revenue 21 realized under this Act for the second preceding month. 22 Beginning April 1, 2000, this transfer is no longer required 23 and shall not be made. 24 Net revenue realized for a month shall be the revenue 25 collected by the State pursuant to this Act, less the amount 26 paid out during that month as refunds to taxpayers for 27 overpayment of liability. 28 (Source: P.A. 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 29 91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 91-872, eff. 30 7-1-00; 92-12, eff. 7-1-01; 92-208, eff. 8-2-01; 92-492, eff. 31 1-1-02; revised 9-14-01.) 32 Section 27. The Service Occupation Tax Act is amended by 33 changing Sections 3-5 and 9 as follows: SB1854 Enrolled -177- LRB9215370EGfg 1 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5) 2 Sec. 3-5. Exemptions. The following tangible personal 3 property is exempt from the tax imposed by this Act: 4 (1) Personal property sold by a corporation, society, 5 association, foundation, institution, or organization, other 6 than a limited liability company, that is organized and 7 operated as a not-for-profit service enterprise for the 8 benefit of persons 65 years of age or older if the personal 9 property was not purchased by the enterprise for the purpose 10 of resale by the enterprise. 11 (2) Personal property purchased by a not-for-profit 12 Illinois county fair association for use in conducting, 13 operating, or promoting the county fair. 14 (3) Personal property purchased by any not-for-profit 15 arts or cultural organization that establishes, by proof 16 required by the Department by rule, that it has received an 17 exemption under Section 501(c)(3) of the Internal Revenue 18 Code and that is organized and operated primarily for the 19 presentation or support of arts or cultural programming, 20 activities, or services. These organizations include, but 21 are not limited to, music and dramatic arts organizations 22 such as symphony orchestras and theatrical groups, arts and 23 cultural service organizations, local arts councils, visual 24 arts organizations, and media arts organizations. On and 25 after the effective date of this amendatory Act of the 92nd 26 General Assembly, however, an entity otherwise eligible for 27 this exemption shall not make tax-free purchases unless it 28 has an active identification number issued by the Department. 29 (4) Legal tender, currency, medallions, or gold or 30 silver coinage issued by the State of Illinois, the 31 government of the United States of America, or the government 32 of any foreign country, and bullion. 33 (5) Graphic arts machinery and equipment, including 34 repair and replacement parts, both new and used, and SB1854 Enrolled -178- LRB9215370EGfg 1 including that manufactured on special order or purchased for 2 lease, certified by the purchaser to be used primarily for 3 graphic arts production. Equipment includes chemicals or 4 chemicals acting as catalysts but only if the chemicals or 5 chemicals acting as catalysts effect a direct and immediate 6 change upon a graphic arts product. 7 (6) Personal property sold by a teacher-sponsored 8 student organization affiliated with an elementary or 9 secondary school located in Illinois. 10 (7) Farm machinery and equipment, both new and used, 11 including that manufactured on special order, certified by 12 the purchaser to be used primarily for production agriculture 13 or State or federal agricultural programs, including 14 individual replacement parts for the machinery and equipment, 15 including machinery and equipment purchased for lease, and 16 including implements of husbandry defined in Section 1-130 of 17 the Illinois Vehicle Code, farm machinery and agricultural 18 chemical and fertilizer spreaders, and nurse wagons required 19 to be registered under Section 3-809 of the Illinois Vehicle 20 Code, but excluding other motor vehicles required to be 21 registered under the Illinois Vehicle Code. Horticultural 22 polyhouses or hoop houses used for propagating, growing, or 23 overwintering plants shall be considered farm machinery and 24 equipment under this item (7). Agricultural chemical tender 25 tanks and dry boxes shall include units sold separately from 26 a motor vehicle required to be licensed and units sold 27 mounted on a motor vehicle required to be licensed if the 28 selling price of the tender is separately stated. 29 Farm machinery and equipment shall include precision 30 farming equipment that is installed or purchased to be 31 installed on farm machinery and equipment including, but not 32 limited to, tractors, harvesters, sprayers, planters, 33 seeders, or spreaders. Precision farming equipment includes, 34 but is not limited to, soil testing sensors, computers, SB1854 Enrolled -179- LRB9215370EGfg 1 monitors, software, global positioning and mapping systems, 2 and other such equipment. 3 Farm machinery and equipment also includes computers, 4 sensors, software, and related equipment used primarily in 5 the computer-assisted operation of production agriculture 6 facilities, equipment, and activities such as, but not 7 limited to, the collection, monitoring, and correlation of 8 animal and crop data for the purpose of formulating animal 9 diets and agricultural chemicals. This item (7) is exempt 10 from the provisions of Section 3-55. 11 (8) Fuel and petroleum products sold to or used by an 12 air common carrier, certified by the carrier to be used for 13 consumption, shipment, or storage in the conduct of its 14 business as an air common carrier, for a flight destined for 15 or returning from a location or locations outside the United 16 States without regard to previous or subsequent domestic 17 stopovers. 18 (9) Proceeds of mandatory service charges separately 19 stated on customers' bills for the purchase and consumption 20 of food and beverages, to the extent that the proceeds of the 21 service charge are in fact turned over as tips or as a 22 substitute for tips to the employees who participate directly 23 in preparing, serving, hosting or cleaning up the food or 24 beverage function with respect to which the service charge is 25 imposed. 26 (10) Oil field exploration, drilling, and production 27 equipment, including (i) rigs and parts of rigs, rotary rigs, 28 cable tool rigs, and workover rigs, (ii) pipe and tubular 29 goods, including casing and drill strings, (iii) pumps and 30 pump-jack units, (iv) storage tanks and flow lines, (v) any 31 individual replacement part for oil field exploration, 32 drilling, and production equipment, and (vi) machinery and 33 equipment purchased for lease; but excluding motor vehicles 34 required to be registered under the Illinois Vehicle Code. SB1854 Enrolled -180- LRB9215370EGfg 1 (11) Photoprocessing machinery and equipment, including 2 repair and replacement parts, both new and used, including 3 that manufactured on special order, certified by the 4 purchaser to be used primarily for photoprocessing, and 5 including photoprocessing machinery and equipment purchased 6 for lease. 7 (12) Coal exploration, mining, offhighway hauling, 8 processing, maintenance, and reclamation equipment, including 9 replacement parts and equipment, and including equipment 10 purchased for lease, but excluding motor vehicles required to 11 be registered under the Illinois Vehicle Code. 12 (13) Food for human consumption that is to be consumed 13 off the premises where it is sold (other than alcoholic 14 beverages, soft drinks and food that has been prepared for 15 immediate consumption) and prescription and non-prescription 16 medicines, drugs, medical appliances, and insulin, urine 17 testing materials, syringes, and needles used by diabetics, 18 for human use, when purchased for use by a person receiving 19 medical assistance under Article 5 of the Illinois Public Aid 20 Code who resides in a licensed long-term care facility, as 21 defined in the Nursing Home Care Act. 22 (14) Semen used for artificial insemination of livestock 23 for direct agricultural production. 24 (15) Horses, or interests in horses, registered with and 25 meeting the requirements of any of the Arabian Horse Club 26 Registry of America, Appaloosa Horse Club, American Quarter 27 Horse Association, United States Trotting Association, or 28 Jockey Club, as appropriate, used for purposes of breeding or 29 racing for prizes. 30 (16) Computers and communications equipment utilized for 31 any hospital purpose and equipment used in the diagnosis, 32 analysis, or treatment of hospital patients sold to a lessor 33 who leases the equipment, under a lease of one year or longer 34 executed or in effect at the time of the purchase, to a SB1854 Enrolled -181- LRB9215370EGfg 1 hospital that has been issued an active tax exemption 2 identification number by the Department under Section 1g of 3 the Retailers' Occupation Tax Act. 4 (17) Personal property sold to a lessor who leases the 5 property, under a lease of one year or longer executed or in 6 effect at the time of the purchase, to a governmental body 7 that has been issued an active tax exemption identification 8 number by the Department under Section 1g of the Retailers' 9 Occupation Tax Act. 10 (18) Beginning with taxable years ending on or after 11 December 31, 1995 and ending with taxable years ending on or 12 before December 31, 2004, personal property that is donated 13 for disaster relief to be used in a State or federally 14 declared disaster area in Illinois or bordering Illinois by a 15 manufacturer or retailer that is registered in this State to 16 a corporation, society, association, foundation, or 17 institution that has been issued a sales tax exemption 18 identification number by the Department that assists victims 19 of the disaster who reside within the declared disaster area. 20 (19) Beginning with taxable years ending on or after 21 December 31, 1995 and ending with taxable years ending on or 22 before December 31, 2004, personal property that is used in 23 the performance of infrastructure repairs in this State, 24 including but not limited to municipal roads and streets, 25 access roads, bridges, sidewalks, waste disposal systems, 26 water and sewer line extensions, water distribution and 27 purification facilities, storm water drainage and retention 28 facilities, and sewage treatment facilities, resulting from a 29 State or federally declared disaster in Illinois or bordering 30 Illinois when such repairs are initiated on facilities 31 located in the declared disaster area within 6 months after 32 the disaster. 33 (20) Beginning July 1, 1999, game or game birds sold at 34 a "game breeding and hunting preserve area" or an "exotic SB1854 Enrolled -182- LRB9215370EGfg 1 game hunting area" as those terms are used in the Wildlife 2 Code or at a hunting enclosure approved through rules adopted 3 by the Department of Natural Resources. This paragraph is 4 exempt from the provisions of Section 3-55. 5 (21) A motor vehicle, as that term is defined in Section 6 1-146 of the Illinois Vehicle Code, that is donated to a 7 corporation, limited liability company, society, association, 8 foundation, or institution that is determined by the 9 Department to be organized and operated exclusively for 10 educational purposes. For purposes of this exemption, "a 11 corporation, limited liability company, society, association, 12 foundation, or institution organized and operated exclusively 13 for educational purposes" means all tax-supported public 14 schools, private schools that offer systematic instruction in 15 useful branches of learning by methods common to public 16 schools and that compare favorably in their scope and 17 intensity with the course of study presented in tax-supported 18 schools, and vocational or technical schools or institutes 19 organized and operated exclusively to provide a course of 20 study of not less than 6 weeks duration and designed to 21 prepare individuals to follow a trade or to pursue a manual, 22 technical, mechanical, industrial, business, or commercial 23 occupation. 24 (22) Beginning January 1, 2000, personal property, 25 including food, purchased through fundraising events for the 26 benefit of a public or private elementary or secondary 27 school, a group of those schools, or one or more school 28 districts if the events are sponsored by an entity recognized 29 by the school district that consists primarily of volunteers 30 and includes parents and teachers of the school children. 31 This paragraph does not apply to fundraising events (i) for 32 the benefit of private home instruction or (ii) for which the 33 fundraising entity purchases the personal property sold at 34 the events from another individual or entity that sold the SB1854 Enrolled -183- LRB9215370EGfg 1 property for the purpose of resale by the fundraising entity 2 and that profits from the sale to the fundraising entity. 3 This paragraph is exempt from the provisions of Section 3-55. 4 (23) Beginning January 1, 2000 and through December 31, 5 2001, new or used automatic vending machines that prepare and 6 serve hot food and beverages, including coffee, soup, and 7 other items, and replacement parts for these machines. 8 Beginning January 1, 2002, machines and parts for machines 9 used in commercial, coin-operated amusement and vending 10 business if a use or occupation tax is paid on the gross 11 receipts derived from the use of the commercial, 12 coin-operated amusement and vending machines. This paragraph 13 is exempt from the provisions of Section 3-55. 14 (24) Beginning on the effective date of this amendatory 15 Act of the 92nd General Assembly, computers and 16 communications equipment utilized for any hospital purpose 17 and equipment used in the diagnosis, analysis, or treatment 18 of hospital patients sold to a lessor who leases the 19 equipment, under a lease of one year or longer executed or in 20 effect at the time of the purchase, to a hospital that has 21 been issued an active tax exemption identification number by 22 the Department under Section 1g of the Retailers' Occupation 23 Tax Act. This paragraph is exempt from the provisions of 24 Section 3-55. 25 (25) Beginning on the effective date of this amendatory 26 Act of the 92nd General Assembly, personal property sold to a 27 lessor who leases the property, under a lease of one year or 28 longer executed or in effect at the time of the purchase, to 29 a governmental body that has been issued an active tax 30 exemption identification number by the Department under 31 Section 1g of the Retailers' Occupation Tax Act. This 32 paragraph is exempt from the provisions of Section 3-55. 33 (26)(24)Beginning on January 1, 2002, tangible 34 personal property purchased from an Illinois retailer by a SB1854 Enrolled -184- LRB9215370EGfg 1 taxpayer engaged in centralized purchasing activities in 2 Illinois who will, upon receipt of the property in Illinois, 3 temporarily store the property in Illinois (i) for the 4 purpose of subsequently transporting it outside this State 5 for use or consumption thereafter solely outside this State 6 or (ii) for the purpose of being processed, fabricated, or 7 manufactured into, attached to, or incorporated into other 8 tangible personal property to be transported outside this 9 State and thereafter used or consumed solely outside this 10 State. The Director of Revenue shall, pursuant to rules 11 adopted in accordance with the Illinois Administrative 12 Procedure Act, issue a permit to any taxpayer in good 13 standing with the Department who is eligible for the 14 exemption under this paragraph (26)(24). The permit issued 15 under this paragraph (26)(24)shall authorize the holder, to 16 the extent and in the manner specified in the rules adopted 17 under this Act, to purchase tangible personal property from a 18 retailer exempt from the taxes imposed by this Act. 19 Taxpayers shall maintain all necessary books and records to 20 substantiate the use and consumption of all such tangible 21 personal property outside of the State of Illinois. 22 (Source: P.A. 91-51, eff. 6-30-99; 91-200, eff. 7-20-99; 23 91-439, eff. 8-6-99; 91-533, eff. 8-13-99; 91-637, eff. 24 8-20-99; 91-644, eff. 8-20-99; 92-16, eff. 6-28-01; 92-35, 25 eff. 7-1-01; 92-227, eff. 8-2-01; 92-337, eff. 8-10-01; 26 92-484, eff. 8-23-01; 92-488, eff. 8-23-01; revised 1-15-02.) 27 (35 ILCS 115/9) (from Ch. 120, par. 439.109) 28 Sec. 9. Each serviceman required or authorized to 29 collect the tax herein imposed shall pay to the Department 30 the amount of such tax at the time when he is required to 31 file his return for the period during which such tax was 32 collectible, less a discount of 2.1% prior to January 1, 33 1990, and 1.75% on and after January 1, 1990, or $5 per SB1854 Enrolled -185- LRB9215370EGfg 1 calendar year, whichever is greater, which is allowed to 2 reimburse the serviceman for expenses incurred in collecting 3 the tax, keeping records, preparing and filing returns, 4 remitting the tax and supplying data to the Department on 5 request. 6 Where such tangible personal property is sold under a 7 conditional sales contract, or under any other form of sale 8 wherein the payment of the principal sum, or a part thereof, 9 is extended beyond the close of the period for which the 10 return is filed, the serviceman, in collecting the tax may 11 collect, for each tax return period, only the tax applicable 12 to the part of the selling price actually received during 13 such tax return period. 14 Except as provided hereinafter in this Section, on or 15 before the twentieth day of each calendar month, such 16 serviceman shall file a return for the preceding calendar 17 month in accordance with reasonable rules and regulations to 18 be promulgated by the Department of Revenue. Such return 19 shall be filed on a form prescribed by the Department and 20 shall contain such information as the Department may 21 reasonably require. 22 The Department may require returns to be filed on a 23 quarterly basis. If so required, a return for each calendar 24 quarter shall be filed on or before the twentieth day of the 25 calendar month following the end of such calendar quarter. 26 The taxpayer shall also file a return with the Department for 27 each of the first two months of each calendar quarter, on or 28 before the twentieth day of the following calendar month, 29 stating: 30 1. The name of the seller; 31 2. The address of the principal place of business 32 from which he engages in business as a serviceman in this 33 State; 34 3. The total amount of taxable receipts received by SB1854 Enrolled -186- LRB9215370EGfg 1 him during the preceding calendar month, including 2 receipts from charge and time sales, but less all 3 deductions allowed by law; 4 4. The amount of credit provided in Section 2d of 5 this Act; 6 5. The amount of tax due; 7 5-5. The signature of the taxpayer; and 8 6. Such other reasonable information as the 9 Department may require. 10 If a taxpayer fails to sign a return within 30 days after 11 the proper notice and demand for signature by the Department, 12 the return shall be considered valid and any amount shown to 13 be due on the return shall be deemed assessed. 14 A serviceman may accept a Manufacturer's Purchase Credit 15 certification from a purchaser in satisfaction of Service Use 16 Tax as provided in Section 3-70 of the Service Use Tax Act if 17 the purchaser provides the appropriate documentation as 18 required by Section 3-70 of the Service Use Tax Act. A 19 Manufacturer's Purchase Credit certification, accepted by a 20 serviceman as provided in Section 3-70 of the Service Use Tax 21 Act, may be used by that serviceman to satisfy Service 22 Occupation Tax liability in the amount claimed in the 23 certification, not to exceed 6.25% of the receipts subject to 24 tax from a qualifying purchase. 25 If the serviceman's average monthly tax liability to the 26 Department does not exceed $200, the Department may authorize 27 his returns to be filed on a quarter annual basis, with the 28 return for January, February and March of a given year being 29 due by April 20 of such year; with the return for April, May 30 and June of a given year being due by July 20 of such year; 31 with the return for July, August and September of a given 32 year being due by October 20 of such year, and with the 33 return for October, November and December of a given year 34 being due by January 20 of the following year. SB1854 Enrolled -187- LRB9215370EGfg 1 If the serviceman's average monthly tax liability to the 2 Department does not exceed $50, the Department may authorize 3 his returns to be filed on an annual basis, with the return 4 for a given year being due by January 20 of the following 5 year. 6 Such quarter annual and annual returns, as to form and 7 substance, shall be subject to the same requirements as 8 monthly returns. 9 Notwithstanding any other provision in this Act 10 concerning the time within which a serviceman may file his 11 return, in the case of any serviceman who ceases to engage in 12 a kind of business which makes him responsible for filing 13 returns under this Act, such serviceman shall file a final 14 return under this Act with the Department not more than 1 15 month after discontinuing such business. 16 Beginning October 1, 1993, a taxpayer who has an average 17 monthly tax liability of $150,000 or more shall make all 18 payments required by rules of the Department by electronic 19 funds transfer. Beginning October 1, 1994, a taxpayer who 20 has an average monthly tax liability of $100,000 or more 21 shall make all payments required by rules of the Department 22 by electronic funds transfer. Beginning October 1, 1995, a 23 taxpayer who has an average monthly tax liability of $50,000 24 or more shall make all payments required by rules of the 25 Department by electronic funds transfer. Beginning October 26 1, 2000, a taxpayer who has an annual tax liability of 27 $200,000 or more shall make all payments required by rules of 28 the Department by electronic funds transfer. The term 29 "annual tax liability" shall be the sum of the taxpayer's 30 liabilities under this Act, and under all other State and 31 local occupation and use tax laws administered by the 32 Department, for the immediately preceding calendar year. The 33 term "average monthly tax liability" means the sum of the 34 taxpayer's liabilities under this Act, and under all other SB1854 Enrolled -188- LRB9215370EGfg 1 State and local occupation and use tax laws administered by 2 the Department, for the immediately preceding calendar year 3 divided by 12. Beginning on October 1, 2002, a taxpayer who 4 has a tax liability in the amount set forth in subsection (b) 5 of Section 2505-210 of the Department of Revenue Law shall 6 make all payments required by rules of the Department by 7 electronic funds transfer. 8 Before August 1 of each year beginning in 1993, the 9 Department shall notify all taxpayers required to make 10 payments by electronic funds transfer. All taxpayers 11 required to make payments by electronic funds transfer shall 12 make those payments for a minimum of one year beginning on 13 October 1. 14 Any taxpayer not required to make payments by electronic 15 funds transfer may make payments by electronic funds transfer 16 with the permission of the Department. 17 All taxpayers required to make payment by electronic 18 funds transfer and any taxpayers authorized to voluntarily 19 make payments by electronic funds transfer shall make those 20 payments in the manner authorized by the Department. 21 The Department shall adopt such rules as are necessary to 22 effectuate a program of electronic funds transfer and the 23 requirements of this Section. 24 Where a serviceman collects the tax with respect to the 25 selling price of tangible personal property which he sells 26 and the purchaser thereafter returns such tangible personal 27 property and the serviceman refunds the selling price thereof 28 to the purchaser, such serviceman shall also refund, to the 29 purchaser, the tax so collected from the purchaser. When 30 filing his return for the period in which he refunds such tax 31 to the purchaser, the serviceman may deduct the amount of the 32 tax so refunded by him to the purchaser from any other 33 Service Occupation Tax, Service Use Tax, Retailers' 34 Occupation Tax or Use Tax which such serviceman may be SB1854 Enrolled -189- LRB9215370EGfg 1 required to pay or remit to the Department, as shown by such 2 return, provided that the amount of the tax to be deducted 3 shall previously have been remitted to the Department by such 4 serviceman. If the serviceman shall not previously have 5 remitted the amount of such tax to the Department, he shall 6 be entitled to no deduction hereunder upon refunding such tax 7 to the purchaser. 8 If experience indicates such action to be practicable, 9 the Department may prescribe and furnish a combination or 10 joint return which will enable servicemen, who are required 11 to file returns hereunder and also under the Retailers' 12 Occupation Tax Act, the Use Tax Act or the Service Use Tax 13 Act, to furnish all the return information required by all 14 said Acts on the one form. 15 Where the serviceman has more than one business 16 registered with the Department under separate registrations 17 hereunder, such serviceman shall file separate returns for 18 each registered business. 19 Beginning January 1, 1990, each month the Department 20 shall pay into the Local Government Tax Fund the revenue 21 realized for the preceding month from the 1% tax on sales of 22 food for human consumption which is to be consumed off the 23 premises where it is sold (other than alcoholic beverages, 24 soft drinks and food which has been prepared for immediate 25 consumption) and prescription and nonprescription medicines, 26 drugs, medical appliances and insulin, urine testing 27 materials, syringes and needles used by diabetics. 28 Beginning January 1, 1990, each month the Department 29 shall pay into the County and Mass Transit District Fund 4% 30 of the revenue realized for the preceding month from the 31 6.25% general rate. 32 Beginning August 1, 2000, each month the Department shall 33 pay into the County and Mass Transit District Fund 20% of the 34 net revenue realized for the preceding month from the 1.25% SB1854 Enrolled -190- LRB9215370EGfg 1 rate on the selling price of motor fuel and gasohol. 2 Beginning January 1, 1990, each month the Department 3 shall pay into the Local Government Tax Fund 16% of the 4 revenue realized for the preceding month from the 6.25% 5 general rate on transfers of tangible personal property. 6 Beginning August 1, 2000, each month the Department shall 7 pay into the Local Government Tax Fund 80% of the net revenue 8 realized for the preceding month from the 1.25% rate on the 9 selling price of motor fuel and gasohol. 10 Of the remainder of the moneys received by the Department 11 pursuant to this Act, (a) 1.75% thereof shall be paid into 12 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 13 and on and after July 1, 1989, 3.8% thereof shall be paid 14 into the Build Illinois Fund; provided, however, that if in 15 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 16 as the case may be, of the moneys received by the Department 17 and required to be paid into the Build Illinois Fund pursuant 18 to Section 3 of the Retailers' Occupation Tax Act, Section 9 19 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 20 Section 9 of the Service Occupation Tax Act, such Acts being 21 hereinafter called the "Tax Acts" and such aggregate of 2.2% 22 or 3.8%, as the case may be, of moneys being hereinafter 23 called the "Tax Act Amount", and (2) the amount transferred 24 to the Build Illinois Fund from the State and Local Sales Tax 25 Reform Fund shall be less than the Annual Specified Amount 26 (as defined in Section 3 of the Retailers' Occupation Tax 27 Act), an amount equal to the difference shall be immediately 28 paid into the Build Illinois Fund from other moneys received 29 by the Department pursuant to the Tax Acts; and further 30 provided, that if on the last business day of any month the 31 sum of (1) the Tax Act Amount required to be deposited into 32 the Build Illinois Account in the Build Illinois Fund during 33 such month and (2) the amount transferred during such month 34 to the Build Illinois Fund from the State and Local Sales Tax SB1854 Enrolled -191- LRB9215370EGfg 1 Reform Fund shall have been less than 1/12 of the Annual 2 Specified Amount, an amount equal to the difference shall be 3 immediately paid into the Build Illinois Fund from other 4 moneys received by the Department pursuant to the Tax Acts; 5 and, further provided, that in no event shall the payments 6 required under the preceding proviso result in aggregate 7 payments into the Build Illinois Fund pursuant to this clause 8 (b) for any fiscal year in excess of the greater of (i) the 9 Tax Act Amount or (ii) the Annual Specified Amount for such 10 fiscal year; and, further provided, that the amounts payable 11 into the Build Illinois Fund under this clause (b) shall be 12 payable only until such time as the aggregate amount on 13 deposit under each trust indenture securing Bonds issued and 14 outstanding pursuant to the Build Illinois Bond Act is 15 sufficient, taking into account any future investment income, 16 to fully provide, in accordance with such indenture, for the 17 defeasance of or the payment of the principal of, premium, if 18 any, and interest on the Bonds secured by such indenture and 19 on any Bonds expected to be issued thereafter and all fees 20 and costs payable with respect thereto, all as certified by 21 the Director of the Bureau of the Budget. If on the last 22 business day of any month in which Bonds are outstanding 23 pursuant to the Build Illinois Bond Act, the aggregate of the 24 moneys deposited in the Build Illinois Bond Account in the 25 Build Illinois Fund in such month shall be less than the 26 amount required to be transferred in such month from the 27 Build Illinois Bond Account to the Build Illinois Bond 28 Retirement and Interest Fund pursuant to Section 13 of the 29 Build Illinois Bond Act, an amount equal to such deficiency 30 shall be immediately paid from other moneys received by the 31 Department pursuant to the Tax Acts to the Build Illinois 32 Fund; provided, however, that any amounts paid to the Build 33 Illinois Fund in any fiscal year pursuant to this sentence 34 shall be deemed to constitute payments pursuant to clause (b) SB1854 Enrolled -192- LRB9215370EGfg 1 of the preceding sentence and shall reduce the amount 2 otherwise payable for such fiscal year pursuant to clause (b) 3 of the preceding sentence. The moneys received by the 4 Department pursuant to this Act and required to be deposited 5 into the Build Illinois Fund are subject to the pledge, claim 6 and charge set forth in Section 12 of the Build Illinois Bond 7 Act. 8 Subject to payment of amounts into the Build Illinois 9 Fund as provided in the preceding paragraph or in any 10 amendment thereto hereafter enacted, the following specified 11 monthly installment of the amount requested in the 12 certificate of the Chairman of the Metropolitan Pier and 13 Exposition Authority provided under Section 8.25f of the 14 State Finance Act, but not in excess of the sums designated 15 as "Total Deposit", shall be deposited in the aggregate from 16 collections under Section 9 of the Use Tax Act, Section 9 of 17 the Service Use Tax Act, Section 9 of the Service Occupation 18 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 19 into the McCormick Place Expansion Project Fund in the 20 specified fiscal years. 21 Fiscal Year Total Deposit 22 1993 $0 23 1994 53,000,000 24 1995 58,000,000 25 1996 61,000,000 26 1997 64,000,000 27 1998 68,000,000 28 1999 71,000,000 29 2000 75,000,000 30 2001 80,000,000 31 2002 93,000,000 32 2003 99,000,000 33 2004 103,000,000 34 2005 108,000,000 SB1854 Enrolled -193- LRB9215370EGfg 1 2006 113,000,000 2 2007 119,000,000 3 2008 126,000,000 4 2009 132,000,000 5 2010 139,000,000 6 2011 146,000,000 7 2012 153,000,000 8 2013 161,000,000 9 2014 170,000,000 10 2015 179,000,000 11 2016 189,000,000 12 2017 199,000,000 13 2018 210,000,000 14 2019 221,000,000 15 2020 233,000,000 16 2021 246,000,000 17 2022 260,000,000 18 2023 and 275,000,000 19 each fiscal year 20 thereafter that bonds 21 are outstanding under 22 Section 13.2 of the 23 Metropolitan Pier and 24 Exposition Authority 25 Act, but not after fiscal year 2042. 26 Beginning July 20, 1993 and in each month of each fiscal 27 year thereafter, one-eighth of the amount requested in the 28 certificate of the Chairman of the Metropolitan Pier and 29 Exposition Authority for that fiscal year, less the amount 30 deposited into the McCormick Place Expansion Project Fund by 31 the State Treasurer in the respective month under subsection 32 (g) of Section 13 of the Metropolitan Pier and Exposition 33 Authority Act, plus cumulative deficiencies in the deposits 34 required under this Section for previous months and years, SB1854 Enrolled -194- LRB9215370EGfg 1 shall be deposited into the McCormick Place Expansion Project 2 Fund, until the full amount requested for the fiscal year, 3 but not in excess of the amount specified above as "Total 4 Deposit", has been deposited. 5 Subject to payment of amounts into the Build Illinois 6 Fund and the McCormick Place Expansion Project Fund pursuant 7 to the preceding paragraphs or in any amendment thereto 8 hereafter enacted, each month the Department shall pay into 9 the Local Government Distributive Fund 0.4% of the net 10 revenue realized for the preceding month from the 5% general 11 rate or 0.4% of 80% of the net revenue realized for the 12 preceding month from the 6.25% general rate, as the case may 13 be, on the selling price of tangible personal property which 14 amount shall, subject to appropriation, be distributed as 15 provided in Section 2 of the State Revenue Sharing Act. No 16 payments or distributions pursuant to this paragraph shall be 17 made if the tax imposed by this Act on photoprocessing 18 products is declared unconstitutional, or if the proceeds 19 from such tax are unavailable for distribution because of 20 litigation. 21 Subject to payment of amounts into the Build Illinois 22 Fund, the McCormick Place Expansion Project Fund, and the 23 Local Government Distributive Fund pursuant to the preceding 24 paragraphs or in any amendments thereto hereafter enacted, 25 beginning July 1, 1993, the Department shall each month pay 26 into the Illinois Tax Increment Fund 0.27% of 80% of the net 27 revenue realized for the preceding month from the 6.25% 28 general rate on the selling price of tangible personal 29 property. 30 Subject to payment of amounts into the Build Illinois 31 Fund, the McCormick Place Expansion Project Fund, and the 32 Local Government Distributive Fund pursuant to the preceding 33 paragraphs or in any amendments thereto hereafter enacted, 34 beginning with the receipt of the first report of taxes paid SB1854 Enrolled -195- LRB9215370EGfg 1 by an eligible business and continuing for a 25-year period, 2 the Department shall each month pay into the Energy 3 Infrastructure Fund 80% of the net revenue realized from the 4 6.25% general rate on the selling price of Illinois-mined 5 coal that was sold to an eligible business. For purposes of 6 this paragraph, the term "eligible business" means a new 7 electric generating facility certified pursuant to Section 8 605-332 of the Department of Commerce and Community Affairs 9 Law of the Civil Administrative Code of Illinois. 10 Remaining moneys received by the Department pursuant to 11 this Act shall be paid into the General Revenue Fund of the 12 State Treasury. 13 The Department may, upon separate written notice to a 14 taxpayer, require the taxpayer to prepare and file with the 15 Department on a form prescribed by the Department within not 16 less than 60 days after receipt of the notice an annual 17 information return for the tax year specified in the notice. 18 Such annual return to the Department shall include a 19 statement of gross receipts as shown by the taxpayer's last 20 Federal income tax return. If the total receipts of the 21 business as reported in the Federal income tax return do not 22 agree with the gross receipts reported to the Department of 23 Revenue for the same period, the taxpayer shall attach to his 24 annual return a schedule showing a reconciliation of the 2 25 amounts and the reasons for the difference. The taxpayer's 26 annual return to the Department shall also disclose the cost 27 of goods sold by the taxpayer during the year covered by such 28 return, opening and closing inventories of such goods for 29 such year, cost of goods used from stock or taken from stock 30 and given away by the taxpayer during such year, pay roll 31 information of the taxpayer's business during such year and 32 any additional reasonable information which the Department 33 deems would be helpful in determining the accuracy of the 34 monthly, quarterly or annual returns filed by such taxpayer SB1854 Enrolled -196- LRB9215370EGfg 1 as hereinbefore provided for in this Section. 2 If the annual information return required by this Section 3 is not filed when and as required, the taxpayer shall be 4 liable as follows: 5 (i) Until January 1, 1994, the taxpayer shall be 6 liable for a penalty equal to 1/6 of 1% of the tax due 7 from such taxpayer under this Act during the period to be 8 covered by the annual return for each month or fraction 9 of a month until such return is filed as required, the 10 penalty to be assessed and collected in the same manner 11 as any other penalty provided for in this Act. 12 (ii) On and after January 1, 1994, the taxpayer 13 shall be liable for a penalty as described in Section 3-4 14 of the Uniform Penalty and Interest Act. 15 The chief executive officer, proprietor, owner or highest 16 ranking manager shall sign the annual return to certify the 17 accuracy of the information contained therein. Any person 18 who willfully signs the annual return containing false or 19 inaccurate information shall be guilty of perjury and 20 punished accordingly. The annual return form prescribed by 21 the Department shall include a warning that the person 22 signing the return may be liable for perjury. 23 The foregoing portion of this Section concerning the 24 filing of an annual information return shall not apply to a 25 serviceman who is not required to file an income tax return 26 with the United States Government. 27 As soon as possible after the first day of each month, 28 upon certification of the Department of Revenue, the 29 Comptroller shall order transferred and the Treasurer shall 30 transfer from the General Revenue Fund to the Motor Fuel Tax 31 Fund an amount equal to 1.7% of 80% of the net revenue 32 realized under this Act for the second preceding month. 33 Beginning April 1, 2000, this transfer is no longer required 34 and shall not be made. SB1854 Enrolled -197- LRB9215370EGfg 1 Net revenue realized for a month shall be the revenue 2 collected by the State pursuant to this Act, less the amount 3 paid out during that month as refunds to taxpayers for 4 overpayment of liability. 5 For greater simplicity of administration, it shall be 6 permissible for manufacturers, importers and wholesalers 7 whose products are sold by numerous servicemen in Illinois, 8 and who wish to do so, to assume the responsibility for 9 accounting and paying to the Department all tax accruing 10 under this Act with respect to such sales, if the servicemen 11 who are affected do not make written objection to the 12 Department to this arrangement. 13 (Source: P.A. 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 14 91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 91-872, eff. 15 7-1-00; 92-12, eff. 7-1-01; 92-208, eff. 8-2-01; 92-492, eff. 16 1-1-02; revised 9-14-01.) 17 Section 28. The Retailers' Occupation Tax Act is amended 18 by changing Sections 2-5 and 3 as follows: 19 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5) 20 Sec. 2-5. Exemptions. Gross receipts from proceeds from 21 the sale of the following tangible personal property are 22 exempt from the tax imposed by this Act: 23 (1) Farm chemicals. 24 (2) Farm machinery and equipment, both new and used, 25 including that manufactured on special order, certified by 26 the purchaser to be used primarily for production agriculture 27 or State or federal agricultural programs, including 28 individual replacement parts for the machinery and equipment, 29 including machinery and equipment purchased for lease, and 30 including implements of husbandry defined in Section 1-130 of 31 the Illinois Vehicle Code, farm machinery and agricultural 32 chemical and fertilizer spreaders, and nurse wagons required SB1854 Enrolled -198- LRB9215370EGfg 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 (2). 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 2-70. 27 (3) Distillation machinery and equipment, sold as a unit 28 or kit, assembled or installed by the retailer, certified by 29 the user to be used only for the production of ethyl alcohol 30 that will be used for consumption as motor fuel or as a 31 component of motor fuel for the personal use of the user, and 32 not subject to sale or resale. 33 (4) Graphic arts machinery and equipment, including 34 repair and replacement parts, both new and used, and SB1854 Enrolled -199- LRB9215370EGfg 1 including that manufactured on special order or purchased for 2 lease, certified by the purchaser to be used primarily for 3 graphic arts production. Equipment includes chemicals or 4 chemicals acting as catalysts but only if the chemicals or 5 chemicals acting as catalysts effect a direct and immediate 6 change upon a graphic arts product. 7 (5) A motor vehicle of the first division, a motor 8 vehicle of the second division that is a self-contained motor 9 vehicle designed or permanently converted to provide living 10 quarters for recreational, camping, or travel use, with 11 direct walk through access to the living quarters from the 12 driver's seat, or a motor vehicle of the second division that 13 is of the van configuration designed for the transportation 14 of not less than 7 nor more than 16 passengers, as defined in 15 Section 1-146 of the Illinois Vehicle Code, that is used for 16 automobile renting, as defined in the Automobile Renting 17 Occupation and Use Tax Act. 18 (6) Personal property sold by a teacher-sponsored 19 student organization affiliated with an elementary or 20 secondary school located in Illinois. 21 (7) Proceeds of that portion of the selling price of a 22 passenger car the sale of which is subject to the Replacement 23 Vehicle Tax. 24 (8) Personal property sold to an Illinois county fair 25 association for use in conducting, operating, or promoting 26 the county fair. 27 (9) Personal property sold to a not-for-profit arts or 28 cultural organization that establishes, by proof required by 29 the Department by rule, that it has received an exemption 30 under Section 501(c)(3) of the Internal Revenue Code and that 31 is organized and operated primarily for the presentation or 32 support of arts or cultural programming, activities, or 33 services. These organizations include, but are not limited 34 to, music and dramatic arts organizations such as symphony SB1854 Enrolled -200- LRB9215370EGfg 1 orchestras and theatrical groups, arts and cultural service 2 organizations, local arts councils, visual arts 3 organizations, and media arts organizations. On and after the 4 effective date of this amendatory Act of the 92nd General 5 Assembly, however, an entity otherwise eligible for this 6 exemption shall not make tax-free purchases unless it has an 7 active identification number issued by the Department. 8 (10) Personal property sold by a corporation, society, 9 association, foundation, institution, or organization, other 10 than a limited liability company, that is organized and 11 operated as a not-for-profit service enterprise for the 12 benefit of persons 65 years of age or older if the personal 13 property was not purchased by the enterprise for the purpose 14 of resale by the enterprise. 15 (11) Personal property sold to a governmental body, to a 16 corporation, society, association, foundation, or institution 17 organized and operated exclusively for charitable, religious, 18 or educational purposes, or to a not-for-profit corporation, 19 society, association, foundation, institution, or 20 organization that has no compensated officers or employees 21 and that is organized and operated primarily for the 22 recreation of persons 55 years of age or older. A limited 23 liability company may qualify for the exemption under this 24 paragraph only if the limited liability company is organized 25 and operated exclusively for educational purposes. On and 26 after July 1, 1987, however, no entity otherwise eligible for 27 this exemption shall make tax-free purchases unless it has an 28 active identification number issued by the Department. 29 (12) Personal property sold to interstate carriers for 30 hire for use as rolling stock moving in interstate commerce 31 or to lessors under leases of one year or longer executed or 32 in effect at the time of purchase by interstate carriers for 33 hire for use as rolling stock moving in interstate commerce 34 and equipment operated by a telecommunications provider, SB1854 Enrolled -201- LRB9215370EGfg 1 licensed as a common carrier by the Federal Communications 2 Commission, which is permanently installed in or affixed to 3 aircraft moving in interstate commerce. 4 (13) Proceeds from sales to owners, lessors, or shippers 5 of tangible personal property that is utilized by interstate 6 carriers for hire for use as rolling stock moving in 7 interstate commerce and equipment operated by a 8 telecommunications provider, licensed as a common carrier by 9 the Federal Communications Commission, which is permanently 10 installed in or affixed to aircraft moving in interstate 11 commerce. 12 (14) Machinery and equipment that will be used by the 13 purchaser, or a lessee of the purchaser, primarily in the 14 process of manufacturing or assembling tangible personal 15 property for wholesale or retail sale or lease, whether the 16 sale or lease is made directly by the manufacturer or by some 17 other person, whether the materials used in the process are 18 owned by the manufacturer or some other person, or whether 19 the sale or lease is made apart from or as an incident to the 20 seller's engaging in the service occupation of producing 21 machines, tools, dies, jigs, patterns, gauges, or other 22 similar items of no commercial value on special order for a 23 particular purchaser. 24 (15) Proceeds of mandatory service charges separately 25 stated on customers' bills for purchase and consumption of 26 food and beverages, to the extent that the proceeds of the 27 service charge are in fact turned over as tips or as a 28 substitute for tips to the employees who participate directly 29 in preparing, serving, hosting or cleaning up the food or 30 beverage function with respect to which the service charge is 31 imposed. 32 (16) Petroleum products sold to a purchaser if the 33 seller is prohibited by federal law from charging tax to the 34 purchaser. SB1854 Enrolled -202- LRB9215370EGfg 1 (17) Tangible personal property sold to a common carrier 2 by rail or motor that receives the physical possession of the 3 property in Illinois and that transports the property, or 4 shares with another common carrier in the transportation of 5 the property, out of Illinois on a standard uniform bill of 6 lading showing the seller of the property as the shipper or 7 consignor of the property to a destination outside Illinois, 8 for use outside Illinois. 9 (18) Legal tender, currency, medallions, or gold or 10 silver coinage issued by the State of Illinois, the 11 government of the United States of America, or the government 12 of any foreign country, and bullion. 13 (19) Oil field exploration, drilling, and production 14 equipment, including (i) rigs and parts of rigs, rotary rigs, 15 cable tool rigs, and workover rigs, (ii) pipe and tubular 16 goods, including casing and drill strings, (iii) pumps and 17 pump-jack units, (iv) storage tanks and flow lines, (v) any 18 individual replacement part for oil field exploration, 19 drilling, and production equipment, and (vi) machinery and 20 equipment purchased for lease; but excluding motor vehicles 21 required to be registered under the Illinois Vehicle Code. 22 (20) Photoprocessing machinery and equipment, including 23 repair and replacement parts, both new and used, including 24 that manufactured on special order, certified by the 25 purchaser to be used primarily for photoprocessing, and 26 including photoprocessing machinery and equipment purchased 27 for lease. 28 (21) Coal exploration, mining, offhighway hauling, 29 processing, maintenance, and reclamation equipment, including 30 replacement parts and equipment, and including equipment 31 purchased for lease, but excluding motor vehicles required to 32 be registered under the Illinois Vehicle Code. 33 (22) Fuel and petroleum products sold to or used by an 34 air carrier, certified by the carrier to be used for SB1854 Enrolled -203- LRB9215370EGfg 1 consumption, shipment, or storage in the conduct of its 2 business as an air common carrier, for a flight destined for 3 or returning from a location or locations outside the United 4 States without regard to previous or subsequent domestic 5 stopovers. 6 (23) A transaction in which the purchase order is 7 received by a florist who is located outside Illinois, but 8 who has a florist located in Illinois deliver the property to 9 the purchaser or the purchaser's donee in Illinois. 10 (24) Fuel consumed or used in the operation of ships, 11 barges, or vessels that are used primarily in or for the 12 transportation of property or the conveyance of persons for 13 hire on rivers bordering on this State if the fuel is 14 delivered by the seller to the purchaser's barge, ship, or 15 vessel while it is afloat upon that bordering river. 16 (25) A motor vehicle sold in this State to a nonresident 17 even though the motor vehicle is delivered to the nonresident 18 in this State, if the motor vehicle is not to be titled in 19 this State, and if a driveaway decal permit is issued to the 20 motor vehicle as provided in Section 3-603 of the Illinois 21 Vehicle Code or if the nonresident purchaser has vehicle 22 registration plates to transfer to the motor vehicle upon 23 returning to his or her home state. The issuance of the 24 driveaway decal permit or having the out-of-state 25 registration plates to be transferred is prima facie evidence 26 that the motor vehicle will not be titled in this State. 27 (26) Semen used for artificial insemination of livestock 28 for direct agricultural production. 29 (27) Horses, or interests in horses, registered with and 30 meeting the requirements of any of the Arabian Horse Club 31 Registry of America, Appaloosa Horse Club, American Quarter 32 Horse Association, United States Trotting Association, or 33 Jockey Club, as appropriate, used for purposes of breeding or 34 racing for prizes. SB1854 Enrolled -204- LRB9215370EGfg 1 (28) Computers and communications equipment utilized for 2 any hospital purpose and equipment used in the diagnosis, 3 analysis, or treatment of hospital patients sold to a lessor 4 who leases the equipment, under a lease of one year or longer 5 executed or in effect at the time of the purchase, to a 6 hospital that has been issued an active tax exemption 7 identification number by the Department under Section 1g of 8 this Act. 9 (29) Personal property sold to a lessor who leases the 10 property, under a lease of one year or longer executed or in 11 effect at the time of the purchase, to a governmental body 12 that has been issued an active tax exemption identification 13 number by the Department under Section 1g of this Act. 14 (30) Beginning with taxable years ending on or after 15 December 31, 1995 and ending with taxable years ending on or 16 before December 31, 2004, personal property that is donated 17 for disaster relief to be used in a State or federally 18 declared disaster area in Illinois or bordering Illinois by a 19 manufacturer or retailer that is registered in this State to 20 a corporation, society, association, foundation, or 21 institution that has been issued a sales tax exemption 22 identification number by the Department that assists victims 23 of the disaster who reside within the declared disaster area. 24 (31) Beginning with taxable years ending on or after 25 December 31, 1995 and ending with taxable years ending on or 26 before December 31, 2004, personal property that is used in 27 the performance of infrastructure repairs in this State, 28 including but not limited to municipal roads and streets, 29 access roads, bridges, sidewalks, waste disposal systems, 30 water and sewer line extensions, water distribution and 31 purification facilities, storm water drainage and retention 32 facilities, and sewage treatment facilities, resulting from a 33 State or federally declared disaster in Illinois or bordering 34 Illinois when such repairs are initiated on facilities SB1854 Enrolled -205- LRB9215370EGfg 1 located in the declared disaster area within 6 months after 2 the disaster. 3 (32) Beginning July 1, 1999, game or game birds sold at 4 a "game breeding and hunting preserve area" or an "exotic 5 game hunting area" as those terms are used in the Wildlife 6 Code or at a hunting enclosure approved through rules adopted 7 by the Department of Natural Resources. This paragraph is 8 exempt from the provisions of Section 2-70. 9 (33) A motor vehicle, as that term is defined in Section 10 1-146 of the Illinois Vehicle Code, that is donated to a 11 corporation, limited liability company, society, association, 12 foundation, or institution that is determined by the 13 Department to be organized and operated exclusively for 14 educational purposes. For purposes of this exemption, "a 15 corporation, limited liability company, society, association, 16 foundation, or institution organized and operated exclusively 17 for educational purposes" means all tax-supported public 18 schools, private schools that offer systematic instruction in 19 useful branches of learning by methods common to public 20 schools and that compare favorably in their scope and 21 intensity with the course of study presented in tax-supported 22 schools, and vocational or technical schools or institutes 23 organized and operated exclusively to provide a course of 24 study of not less than 6 weeks duration and designed to 25 prepare individuals to follow a trade or to pursue a manual, 26 technical, mechanical, industrial, business, or commercial 27 occupation. 28 (34) Beginning January 1, 2000, personal property, 29 including food, purchased through fundraising events for the 30 benefit of a public or private elementary or secondary 31 school, a group of those schools, or one or more school 32 districts if the events are sponsored by an entity recognized 33 by the school district that consists primarily of volunteers 34 and includes parents and teachers of the school children. SB1854 Enrolled -206- LRB9215370EGfg 1 This paragraph does not apply to fundraising events (i) for 2 the benefit of private home instruction or (ii) for which the 3 fundraising entity purchases the personal property sold at 4 the events from another individual or entity that sold the 5 property for the purpose of resale by the fundraising entity 6 and that profits from the sale to the fundraising entity. 7 This paragraph is exempt from the provisions of Section 2-70. 8 (35) Beginning January 1, 2000 and through December 31, 9 2001, new or used automatic vending machines that prepare and 10 serve hot food and beverages, including coffee, soup, and 11 other items, and replacement parts for these machines. 12 Beginning January 1, 2002, machines and parts for machines 13 used in commercial, coin-operated amusement and vending 14 business if a use or occupation tax is paid on the gross 15 receipts derived from the use of the commercial, 16 coin-operated amusement and vending machines. This paragraph 17 is exempt from the provisions of Section 2-70. 18 (36) Beginning on the effective date of this amendatory 19 Act of the 92nd General Assembly, computers and 20 communications equipment utilized for any hospital purpose 21 and equipment used in the diagnosis, analysis, or treatment 22 of hospital patients sold to a lessor who leases the 23 equipment, under a lease of one year or longer executed or in 24 effect at the time of the purchase, to a hospital that has 25 been issued an active tax exemption identification number by 26 the Department under Section 1g of this Act. This paragraph 27 is exempt from the provisions of Section 2-70. 28 (37) Beginning on the effective date of this amendatory 29 Act of the 92nd General Assembly, personal property sold to a 30 lessor who leases the property, under a lease of one year or 31 longer executed or in effect at the time of the purchase, to 32 a governmental body that has been issued an active tax 33 exemption identification number by the Department under 34 Section 1g of this Act. This paragraph is exempt from the SB1854 Enrolled -207- LRB9215370EGfg 1 provisions of Section 2-70. 2 (38)(36)Beginning on January 1, 2002, tangible 3 personal property purchased from an Illinois retailer by a 4 taxpayer engaged in centralized purchasing activities in 5 Illinois who will, upon receipt of the property in Illinois, 6 temporarily store the property in Illinois (i) for the 7 purpose of subsequently transporting it outside this State 8 for use or consumption thereafter solely outside this State 9 or (ii) for the purpose of being processed, fabricated, or 10 manufactured into, attached to, or incorporated into other 11 tangible personal property to be transported outside this 12 State and thereafter used or consumed solely outside this 13 State. The Director of Revenue shall, pursuant to rules 14 adopted in accordance with the Illinois Administrative 15 Procedure Act, issue a permit to any taxpayer in good 16 standing with the Department who is eligible for the 17 exemption under this paragraph (38)(36). The permit issued 18 under this paragraph (38)(36)shall authorize the holder, to 19 the extent and in the manner specified in the rules adopted 20 under this Act, to purchase tangible personal property from a 21 retailer exempt from the taxes imposed by this Act. 22 Taxpayers shall maintain all necessary books and records to 23 substantiate the use and consumption of all such tangible 24 personal property outside of the State of Illinois. 25 (Source: P.A. 91-51, eff. 6-30-99; 91-200, eff. 7-20-99; 26 91-439, eff. 8-6-99; 91-533, eff. 8-13-99; 91-637, eff. 27 8-20-99; 91-644, eff. 8-20-99; 92-16, eff. 6-28-01; 92-35, 28 eff. 7-1-01; 92-227, eff. 8-2-01; 92-337, eff. 8-10-01; 29 92-484, eff. 8-23-01; 92-488, eff. 8-23-01; revised 1-15-02.) 30 (35 ILCS 120/3) (from Ch. 120, par. 442) 31 Sec. 3. Except as provided in this Section, on or before 32 the twentieth day of each calendar month, every person 33 engaged in the business of selling tangible personal property SB1854 Enrolled -208- LRB9215370EGfg 1 at retail in this State during the preceding calendar month 2 shall file a return with the Department, stating: 3 1. The name of the seller; 4 2. His residence address and the address of his 5 principal place of business and the address of the 6 principal place of business (if that is a different 7 address) from which he engages in the business of selling 8 tangible personal property at retail in this State; 9 3. Total amount of receipts received by him during 10 the preceding calendar month or quarter, as the case may 11 be, from sales of tangible personal property, and from 12 services furnished, by him during such preceding calendar 13 month or quarter; 14 4. Total amount received by him during the 15 preceding calendar month or quarter on charge and time 16 sales of tangible personal property, and from services 17 furnished, by him prior to the month or quarter for which 18 the return is filed; 19 5. Deductions allowed by law; 20 6. Gross receipts which were received by him during 21 the preceding calendar month or quarter and upon the 22 basis of which the tax is imposed; 23 7. The amount of credit provided in Section 2d of 24 this Act; 25 8. The amount of tax due; 26 9. The signature of the taxpayer; and 27 10. Such other reasonable information as the 28 Department may require. 29 If a taxpayer fails to sign a return within 30 days after 30 the proper notice and demand for signature by the Department, 31 the return shall be considered valid and any amount shown to 32 be due on the return shall be deemed assessed. 33 Each return shall be accompanied by the statement of 34 prepaid tax issued pursuant to Section 2e for which credit is SB1854 Enrolled -209- LRB9215370EGfg 1 claimed. 2 A retailer may accept a Manufacturer's Purchase Credit 3 certification from a purchaser in satisfaction of Use Tax as 4 provided in Section 3-85 of the Use Tax Act if the purchaser 5 provides the appropriate documentation as required by Section 6 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit 7 certification, accepted by a retailer as provided in Section 8 3-85 of the Use Tax Act, may be used by that retailer to 9 satisfy Retailers' Occupation Tax liability in the amount 10 claimed in the certification, not to exceed 6.25% of the 11 receipts subject to tax from a qualifying purchase. 12 The Department may require returns to be filed on a 13 quarterly basis. If so required, a return for each calendar 14 quarter shall be filed on or before the twentieth day of the 15 calendar month following the end of such calendar quarter. 16 The taxpayer shall also file a return with the Department for 17 each of the first two months of each calendar quarter, on or 18 before the twentieth day of the following calendar month, 19 stating: 20 1. The name of the seller; 21 2. The address of the principal place of business 22 from which he engages in the business of selling tangible 23 personal property at retail in this State; 24 3. The total amount of taxable receipts received by 25 him during the preceding calendar month from sales of 26 tangible personal property by him during such preceding 27 calendar month, including receipts from charge and time 28 sales, but less all deductions allowed by law; 29 4. The amount of credit provided in Section 2d of 30 this Act; 31 5. The amount of tax due; and 32 6. Such other reasonable information as the 33 Department may require. 34 If a total amount of less than $1 is payable, refundable SB1854 Enrolled -210- LRB9215370EGfg 1 or creditable, such amount shall be disregarded if it is less 2 than 50 cents and shall be increased to $1 if it is 50 cents 3 or more. 4 Beginning October 1, 1993, a taxpayer who has an average 5 monthly tax liability of $150,000 or more shall make all 6 payments required by rules of the Department by electronic 7 funds transfer. Beginning October 1, 1994, a taxpayer who 8 has an average monthly tax liability of $100,000 or more 9 shall make all payments required by rules of the Department 10 by electronic funds transfer. Beginning October 1, 1995, a 11 taxpayer who has an average monthly tax liability of $50,000 12 or more shall make all payments required by rules of the 13 Department by electronic funds transfer. Beginning October 14 1, 2000, a taxpayer who has an annual tax liability of 15 $200,000 or more shall make all payments required by rules of 16 the Department by electronic funds transfer. The term 17 "annual tax liability" shall be the sum of the taxpayer's 18 liabilities under this Act, and under all other State and 19 local occupation and use tax laws administered by the 20 Department, for the immediately preceding calendar year. The 21 term "average monthly tax liability" shall be the sum of the 22 taxpayer's liabilities under this Act, and under all other 23 State and local occupation and use tax laws administered by 24 the Department, for the immediately preceding calendar year 25 divided by 12. Beginning on October 1, 2002, a taxpayer who 26 has a tax liability in the amount set forth in subsection (b) 27 of Section 2505-210 of the Department of Revenue Law shall 28 make all payments required by rules of the Department by 29 electronic funds transfer. 30 Before August 1 of each year beginning in 1993, the 31 Department shall notify all taxpayers required to make 32 payments by electronic funds transfer. All taxpayers 33 required to make payments by electronic funds transfer shall 34 make those payments for a minimum of one year beginning on SB1854 Enrolled -211- LRB9215370EGfg 1 October 1. 2 Any taxpayer not required to make payments by electronic 3 funds transfer may make payments by electronic funds transfer 4 with the permission of the Department. 5 All taxpayers required to make payment by electronic 6 funds transfer and any taxpayers authorized to voluntarily 7 make payments by electronic funds transfer shall make those 8 payments in the manner authorized by the Department. 9 The Department shall adopt such rules as are necessary to 10 effectuate a program of electronic funds transfer and the 11 requirements of this Section. 12 Any amount which is required to be shown or reported on 13 any return or other document under this Act shall, if such 14 amount is not a whole-dollar amount, be increased to the 15 nearest whole-dollar amount in any case where the fractional 16 part of a dollar is 50 cents or more, and decreased to the 17 nearest whole-dollar amount where the fractional part of a 18 dollar is less than 50 cents. 19 If the retailer is otherwise required to file a monthly 20 return and if the retailer's average monthly tax liability to 21 the Department does not exceed $200, the Department may 22 authorize his returns to be filed on a quarter annual basis, 23 with the return for January, February and March of a given 24 year being due by April 20 of such year; with the return for 25 April, May and June of a given year being due by July 20 of 26 such year; with the return for July, August and September of 27 a given year being due by October 20 of such year, and with 28 the return for October, November and December of a given year 29 being due by January 20 of the following year. 30 If the retailer is otherwise required to file a monthly 31 or quarterly return and if the retailer's average monthly tax 32 liability with the Department does not exceed $50, the 33 Department may authorize his returns to be filed on an annual 34 basis, with the return for a given year being due by January SB1854 Enrolled -212- LRB9215370EGfg 1 20 of the following year. 2 Such quarter annual and annual returns, as to form and 3 substance, shall be subject to the same requirements as 4 monthly returns. 5 Notwithstanding any other provision in this Act 6 concerning the time within which a retailer may file his 7 return, in the case of any retailer who ceases to engage in a 8 kind of business which makes him responsible for filing 9 returns under this Act, such retailer shall file a final 10 return under this Act with the Department not more than one 11 month after discontinuing such business. 12 Where the same person has more than one business 13 registered with the Department under separate registrations 14 under this Act, such person may not file each return that is 15 due as a single return covering all such registered 16 businesses, but shall file separate returns for each such 17 registered business. 18 In addition, with respect to motor vehicles, watercraft, 19 aircraft, and trailers that are required to be registered 20 with an agency of this State, every retailer selling this 21 kind of tangible personal property shall file, with the 22 Department, upon a form to be prescribed and supplied by the 23 Department, a separate return for each such item of tangible 24 personal property which the retailer sells, except that if, 25 in the same transaction, (i) a retailer of aircraft, 26 watercraft, motor vehicles or trailers transfers more than 27 one aircraft, watercraft, motor vehicle or trailer to another 28 aircraft, watercraft, motor vehicle retailer or trailer 29 retailer for the purpose of resale or (ii) a retailer of 30 aircraft, watercraft, motor vehicles, or trailers transfers 31 more than one aircraft, watercraft, motor vehicle, or trailer 32 to a purchaser for use as a qualifying rolling stock as 33 provided in Section 2-5 of this Act, then that seller may 34 report the transfer of all aircraft, watercraft, motor SB1854 Enrolled -213- LRB9215370EGfg 1 vehicles or trailers involved in that transaction to the 2 Department on the same uniform invoice-transaction reporting 3 return form. For purposes of this Section, "watercraft" 4 means a Class 2, Class 3, or Class 4 watercraft as defined in 5 Section 3-2 of the Boat Registration and Safety Act, a 6 personal watercraft, or any boat equipped with an inboard 7 motor. 8 Any retailer who sells only motor vehicles, watercraft, 9 aircraft, or trailers that are required to be registered with 10 an agency of this State, so that all retailers' occupation 11 tax liability is required to be reported, and is reported, on 12 such transaction reporting returns and who is not otherwise 13 required to file monthly or quarterly returns, need not file 14 monthly or quarterly returns. However, those retailers shall 15 be required to file returns on an annual basis. 16 The transaction reporting return, in the case of motor 17 vehicles or trailers that are required to be registered with 18 an agency of this State, shall be the same document as the 19 Uniform Invoice referred to in Section 5-402 of The Illinois 20 Vehicle Code and must show the name and address of the 21 seller; the name and address of the purchaser; the amount of 22 the selling price including the amount allowed by the 23 retailer for traded-in property, if any; the amount allowed 24 by the retailer for the traded-in tangible personal property, 25 if any, to the extent to which Section 1 of this Act allows 26 an exemption for the value of traded-in property; the balance 27 payable after deducting such trade-in allowance from the 28 total selling price; the amount of tax due from the retailer 29 with respect to such transaction; the amount of tax collected 30 from the purchaser by the retailer on such transaction (or 31 satisfactory evidence that such tax is not due in that 32 particular instance, if that is claimed to be the fact); the 33 place and date of the sale; a sufficient identification of 34 the property sold; such other information as is required in SB1854 Enrolled -214- LRB9215370EGfg 1 Section 5-402 of The Illinois Vehicle Code, and such other 2 information as the Department may reasonably require. 3 The transaction reporting return in the case of 4 watercraft or aircraft must show the name and address of the 5 seller; the name and address of the purchaser; the amount of 6 the selling price including the amount allowed by the 7 retailer for traded-in property, if any; the amount allowed 8 by the retailer for the traded-in tangible personal property, 9 if any, to the extent to which Section 1 of this Act allows 10 an exemption for the value of traded-in property; the balance 11 payable after deducting such trade-in allowance from the 12 total selling price; the amount of tax due from the retailer 13 with respect to such transaction; the amount of tax collected 14 from the purchaser by the retailer on such transaction (or 15 satisfactory evidence that such tax is not due in that 16 particular instance, if that is claimed to be the fact); the 17 place and date of the sale, a sufficient identification of 18 the property sold, and such other information as the 19 Department may reasonably require. 20 Such transaction reporting return shall be filed not 21 later than 20 days after the day of delivery of the item that 22 is being sold, but may be filed by the retailer at any time 23 sooner than that if he chooses to do so. The transaction 24 reporting return and tax remittance or proof of exemption 25 from the Illinois use tax may be transmitted to the 26 Department by way of the State agency with which, or State 27 officer with whom the tangible personal property must be 28 titled or registered (if titling or registration is required) 29 if the Department and such agency or State officer determine 30 that this procedure will expedite the processing of 31 applications for title or registration. 32 With each such transaction reporting return, the retailer 33 shall remit the proper amount of tax due (or shall submit 34 satisfactory evidence that the sale is not taxable if that is SB1854 Enrolled -215- LRB9215370EGfg 1 the case), to the Department or its agents, whereupon the 2 Department shall issue, in the purchaser's name, a use tax 3 receipt (or a certificate of exemption if the Department is 4 satisfied that the particular sale is tax exempt) which such 5 purchaser may submit to the agency with which, or State 6 officer with whom, he must title or register the tangible 7 personal property that is involved (if titling or 8 registration is required) in support of such purchaser's 9 application for an Illinois certificate or other evidence of 10 title or registration to such tangible personal property. 11 No retailer's failure or refusal to remit tax under this 12 Act precludes a user, who has paid the proper tax to the 13 retailer, from obtaining his certificate of title or other 14 evidence of title or registration (if titling or registration 15 is required) upon satisfying the Department that such user 16 has paid the proper tax (if tax is due) to the retailer. The 17 Department shall adopt appropriate rules to carry out the 18 mandate of this paragraph. 19 If the user who would otherwise pay tax to the retailer 20 wants the transaction reporting return filed and the payment 21 of the tax or proof of exemption made to the Department 22 before the retailer is willing to take these actions and such 23 user has not paid the tax to the retailer, such user may 24 certify to the fact of such delay by the retailer and may 25 (upon the Department being satisfied of the truth of such 26 certification) transmit the information required by the 27 transaction reporting return and the remittance for tax or 28 proof of exemption directly to the Department and obtain his 29 tax receipt or exemption determination, in which event the 30 transaction reporting return and tax remittance (if a tax 31 payment was required) shall be credited by the Department to 32 the proper retailer's account with the Department, but 33 without the 2.1% or 1.75% discount provided for in this 34 Section being allowed. When the user pays the tax directly SB1854 Enrolled -216- LRB9215370EGfg 1 to the Department, he shall pay the tax in the same amount 2 and in the same form in which it would be remitted if the tax 3 had been remitted to the Department by the retailer. 4 Refunds made by the seller during the preceding return 5 period to purchasers, on account of tangible personal 6 property returned to the seller, shall be allowed as a 7 deduction under subdivision 5 of his monthly or quarterly 8 return, as the case may be, in case the seller had 9 theretofore included the receipts from the sale of such 10 tangible personal property in a return filed by him and had 11 paid the tax imposed by this Act with respect to such 12 receipts. 13 Where the seller is a corporation, the return filed on 14 behalf of such corporation shall be signed by the president, 15 vice-president, secretary or treasurer or by the properly 16 accredited agent of such corporation. 17 Where the seller is a limited liability company, the 18 return filed on behalf of the limited liability company shall 19 be signed by a manager, member, or properly accredited agent 20 of the limited liability company. 21 Except as provided in this Section, the retailer filing 22 the return under this Section shall, at the time of filing 23 such return, pay to the Department the amount of tax imposed 24 by this Act less a discount of 2.1% prior to January 1, 1990 25 and 1.75% on and after January 1, 1990, or $5 per calendar 26 year, whichever is greater, which is allowed to reimburse the 27 retailer for the expenses incurred in keeping records, 28 preparing and filing returns, remitting the tax and supplying 29 data to the Department on request. Any prepayment made 30 pursuant to Section 2d of this Act shall be included in the 31 amount on which such 2.1% or 1.75% discount is computed. In 32 the case of retailers who report and pay the tax on a 33 transaction by transaction basis, as provided in this 34 Section, such discount shall be taken with each such tax SB1854 Enrolled -217- LRB9215370EGfg 1 remittance instead of when such retailer files his periodic 2 return. 3 Before October 1, 2000, if the taxpayer's average monthly 4 tax liability to the Department under this Act, the Use Tax 5 Act, the Service Occupation Tax Act, and the Service Use Tax 6 Act, excluding any liability for prepaid sales tax to be 7 remitted in accordance with Section 2d of this Act, was 8 $10,000 or more during the preceding 4 complete calendar 9 quarters, he shall file a return with the Department each 10 month by the 20th day of the month next following the month 11 during which such tax liability is incurred and shall make 12 payments to the Department on or before the 7th, 15th, 22nd 13 and last day of the month during which such liability is 14 incurred. On and after October 1, 2000, if the taxpayer's 15 average monthly tax liability to the Department under this 16 Act, the Use Tax Act, the Service Occupation Tax Act, and the 17 Service Use Tax Act, excluding any liability for prepaid 18 sales tax to be remitted in accordance with Section 2d of 19 this Act, was $20,000 or more during the preceding 4 complete 20 calendar quarters, he shall file a return with the Department 21 each month by the 20th day of the month next following the 22 month during which such tax liability is incurred and shall 23 make payment to the Department on or before the 7th, 15th, 24 22nd and last day of the month during which such liability is 25 incurred. If the month during which such tax liability is 26 incurred began prior to January 1, 1985, each payment shall 27 be in an amount equal to 1/4 of the taxpayer's actual 28 liability for the month or an amount set by the Department 29 not to exceed 1/4 of the average monthly liability of the 30 taxpayer to the Department for the preceding 4 complete 31 calendar quarters (excluding the month of highest liability 32 and the month of lowest liability in such 4 quarter period). 33 If the month during which such tax liability is incurred 34 begins on or after January 1, 1985 and prior to January 1, SB1854 Enrolled -218- LRB9215370EGfg 1 1987, each payment shall be in an amount equal to 22.5% of 2 the taxpayer's actual liability for the month or 27.5% of the 3 taxpayer's liability for the same calendar month of the 4 preceding year. If the month during which such tax liability 5 is incurred begins on or after January 1, 1987 and prior to 6 January 1, 1988, each payment shall be in an amount equal to 7 22.5% of the taxpayer's actual liability for the month or 8 26.25% of the taxpayer's liability for the same calendar 9 month of the preceding year. If the month during which such 10 tax liability is incurred begins on or after January 1, 1988, 11 and prior to January 1, 1989, or begins on or after January 12 1, 1996, each payment shall be in an amount equal to 22.5% of 13 the taxpayer's actual liability for the month or 25% of the 14 taxpayer's liability for the same calendar month of the 15 preceding year. If the month during which such tax liability 16 is incurred begins on or after January 1, 1989, and prior to 17 January 1, 1996, each payment shall be in an amount equal to 18 22.5% of the taxpayer's actual liability for the month or 25% 19 of the taxpayer's liability for the same calendar month of 20 the preceding year or 100% of the taxpayer's actual liability 21 for the quarter monthly reporting period. The amount of such 22 quarter monthly payments shall be credited against the final 23 tax liability of the taxpayer's return for that month. 24 Before October 1, 2000, once applicable, the requirement of 25 the making of quarter monthly payments to the Department by 26 taxpayers having an average monthly tax liability of $10,000 27 or more as determined in the manner provided above shall 28 continue until such taxpayer's average monthly liability to 29 the Department during the preceding 4 complete calendar 30 quarters (excluding the month of highest liability and the 31 month of lowest liability) is less than $9,000, or until such 32 taxpayer's average monthly liability to the Department as 33 computed for each calendar quarter of the 4 preceding 34 complete calendar quarter period is less than $10,000. SB1854 Enrolled -219- LRB9215370EGfg 1 However, if a taxpayer can show the Department that a 2 substantial change in the taxpayer's business has occurred 3 which causes the taxpayer to anticipate that his average 4 monthly tax liability for the reasonably foreseeable future 5 will fall below the $10,000 threshold stated above, then such 6 taxpayer may petition the Department for a change in such 7 taxpayer's reporting status. On and after October 1, 2000, 8 once applicable, the requirement of the making of quarter 9 monthly payments to the Department by taxpayers having an 10 average monthly tax liability of $20,000 or more as 11 determined in the manner provided above shall continue until 12 such taxpayer's average monthly liability to the Department 13 during the preceding 4 complete calendar quarters (excluding 14 the month of highest liability and the month of lowest 15 liability) is less than $19,000 or until such taxpayer's 16 average monthly liability to the Department as computed for 17 each calendar quarter of the 4 preceding complete calendar 18 quarter period is less than $20,000. However, if a taxpayer 19 can show the Department that a substantial change in the 20 taxpayer's business has occurred which causes the taxpayer to 21 anticipate that his average monthly tax liability for the 22 reasonably foreseeable future will fall below the $20,000 23 threshold stated above, then such taxpayer may petition the 24 Department for a change in such taxpayer's reporting status. 25 The Department shall change such taxpayer's reporting status 26 unless it finds that such change is seasonal in nature and 27 not likely to be long term. If any such quarter monthly 28 payment is not paid at the time or in the amount required by 29 this Section, then the taxpayer shall be liable for penalties 30 and interest on the difference between the minimum amount due 31 as a payment and the amount of such quarter monthly payment 32 actually and timely paid, except insofar as the taxpayer has 33 previously made payments for that month to the Department in 34 excess of the minimum payments previously due as provided in SB1854 Enrolled -220- LRB9215370EGfg 1 this Section. The Department shall make reasonable rules and 2 regulations to govern the quarter monthly payment amount and 3 quarter monthly payment dates for taxpayers who file on other 4 than a calendar monthly basis. 5 The provisions of this paragraph apply before October 1, 6 2001. Without regard to whether a taxpayer is required to 7 make quarter monthly payments as specified above, any 8 taxpayer who is required by Section 2d of this Act to collect 9 and remit prepaid taxes and has collected prepaid taxes which 10 average in excess of $25,000 per month during the preceding 2 11 complete calendar quarters, shall file a return with the 12 Department as required by Section 2f and shall make payments 13 to the Department on or before the 7th, 15th, 22nd and last 14 day of the month during which such liability is incurred. If 15 the month during which such tax liability is incurred began 16 prior to the effective date of this amendatory Act of 1985, 17 each payment shall be in an amount not less than 22.5% of the 18 taxpayer's actual liability under Section 2d. If the month 19 during which such tax liability is incurred begins on or 20 after January 1, 1986, each payment shall be in an amount 21 equal to 22.5% of the taxpayer's actual liability for the 22 month or 27.5% of the taxpayer's liability for the same 23 calendar month of the preceding calendar year. If the month 24 during which such tax liability is incurred begins on or 25 after January 1, 1987, each payment shall be in an amount 26 equal to 22.5% of the taxpayer's actual liability for the 27 month or 26.25% of the taxpayer's liability for the same 28 calendar month of the preceding year. The amount of such 29 quarter monthly payments shall be credited against the final 30 tax liability of the taxpayer's return for that month filed 31 under this Section or Section 2f, as the case may be. Once 32 applicable, the requirement of the making of quarter monthly 33 payments to the Department pursuant to this paragraph shall 34 continue until such taxpayer's average monthly prepaid tax SB1854 Enrolled -221- LRB9215370EGfg 1 collections during the preceding 2 complete calendar quarters 2 is $25,000 or less. If any such quarter monthly payment is 3 not paid at the time or in the amount required, the taxpayer 4 shall be liable for penalties and interest on such 5 difference, except insofar as the taxpayer has previously 6 made payments for that month in excess of the minimum 7 payments previously due. 8 The provisions of this paragraph apply on and after 9 October 1, 2001. Without regard to whether a taxpayer is 10 required to make quarter monthly payments as specified above, 11 any taxpayer who is required by Section 2d of this Act to 12 collect and remit prepaid taxes and has collected prepaid 13 taxes that average in excess of $20,000 per month during the 14 preceding 4 complete calendar quarters shall file a return 15 with the Department as required by Section 2f and shall make 16 payments to the Department on or before the 7th, 15th, 22nd 17 and last day of the month during which the liability is 18 incurred. Each payment shall be in an amount equal to 22.5% 19 of the taxpayer's actual liability for the month or 25% of 20 the taxpayer's liability for the same calendar month of the 21 preceding year. The amount of the quarter monthly payments 22 shall be credited against the final tax liability of the 23 taxpayer's return for that month filed under this Section or 24 Section 2f, as the case may be. Once applicable, the 25 requirement of the making of quarter monthly payments to the 26 Department pursuant to this paragraph shall continue until 27 the taxpayer's average monthly prepaid tax collections during 28 the preceding 4 complete calendar quarters (excluding the 29 month of highest liability and the month of lowest liability) 30 is less than $19,000 or until such taxpayer's average monthly 31 liability to the Department as computed for each calendar 32 quarter of the 4 preceding complete calendar quarters is less 33 than $20,000. If any such quarter monthly payment is not 34 paid at the time or in the amount required, the taxpayer SB1854 Enrolled -222- LRB9215370EGfg 1 shall be liable for penalties and interest on such 2 difference, except insofar as the taxpayer has previously 3 made payments for that month in excess of the minimum 4 payments previously due. 5 If any payment provided for in this Section exceeds the 6 taxpayer's liabilities under this Act, the Use Tax Act, the 7 Service Occupation Tax Act and the Service Use Tax Act, as 8 shown on an original monthly return, the Department shall, if 9 requested by the taxpayer, issue to the taxpayer a credit 10 memorandum no later than 30 days after the date of payment. 11 The credit evidenced by such credit memorandum may be 12 assigned by the taxpayer to a similar taxpayer under this 13 Act, the Use Tax Act, the Service Occupation Tax Act or the 14 Service Use Tax Act, in accordance with reasonable rules and 15 regulations to be prescribed by the Department. If no such 16 request is made, the taxpayer may credit such excess payment 17 against tax liability subsequently to be remitted to the 18 Department under this Act, the Use Tax Act, the Service 19 Occupation Tax Act or the Service Use Tax Act, in accordance 20 with reasonable rules and regulations prescribed by the 21 Department. If the Department subsequently determined that 22 all or any part of the credit taken was not actually due to 23 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount 24 shall be reduced by 2.1% or 1.75% of the difference between 25 the credit taken and that actually due, and that taxpayer 26 shall be liable for penalties and interest on such 27 difference. 28 If a retailer of motor fuel is entitled to a credit under 29 Section 2d of this Act which exceeds the taxpayer's liability 30 to the Department under this Act for the month which the 31 taxpayer is filing a return, the Department shall issue the 32 taxpayer a credit memorandum for the excess. 33 Beginning January 1, 1990, each month the Department 34 shall pay into the Local Government Tax Fund, a special fund SB1854 Enrolled -223- LRB9215370EGfg 1 in the State treasury which is hereby created, the net 2 revenue realized for the preceding month from the 1% tax on 3 sales of food for human consumption which is to be consumed 4 off the premises where it is sold (other than alcoholic 5 beverages, soft drinks and food which has been prepared for 6 immediate consumption) and prescription and nonprescription 7 medicines, drugs, medical appliances and insulin, urine 8 testing materials, syringes and needles used by diabetics. 9 Beginning January 1, 1990, each month the Department 10 shall pay into the County and Mass Transit District Fund, a 11 special fund in the State treasury which is hereby created, 12 4% of the net revenue realized for the preceding month from 13 the 6.25% general rate. 14 Beginning August 1, 2000, each month the Department shall 15 pay into the County and Mass Transit District Fund 20% of the 16 net revenue realized for the preceding month from the 1.25% 17 rate on the selling price of motor fuel and gasohol. 18 Beginning January 1, 1990, each month the Department 19 shall pay into the Local Government Tax Fund 16% of the net 20 revenue realized for the preceding month from the 6.25% 21 general rate on the selling price of tangible personal 22 property. 23 Beginning August 1, 2000, each month the Department shall 24 pay into the Local Government Tax Fund 80% of the net revenue 25 realized for the preceding month from the 1.25% rate on the 26 selling price of motor fuel and gasohol. 27 Of the remainder of the moneys received by the Department 28 pursuant to this Act, (a) 1.75% thereof shall be paid into 29 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 30 and on and after July 1, 1989, 3.8% thereof shall be paid 31 into the Build Illinois Fund; provided, however, that if in 32 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 33 as the case may be, of the moneys received by the Department 34 and required to be paid into the Build Illinois Fund pursuant SB1854 Enrolled -224- LRB9215370EGfg 1 to this Act, Section 9 of the Use Tax Act, Section 9 of the 2 Service Use Tax Act, and Section 9 of the Service Occupation 3 Tax Act, such Acts being hereinafter called the "Tax Acts" 4 and such aggregate of 2.2% or 3.8%, as the case may be, of 5 moneys being hereinafter called the "Tax Act Amount", and (2) 6 the amount transferred to the Build Illinois Fund from the 7 State and Local Sales Tax Reform Fund shall be less than the 8 Annual Specified Amount (as hereinafter defined), an amount 9 equal to the difference shall be immediately paid into the 10 Build Illinois Fund from other moneys received by the 11 Department pursuant to the Tax Acts; the "Annual Specified 12 Amount" means the amounts specified below for fiscal years 13 1986 through 1993: 14 Fiscal Year Annual Specified Amount 15 1986 $54,800,000 16 1987 $76,650,000 17 1988 $80,480,000 18 1989 $88,510,000 19 1990 $115,330,000 20 1991 $145,470,000 21 1992 $182,730,000 22 1993 $206,520,000; 23 and means the Certified Annual Debt Service Requirement (as 24 defined in Section 13 of the Build Illinois Bond Act) or the 25 Tax Act Amount, whichever is greater, for fiscal year 1994 26 and each fiscal year thereafter; and further provided, that 27 if on the last business day of any month the sum of (1) the 28 Tax Act Amount required to be deposited into the Build 29 Illinois Bond Account in the Build Illinois Fund during such 30 month and (2) the amount transferred to the Build Illinois 31 Fund from the State and Local Sales Tax Reform Fund shall 32 have been less than 1/12 of the Annual Specified Amount, an 33 amount equal to the difference shall be immediately paid into 34 the Build Illinois Fund from other moneys received by the SB1854 Enrolled -225- LRB9215370EGfg 1 Department pursuant to the Tax Acts; and, further provided, 2 that in no event shall the payments required under the 3 preceding proviso result in aggregate payments into the Build 4 Illinois Fund pursuant to this clause (b) for any fiscal year 5 in excess of the greater of (i) the Tax Act Amount or (ii) 6 the Annual Specified Amount for such fiscal year. The 7 amounts payable into the Build Illinois Fund under clause (b) 8 of the first sentence in this paragraph shall be payable only 9 until such time as the aggregate amount on deposit under each 10 trust indenture securing Bonds issued and outstanding 11 pursuant to the Build Illinois Bond Act is sufficient, taking 12 into account any future investment income, to fully provide, 13 in accordance with such indenture, for the defeasance of or 14 the payment of the principal of, premium, if any, and 15 interest on the Bonds secured by such indenture and on any 16 Bonds expected to be issued thereafter and all fees and costs 17 payable with respect thereto, all as certified by the 18 Director of the Bureau of the Budget. If on the last 19 business day of any month in which Bonds are outstanding 20 pursuant to the Build Illinois Bond Act, the aggregate of 21 moneys deposited in the Build Illinois Bond Account in the 22 Build Illinois Fund in such month shall be less than the 23 amount required to be transferred in such month from the 24 Build Illinois Bond Account to the Build Illinois Bond 25 Retirement and Interest Fund pursuant to Section 13 of the 26 Build Illinois Bond Act, an amount equal to such deficiency 27 shall be immediately paid from other moneys received by the 28 Department pursuant to the Tax Acts to the Build Illinois 29 Fund; provided, however, that any amounts paid to the Build 30 Illinois Fund in any fiscal year pursuant to this sentence 31 shall be deemed to constitute payments pursuant to clause (b) 32 of the first sentence of this paragraph and shall reduce the 33 amount otherwise payable for such fiscal year pursuant to 34 that clause (b). The moneys received by the Department SB1854 Enrolled -226- LRB9215370EGfg 1 pursuant to this Act and required to be deposited into the 2 Build Illinois Fund are subject to the pledge, claim and 3 charge set forth in Section 12 of the Build Illinois Bond 4 Act. 5 Subject to payment of amounts into the Build Illinois 6 Fund as provided in the preceding paragraph or in any 7 amendment thereto hereafter enacted, the following specified 8 monthly installment of the amount requested in the 9 certificate of the Chairman of the Metropolitan Pier and 10 Exposition Authority provided under Section 8.25f of the 11 State Finance Act, but not in excess of sums designated as 12 "Total Deposit", shall be deposited in the aggregate from 13 collections under Section 9 of the Use Tax Act, Section 9 of 14 the Service Use Tax Act, Section 9 of the Service Occupation 15 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 16 into the McCormick Place Expansion Project Fund in the 17 specified fiscal years. 18 Fiscal Year Total Deposit 19 1993 $0 20 1994 53,000,000 21 1995 58,000,000 22 1996 61,000,000 23 1997 64,000,000 24 1998 68,000,000 25 1999 71,000,000 26 2000 75,000,000 27 2001 80,000,000 28 2002 93,000,000 29 2003 99,000,000 30 2004 103,000,000 31 2005 108,000,000 32 2006 113,000,000 33 2007 119,000,000 34 2008 126,000,000 SB1854 Enrolled -227- LRB9215370EGfg 1 2009 132,000,000 2 2010 139,000,000 3 2011 146,000,000 4 2012 153,000,000 5 2013 161,000,000 6 2014 170,000,000 7 2015 179,000,000 8 2016 189,000,000 9 2017 199,000,000 10 2018 210,000,000 11 2019 221,000,000 12 2020 233,000,000 13 2021 246,000,000 14 2022 260,000,000 15 2023 and 275,000,000 16 each fiscal year 17 thereafter that bonds 18 are outstanding under 19 Section 13.2 of the 20 Metropolitan Pier and 21 Exposition Authority 22 Act, but not after fiscal year 2042. 23 Beginning July 20, 1993 and in each month of each fiscal 24 year thereafter, one-eighth of the amount requested in the 25 certificate of the Chairman of the Metropolitan Pier and 26 Exposition Authority for that fiscal year, less the amount 27 deposited into the McCormick Place Expansion Project Fund by 28 the State Treasurer in the respective month under subsection 29 (g) of Section 13 of the Metropolitan Pier and Exposition 30 Authority Act, plus cumulative deficiencies in the deposits 31 required under this Section for previous months and years, 32 shall be deposited into the McCormick Place Expansion Project 33 Fund, until the full amount requested for the fiscal year, 34 but not in excess of the amount specified above as "Total SB1854 Enrolled -228- LRB9215370EGfg 1 Deposit", has been deposited. 2 Subject to payment of amounts into the Build Illinois 3 Fund and the McCormick Place Expansion Project Fund pursuant 4 to the preceding paragraphs or in any amendment thereto 5 hereafter enacted, each month the Department shall pay into 6 the Local Government Distributive Fund 0.4% of the net 7 revenue realized for the preceding month from the 5% general 8 rate or 0.4% of 80% of the net revenue realized for the 9 preceding month from the 6.25% general rate, as the case may 10 be, on the selling price of tangible personal property which 11 amount shall, subject to appropriation, be distributed as 12 provided in Section 2 of the State Revenue Sharing Act. No 13 payments or distributions pursuant to this paragraph shall be 14 made if the tax imposed by this Act on photoprocessing 15 products is declared unconstitutional, or if the proceeds 16 from such tax are unavailable for distribution because of 17 litigation. 18 Subject to payment of amounts into the Build Illinois 19 Fund,andthe McCormick Place Expansion Project Fund, and the 20 Local Government Distributive Fund pursuant to the preceding 21 paragraphs or in any amendments thereto hereafter enacted, 22 beginning July 1, 1993, the Department shall each month pay 23 into the Illinois Tax Increment Fund 0.27% of 80% of the net 24 revenue realized for the preceding month from the 6.25% 25 general rate on the selling price of tangible personal 26 property. 27 Subject to payment of amounts into the Build Illinois 28 Fund, the McCormick Place Expansion Project Fund, and the 29 Local Government Distributive Fund pursuant to the preceding 30 paragraphs or in any amendments thereto hereafter enacted, 31 beginning with the receipt of the first report of taxes paid 32 by an eligible business and continuing for a 25-year period, 33 the Department shall each month pay into the Energy 34 Infrastructure Fund 80% of the net revenue realized from the SB1854 Enrolled -229- LRB9215370EGfg 1 6.25% general rate on the selling price of Illinois-mined 2 coal that was sold to an eligible business. For purposes of 3 this paragraph, the term "eligible business" means a new 4 electric generating facility certified pursuant to Section 5 605-332 of the Department of Commerce and Community Affairs 6 Law of the Civil Administrative Code of Illinois. 7 Of the remainder of the moneys received by the Department 8 pursuant to this Act, 75% thereof shall be paid into the 9 State Treasury and 25% shall be reserved in a special account 10 and used only for the transfer to the Common School Fund as 11 part of the monthly transfer from the General Revenue Fund in 12 accordance with Section 8a of the State Finance Act. 13 The Department may, upon separate written notice to a 14 taxpayer, require the taxpayer to prepare and file with the 15 Department on a form prescribed by the Department within not 16 less than 60 days after receipt of the notice an annual 17 information return for the tax year specified in the notice. 18 Such annual return to the Department shall include a 19 statement of gross receipts as shown by the retailer's last 20 Federal income tax return. If the total receipts of the 21 business as reported in the Federal income tax return do not 22 agree with the gross receipts reported to the Department of 23 Revenue for the same period, the retailer shall attach to his 24 annual return a schedule showing a reconciliation of the 2 25 amounts and the reasons for the difference. The retailer's 26 annual return to the Department shall also disclose the cost 27 of goods sold by the retailer during the year covered by such 28 return, opening and closing inventories of such goods for 29 such year, costs of goods used from stock or taken from stock 30 and given away by the retailer during such year, payroll 31 information of the retailer's business during such year and 32 any additional reasonable information which the Department 33 deems would be helpful in determining the accuracy of the 34 monthly, quarterly or annual returns filed by such retailer SB1854 Enrolled -230- LRB9215370EGfg 1 as provided for in this Section. 2 If the annual information return required by this Section 3 is not filed when and as required, the taxpayer shall be 4 liable as follows: 5 (i) Until January 1, 1994, the taxpayer shall be 6 liable for a penalty equal to 1/6 of 1% of the tax due 7 from such taxpayer under this Act during the period to be 8 covered by the annual return for each month or fraction 9 of a month until such return is filed as required, the 10 penalty to be assessed and collected in the same manner 11 as any other penalty provided for in this Act. 12 (ii) On and after January 1, 1994, the taxpayer 13 shall be liable for a penalty as described in Section 3-4 14 of the Uniform Penalty and Interest Act. 15 The chief executive officer, proprietor, owner or highest 16 ranking manager shall sign the annual return to certify the 17 accuracy of the information contained therein. Any person 18 who willfully signs the annual return containing false or 19 inaccurate information shall be guilty of perjury and 20 punished accordingly. The annual return form prescribed by 21 the Department shall include a warning that the person 22 signing the return may be liable for perjury. 23 The provisions of this Section concerning the filing of 24 an annual information return do not apply to a retailer who 25 is not required to file an income tax return with the United 26 States Government. 27 As soon as possible after the first day of each month, 28 upon certification of the Department of Revenue, the 29 Comptroller shall order transferred and the Treasurer shall 30 transfer from the General Revenue Fund to the Motor Fuel Tax 31 Fund an amount equal to 1.7% of 80% of the net revenue 32 realized under this Act for the second preceding month. 33 Beginning April 1, 2000, this transfer is no longer required 34 and shall not be made. SB1854 Enrolled -231- LRB9215370EGfg 1 Net revenue realized for a month shall be the revenue 2 collected by the State pursuant to this Act, less the amount 3 paid out during that month as refunds to taxpayers for 4 overpayment of liability. 5 For greater simplicity of administration, manufacturers, 6 importers and wholesalers whose products are sold at retail 7 in Illinois by numerous retailers, and who wish to do so, may 8 assume the responsibility for accounting and paying to the 9 Department all tax accruing under this Act with respect to 10 such sales, if the retailers who are affected do not make 11 written objection to the Department to this arrangement. 12 Any person who promotes, organizes, provides retail 13 selling space for concessionaires or other types of sellers 14 at the Illinois State Fair, DuQuoin State Fair, county fairs, 15 local fairs, art shows, flea markets and similar exhibitions 16 or events, including any transient merchant as defined by 17 Section 2 of the Transient Merchant Act of 1987, is required 18 to file a report with the Department providing the name of 19 the merchant's business, the name of the person or persons 20 engaged in merchant's business, the permanent address and 21 Illinois Retailers Occupation Tax Registration Number of the 22 merchant, the dates and location of the event and other 23 reasonable information that the Department may require. The 24 report must be filed not later than the 20th day of the month 25 next following the month during which the event with retail 26 sales was held. Any person who fails to file a report 27 required by this Section commits a business offense and is 28 subject to a fine not to exceed $250. 29 Any person engaged in the business of selling tangible 30 personal property at retail as a concessionaire or other type 31 of seller at the Illinois State Fair, county fairs, art 32 shows, flea markets and similar exhibitions or events, or any 33 transient merchants, as defined by Section 2 of the Transient 34 Merchant Act of 1987, may be required to make a daily report SB1854 Enrolled -232- LRB9215370EGfg 1 of the amount of such sales to the Department and to make a 2 daily payment of the full amount of tax due. The Department 3 shall impose this requirement when it finds that there is a 4 significant risk of loss of revenue to the State at such an 5 exhibition or event. Such a finding shall be based on 6 evidence that a substantial number of concessionaires or 7 other sellers who are not residents of Illinois will be 8 engaging in the business of selling tangible personal 9 property at retail at the exhibition or event, or other 10 evidence of a significant risk of loss of revenue to the 11 State. The Department shall notify concessionaires and other 12 sellers affected by the imposition of this requirement. In 13 the absence of notification by the Department, the 14 concessionaires and other sellers shall file their returns as 15 otherwise required in this Section. 16 (Source: P.A. 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 17 91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 91-872, eff. 18 7-1-00; 91-901, eff. 1-1-01; 92-12, eff. 7-1-01; 92-16, eff. 19 6-28-01; 92-208, eff. 8-2-01; 92-484, eff. 8-23-01; 92-492, 20 eff. 1-1-02; revised 9-14-01.) 21 Section 29. The Property Tax Code is amended by changing 22 Sections 15-25, 18-165, and 31-5 as follows: 23 (35 ILCS 200/15-25) 24 Sec. 15-25. Removal of exemptions. If the Department 25 determines that any property has been unlawfully exempted 26 from taxation, or is no longer entitled to exemption, the 27 Department shall, before January 1 of any year, direct the 28 chief county assessment officer to assess the property and 29 return it to the assessment rolls for the next assessment 30 year. The Department shall give notice of its decision to 31 the owner of the property by certified mail. The decision 32 shall be subject to review and hearing underwithSection SB1854 Enrolled -233- LRB9215370EGfg 1 8-35, upon application by the owner filed within 10 days 2 after the notice of decision is mailed. However, the 3 extension of taxes on the assessment shall not be delayed by 4 any proceedings under this Section. If the property is 5 determined to be exempt, any taxes extended upon the 6 assessment shall be abated or, if already paid, be refunded. 7 (Source: P.A. 82-554; 88-455; revised 12-04-01.) 8 (35 ILCS 200/18-165) 9 Sec. 18-165. Abatement of taxes. 10 (a) Any taxing district, upon a majority vote of its 11 governing authority, may, after the determination of the 12 assessed valuation of its property, order the clerk of that 13 county to abate any portion of its taxes on the following 14 types of property: 15 (1) Commercial and industrial. 16 (A) The property of any commercial or 17 industrial firm, including but not limited to the 18 property of (i) any firm that is used for 19 collecting, separating, storing, or processing 20 recyclable materials, locating within the taxing 21 district during the immediately preceding year from 22 another state, territory, or country, or having been 23 newly created within this State during the 24 immediately preceding year, or expanding an existing 25 facility, or (ii) any firm that is used for the 26 generation and transmission of electricity locating 27 within the taxing district during the immediately 28 preceding year or expanding its presence within the 29 taxing district during the immediately preceding 30 year by construction of a new electric generating 31 facility that uses natural gas as its fuel, or any 32 firm that is used for production operations at a 33 new, expanded, or reopened coal mine within the SB1854 Enrolled -234- LRB9215370EGfg 1 taxing district, that has been certified as a High 2 Impact Business by the Illinois Department of 3 Commerce and Community Affairs. The property of any 4 firm used for the generation and transmission of 5 electricity shall include all property of the firm 6 used for transmission facilities as defined in 7 Section 5.5 of the Illinois Enterprise Zone Act. 8 The abatement shall not exceed a period of 10 years 9 and the aggregate amount of abated taxes for all 10 taxing districts combined shall not exceed 11 $4,000,000. 12 (A-5) Any property in the taxing district of a 13 new electric generating facility, as defined in 14 Section 605-332 of the Department of Commerce and 15 Community Affairs Law of the Civil Administrative 16 Code of Illinois. The abatement shall not exceed a 17 period of 10 years. The abatement shall be subject 18 to the following limitations: 19 (i) if the equalized assessed valuation 20 of the new electric generating facility is 21 equal to or greater than $25,000,000 but less 22 than $50,000,000, then the abatement may not 23 exceed (i) over the entire term of the 24 abatement, 5% of the taxing district's 25 aggregate taxes from the new electric 26 generating facility and (ii) in any one year of 27 abatement, 20% of the taxing district's taxes 28 from the new electric generating facility; 29 (ii) if the equalized assessed valuation 30 of the new electric generating facility is 31 equal to or greater than $50,000,000 but less 32 than $75,000,000, then the abatement may not 33 exceed (i) over the entire term of the 34 abatement, 10% of the taxing district's SB1854 Enrolled -235- LRB9215370EGfg 1 aggregate taxes from the new electric 2 generating facility and (ii) in any one year of 3 abatement, 35% of the taxing district's taxes 4 from the new electric generating facility; 5 (iii) if the equalized assessed valuation 6 of the new electric generating facility is 7 equal to or greater than $75,000,000 but less 8 than $100,000,000, then the abatement may not 9 exceed (i) over the entire term of the 10 abatement, 20% of the taxing district's 11 aggregate taxes from the new electric 12 generating facility and (ii) in any one year of 13 abatement, 50% of the taxing district's taxes 14 from the new electric generating facility; 15 (iv) if the equalized assessed valuation 16 of the new electric generating facility is 17 equal to or greater than $100,000,000 but less 18 than $125,000,000, then the abatement may not 19 exceed (i) over the entire term of the 20 abatement, 30% of the taxing district's 21 aggregate taxes from the new electric 22 generating facility and (ii) in any one year of 23 abatement, 60% of the taxing district's taxes 24 from the new electric generating facility; 25 (v) if the equalized assessed valuation 26 of the new electric generating facility is 27 equal to or greater than $125,000,000 but less 28 than $150,000,000, then the abatement may not 29 exceed (i) over the entire term of the 30 abatement, 40% of the taxing district's 31 aggregate taxes from the new electric 32 generating facility and (ii) in any one year of 33 abatement, 60% of the taxing district's taxes 34 from the new electric generating facility; SB1854 Enrolled -236- LRB9215370EGfg 1 (vi) if the equalized assessed valuation 2 of the new electric generating facility is 3 equal to or greater than $150,000,000, then the 4 abatement may not exceed (i) over the entire 5 term of the abatement, 50% of the taxing 6 district's aggregate taxes from the new 7 electric generating facility and (ii) in any 8 one year of abatement, 60% of the taxing 9 district's taxes from the new electric 10 generating facility. 11 The abatement is not effective unless the owner 12 of the new electric generating facility agrees to 13 repay to the taxing district all amounts previously 14 abated, together with interest computed at the rate 15 and in the manner provided for delinquent taxes, in 16 the event that the owner of the new electric 17 generating facility closes the new electric 18 generating facility before the expiration of the 19 entire term of the abatement. 20 The authorization of taxing districts to abate 21 taxes under this subdivision (a)(1)(A-5) expires on 22 January 1, 2010. 23 (B) The property of any commercial or 24 industrial development of at least 500 acres having 25 been created within the taxing district. The 26 abatement shall not exceed a period of 20 years and 27 the aggregate amount of abated taxes for all taxing 28 districts combined shall not exceed $12,000,000. 29 (C) The property of any commercial or 30 industrial firm currently located in the taxing 31 district that expands a facility or its number of 32 employees. The abatement shall not exceed a period 33 of 10 years and the aggregate amount of abated taxes 34 for all taxing districts combined shall not exceed SB1854 Enrolled -237- LRB9215370EGfg 1 $4,000,000. The abatement period may be renewed at 2 the option of the taxing districts. 3 (2) Horse racing. Any property in the taxing 4 district which is used for the racing of horses and upon 5 which capital improvements consisting of expansion, 6 improvement or replacement of existing facilities have 7 been made since July 1, 1987. The combined abatements 8 for such property from all taxing districts in any county 9 shall not exceed $5,000,000 annually and shall not exceed 10 a period of 10 years. 11 (3) Auto racing. Any property designed exclusively 12 for the racing of motor vehicles. Such abatement shall 13 not exceed a period of 10 years. 14 (4) Academic or research institute. The property 15 of any academic or research institute in the taxing 16 district that (i) is an exempt organization under 17 paragraph (3) of Section 501(c) of the Internal Revenue 18 Code, (ii) operates for the benefit of the public by 19 actually and exclusively performing scientific research 20 and making the results of the research available to the 21 interested public on a non-discriminatory basis, and 22 (iii) employs more than 100 employees. An abatement 23 granted under this paragraph shall be for at least 15 24 years and the aggregate amount of abated taxes for all 25 taxing districts combined shall not exceed $5,000,000. 26 (5) Housing for older persons. Any property in the 27 taxing district that is devoted exclusively to affordable 28 housing for older households. For purposes of this 29 paragraph, "older households" means those households (i) 30 living in housing provided under any State or federal 31 program that the Department of Human Rights determines is 32 specifically designed and operated to assist elderly 33 persons and is solely occupied by persons 55 years of age 34 or older and (ii) whose annual income does not exceed 80% SB1854 Enrolled -238- LRB9215370EGfg 1 of the area gross median income, adjusted for family 2 size, as such gross income and median income are 3 determined from time to time by the United States 4 Department of Housing and Urban Development. The 5 abatement shall not exceed a period of 15 years, and the 6 aggregate amount of abated taxes for all taxing districts 7 shall not exceed $3,000,000. 8 (6) Historical society. For assessment years 1998 9 through 2003, the property of an historical society 10 qualifying as an exempt organization under Section 11 501(c)(3) of the federal Internal Revenue Code. 12 (7) Recreational facilities. Any property in the 13 taxing district (i) that is used for a municipal airport, 14 (ii) that is subject to a leasehold assessment under 15 Section 9-195 of this Code and (iii) which is sublet from 16 a park district that is leasing the property from a 17 municipality, but only if the property is used 18 exclusively for recreational facilities or for parking 19 lots used exclusively for those facilities. The 20 abatement shall not exceed a period of 10 years. 21 (8) Relocated corporate headquarters. If approval 22 occurs within 5 years after the effective date of this 23 amendatory Act of the 92nd General Assembly, any property 24 or a portion of any property in a taxing district that is 25 used by an eligible business for a corporate headquarters 26 as defined in the Corporate Headquarters Relocation Act. 27 Instead of an abatement under this paragraph (8), a 28 taxing district may enter into an agreement with an 29 eligible business to make annual payments to that 30 eligible business in an amount not to exceed the property 31 taxes paid directly or indirectly by that eligible 32 business to the taxing district and any other taxing 33 districts for premises occupied pursuant to a written 34 lease and may make those payments without the need for an SB1854 Enrolled -239- LRB9215370EGfg 1 annual appropriation. No school district, however, may 2 enter into an agreement with, or abate taxes for, an 3 eligible business unless the municipality in which the 4 corporate headquarters is located agrees to provide 5 funding to the school district in an amount equal to the 6 amount abated or paid by the school district as provided 7 in this paragraph (8). Any abatement ordered or 8 agreement entered into under this paragraph (8) may be 9 effective for the entire term specified by the taxing 10 district, except the term of the abatement or annual 11 payments may not exceed 20 years. 12 (b) Upon a majority vote of its governing authority, any 13 municipality may, after the determination of the assessed 14 valuation of its property, order the county clerk to abate 15 any portion of its taxes on any property that is located 16 within the corporate limits of the municipality in accordance 17 with Section 8-3-18 of the Illinois Municipal Code. 18 (Source: P.A. 91-644, eff. 8-20-99; 91-885, eff. 7-6-00; 19 92-12, eff. 7-1-01; 92-207, eff. 8-1-01; 92-247, eff. 8-3-01; 20 revised 9-19-01.) 21 (35 ILCS 200/31-5) 22 Sec. 31-5. Definitions. "Recordation" includes the 23 issuance of certificates of title by Registrars of Title 24 under the Registered Titles (Torrens) Act pursuant to the 25 filing of deeds or trust documents for that purpose, as well 26 as the recording of deeds or trust documents by recorders. 27 "Department" means the Department of Revenue. 28 "Person" means any natural individual, firm, partnership, 29 association, joint stock company, joint adventure, public or 30 private corporation, limited liability company, or a 31 receiver, executor, trustee, guardian or other representative 32 appointed by order of any court. 33 "Value" means the amount of the full actual SB1854 Enrolled -240- LRB9215370EGfg 1 consideration, including the amount of any lien assumed by 2 the buyer. 3 "Trust document" means a document required to be recorded 4 under the Land Trust Recordation and Transfer Tax Act. 5 (Source: P.A. 88-455; incorporates 88-480; 88-670, eff. 6 12-2-94; revised 12-13-01.) 7 Section 30. The Motor Fuel Tax Law is amended by 8 changing Section 15 as follows: 9 (35 ILCS 505/15) (from Ch. 120, par. 431) 10 Sec. 15. 1. Any person who knowingly acts as a 11 distributor of motor fuel or supplier of special fuel, or 12 receiver of fuel without having a license so to do, or who 13 knowingly fails or refuses to file a return with the 14 Department as provided in Section 2b, Section 5, or Section 15 5a of this Act, or who knowingly fails or refuses to make 16 payment to the Department as provided either in Section 2b, 17 Section 6, Section 6a, or Section 7 of this Act, shall be 18 guilty of a Class 3 felony. Each day any person knowingly 19 acts as a distributor of motor fuel, supplier of special 20 fuel, or receiver of fuel without having a license so to do 21 or after such a license has been revoked, constitutes a 22 separate offense. 23 2. Any person who acts as a motor carrier without having 24 a valid motor fuel use tax license, issued by the Department 25 or by a member jurisdiction under the provisions of the 26 International Fuel Tax Agreement, or a valid single trip 27 permit is guilty of a Class A misdemeanor for a first offense 28 and is guilty of a Class 4 felony for each subsequent 29 offense. Any person (i) who fails or refuses to make payment 30 to the Department as provided in Section 13a.1 of this Act or 31 in the International Fuel Tax Agreement referenced in Section 32 14a, or (ii) who fails or refuses to make the quarterly SB1854 Enrolled -241- LRB9215370EGfg 1 return as provided in Section 13a.3 is guilty of a Class 4 2 felony; and for each subsequent offense, such person is 3 guilty of a Class 3 felony. 4 3. In case such person acting as a distributor, 5 receiver, supplier, or motor carrier is a corporation, then 6 the officer or officers, agent or agents, employee or 7 employees, of such corporation responsible for any act of 8 such corporation, or failure of such corporation to act, 9 which acts or failure to act constitutes a violation of any 10 of the provisions of this Act as enumerated in paragraphs 1 11 and 2 of this Section, shall be punished by such fine or 12 imprisonment, or by both such fine and imprisonment as 13 provided in those paragraphs. 14 3.5. Any person who knowingly enters false information 15 on any supporting documentation required to be kept by 16 Section 6 or 6a of this Act is guilty of a Class 3 felony. 17 3.7. Any person who knowingly attempts in any manner to 18 evade or defeat any tax imposed by this Act or the payment of 19 any tax imposed by this Act is guilty of a Class 2 felony. 20 4. Any person who refuses, upon demand, to submit for 21 inspection, books and records, or who fails or refuses to 22 keep books and records in violation of Section 12 of this 23 Act, or any distributor, receiver, or supplier who violates 24 any reasonable rule or regulation adopted by the Department 25 for the enforcement of this Act is guilty of a Class A 26 misdemeanor. Any person who acts as a blender in violation 27 of Section 3 of this Act or who having transported reportable 28 motor fuel within Section 7b of this Act fails to make the 29 return required by that Section, is guilty of a Class 4 30 felony. 31 5. Any person licensed under Section 13a.4, 13a.5, or 32 the International Fuel Tax Agreement who: (a) fails or 33 refuses to keep records and books, as provided in Section 34 13a.2 or as required by the terms of the International Fuel SB1854 Enrolled -242- LRB9215370EGfg 1 Tax Agreement, (b) refuses upon demand by the Department to 2 submit for inspection and examination the records required by 3 Section 13a.2 of this Act or by the terms of the 4 International Fuel Tax Agreement, or (c) violates any 5 reasonable rule or regulation adopted by the Department for 6 the enforcement of this Act, is guilty of a Class A 7 misdemeanor. 8 6. Any person who makes any false return or report to 9 the Department as to any material fact required by Sections 10 2b, 5, 5a, 7, 13, or 13a.3 of this Act or by the 11 International Fuel Tax Agreement is guilty of a Class 2 12 felony. 13 7. A prosecution for any violation of this Section may 14 be commenced anytime within 5 years of the commission of that 15 violation. A prosecution for tax evasion as set forth in 16 paragraph 3.7 of this Section may be prosecuted any time 17 within 5 years of the commission of the last act in 18 furtherance of evasion. The running of the period of 19 limitations under this Section shall be suspended while any 20 proceeding or appeal from any proceeding relating to the 21 quashing or enforcement of any grand jury or administrative 22 subpoena issued in connection with an investigation of the 23 violation of any provision of this Act is pending. 24 8. Any person who provides false documentation required 25 by any Section of this Act is guilty of a Class 4 felony. 26 9. Any person filing a fraudulent application or order 27 form under any provision of this Act is guilty of a Class A 28 misdemeanor. For each subsequent offense, the person is 29 guilty of a Class 4 felony. 30 10. Any person who acts as a motor carrier and who fails 31 to carry a manifest as provided in Section 5.5 is guilty of a 32 Class A misdemeanor. For each subsequent offense, the person 33 is guilty of a Class 4 felony. 34 11. Any person who knowingly sells or attempts to sell SB1854 Enrolled -243- LRB9215370EGfg 1 dyed diesel fuel for highway use or for use by 2 recreational-type watercraft on the waters of this State is 3 guilty of a Class 4 felony. For each subsequent offense, the 4 person is guilty of a Class 2 felony. 5 12. Any person who knowingly possesses dyed diesel fuel 6 for highway use or for use by recreational-type watercraft on 7 the waters of this State is guilty of a Class A misdemeanor. 8 For each subsequent offense, the person is guilty of a Class 9 4 felony. 10 13. Any person who sells or transports dyed diesel fuel 11 without the notice required by Section 4e shall pay the 12 following penalty: 13 First occurrence....................................$ 500 14 Second and each occurrence thereafter..............$1,000 15 14. Any person who owns, operates, or controls any 16 container, storage tank, or facility used to store or 17 distribute dyed diesel fuel without the notice required by 18 Section 4f shall pay the following penalty: 19 First occurrence....................................$ 500 20 Second and each occurrence thereafter..............$1,000 21 15. If a motor vehicle required to be registered for 22 highway purposes is found to have dyed diesel fuel within the 23 ordinary fuel tanks attached to the motor vehicle or if a 24 recreational-type watercraft on the waters of this State is 25 found to have dyed diesel fuel within the ordinary fuel tanks 26 attached to the watercraft, the operator shall pay the 27 following penalty: 28 First occurrence...................................$2,500 29 Second and each occurrence thereafter..............$5,000 30 16. Any licensed motor fuel distributor or licensed 31 supplier who sells or attempts to sell dyed diesel fuel for 32 highway use or for use by recreational-type watercraft on the 33 waters of this State shall pay the following penalty: 34 First occurrence..................................$ 5,000 SB1854 Enrolled -244- LRB9215370EGfg 1 Second and each occurrence thereafter.............$10,000 2 17. Any person who knowingly sells or distributes dyed 3 diesel fuel without the notice required by Section 4e is 4 guilty of a petty offense. For each subsequent offense, the 5 person is guilty of a Class A misdemeanor. 6 18. Any person who knowingly owns, operates, or controls 7 any container, storage tank, or facility used to store or 8 distribute dyed diesel fuel without the notice required by 9 Section 4f is guilty of a petty offense. For each subsequent 10 offense the person is guilty of a Class A misdemeanor. 11 For purposes of this Section, dyed diesel fuel means any 12 dyed diesel fuel whether or not dyed pursuant to Section 4d 13 of this Law. 14 Any person aggrieved by any action of the Department 15 under item 13, 14, 15, or 16 of this Section may protest the 16 action by making a written request for a hearing within 60 17 days of the original action. If the hearing is not requested 18 in writing within 60 days, the original action is final. 19 All penalties received under items 13, 14, 15, and 16 of 20 this Section shall be deposited into the Tax Compliance and 21 Administration Fund. 22 (Source: P.A. 91-173, eff. 1-1-00; 92-30, eff. 7-1-01; 23 92-232, eff. 8-2-01; revised 9-19-01.) 24 Section 31. The Illinois Pension Code is amended by 25 changing Sections 1-113.7, 14-110, 14-114, 16-106, and 26 17-119.1 as follows: 27 (40 ILCS 5/1-113.7) 28 Sec. 1-113.7. Registration of investments; custody and 29 safekeeping. The board of trustees may register the 30 investments of its pension fund in the name of the pension 31 fund, in the nominee name of a bank or trust company 32 authorized to conduct a trust business in Illinois, or in the SB1854 Enrolled -245- LRB9215370EGfg 1 nominee name of the Illinois Public Treasurer's Investment 2 Pool. 3 The assets of the pension fund and ownership of its 4 investments shall be protected through third-party custodial 5 safekeeping. The board of trustees may appoint as custodian 6 of the investments of its pension fund the treasurer of the 7 municipality, a bank or trust company authorized to conduct a 8 trust business in Illinois, or the Illinois Public 9 Treasurer's Investment Pool. 10 A dealer may not maintain possession of or control over 11 securities of a pension fund subject to the provisions of 12 this Section unless it is registered as a broker-dealer with 13 the U.S. Securities and Exchange Commission and is a member 14 in good standing of the National Association of Securities 15 Dealers, and (1) with respect to securities that are not 16 issued only in book-entry form, (A) all such securities of 17 each fund are either held in safekeeping in a place 18 reasonably free from risk of destruction or held in custody 19 by a securities depository that is a "clearing agency" 20 registered with the U.S. Securities and Exchange Commission, 21 (B) the dealer is a member of the Securities Investor 22 Protection Corporation, (C) the dealer sends to each fund, no 23 less frequently than each calendar quarter, an itemized 24 statement showing the moneys and securities in the custody or 25 possession of the dealer at the end of such period, and (D) 26 an independent certified public accountantaccountconducts 27 an audit, no less frequently than each calendar year, that 28 reviews the dealer's internal accounting controls and 29 procedures for safeguarding securities; and (2) with respect 30 to securities that are issued only in book-entry form, (A) 31 all such securities of each fund are held either in a 32 securities depository that is a "clearing agency" registered 33 with the U.S. Securities and Exchange Commission or in a bank 34 that is a member of the Federal Reserve System, (B) the SB1854 Enrolled -246- LRB9215370EGfg 1 dealer records the ownership interest of the funds in such 2 securities on the dealer's books and records, (C) the dealer 3 is a member of the Securities Investor Protection 4 Corporation, (D) the dealer sends to each fund, no less 5 frequently than each calendar quarter, an itemized statement 6 showing the moneys and securities in the custody or 7 possession of the dealer at the end of such period, and (E) 8 the dealer's financial statement (which shall contain among 9 other things a statement of the dealer's net capital and its 10 required net capital computed in accordance with Rule 15c3-1 11 under the Securities Exchange Act of 1934) is audited 12 annually by an independent certified public accountant, and 13 the dealer's most recent audited financial statement is 14 furnished to the fund. No broker-dealer serving as a 15 custodian for any public pension fund as provided by this Act 16 shall be authorized to serve as an investment advisor for 17 that same public pension fund as described in Section 1-101.4 18 of this Code, to the extent that the investment advisor 19 acquires or disposes of any asset of that same public pension 20 fund. Notwithstanding the foregoing, in no event may a 21 broker or dealer that is a natural person maintain possession 22 of or control over securities or other assets of a pension 23 fund subject to the provisions of this Section. In 24 maintaining securities of a pension fund subject to the 25 provisions of this Section, each dealer must maintain those 26 securities in conformity with the provisions of Rule 27 15c3-3(b) of the Securities Exchange Act of 1934 (Physical 28 Possession or Control of Securities). The Director of the 29 Department of Insurance may adopt such rules and regulations 30 as shall be necessary and appropriate in his or her judgment 31 to effectuate the purposes of this Section. 32 A bank or trust company authorized to conduct a trust 33 business in Illinois shall register, deposit, or hold 34 investments for safekeeping, all in accordance with the SB1854 Enrolled -247- LRB9215370EGfg 1 obligations and subject to the limitations of the Securities 2 in Fiduciary Accounts Act. 3 (Source: P.A. 90-507, eff. 8-22-97; revised 12-13-01.) 4 (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110) 5 Sec. 14-110. Alternative retirement annuity. 6 (a) Any member who has withdrawn from service with not 7 less than 20 years of eligible creditable service and has 8 attained age 55, and any member who has withdrawn from 9 service with not less than 25 years of eligible creditable 10 service and has attained age 50, regardless of whether the 11 attainment of either of the specified ages occurs while the 12 member is still in service, shall be entitled to receive at 13 the option of the member, in lieu of the regular or minimum 14 retirement annuity, a retirement annuity computed as 15 follows: 16 (i) for periods of service as a noncovered 17 employee: if retirement occurs on or after January 1, 18 2001, 3% of final average compensation for each year of 19 creditable service; if retirement occurs before January 20 1, 2001, 2 1/4% of final average compensation for each of 21 the first 10 years of creditable service, 2 1/2% for each 22 year above 10 years to and including 20 years of 23 creditable service, and 2 3/4% for each year of 24 creditable service above 20 years; and 25 (ii) for periods of eligible creditable service as 26 a covered employee: if retirement occurs on or after 27 January 1, 2001, 2.5% of final average compensation for 28 each year of creditable service; if retirement occurs 29 before January 1, 2001, 1.67% of final average 30 compensation for each of the first 10 years of such 31 service, 1.90% for each of the next 10 years of such 32 service, 2.10% for each year of such service in excess of 33 20 but not exceeding 30, and 2.30% for each year in SB1854 Enrolled -248- LRB9215370EGfg 1 excess of 30. 2 Such annuity shall be subject to a maximum of 75% of 3 final average compensation if retirement occurs before 4 January 1, 2001 or to a maximum of 80% of final average 5 compensation if retirement occurs on or after January 1, 6 2001. 7 These rates shall not be applicable to any service 8 performed by a member as a covered employee which is not 9 eligible creditable service. Service as a covered employee 10 which is not eligible creditable service shall be subject to 11 the rates and provisions of Section 14-108. 12 (b) For the purpose of this Section, "eligible 13 creditable service" means creditable service resulting from 14 service in one or more of the following positions: 15 (1) State policeman; 16 (2) fire fighter in the fire protection service of 17 a department; 18 (3) air pilot; 19 (4) special agent; 20 (5) investigator for the Secretary of State; 21 (6) conservation police officer; 22 (7) investigator for the Department of Revenue; 23 (8) security employee of the Department of Human 24 Services; 25 (9) Central Management Services security police 26 officer; 27 (10) security employee of the Department of 28 Corrections; 29 (11) dangerous drugs investigator; 30 (12) investigator for the Department of State 31 Police; 32 (13) investigator for the Office of the Attorney 33 General; 34 (14) controlled substance inspector; SB1854 Enrolled -249- LRB9215370EGfg 1 (15) investigator for the Office of the State's 2 Attorneys Appellate Prosecutor; 3 (16) Commerce Commission police officer; 4 (17) arson investigator; 5 (18) State highway maintenance worker. 6 A person employed in one of the positions specified in 7 this subsection is entitled to eligible creditable service 8 for service credit earned under this Article while undergoing 9 the basic police training course approved by the Illinois Law 10 Enforcement Training Standards Board, if completion of that 11 training is required of persons serving in that position. For 12 the purposes of this Code, service during the required basic 13 police training course shall be deemed performance of the 14 duties of the specified position, even though the person is 15 not a sworn peace officer at the time of the training. 16 (c) For the purposes of this Section: 17 (1) The term "state policeman" includes any title 18 or position in the Department of State Police that is 19 held by an individual employed under the State Police 20 Act. 21 (2) The term "fire fighter in the fire protection 22 service of a department" includes all officers in such 23 fire protection service including fire chiefs and 24 assistant fire chiefs. 25 (3) The term "air pilot" includes any employee 26 whose official job description on file in the Department 27 of Central Management Services, or in the department by 28 which he is employed if that department is not covered by 29 the Personnel Code, states that his principal duty is the 30 operation of aircraft, and who possesses a pilot's 31 license; however, the change in this definition made by 32 this amendatory Act of 1983 shall not operate to exclude 33 any noncovered employee who was an "air pilot" for the 34 purposes of this Section on January 1, 1984. SB1854 Enrolled -250- LRB9215370EGfg 1 (4) The term "special agent" means any person who 2 by reason of employment by the Division of Narcotic 3 Control, the Bureau of Investigation or, after July 1, 4 1977, the Division of Criminal Investigation, the 5 Division of Internal Investigation, the Division of 6 Operations, or any other Division or organizational 7 entity in the Department of State Police is vested by law 8 with duties to maintain public order, investigate 9 violations of the criminal law of this State, enforce the 10 laws of this State, make arrests and recover property. 11 The term "special agent" includes any title or position 12 in the Department of State Police that is held by an 13 individual employed under the State Police Act. 14 (5) The term "investigator for the Secretary of 15 State" means any person employed by the Office of the 16 Secretary of State and vested with such investigative 17 duties as render him ineligible for coverage under the 18 Social Security Act by reason of Sections 218(d)(5)(A), 19 218(d)(8)(D) and 218(l)(1) of that Act. 20 A person who became employed as an investigator for 21 the Secretary of State between January 1, 1967 and 22 December 31, 1975, and who has served as such until 23 attainment of age 60, either continuously or with a 24 single break in service of not more than 3 years 25 duration, which break terminated before January 1, 1976, 26 shall be entitled to have his retirement annuity 27 calculated in accordance with subsection (a), 28 notwithstanding that he has less than 20 years of credit 29 for such service. 30 (6) The term "Conservation Police Officer" means 31 any person employed by the Division of Law Enforcement of 32 the Department of Natural Resources and vested with such 33 law enforcement duties as render him ineligible for 34 coverage under the Social Security Act by reason of SB1854 Enrolled -251- LRB9215370EGfg 1 Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of 2 that Act. The term "Conservation Police Officer" 3 includes the positions of Chief Conservation Police 4 Administrator and Assistant Conservation Police 5 Administrator. 6 (7) The term "investigator for the Department of 7 Revenue" means any person employed by the Department of 8 Revenue and vested with such investigative duties as 9 render him ineligible for coverage under the Social 10 Security Act by reason of Sections 218(d)(5)(A), 11 218(d)(8)(D) and 218(l)(1) of that Act. 12 (8) The term "security employee of the Department 13 of Human Services" means any person employed by the 14 Department of Human Services who (i) is employed at the 15 Chester Mental Health Center and has daily contact with 16 the residents thereof, (ii) is employed within a security 17 unit at a facility operated by the Department and has 18 daily contact with the residents of the security unit, 19 (iii) is employed at a facility operated by the 20 Department that includes a security unit and is regularly 21 scheduled to work at least 50% of his or her working 22 hours within that security unit, or (iv) is a mental 23 health police officer. "Mental health police officer" 24 means any person employed by the Department of Human 25 Services in a position pertaining to the Department's 26 mental health and developmental disabilities functions 27 who is vested with such law enforcement duties as render 28 the person ineligible for coverage under the Social 29 Security Act by reason of Sections 218(d)(5)(A), 30 218(d)(8)(D) and 218(l)(1) of that Act. "Security unit" 31 means that portion of a facility that is devoted to the 32 care, containment, and treatment of persons committed to 33 the Department of Human Services as sexually violent 34 persons, persons unfit to stand trial, or persons not SB1854 Enrolled -252- LRB9215370EGfg 1 guilty by reason of insanity. With respect to past 2 employment, references to the Department of Human 3 Services include its predecessor, the Department of 4 Mental Health and Developmental Disabilities. 5 The changes made to this subdivision (c)(8) by 6 Public Act 92-14this amendatory Act of the 92nd General7Assemblyapply to persons who retire on or after January 8 1, 2001, notwithstanding Section 1-103.1. 9 (9) "Central Management Services security police 10 officer" means any person employed by the Department of 11 Central Management Services who is vested with such law 12 enforcement duties as render him ineligible for coverage 13 under the Social Security Act by reason of Sections 14 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. 15 (10) The term "security employee of the Department 16 of Corrections" means any employee of the Department of 17 Corrections or the former Department of Personnel, and 18 any member or employee of the Prisoner Review Board, who 19 has daily contact with inmates by working within a 20 correctional facility or who is a parole officer or an 21 employee who has direct contact with committed persons in 22 the performance of his or her job duties. 23 (11) The term "dangerous drugs investigator" means 24 any person who is employed as such by the Department of 25 Human Services. 26 (12) The term "investigator for the Department of 27 State Police" means a person employed by the Department 28 of State Police who is vested under Section 4 of the 29 Narcotic Control Division Abolition Act with such law 30 enforcement powers as render him ineligible for coverage 31 under the Social Security Act by reason of Sections 32 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. 33 (13) "Investigator for the Office of the Attorney 34 General" means any person who is employed as such by the SB1854 Enrolled -253- LRB9215370EGfg 1 Office of the Attorney General and is vested with such 2 investigative duties as render him ineligible for 3 coverage under the Social Security Act by reason of 4 Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that 5 Act. For the period before January 1, 1989, the term 6 includes all persons who were employed as investigators 7 by the Office of the Attorney General, without regard to 8 social security status. 9 (14) "Controlled substance inspector" means any 10 person who is employed as such by the Department of 11 Professional Regulation and is vested with such law 12 enforcement duties as render him ineligible for coverage 13 under the Social Security Act by reason of Sections 14 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. 15 The term "controlled substance inspector" includes the 16 Program Executive of Enforcement and the Assistant 17 Program Executive of Enforcement. 18 (15) The term "investigator for the Office of the 19 State's Attorneys Appellate Prosecutor" means a person 20 employed in that capacity on a full time basis under the 21 authority of Section 7.06 of the State's Attorneys 22 Appellate Prosecutor's Act. 23 (16) "Commerce Commission police officer" means any 24 person employed by the Illinois Commerce Commission who 25 is vested with such law enforcement duties as render him 26 ineligible for coverage under the Social Security Act by 27 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 28 218(l)(1) of that Act. 29 (17) "Arson investigator" means any person who is 30 employed as such by the Office of the State Fire Marshal 31 and is vested with such law enforcement duties as render 32 the person ineligible for coverage under the Social 33 Security Act by reason of Sections 218(d)(5)(A), 34 218(d)(8)(D), and 218(l)(1) of that Act. A person who SB1854 Enrolled -254- LRB9215370EGfg 1 was employed as an arson investigator on January 1, 1995 2 and is no longer in service but not yet receiving a 3 retirement annuity may convert his or her creditable 4 service for employment as an arson investigator into 5 eligible creditable service by paying to the System the 6 difference between the employee contributions actually 7 paid for that service and the amounts that would have 8 been contributed if the applicant were contributing at 9 the rate applicable to persons with the same social 10 security status earning eligible creditable service on 11 the date of application. 12 (18) The term "State highway maintenance worker" 13 means a person who is either of the following: 14 (i) A person employed on a full-time basis by 15 the Illinois Department of Transportation in the 16 position of highway maintainer, highway maintenance 17 lead worker, highway maintenance lead/lead worker, 18 heavy construction equipment operator, power shovel 19 operator, or bridge mechanic; and whose principal 20 responsibility is to perform, on the roadway, the 21 actual maintenance necessary to keep the highways 22 that form a part of the State highway system in 23 serviceable condition for vehicular traffic. 24 (ii) A person employed on a full-time basis by 25 the Illinois State Toll Highway Authority in the 26 position of equipment operator/laborer H-4, 27 equipment operator/laborer H-6, welder H-4, 28 welder H-6, mechanical/electrical H-4, 29 mechanical/electrical H-6, water/sewer H-4, 30 water/sewer H-6, sign maker/hanger H-4, sign 31 maker/hanger H-6, roadway lighting H-4, roadway 32 lighting H-6, structural H-4, structural H-6, 33 painter H-4, or painter H-6; and whose principal 34 responsibility is to perform, on the roadway, the SB1854 Enrolled -255- LRB9215370EGfg 1 actual maintenance necessary to keep the Authority's 2 tollways in serviceable condition for vehicular 3 traffic. 4 (d) A security employee of the Department of 5 Corrections, and a security employee of the Department of 6 Human Services who is not a mental health police officer, 7 shall not be eligible for the alternative retirement annuity 8 provided by this Section unless he or she meets the following 9 minimum age and service requirements at the time of 10 retirement: 11 (i) 25 years of eligible creditable service and age 12 55; or 13 (ii) beginning January 1, 1987, 25 years of 14 eligible creditable service and age 54, or 24 years of 15 eligible creditable service and age 55; or 16 (iii) beginning January 1, 1988, 25 years of 17 eligible creditable service and age 53, or 23 years of 18 eligible creditable service and age 55; or 19 (iv) beginning January 1, 1989, 25 years of 20 eligible creditable service and age 52, or 22 years of 21 eligible creditable service and age 55; or 22 (v) beginning January 1, 1990, 25 years of eligible 23 creditable service and age 51, or 21 years of eligible 24 creditable service and age 55; or 25 (vi) beginning January 1, 1991, 25 years of 26 eligible creditable service and age 50, or 20 years of 27 eligible creditable service and age 55. 28 Persons who have service credit under Article 16 of this 29 Code for service as a security employee of the Department of 30 Corrections or the Department of Human Services in a position 31 requiring certification as a teacher may count such service 32 toward establishing their eligibility under the service 33 requirements of this Section; but such service may be used 34 only for establishing such eligibility, and not for the SB1854 Enrolled -256- LRB9215370EGfg 1 purpose of increasing or calculating any benefit. 2 (e) If a member enters military service while working in 3 a position in which eligible creditable service may be 4 earned, and returns to State service in the same or another 5 such position, and fulfills in all other respects the 6 conditions prescribed in this Article for credit for military 7 service, such military service shall be credited as eligible 8 creditable service for the purposes of the retirement annuity 9 prescribed in this Section. 10 (f) For purposes of calculating retirement annuities 11 under this Section, periods of service rendered after 12 December 31, 1968 and before October 1, 1975 as a covered 13 employee in the position of special agent, conservation 14 police officer, mental health police officer, or investigator 15 for the Secretary of State, shall be deemed to have been 16 service as a noncovered employee, provided that the employee 17 pays to the System prior to retirement an amount equal to (1) 18 the difference between the employee contributions that would 19 have been required for such service as a noncovered employee, 20 and the amount of employee contributions actually paid, plus 21 (2) if payment is made after July 31, 1987, regular interest 22 on the amount specified in item (1) from the date of service 23 to the date of payment. 24 For purposes of calculating retirement annuities under 25 this Section, periods of service rendered after December 31, 26 1968 and before January 1, 1982 as a covered employee in the 27 position of investigator for the Department of Revenue shall 28 be deemed to have been service as a noncovered employee, 29 provided that the employee pays to the System prior to 30 retirement an amount equal to (1) the difference between the 31 employee contributions that would have been required for such 32 service as a noncovered employee, and the amount of employee 33 contributions actually paid, plus (2) if payment is made 34 after January 1, 1990, regular interest on the amount SB1854 Enrolled -257- LRB9215370EGfg 1 specified in item (1) from the date of service to the date of 2 payment. 3 (g) A State policeman may elect, not later than January 4 1, 1990, to establish eligible creditable service for up to 5 10 years of his service as a policeman under Article 3, by 6 filing a written election with the Board, accompanied by 7 payment of an amount to be determined by the Board, equal to 8 (i) the difference between the amount of employee and 9 employer contributions transferred to the System under 10 Section 3-110.5, and the amounts that would have been 11 contributed had such contributions been made at the rates 12 applicable to State policemen, plus (ii) interest thereon at 13 the effective rate for each year, compounded annually, from 14 the date of service to the date of payment. 15 Subject to the limitation in subsection (i), a State 16 policeman may elect, not later than July 1, 1993, to 17 establish eligible creditable service for up to 10 years of 18 his service as a member of the County Police Department under 19 Article 9, by filing a written election with the Board, 20 accompanied by payment of an amount to be determined by the 21 Board, equal to (i) the difference between the amount of 22 employee and employer contributions transferred to the System 23 under Section 9-121.10 and the amounts that would have been 24 contributed had those contributions been made at the rates 25 applicable to State policemen, plus (ii) interest thereon at 26 the effective rate for each year, compounded annually, from 27 the date of service to the date of payment. 28 (h) Subject to the limitation in subsection (i), a State 29 policeman or investigator for the Secretary of State may 30 elect to establish eligible creditable service for up to 12 31 years of his service as a policeman under Article 5, by 32 filing a written election with the Board on or before January 33 31, 1992, and paying to the System by January 31, 1994 an 34 amount to be determined by the Board, equal to (i) the SB1854 Enrolled -258- LRB9215370EGfg 1 difference between the amount of employee and employer 2 contributions transferred to the System under Section 5-236, 3 and the amounts that would have been contributed had such 4 contributions been made at the rates applicable to State 5 policemen, plus (ii) interest thereon at the effective rate 6 for each year, compounded annually, from the date of service 7 to the date of payment. 8 Subject to the limitation in subsection (i), a State 9 policeman, conservation police officer, or investigator for 10 the Secretary of State may elect to establish eligible 11 creditable service for up to 10 years of service as a 12 sheriff's law enforcement employee under Article 7, by filing 13 a written election with the Board on or before January 31, 14 1993, and paying to the System by January 31, 1994 an amount 15 to be determined by the Board, equal to (i) the difference 16 between the amount of employee and employer contributions 17 transferred to the System under Section 7-139.7, and the 18 amounts that would have been contributed had such 19 contributions been made at the rates applicable to State 20 policemen, plus (ii) interest thereon at the effective rate 21 for each year, compounded annually, from the date of service 22 to the date of payment. 23 (i) The total amount of eligible creditable service 24 established by any person under subsections (g), (h), (j), 25 (k), and (l) of this Section shall not exceed 12 years. 26 (j) Subject to the limitation in subsection (i), an 27 investigator for the Office of the State's Attorneys 28 Appellate Prosecutor or a controlled substance inspector may 29 elect to establish eligible creditable service for up to 10 30 years of his service as a policeman under Article 3 or a 31 sheriff's law enforcement employee under Article 7, by filing 32 a written election with the Board, accompanied by payment of 33 an amount to be determined by the Board, equal to (1) the 34 difference between the amount of employee and employer SB1854 Enrolled -259- LRB9215370EGfg 1 contributions transferred to the System under Section 3-110.6 2 or 7-139.8, and the amounts that would have been contributed 3 had such contributions been made at the rates applicable to 4 State policemen, plus (2) interest thereon at the effective 5 rate for each year, compounded annually, from the date of 6 service to the date of payment. 7 (k) Subject to the limitation in subsection (i) of this 8 Section, an alternative formula employee may elect to 9 establish eligible creditable service for periods spent as a 10 full-time law enforcement officer or full-time corrections 11 officer employed by the federal government or by a state or 12 local government located outside of Illinois, for which 13 credit is not held in any other public employee pension fund 14 or retirement system. To obtain this credit, the applicant 15 must file a written application with the Board by March 31, 16 1998, accompanied by evidence of eligibility acceptable to 17 the Board and payment of an amount to be determined by the 18 Board, equal to (1) employee contributions for the credit 19 being established, based upon the applicant's salary on the 20 first day as an alternative formula employee after the 21 employment for which credit is being established and the 22 rates then applicable to alternative formula employees, plus 23 (2) an amount determined by the Board to be the employer's 24 normal cost of the benefits accrued for the credit being 25 established, plus (3) regular interest on the amounts in 26 items (1) and (2) from the first day as an alternative 27 formula employee after the employment for which credit is 28 being established to the date of payment. 29 (l) Subject to the limitation in subsection (i), a 30 security employee of the Department of Corrections may elect, 31 not later than July 1, 1998, to establish eligible creditable 32 service for up to 10 years of his or her service as a 33 policeman under Article 3, by filing a written election with 34 the Board, accompanied by payment of an amount to be SB1854 Enrolled -260- LRB9215370EGfg 1 determined by the Board, equal to (i) the difference between 2 the amount of employee and employer contributions transferred 3 to the System under Section 3-110.5, and the amounts that 4 would have been contributed had such contributions been made 5 at the rates applicable to security employees of the 6 Department of Corrections, plus (ii) interest thereon at the 7 effective rate for each year, compounded annually, from the 8 date of service to the date of payment. 9 (Source: P.A. 91-357, eff. 7-29-99; 91-760, eff. 1-1-01; 10 92-14, eff. 6-28-01; 92-257, eff. 8-6-01; revised 9-10-01.) 11 (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114) 12 Sec. 14-114. Automatic increase in retirement annuity. 13 (a) Any person receiving a retirement annuity under this 14 Article who retires having attained age 60, or who retires 15 before age 60 having at least 35 years of creditable service, 16 or who retires on or after January 1, 2001 at an age which, 17 when added to the number of years of his or her creditable 18 service, equals at least 85, shall, on January 1 next 19 following the first full year of retirement, have the amount 20 of the then fixed and payable monthly retirement annuity 21 increased 3%. Any person receiving a retirement annuity 22 under this Article who retires before attainment of age 60 23 and with less than (i) 35 years of creditable service if 24 retirement is before January 1, 2001, or (ii) the number of 25 years of creditable service which, when added to the member's 26 age, would equal 85, if retirement is on or after January 1, 27 2001, shall have the amount of the fixed and payable 28 retirement annuity increased by 3% on the January 1 occurring 29 on or next following (1) attainment of age 60, or (2) the 30 first anniversary of retirement, whichever occurs later. 31 However, for persons who receive the alternative retirement 32 annuity under Section 14-110, references in this subsection 33 (a) to attainment of age 60 shall be deemed to refer to SB1854 Enrolled -261- LRB9215370EGfg 1 attainment of age 55. For a person receiving early 2 retirement incentives under Section 14-108.3 whose retirement 3 annuity began after January 1, 1992 pursuant to an extension 4 granted under subsection (e) of that Section, the first 5 anniversary of retirement shall be deemed to be January 1, 6 1993. For a person who retires on or after June 28, 2001the7effective date of this amendatory Act of the 92nd General8Assemblyand on or before October 1, 2001the first day of9the fourth calendar month following the month in which this10amendatory Act takes effect, and whose retirement annuity is 11 calculated, in whole or in part, under Section 14-110 or 12 subsection (g) or (h) of Section 14-108, the first 13 anniversary of retirement shall be deemed to be January 1, 14 2002. 15 On each January 1 following the date of the initial 16 increase under this subsection, the employee's monthly 17 retirement annuity shall be increased by an additional 3%. 18 Beginning January 1, 1990, all automatic annual increases 19 payable under this Section shall be calculated as a 20 percentage of the total annuity payable at the time of the 21 increase, including previous increases granted under this 22 Article. 23 (b) The provisions of subsection (a) of this Section 24 shall be applicable to an employee only if the employee makes 25 the additional contributions required after December 31, 1969 26 for the purpose of the automatic increases for not less than 27 the equivalent of one full year. If an employee becomes an 28 annuitant before his additional contributions equal one full 29 year's contributions based on his salary at the date of 30 retirement, the employee may pay the necessary balance of the 31 contributions to the system, without interest, and be 32 eligible for the increasing annuity authorized by this 33 Section. 34 (c) The provisions of subsection (a) of this Section SB1854 Enrolled -262- LRB9215370EGfg 1 shall not be applicable to any annuitant who is on retirement 2 on December 31, 1969, and thereafter returns to State 3 service, unless the member has established at least one year 4 of additional creditable service following reentry into 5 service. 6 (d) In addition to other increases which may be provided 7 by this Section, on January 1, 1981 any annuitant who was 8 receiving a retirement annuity on or before January 1, 1971 9 shall have his retirement annuity then being paid increased 10 $1 per month for each year of creditable service. On January 11 1, 1982, any annuitant who began receiving a retirement 12 annuity on or before January 1, 1977, shall have his 13 retirement annuity then being paid increased $1 per month for 14 each year of creditable service. 15 On January 1, 1987, any annuitant who began receiving a 16 retirement annuity on or before January 1, 1977, shall have 17 the monthly retirement annuity increased by an amount equal 18 to 8¢ per year of creditable service times the number of 19 years that have elapsed since the annuity began. 20 (e) Every person who receives the alternative retirement 21 annuity under Section 14-110 and who is eligible to receive 22 the 3% increase under subsection (a) on January 1, 1986, 23 shall also receive on that date a one-time increase in 24 retirement annuity equal to the difference between (1) his 25 actual retirement annuity on that date, including any 26 increases received under subsection (a), and (2) the amount 27 of retirement annuity he would have received on that date if 28 the amendments to subsection (a) made by Public Act 84-162 29 had been in effect since the date of his retirement. 30 (Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01; 31 revised 9-10-01.) 32 (40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106) 33 Sec. 16-106. Teacher. "Teacher": The following SB1854 Enrolled -263- LRB9215370EGfg 1 individuals, provided that, for employment prior to July 1, 2 1990, they are employed on a full-time basis, or if not 3 full-time, on a permanent and continuous basis in a position 4 in which services are expected to be rendered for at least 5 one school term: 6 (1) Any educational, administrative, professional 7 or other staff employed in the public common schools 8 included within this system in a position requiring 9 certification under the law governing the certification 10 of teachers; 11 (2) Any educational, administrative, professional 12 or other staff employed in any facility of the Department 13 of Children and Family Services or the Department of 14 Human Services, in a position requiring certification 15 under the law governing the certification of teachers, 16 and any person who (i) works in such a position for the 17 Department of Corrections, (ii) was a member of this 18 System on May 31, 1987, and (iii) did not elect to become 19 a member of the State Employees' Retirement System 20 pursuant to Section 14-108.2 of this Code; except that 21 "teacher" does not include any person who (A) becomes a 22 security employee of the Department of Human Services, as 23 defined in Section 14-110, after June 28, 2001 (the 24 effective date of Public Act 92-14)this amendatory Act25of the 92nd General Assembly, or (B) becomes a member of 26 the State Employees' Retirement System pursuant to 27 Section 14-108.2c of this Code; 28 (3) Any regional superintendent of schools, 29 assistant regional superintendent of schools, State 30 Superintendent of Education; any person employed by the 31 State Board of Education as an executive; any executive 32 of the boards engaged in the service of public common 33 school education in school districts covered under this 34 system of which the State Superintendent of Education is SB1854 Enrolled -264- LRB9215370EGfg 1 an ex-officio member; 2 (4) Any employee of a school board association 3 operating in compliance with Article 23 of the School 4 Code who is certificated under the law governing the 5 certification of teachers; 6 (5) Any person employed by the retirement system 7 who: 8 (i) was an employee of and a participant in 9 the system on August 17, 2001 (the effective date of 10 Public Act 92-416)this amendatory Act of the 92nd11General Assembly, or 12 (ii) becomes an employee of the system on or 13 after August 17, 2001the effective date of this14amendatory Act of the 92nd General Assembly; 15 (6) Any educational, administrative, professional 16 or other staff employed by and under the supervision and 17 control of a regional superintendent of schools, provided 18 such employment position requires the person to be 19 certificated under the law governing the certification of 20 teachers and is in an educational program serving 2 or 21 more districts in accordance with a joint agreement 22 authorized by the School Code or by federal legislation; 23 (7) Any educational, administrative, professional 24 or other staff employed in an educational program 25 serving 2 or more school districts in accordance with a 26 joint agreement authorized by the School Code or by 27 federal legislation and in a position requiring 28 certification under the laws governing the certification 29 of teachers; 30 (8) Any officer or employee of a statewide teacher 31 organization or officer of a national teacher 32 organization who is certified under the law governing 33 certification of teachers, provided: (i) the individual 34 had previously established creditable service under this SB1854 Enrolled -265- LRB9215370EGfg 1 Article, (ii) the individual files with the system an 2 irrevocable election to become a member, and (iii) the 3 individual does not receive credit for such service under 4 any other Article of this Code; 5 (9) Any educational, administrative, professional, 6 or other staff employed in a charter school operating in 7 compliance with the Charter Schools Law who is 8 certificated under the law governing the certification of 9 teachers. 10 An annuitant receiving a retirement annuity under this 11 Article or under Article 17 of this Code who is temporarily 12 employed by a board of education or other employer not 13 exceeding that permitted under Section 16-118 is not a 14 "teacher" for purposes of this Article. A person who has 15 received a single-sum retirement benefit under Section 16 16-136.4 of this Article is not a "teacher" for purposes of 17 this Article. 18 (Source: P.A. 92-14, eff. 6-28-01; 92-416, eff. 8-17-01; 19 revised 10-18-01.) 20 (40 ILCS 5/17-119.1) 21 Sec. 17-119.1. Optional increase in retirement annuity. 22 (a) A member of the Fund may qualify for the augmented 23 rate under subdivision (b)(3) of Section 17-116 for all years 24 of creditable service earned before July 1, 1998 by making 25 the optional contribution specified in subsection (b); except 26 that a member who retires on or after July 1, 1998 with at 27 least 30 years of creditable service at retirement qualifies 28 for the augmented rate without making any contribution under 29 subsection (b). Any member who retires on or after July 1, 30 1998 and before the effective date of this amendatory Act of 31 the 92nd General Assembly with at least 30 years of 32 creditable service shall be paid a lump sum equal to the 33 amount he or she would have received under the augmented rate SB1854 Enrolled -266- LRB9215370EGfg 1 minus the amount he or she actually received. A member may 2 not elect to qualify for the augmented rate for only a 3 portion of his or her creditable service earned before July 4 1, 1998. 5 (b) The contribution shall be an amount equal to 1.0% of 6 the member's highest salary rate in the 4 consecutive school 7 years immediately prior to but not including the school year 8 in which the application occurs, multiplied by the number of 9 years of creditable service earned by the member before July 10 1, 1998 or 20, whichever is less. This contribution shall be 11 reduced by 1.0% of that salary rate for every 3 full years of 12 creditable service earned by the member after June 30, 1998. 13 The contribution shall be further reduced at the rate of 25% 14 of the contribution (as reduced for service after June 30, 15 1998) for each year of the member's total creditable service 16 in excess of 34 years. The contribution shall not in any 17 event exceed 20% of that salary rate. 18 The member shall pay to the Fund the amount of the 19 contribution as calculated at the time of application under 20 this Section. The amount of the contribution determined 21 under this subsection shall be recalculated at the time of 22 retirement, and if the Fund determines that the amount paid 23 by the member exceeds the recalculated amount, the Fund shall 24 refund the difference to the member with regular interest 25 from the date of payment to the date of refund. 26 The contribution required by this subsection shall be 27 paid in one of the following ways or in a combination of the 28 following ways that does not extend over more than 5 years: 29 (i) in a lump sum on or before the date of 30 retirement; 31 (ii) in substantially equal installments over a 32 period of time not to exceed 5 years, as a deduction from 33 salary in accordance with Section 17-130.2; 34 (iii) if the member becomes an annuitant before SB1854 Enrolled -267- LRB9215370EGfg 1 June 30, 2003, in substantially equal monthly 2 installments over a 24-month period, by a deduction from 3 the annuitant's monthly benefit. 4 (c) If the member fails to make the full contribution 5 under this Section in a timely fashion, the payments made 6 under this Section shall be refunded to the member, without 7 interest. If the member dies before making the full 8 contribution, the payments made under this Section shall be 9 refunded to the member's designated beneficiary. 10 (d) For purposes of this Section and subsection (b) of 11 Section 17-116, optional creditable service established by a 12 member shall be deemed to have been earned at the time of the 13 employment or other qualifying event upon which the service 14 is based, rather than at the time the credit was established 15 in this Fund. 16 (e) The contributions required under this Section are 17 the responsibility of the teacher and not the teacher's 18 employer. However, an employer of teachers may3ay, after 19 the effective date of this amendatory Act of 1998, 20 specifically agree, through collective bargaining or 21 otherwise, to make the contributions required by this Section 22 on behalf of those teachers. 23 (Source: P.A. 91-17, eff. 6-4-99; 92-416, eff. 8-17-01; 24 revised 10-4-01.) 25 Section 32. The Counties Code is amended by changing 26 Sections 5-1083 and 5-1098 as follows: 27 (55 ILCS 5/5-1083) (from Ch. 34, par. 5-1083) 28 Sec. 5-1083. Purchase or lease of property. A county 29 board may purchase or lease any real estate or personal 30 property for public purposes under contracts providing for 31 payment in installments over a period of time of not more 32 than 20 years in the case of real estate, and not more than SB1854 Enrolled -268- LRB9215370EGfg 1 10 years in the case of personal property, with interest on 2 the unpaid balance owing not to exceed the maximum rate 3 authorized by the Bond Authorization Act, as amended at the 4 time of the making of the contract. The indebtedness 5 incurred under this Section when aggregated with existing 6 indebtedness may not exceed the debt limits provided in 7 Section 5-10125-1008. 8 With respect to instruments for the payment of money 9 issued under this Section or its predecessor either before, 10 on, or after the effective date of Public Act 86-4, it is and 11 always has been the intention of the General Assembly (i) 12 that the Omnibus Bond Acts are and always have been 13 supplementary grants of power to issue instruments in 14 accordance with the Omnibus Bond Acts, regardless of any 15 provision of this Act or "An Act to revise the law in 16 relation to counties", approved March 31, 1874, that may 17 appear to be or to have been more restrictive than those 18 Acts, (ii) that the provisions of this Section or its 19 predecessor are not a limitation on the supplementary 20 authority granted by the Omnibus Bond Acts, and (iii) that 21 instruments issued under this Section or its predecessor 22 within the supplementary authority granted by the Omnibus 23 Bond Acts are not invalid because of any provision of this 24 Act or "An Act to revise the law in relation to counties", 25 approved March 31, 1874, that may appear to be or to have 26 been more restrictive than those Acts. 27 (Source: P.A. 86-962; 86-1028; revised 12-13-01.) 28 (55 ILCS 5/5-1098) (from Ch. 34, par. 5-1098) 29 Sec. 5-1098. Cooperation with Department on Aging. A 30 county board may cooperate with the Department on Aging, 31 created by the"Illinois Act on the Aging", and appropriate 32 county funds and provide in kind services to assist such 33 department in carrying out its programs. SB1854 Enrolled -269- LRB9215370EGfg 1 (Source: P.A. 86-962; revised 12-07-01.) 2 Section 33. The Township Code is amended by changing 3 Section 35-55 as follows: 4 (60 ILCS 1/35-55) 5 Sec. 35-55. Senior citizens services; authorization of 6 tax levy. 7 (a) The electors may authorize the township board to 8 levy a tax (at a rate of not more than 0.15% of the value, as 9 equalized and assessed by the Department of Revenue, of all 10 taxable property in the township) for the sole and exclusive 11 purpose of providing services to senior citizens under 12 Article 220270. If the board desires to levy the tax, it 13 shall order a referendum on the proposition to be held at an 14 election in accordance with the general election law. The 15 board shall certify the proposition to the proper election 16 officials, who shall submit the proposition to the voters at 17 an election in accordance with the general election law. If a 18 majority of the votes cast on the proposition is in favor of 19 the proposition, the board may annually levy the tax. 20 (b) If the township board of any township authorized to 21 levy a tax under this Section pursuant to a referendum held 22 before January 1, 1987, desires to increase the maximum rate 23 of the tax to 0.15% of the value, as equalized and assessed 24 by the Department of Revenue, of all taxable property in the 25 township, it shall order a referendum on that proposition to 26 be held at an election in accordance with the general 27 election law. The board shall certify the proposition to the 28 proper election officials, who shall submit the proposition 29 to the voters at an election in accordance with the general 30 election law. If a majority of the votes cast on the 31 proposition is in favor of the proposition, the maximum tax 32 rate shall be so increased. SB1854 Enrolled -270- LRB9215370EGfg 1 (Source: P.A. 85-742; 88-62; revised 12-13-01.) 2 Section 34. The Illinois Municipal Code is amended by 3 changing Sections 3.1-20-10, 3.1-55-10, 11-73-2, 11-74.4-3, 4 11-74.4-7, and 11-95-7 and renumbering Section 11-21.1-5 as 5 follows: 6 (65 ILCS 5/3.1-20-10) (from Ch. 24, par. 3.1-20-10) 7 Sec. 3.1-20-10. Aldermen; number. Except as otherwise 8 provided in Section 3.1-20-20 or as otherwise provided in the 9 case of aldermen-at-large, the number of aldermen, when not 10 elected by the minority representation plan, shall be as 11 follows: in cities not exceeding 3,000 inhabitants, 6 12 aldermen; exceeding 3,000 but not exceeding 15,000, 8 13 aldermen; exceeding 15,000 but not exceeding 20,000, 10 14 aldermen; exceeding 20,000 but not exceeding 50,000, 14 15 aldermen; exceeding 50,000 but not exceeding 70,000, 16 16 aldermen; exceeding 70,000 but not exceeding 90,000, 18 17 aldermenalderman; and from 90,000 to 500,000, 20 aldermen 18alderman.Except as otherwise provided in the case of19aldermen-at-large.No redistricting shall be required in 20 order to reduce the number of aldermen in order to comply 21 with this Section. 22 (Source: P.A. 87-1119; revised 12-04-01.) 23 (65 ILCS 5/3.1-55-10) 24 Sec. 3.1-55-10. Interests in contracts. 25 (a) A municipal officer shall not be financially 26 interested directly in the officer's own name or indirectly 27 in the name of any other person, association, trust, or 28 corporation, in any contract, work, or business of the 29 municipality or in the sale of any article whenever the 30 expense, price, or consideration of the contract, work, 31 business, or sale is paid either from the treasury or by an SB1854 Enrolled -271- LRB9215370EGfg 1 assessment levied by statute or ordinance. A municipal 2 officer shall not be interested, directly or indirectly, in 3 the purchase of any property that (i) belongs to the 4 municipality, (ii) is sold for taxes or assessments, or (iii) 5 is sold by virtue of legal process at the suit of the 6 municipality. For the purposes of this Section only, 7 however, a municipal officer shall not be deemed interested 8 if the officer is an employee of a company or owns or holds 9 an interest of 1% or less in the municipal officer's 10 individual name in a company, or both, that company is 11 involved in the transaction of business with the 12 municipality, and that company's stock is traded on a 13 nationally recognized securities market, provided the 14 interested member (i) publicly discloses the fact that he or 15 she is an employee or holds an interest of 1% orofless in a 16 company before deliberation of the proposed award of the 17 contract; (ii) refrains from evaluating, recommending, 18 approving, deliberating, or otherwise participating in the 19 negotiation, approval, or both, of the contract, work, or 20 business; (iii) abstains from voting on the award of the 21 contract though he or she shall be considered present for 22 purposes of establishing a quorum; and (iv) the contract is 23 approved by a majority vote of those members currently 24 holding office. 25 A municipal officer shall not be deemed interested if the 26 officer owns or holds an interest of 1% or less, not in the 27 officer's individual name but through a mutual fund, in a 28 company, that company is involved in the transaction of 29 business with the municipality, and that company's stock is 30 traded on a nationally recognized securities market. 31 This Section does not prohibit any person serving on a 32 municipal advisory panel or commission or nongoverning board 33 or commission from having an interest in a contract, work, or 34 business of the municipality unless the municipal officer's SB1854 Enrolled -272- LRB9215370EGfg 1 duties include evaluating, recommending, approving, or voting 2 to recommend or approve the contract, work, or business. 3 (b) Any elected or appointed member of the governing 4 body may, however, provide materials, merchandise, property, 5 services, or labor, subject to the following provisions under 6 either (1) or (2): 7 (1) If: 8 (A) the contract is with a person, firm, 9 partnership, association, corporation, or cooperative 10 association in which the interested member of the 11 governing body of the municipality member has less than a 12 7 1/2% share in the ownership; 13 (B) the interested member publicly discloses the 14 nature and extent of the interest before or during 15 deliberations concerning the proposed award of the 16 contract; 17 (C) the interested member abstains from voting on 18 the award of the contract (though the member shall be 19 considered present for the purposes of establishing a 20 quorum); 21 (D) the contract is approved by a majority vote of 22 those members presently holding office; 23 (E) the contract is awarded after sealed bids to 24 the lowest responsible bidder if the amount of the 25 contract exceeds $1,500 (but the contract may be awarded 26 without bidding if the amount is less than $1,500); and 27 (F) the award of the contract would not cause the 28 aggregate amount of all contracts so awarded to the same 29 person, firm, association, partnership, corporation, or 30 cooperative association in the same fiscal year to exceed 31 $25,000. 32 (2) If: 33 (A) the award of the contract is approved by a 34 majority vote of the governing body of the municipality SB1854 Enrolled -273- LRB9215370EGfg 1 (provided that the interested member shall abstain from 2 voting); 3 (B) the amount of the contract does not exceed 4 $2,000; 5 (C) the award of the contract would not cause the 6 aggregate amount of all contracts so awarded to the same 7 person, firm, association, partnership, corporation, or 8 cooperative association in the same fiscal year to exceed 9 $4,000; 10 (D) the interested member publicly discloses the 11 nature and extent of his interest before or during 12 deliberations concerning the proposed award of the 13 contract; and 14 (E) the interested member abstains from voting on 15 the award of the contract (though the member shall be 16 considered present for the purposes of establishing a 17 quorum). 18 (b-5) In addition to the above exemptions, any elected 19 or appointed member of the governing body may provide 20 materials, merchandise, property, services, or labor if: 21 (1) the contract is with a person, firm, 22 partnership, association, corporation, or cooperative 23 association in which the interested member of the 24 governing body of the municipality, advisory panel, or 25 commission has less than a 1% share in the ownership; and 26 (2) the award of the contract is approved by a 27 majority vote of the governing body of the municipality 28 provided that any such interested member shall abstain 29 from voting; and 30 (3) such interested member publicly discloses the 31 nature and extent of his interest before or during 32 deliberations concerning the proposed award of the 33 contract; and 34 (4) such interested member abstains from voting on SB1854 Enrolled -274- LRB9215370EGfg 1 the award of the contract, though he shall be considered 2 present for the purposes of establishing a quorum. 3 (c) A contract for the procurement of public utility 4 services by a municipality with a public utility company is 5 not barred by this Section by one or more members of the 6 governing body being an officer or employee of the public 7 utility company, or holding an ownership interest in no more 8 than 7 1/2% in the public utility company, or holding an 9 ownership interest of any size if the municipality has a 10 population of less than 7,500 and the public utility's rates 11 are approved by the Illinois Commerce Commission. An elected 12 or appointed member of the governing body or a nongoverning 13 board or commission having an interest described in this 14 subsection (d) does not have a prohibited interest under this 15 Section. 16 (d) An officer who violates this Section is guilty of a 17 Class 4 felony. In addition, any office held by an officer 18 so convicted shall become vacant and shall be so declared as 19 part of the judgment of the court. 20 (e) Nothing contained in this Section, including the 21 restrictions set forth in subsections (b) and (c), shall 22 preclude a contract of deposit of moneys, loans, or other 23 financial services by a municipality with a local bank or 24 local savings and loan association, regardless of whether a 25 member of the governing body of the municipality is 26 interested in the bank or savings and loan association as an 27 officer or employee or as a holder of less than 7 1/2% of the 28 total ownership interest. A member holding an interest 29 described in this subsection (e) in a contract does not hold 30 a prohibited interest for purposes of this Act. The 31 interested member of the governing body must publicly state 32 the nature and extent of the interest during deliberations 33 concerning the proposed award of the contract but shall not 34 participate in any further deliberations concerning the SB1854 Enrolled -275- LRB9215370EGfg 1 proposed award. The interested member shall not vote on the 2 proposed award. A member abstaining from participation in 3 deliberations and voting under this Section may be considered 4 present for purposes of establishing a quorum. Award of the 5 contract shall require approval by a majority vote of those 6 members presently holding office. Consideration and award of 7 a contract in which a member is interested may only be made 8 at a regularly scheduled public meeting of the governing body 9 of the municipality. 10 (f) Notwithstanding any other provision of this Section 11 or any other law to the contrary, until January 1, 1994, a 12 member of the city council of a municipality with a 13 population under 20,000 may purchase real estate from the 14 municipality, at a price of not less than 100% of the value 15 of the real estate as determined by a written MAI certified 16 appraisal or by a written certified appraisal of a State 17 certified or licensed real estate appraiser, if the purchase 18 is approved by a unanimous vote of the city council members 19 then holding office (except for the member desiring to 20 purchase the real estate, who shall not vote on the 21 question). 22 (Source: P.A. 90-364, eff. 1-1-98; revised 12-13-01.) 23 (65 ILCS 5/11-21.5-5) 24 Sec. 11-21.5-5.11-21.1-5.Local emergency energy plans. 25 (a) Any municipality, including a home rule 26 municipality, may, by ordinance, require any electric utility 27 (i) that serves more than 1,000,000 customers in Illinois and 28 (ii) that is operating within the corporate limits of the 29 municipality to adopt and to provide the municipality with a 30 local emergency energy plan. For the purposes of this 31 Section, (i) "local emergency energy plan" or "plan" means a 32 planned course of action developed by the electric utility 33 that is implemented when the demand for electricity exceeds, SB1854 Enrolled -276- LRB9215370EGfg 1 or is at significant risk of exceeding, the supply of 2 electricity available to the electric utility and (ii) "local 3 emergency energy plan ordinance" means an ordinance adopted 4 by the corporate authorities of the municipality under this 5 Section that requires local emergency energy plans. 6 (b) A local emergency energy plan must include the 7 following information: 8 (1) the circumstances that would require the 9 implementation of the plan; 10 (2) the levels or stages of the plan; 11 (3) the approximate geographic limits of each 12 outage area provided for in the plan; 13 (4) the approximate number of customers within each 14 outage area provided for in the plan; 15 (5) any police facilities, fire stations, 16 hospitals, nursing homes, schools, day care centers, 17 senior citizens centers, community health centers, 18 dialysis centers, community mental health centers, 19 correctional facilities, stormwater and wastewater 20 treatment or pumping facilities, water-pumping stations, 21 buildings in excess of 80 feet in height that have been 22 identified by the municipality, and persons on life 23 support systems that are known to the electric utility 24 that could be affected by controlled rotating 25 interruptions of electric service under the plan; and 26 (6) the anticipated sequence and duration of 27 intentional interruptions of electric service to each 28 outage area under the plan. 29 (c) A local emergency energy plan ordinance may require 30 that, when an electric utility determines it is necessary to 31 implement a controlled rotating interruption of electric 32 service because the demand for electricity exceeds, or is at 33 significant risk of exceeding, the supply of electricity 34 available to the electric utility, the electric utility SB1854 Enrolled -277- LRB9215370EGfg 1 notify a designated municipal officer that the electric 2 utility will be implementing its local emergency energy plan. 3 The notification shall be made pursuant to a procedure 4 approved by the municipality after consultation with the 5 electric utility. 6 (d) After providing the notice required in subsection 7 (c), an electric utility shall reasonably and separately 8 advise designated municipal officials before it implements 9 each level or stage of the plan, which shall include (i) a 10 request for emergency help from neighboring utilities, (ii) a 11 declaration of a control area emergency, and (iii) a public 12 appeal for voluntary curtailment of electricity use. 13 (e) The electric utility must give a separate notice to 14 a designated municipal official immediately after it 15 determines that there will be a controlled rotating 16 interruption of electric service under the local emergency 17 energy plan. The notification must include (i) the areas in 18 which service will be interrupted, (ii) the sequence and 19 estimated duration of the service outage for each area, (iii) 20 the affected feeders, and (iv) the number of affected 21 customers in each area. Whenever practical, the notification 22 shall be made at least 2 hours before the time of the 23 outages. If the electric utility is aware that controlled 24 rotating interruptions may be required, the notification may 25 not be made less than 30 minutes before the outages. 26 (f) A local emergency energy plan ordinance may provide 27 civil penalties for violations of its provisions. The 28 penalties must be permitted under the Illinois Municipal 29 Code. 30 (g) The notifications required by this Section are in 31 addition to the notification requirements of any applicable 32 franchise agreement or ordinance and to the notification 33 requirements of any applicable federal or State law, rule, 34 and regulation. SB1854 Enrolled -278- LRB9215370EGfg 1 (h) Except for any penalties or remedies that may be 2 provided in a local emergency energy plan ordinance, in this 3 Act, or in rules adopted by the Illinois Commerce Commission, 4 nothing in this Section shall be construed to impose 5 liability for or prevent a utility from taking any actions 6 that are necessary at any time, in any order, and with or 7 without notice that are required to preserve the integrity of 8 the electric utility's electrical system and interconnected 9 network. 10 (i) Nothing in this Section, a local emergency energy 11 plan ordinance, or a local emergency energy plan creates any 12 duty of a municipality to any person or entity. No 13 municipality may be subject to any claim or cause of action 14 arising, directly or indirectly, from its decision to adopt 15 or to refrain from adopting a local emergency energy plan 16 ordinance. No municipality may be subject to any claim or 17 cause of action arising, directly or indirectly, from any act 18 or omission under the terms of or information provided in a 19 local emergency energy plan filed under a local emergency 20 energy plan ordinance. 21 (Source: P.A. 91-137, eff. 7-16-99; revised 12-13-01.) 22 (65 ILCS 5/11-73-2) (from Ch. 24, par. 11-73-2) 23 Sec. 11-73-2. This Division 73 shall not be in force in 24 any municipality until the question of its adoption is 25 submitted to the electors of the municipality and approved by 26 a majority of those voting on the question. The municipal 27 clerk shall certify the question to the proper election 28 authority shall submit the question at anat aelection in 29 accordance with the general election law. 30 The question shall be in substantially the following 31 form: 32 ------------------------------------------------------------- 33 Shall Division 73 of the SB1854 Enrolled -279- LRB9215370EGfg 1 Illinois Municipal Code permitting 2 municipalities to levy an additional YES 3 annual tax of not to exceed 0.05%.05%4 for the establishment and maintenance --------------- 5 of a long term forestry program 6 for the propagation and preservation NO 7 of community trees and for the removal 8 of dead or diseased trees be adopted? 9 ------------------------------------------------------------- 10 If a majority of the votes cast on the question are in 11 favor of adopting this Division 73, the Division is adopted. 12 It shall be in force in the adopting municipality for the 13 purpose of the fiscal years succeeding the year in which the 14 election is held. 15 (Source: P.A. 81-1489; revised 12-13-01.) 16 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3) 17 Sec. 11-74.4-3. Definitions. The following terms, 18 wherever used or referred to in this Division 74.4 shall have 19 the following respective meanings, unless in any case a 20 different meaning clearly appears from the context. 21 (a) For any redevelopment project area that has been 22 designated pursuant to this Section by an ordinance adopted 23 prior to November 1, 1999 (the effective date of Public Act 24 91-478), "blighted area" shall have the meaning set forth in 25 this Section prior to that date. 26 On and after November 1, 1999, "blighted area" means any 27 improved or vacant area within the boundaries of a 28 redevelopment project area located within the territorial 29 limits of the municipality where: 30 (1) If improved, industrial, commercial, and 31 residential buildings or improvements are detrimental to 32 the public safety, health, or welfare because of a 33 combination of 5 or more of the following factors, each SB1854 Enrolled -280- LRB9215370EGfg 1 of which is (i) present, with that presence documented, 2 to a meaningful extent so that a municipality may 3 reasonably find that the factor is clearly present within 4 the intent of the Act and (ii) reasonably distributed 5 throughout the improved part of the redevelopment project 6 area: 7 (A) Dilapidation. An advanced state of 8 disrepair or neglect of necessary repairs to the 9 primary structural components of buildings or 10 improvements in such a combination that a documented 11 building condition analysis determines that major 12 repair is required or the defects are so serious and 13 so extensive that the buildings must be removed. 14 (B) Obsolescence. The condition or process of 15 falling into disuse. Structures have become 16 ill-suited for the original use. 17 (C) Deterioration. With respect to buildings, 18 defects including, but not limited to, major defects 19 in the secondary building components such as doors, 20 windows, porches, gutters and downspouts, and 21 fascia. With respect to surface improvements, that 22 the condition of roadways, alleys, curbs, gutters, 23 sidewalks, off-street parking, and surface storage 24 areas evidence deterioration, including, but not 25 limited to, surface cracking, crumbling, potholes, 26 depressions, loose paving material, and weeds 27 protruding through paved surfaces. 28 (D) Presence of structures below minimum code 29 standards. All structures that do not meet the 30 standards of zoning, subdivision, building, fire, 31 and other governmental codes applicable to property, 32 but not including housing and property maintenance 33 codes. 34 (E) Illegal use of individual structures. The SB1854 Enrolled -281- LRB9215370EGfg 1 use of structures in violation of applicable 2 federal, State, or local laws, exclusive of those 3 applicable to the presence of structures below 4 minimum code standards. 5 (F) Excessive vacancies. The presence of 6 buildings that are unoccupied or under-utilized and 7 that represent an adverse influence on the area 8 because of the frequency, extent, or duration of the 9 vacancies. 10 (G) Lack of ventilation, light, or sanitary 11 facilities. The absence of adequate ventilation for 12 light or air circulation in spaces or rooms without 13 windows, or that require the removal of dust, odor, 14 gas, smoke, or other noxious airborne materials. 15 Inadequate natural light and ventilation means the 16 absence of skylights or windows for interior spaces 17 or rooms and improper window sizes and amounts by 18 room area to window area ratios. Inadequate 19 sanitary facilities refers to the absence or 20 inadequacy of garbage storage and enclosure, 21 bathroom facilities, hot water and kitchens, and 22 structural inadequacies preventing ingress and 23 egress to and from all rooms and units within a 24 building. 25 (H) Inadequate utilities. Underground and 26 overhead utilities such as storm sewers and storm 27 drainage, sanitary sewers, water lines, and gas, 28 telephone, and electrical services that are shown to 29 be inadequate. Inadequate utilities are those that 30 are: (i) of insufficient capacity to serve the uses 31 in the redevelopment project area, (ii) 32 deteriorated, antiquated, obsolete, or in disrepair, 33 or (iii) lacking within the redevelopment project 34 area. SB1854 Enrolled -282- LRB9215370EGfg 1 (I) Excessive land coverage and overcrowding 2 of structures and community facilities. The 3 over-intensive use of property and the crowding of 4 buildings and accessory facilities onto a site. 5 Examples of problem conditions warranting the 6 designation of an area as one exhibiting excessive 7 land coverage are: (i) the presence of buildings 8 either improperly situated on parcels or located on 9 parcels of inadequate size and shape in relation to 10 present-day standards of development for health and 11 safety and (ii) the presence of multiple buildings 12 on a single parcel. For there to be a finding of 13 excessive land coverage, these parcels must exhibit 14 one or more of the following conditions: 15 insufficient provision for light and air within or 16 around buildings, increased threat of spread of fire 17 due to the close proximity of buildings, lack of 18 adequate or proper access to a public right-of-way, 19 lack of reasonably required off-street parking, or 20 inadequate provision for loading and service. 21 (J) Deleterious land use or layout. The 22 existence of incompatible land-use relationships, 23 buildings occupied by inappropriate mixed-uses, or 24 uses considered to be noxious, offensive, or 25 unsuitable for the surrounding area. 26 (K) Environmental clean-up. The proposed 27 redevelopment project area has incurred Illinois 28 Environmental Protection Agency or United States 29 Environmental Protection Agency remediation costs 30 for, or a study conducted by an independent 31 consultant recognized as having expertise in 32 environmental remediation has determined a need for, 33 the clean-up of hazardous waste, hazardous 34 substances, or underground storage tanks required by SB1854 Enrolled -283- LRB9215370EGfg 1 State or federal law, provided that the remediation 2 costs constitute a material impediment to the 3 development or redevelopment of the redevelopment 4 project area. 5 (L) Lack of community planning. The proposed 6 redevelopment project area was developed prior to or 7 without the benefit or guidance of a community plan. 8 This means that the development occurred prior to 9 the adoption by the municipality of a comprehensive 10 or other community plan or that the plan was not 11 followed at the time of the area's development. 12 This factor must be documented by evidence of 13 adverse or incompatible land-use relationships, 14 inadequate street layout, improper subdivision, 15 parcels of inadequate shape and size to meet 16 contemporary development standards, or other 17 evidence demonstrating an absence of effective 18 community planning. 19 (M) The total equalized assessed value of the 20 proposed redevelopment project area has declined for 21 3 of the last 5 calendar years prior to the year in 22 which the redevelopment project area is designated 23 or is increasing at an annual rate that is less than 24 the balance of the municipality for 3 of the last 5 25 calendar years for which information is available or 26 is increasing at an annual rate that is less than 27 the Consumer Price Index for All Urban Consumers 28 published by the United States Department of Labor 29 or successor agency for 3 of the last 5 calendar 30 years prior to the year in which the redevelopment 31 project area is designated. 32 (2) If vacant, the sound growth of the 33 redevelopment project area is impaired by a combination 34 of 2 or more of the following factors, each of which is SB1854 Enrolled -284- LRB9215370EGfg 1 (i) present, with that presence documented, to a 2 meaningful extent so that a municipality may reasonably 3 find that the factor is clearly present within the intent 4 of the Act and (ii) reasonably distributed throughout the 5 vacant part of the redevelopment project area to which it 6 pertains: 7 (A) Obsolete platting of vacant land that 8 results in parcels of limited or narrow size or 9 configurations of parcels of irregular size or shape 10 that would be difficult to develop on a planned 11 basis and in a manner compatible with contemporary 12 standards and requirements, or platting that failed 13 to create rights-of-ways for streets or alleys or 14 that created inadequate right-of-way widths for 15 streets, alleys, or other public rights-of-way or 16 that omitted easements for public utilities. 17 (B) Diversity of ownership of parcels of 18 vacant land sufficient in number to retard or impede 19 the ability to assemble the land for development. 20 (C) Tax and special assessment delinquencies 21 exist or the property has been the subject of tax 22 sales under the Property Tax Code within the last 5 23 years. 24 (D) Deterioration of structures or site 25 improvements in neighboring areas adjacent to the 26 vacant land. 27 (E) The area has incurred Illinois 28 Environmental Protection Agency or United States 29 Environmental Protection Agency remediation costs 30 for, or a study conducted by an independent 31 consultant recognized as having expertise in 32 environmental remediation has determined a need for, 33 the clean-up of hazardous waste, hazardous 34 substances, or underground storage tanks required by SB1854 Enrolled -285- LRB9215370EGfg 1 State or federal law, provided that the remediation 2 costs constitute a material impediment to the 3 development or redevelopment of the redevelopment 4 project area. 5 (F) The total equalized assessed value of the 6 proposed redevelopment project area has declined for 7 3 of the last 5 calendar years prior to the year in 8 which the redevelopment project area is designated 9 or is increasing at an annual rate that is less than 10 the balance of the municipality for 3 of the last 5 11 calendar years for which information is available or 12 is increasing at an annual rate that is less than 13 the Consumer Price Index for All Urban Consumers 14 published by the United States Department of Labor 15 or successor agency for 3 of the last 5 calendar 16 years prior to the year in which the redevelopment 17 project area is designated. 18 (3) If vacant, the sound growth of the 19 redevelopment project area is impaired by one of the 20 following factors that (i) is present, with that presence 21 documented, to a meaningful extent so that a municipality 22 may reasonably find that the factor is clearly present 23 within the intent of the Act and (ii) is reasonably 24 distributed throughout the vacant part of the 25 redevelopment project area to which it pertains: 26 (A) The area consists of one or more unused 27 quarries, mines, or strip mine ponds. 28 (B) The area consists of unused railyards, 29 rail tracks, or railroad rights-of-way. 30 (C) The area, prior to its designation, is 31 subject to chronic flooding that adversely impacts 32 on real property in the area as certified by a 33 registered professional engineer or appropriate 34 regulatory agency. SB1854 Enrolled -286- LRB9215370EGfg 1 (D) The area consists of an unused or illegal 2 disposal site containing earth, stone, building 3 debris, or similar materials that were removed from 4 construction, demolition, excavation, or dredge 5 sites. 6 (E) Prior to November 1, 1999, the area is not 7 less than 50 nor more than 100 acres and 75% of 8 which is vacant (notwithstanding that the area has 9 been used for commercial agricultural purposes 10 within 5 years prior to the designation of the 11 redevelopment project area), and the area meets at 12 least one of the factors itemized in paragraph (1) 13 of this subsection, the area has been designated as 14 a town or village center by ordinance or 15 comprehensive plan adopted prior to January 1, 1982, 16 and the area has not been developed for that 17 designated purpose. 18 (F) The area qualified as a blighted improved 19 area immediately prior to becoming vacant, unless 20 there has been substantial private investment in the 21 immediately surrounding area. 22 (b) For any redevelopment project area that has been 23 designated pursuant to this Section by an ordinance adopted 24 prior to November 1, 1999 (the effective date of Public Act 25 91-478), "conservation area" shall have the meaning set forth 26 in this Section prior to that date. 27 On and after November 1, 1999, "conservation area" means 28 any improved area within the boundaries of a redevelopment 29 project area located within the territorial limits of the 30 municipality in which 50% or more of the structures in the 31 area have an age of 35 years or more. Such an area is not 32 yet a blighted area but because of a combination of 3 or more 33 of the following factors is detrimental to the public safety, 34 health, morals or welfare and such an area may become a SB1854 Enrolled -287- LRB9215370EGfg 1 blighted area: 2 (1) Dilapidation. An advanced state of disrepair 3 or neglect of necessary repairs to the primary structural 4 components of buildings or improvements in such a 5 combination that a documented building condition analysis 6 determines that major repair is required or the defects 7 are so serious and so extensive that the buildings must 8 be removed. 9 (2) Obsolescence. The condition or process of 10 falling into disuse. Structures have become ill-suited 11 for the original use. 12 (3) Deterioration. With respect to buildings, 13 defects including, but not limited to, major defects in 14 the secondary building components such as doors, windows, 15 porches, gutters and downspouts, and fascia. With 16 respect to surface improvements, that the condition of 17 roadways, alleys, curbs, gutters, sidewalks, off-street 18 parking, and surface storage areas evidence 19 deterioration, including, but not limited to, surface 20 cracking, crumbling, potholes, depressions, loose paving 21 material, and weeds protruding through paved surfaces. 22 (4) Presence of structures below minimum code 23 standards. All structures that do not meet the standards 24 of zoning, subdivision, building, fire, and other 25 governmental codes applicable to property, but not 26 including housing and property maintenance codes. 27 (5) Illegal use of individual structures. The use 28 of structures in violation of applicable federal, State, 29 or local laws, exclusive of those applicable to the 30 presence of structures below minimum code standards. 31 (6) Excessive vacancies. The presence of buildings 32 that are unoccupied or under-utilized and that represent 33 an adverse influence on the area because of the 34 frequency, extent, or duration of the vacancies. SB1854 Enrolled -288- LRB9215370EGfg 1 (7) Lack of ventilation, light, or sanitary 2 facilities. The absence of adequate ventilation for 3 light or air circulation in spaces or rooms without 4 windows, or that require the removal of dust, odor, gas, 5 smoke, or other noxious airborne materials. Inadequate 6 natural light and ventilation means the absence or 7 inadequacy of skylights or windows for interior spaces or 8 rooms and improper window sizes and amounts by room area 9 to window area ratios. Inadequate sanitary facilities 10 refers to the absence or inadequacy of garbage storage 11 and enclosure, bathroom facilities, hot water and 12 kitchens, and structural inadequacies preventing ingress 13 and egress to and from all rooms and units within a 14 building. 15 (8) Inadequate utilities. Underground and overhead 16 utilities such as storm sewers and storm drainage, 17 sanitary sewers, water lines, and gas, telephone, and 18 electrical services that are shown to be inadequate. 19 Inadequate utilities are those that are: (i) of 20 insufficient capacity to serve the uses in the 21 redevelopment project area, (ii) deteriorated, 22 antiquated, obsolete, or in disrepair, or (iii) lacking 23 within the redevelopment project area. 24 (9) Excessive land coverage and overcrowding of 25 structures and community facilities. The over-intensive 26 use of property and the crowding of buildings and 27 accessory facilities onto a site. Examples of problem 28 conditions warranting the designation of an area as one 29 exhibiting excessive land coverage are: the presence of 30 buildings either improperly situated on parcels or 31 located on parcels of inadequate size and shape in 32 relation to present-day standards of development for 33 health and safety and the presence of multiple buildings 34 on a single parcel. For there to be a finding of SB1854 Enrolled -289- LRB9215370EGfg 1 excessive land coverage, these parcels must exhibit one 2 or more of the following conditions: insufficient 3 provision for light and air within or around buildings, 4 increased threat of spread of fire due to the close 5 proximity of buildings, lack of adequate or proper access 6 to a public right-of-way, lack of reasonably required 7 off-street parking, or inadequate provision for loading 8 and service. 9 (10) Deleterious land use or layout. The existence 10 of incompatible land-use relationships, buildings 11 occupied by inappropriate mixed-uses, or uses considered 12 to be noxious, offensive, or unsuitable for the 13 surrounding area. 14 (11) Lack of community planning. The proposed 15 redevelopment project area was developed prior to or 16 without the benefit or guidance of a community plan. This 17 means that the development occurred prior to the adoption 18 by the municipality of a comprehensive or other community 19 plan or that the plan was not followed at the time of the 20 area's development. This factor must be documented by 21 evidence of adverse or incompatible land-use 22 relationships, inadequate street layout, improper 23 subdivision, parcels of inadequate shape and size to meet 24 contemporary development standards, or other evidence 25 demonstrating an absence of effective community planning. 26 (12) The area has incurred Illinois Environmental 27 Protection Agency or United States Environmental 28 Protection Agency remediation costs for, or a study 29 conducted by an independent consultant recognized as 30 having expertise in environmental remediation has 31 determined a need for, the clean-up of hazardous waste, 32 hazardous substances, or underground storage tanks 33 required by State or federal law, provided that the 34 remediation costs constitute a material impediment to the SB1854 Enrolled -290- LRB9215370EGfg 1 development or redevelopment of the redevelopment project 2 area. 3 (13) The total equalized assessed value of the 4 proposed redevelopment project area has declined for 3 of 5 the last 5 calendar years for which information is 6 available or is increasing at an annual rate that is less 7 than the balance of the municipality for 3 of the last 5 8 calendar years for which information is available or is 9 increasing at an annual rate that is less than the 10 Consumer Price Index for All Urban Consumers published by 11 the United States Department of Labor or successor agency 12 for 3 of the last 5 calendar years for which information 13 is available. 14 (c) "Industrial park" means an area in a blighted or 15 conservation area suitable for use by any manufacturing, 16 industrial, research or transportation enterprise, of 17 facilities to include but not be limited to factories, mills, 18 processing plants, assembly plants, packing plants, 19 fabricating plants, industrial distribution centers, 20 warehouses, repair overhaul or service facilities, freight 21 terminals, research facilities, test facilities or railroad 22 facilities. 23 (d) "Industrial park conservation area" means an area 24 within the boundaries of a redevelopment project area located 25 within the territorial limits of a municipality that is a 26 labor surplus municipality or within 1 1/2 miles of the 27 territorial limits of a municipality that is a labor surplus 28 municipality if the area is annexed to the municipality; 29 which area is zoned as industrial no later than at the time 30 the municipality by ordinance designates the redevelopment 31 project area, and which area includes both vacant land 32 suitable for use as an industrial park and a blighted area or 33 conservation area contiguous to such vacant land. 34 (e) "Labor surplus municipality" means a municipality in SB1854 Enrolled -291- LRB9215370EGfg 1 which, at any time during the 6 months before the 2 municipality by ordinance designates an industrial park 3 conservation area, the unemployment rate was over 6% and was 4 also 100% or more of the national average unemployment rate 5 for that same time as published in the United States 6 Department of Labor Bureau of Labor Statistics publication 7 entitled "The Employment Situation" or its successor 8 publication. For the purpose of this subsection, if 9 unemployment rate statistics for the municipality are not 10 available, the unemployment rate in the municipality shall be 11 deemed to be the same as the unemployment rate in the 12 principal county in which the municipality is located. 13 (f) "Municipality" shall mean a city, village or 14 incorporated town. 15 (g) "Initial Sales Tax Amounts" means the amount of 16 taxes paid under the Retailers' Occupation Tax Act, Use Tax 17 Act, Service Use Tax Act, the Service Occupation Tax Act, the 18 Municipal Retailers' Occupation Tax Act, and the Municipal 19 Service Occupation Tax Act by retailers and servicemen on 20 transactions at places located in a State Sales Tax Boundary 21 during the calendar year 1985. 22 (g-1) "Revised Initial Sales Tax Amounts" means the 23 amount of taxes paid under the Retailers' Occupation Tax Act, 24 Use Tax Act, Service Use Tax Act, the Service Occupation Tax 25 Act, the Municipal Retailers' Occupation Tax Act, and the 26 Municipal Service Occupation Tax Act by retailers and 27 servicemen on transactions at places located within the State 28 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9) 29 of this Act. 30 (h) "Municipal Sales Tax Increment" means an amount 31 equal to the increase in the aggregate amount of taxes paid 32 to a municipality from the Local Government Tax Fund arising 33 from sales by retailers and servicemen within the 34 redevelopment project area or State Sales Tax Boundary, as SB1854 Enrolled -292- LRB9215370EGfg 1 the case may be, for as long as the redevelopment project 2 area or State Sales Tax Boundary, as the case may be, exist 3 over and above the aggregate amount of taxes as certified by 4 the Illinois Department of Revenue and paid under the 5 Municipal Retailers' Occupation Tax Act and the Municipal 6 Service Occupation Tax Act by retailers and servicemen, on 7 transactions at places of business located in the 8 redevelopment project area or State Sales Tax Boundary, as 9 the case may be, during the base year which shall be the 10 calendar year immediately prior to the year in which the 11 municipality adopted tax increment allocation financing. For 12 purposes of computing the aggregate amount of such taxes for 13 base years occurring prior to 1985, the Department of Revenue 14 shall determine the Initial Sales Tax Amounts for such taxes 15 and deduct therefrom an amount equal to 4% of the aggregate 16 amount of taxes per year for each year the base year is prior 17 to 1985, but not to exceed a total deduction of 12%. The 18 amount so determined shall be known as the "Adjusted Initial 19 Sales Tax Amounts". For purposes of determining the 20 Municipal Sales Tax Increment, the Department of Revenue 21 shall for each period subtract from the amount paid to the 22 municipality from the Local Government Tax Fund arising from 23 sales by retailers and servicemen on transactions located in 24 the redevelopment project area or the State Sales Tax 25 Boundary, as the case may be, the certified Initial Sales Tax 26 Amounts, the Adjusted Initial Sales Tax Amounts or the 27 Revised Initial Sales Tax Amounts for the Municipal 28 Retailers' Occupation Tax Act and the Municipal Service 29 Occupation Tax Act. For the State Fiscal Year 1989, this 30 calculation shall be made by utilizing the calendar year 1987 31 to determine the tax amounts received. For the State Fiscal 32 Year 1990, this calculation shall be made by utilizing the 33 period from January 1, 1988, until September 30, 1988, to 34 determine the tax amounts received from retailers and SB1854 Enrolled -293- LRB9215370EGfg 1 servicemen pursuant to the Municipal Retailers' Occupation 2 Tax and the Municipal Service Occupation Tax Act, which shall 3 have deducted therefrom nine-twelfths of the certified 4 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax 5 Amounts or the Revised Initial Sales Tax Amounts as 6 appropriate. For the State Fiscal Year 1991, this calculation 7 shall be made by utilizing the period from October 1, 1988, 8 to June 30, 1989, to determine the tax amounts received from 9 retailers and servicemen pursuant to the Municipal Retailers' 10 Occupation Tax and the Municipal Service Occupation Tax Act 11 which shall have deducted therefrom nine-twelfths of the 12 certified Initial Sales Tax Amounts, Adjusted Initial Sales 13 Tax Amounts or the Revised Initial Sales Tax Amounts as 14 appropriate. For every State Fiscal Year thereafter, the 15 applicable period shall be the 12 months beginning July 1 and 16 ending June 30 to determine the tax amounts received which 17 shall have deducted therefrom the certified Initial Sales Tax 18 Amounts, the Adjusted Initial Sales Tax Amounts or the 19 Revised Initial Sales Tax Amounts, as the case may be. 20 (i) "Net State Sales Tax Increment" means the sum of the 21 following: (a) 80% of the first $100,000 of State Sales Tax 22 Increment annually generated within a State Sales Tax 23 Boundary; (b) 60% of the amount in excess of $100,000 but not 24 exceeding $500,000 of State Sales Tax Increment annually 25 generated within a State Sales Tax Boundary; and (c) 40% of 26 all amounts in excess of $500,000 of State Sales Tax 27 Increment annually generated within a State Sales Tax 28 Boundary. If, however, a municipality established a tax 29 increment financing district in a county with a population in 30 excess of 3,000,000 before January 1, 1986, and the 31 municipality entered into a contract or issued bonds after 32 January 1, 1986, but before December 31, 1986, to finance 33 redevelopment project costs within a State Sales Tax 34 Boundary, then the Net State Sales Tax Increment means, for SB1854 Enrolled -294- LRB9215370EGfg 1 the fiscal years beginning July 1, 1990, and July 1, 1991, 2 100% of the State Sales Tax Increment annually generated 3 within a State Sales Tax Boundary; and notwithstanding any 4 other provision of this Act, for those fiscal years the 5 Department of Revenue shall distribute to those 6 municipalities 100% of their Net State Sales Tax Increment 7 before any distribution to any other municipality and 8 regardless of whether or not those other municipalities will 9 receive 100% of their Net State Sales Tax Increment. For 10 Fiscal Year 1999, and every year thereafter until the year 11 2007, for any municipality that has not entered into a 12 contract or has not issued bonds prior to June 1, 1988 to 13 finance redevelopment project costs within a State Sales Tax 14 Boundary, the Net State Sales Tax Increment shall be 15 calculated as follows: By multiplying the Net State Sales Tax 16 Increment by 90% in the State Fiscal Year 1999; 80% in the 17 State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 18 60% in the State Fiscal Year 2002; 50% in the State Fiscal 19 Year 2003; 40% in the State Fiscal Year 2004; 30% in the 20 State Fiscal Year 2005; 20% in the State Fiscal Year 2006; 21 and 10% in the State Fiscal Year 2007. No payment shall be 22 made for State Fiscal Year 2008 and thereafter. 23 Municipalities that issued bonds in connection with a 24 redevelopment project in a redevelopment project area within 25 the State Sales Tax Boundary prior to July 29, 1991, or that 26 entered into contracts in connection with a redevelopment 27 project in a redevelopment project area before June 1, 1988, 28 shall continue to receive their proportional share of the 29 Illinois Tax Increment Fund distribution until the date on 30 which the redevelopment project is completed or terminated. 31 If, however, a municipality that issued bonds in connection 32 with a redevelopment project in a redevelopment project area 33 within the State Sales Tax Boundary prior to July 29, 1991 34 retires the bonds prior to June 30, 2007 or a municipality SB1854 Enrolled -295- LRB9215370EGfg 1 that entered into contracts in connection with a 2 redevelopment project in a redevelopment project area before 3 June 1, 1988 completes the contracts prior to June 30, 2007, 4 then so long as the redevelopment project is not completed or 5 is not terminated, the Net State Sales Tax Increment shall be 6 calculated, beginning on the date on which the bonds are 7 retired or the contracts are completed, as follows: By 8 multiplying the Net State Sales Tax Increment by 60% in the 9 State Fiscal Year 2002; 50% in the State Fiscal Year 2003; 10 40% in the State Fiscal Year 2004; 30% in the State Fiscal 11 Year 2005; 20% in the State Fiscal Year 2006; and 10% in the 12 State Fiscal Year 2007. No payment shall be made for State 13 Fiscal Year 2008 and thereafter. Refunding of any bonds 14 issued prior to July 29, 1991, shall not alter the Net State 15 Sales Tax Increment. 16 (j) "State Utility Tax Increment Amount" means an amount 17 equal to the aggregate increase in State electric and gas tax 18 charges imposed on owners and tenants, other than residential 19 customers, of properties located within the redevelopment 20 project area under Section 9-222 of the Public Utilities Act, 21 over and above the aggregate of such charges as certified by 22 the Department of Revenue and paid by owners and tenants, 23 other than residential customers, of properties within the 24 redevelopment project area during the base year, which shall 25 be the calendar year immediately prior to the year of the 26 adoption of the ordinance authorizing tax increment 27 allocation financing. 28 (k) "Net State Utility Tax Increment" means the sum of 29 the following: (a) 80% of the first $100,000 of State Utility 30 Tax Increment annually generated by a redevelopment project 31 area; (b) 60% of the amount in excess of $100,000 but not 32 exceeding $500,000 of the State Utility Tax Increment 33 annually generated by a redevelopment project area; and (c) 34 40% of all amounts in excess of $500,000 of State Utility Tax SB1854 Enrolled -296- LRB9215370EGfg 1 Increment annually generated by a redevelopment project area. 2 For the State Fiscal Year 1999, and every year thereafter 3 until the year 2007, for any municipality that has not 4 entered into a contract or has not issued bonds prior to June 5 1, 1988 to finance redevelopment project costs within a 6 redevelopment project area, the Net State Utility Tax 7 Increment shall be calculated as follows: By multiplying the 8 Net State Utility Tax Increment by 90% in the State Fiscal 9 Year 1999; 80% in the State Fiscal Year 2000; 70% in the 10 State Fiscal Year 2001; 60% in the State Fiscal Year 2002; 11 50% in the State Fiscal Year 2003; 40% in the State Fiscal 12 Year 2004; 30% in the State Fiscal Year 2005; 20% in the 13 State Fiscal Year 2006; and 10% in the State Fiscal Year 14 2007. No payment shall be made for the State Fiscal Year 2008 15 and thereafter. 16 Municipalities that issue bonds in connection with the 17 redevelopment project during the period from June 1, 1988 18 until 3 years after the effective date of this Amendatory Act 19 of 1988 shall receive the Net State Utility Tax Increment, 20 subject to appropriation, for 15 State Fiscal Years after the 21 issuance of such bonds. For the 16th through the 20th State 22 Fiscal Years after issuance of the bonds, the Net State 23 Utility Tax Increment shall be calculated as follows: By 24 multiplying the Net State Utility Tax Increment by 90% in 25 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and 26 50% in year 20. Refunding of any bonds issued prior to June 27 1, 1988, shall not alter the revised Net State Utility Tax 28 Increment payments set forth above. 29 (l) "Obligations" mean bonds, loans, debentures, notes, 30 special certificates or other evidence of indebtedness issued 31 by the municipality to carry out a redevelopment project or 32 to refund outstanding obligations. 33 (m) "Payment in lieu of taxes" means those estimated tax 34 revenues from real property in a redevelopment project area SB1854 Enrolled -297- LRB9215370EGfg 1 derived from real property that has been acquired by a 2 municipality which according to the redevelopment project or 3 plan is to be used for a private use which taxing districts 4 would have received had a municipality not acquired the real 5 property and adopted tax increment allocation financing and 6 which would result from levies made after the time of the 7 adoption of tax increment allocation financing to the time 8 the current equalized value of real property in the 9 redevelopment project area exceeds the total initial 10 equalized value of real property in said area. 11 (n) "Redevelopment plan" means the comprehensive program 12 of the municipality for development or redevelopment intended 13 by the payment of redevelopment project costs to reduce or 14 eliminate those conditions the existence of which qualified 15 the redevelopment project area as a "blighted area" or 16 "conservation area" or combination thereof or "industrial 17 park conservation area," and thereby to enhance the tax bases 18 of the taxing districts which extend into the redevelopment 19 project area. On and after November 1, 1999 (the effective 20 date of Public Act 91-478), no redevelopment plan may be 21 approved or amended that includes the development of vacant 22 land (i) with a golf course and related clubhouse and other 23 facilities or (ii) designated by federal, State, county, or 24 municipal government as public land for outdoor recreational 25 activities or for nature preserves and used for that purpose 26 within 5 years prior to the adoption of the redevelopment 27 plan. For the purpose of this subsection, "recreational 28 activities" is limited to mean camping and hunting. Each 29 redevelopment plan shall set forth in writing the program to 30 be undertaken to accomplish the objectives and shall include 31 but not be limited to: 32 (A) an itemized list of estimated redevelopment 33 project costs; 34 (B) evidence indicating that the redevelopment SB1854 Enrolled -298- LRB9215370EGfg 1 project area on the whole has not been subject to growth 2 and development through investment by private enterprise; 3 (C) an assessment of any financial impact of the 4 redevelopment project area on or any increased demand for 5 services from any taxing district affected by the plan 6 and any program to address such financial impact or 7 increased demand; 8 (D) the sources of funds to pay costs; 9 (E) the nature and term of the obligations to be 10 issued; 11 (F) the most recent equalized assessed valuation of 12 the redevelopment project area; 13 (G) an estimate as to the equalized assessed 14 valuation after redevelopment and the general land uses 15 to apply in the redevelopment project area; 16 (H) a commitment to fair employment practices and 17 an affirmative action plan; 18 (I) if it concerns an industrial park conservation 19 area, the plan shall also include a general description 20 of any proposed developer, user and tenant of any 21 property, a description of the type, structure and 22 general character of the facilities to be developed, a 23 description of the type, class and number of new 24 employees to be employed in the operation of the 25 facilities to be developed; and 26 (J) if property is to be annexed to the 27 municipality, the plan shall include the terms of the 28 annexation agreement. 29 The provisions of items (B) and (C) of this subsection 30 (n) shall not apply to a municipality that before March 14, 31 1994 (the effective date of Public Act 88-537) had fixed, 32 either by its corporate authorities or by a commission 33 designated under subsection (k) of Section 11-74.4-4, a time 34 and place for a public hearing as required by subsection (a) SB1854 Enrolled -299- LRB9215370EGfg 1 of Section 11-74.4-5. No redevelopment plan shall be adopted 2 unless a municipality complies with all of the following 3 requirements: 4 (1) The municipality finds that the redevelopment 5 project area on the whole has not been subject to growth 6 and development through investment by private enterprise 7 and would not reasonably be anticipated to be developed 8 without the adoption of the redevelopment plan. 9 (2) The municipality finds that the redevelopment 10 plan and project conform to the comprehensive plan for 11 the development of the municipality as a whole, or, for 12 municipalities with a population of 100,000 or more, 13 regardless of when the redevelopment plan and project was 14 adopted, the redevelopment plan and project either: (i) 15 conforms to the strategic economic development or 16 redevelopment plan issued by the designated planning 17 authority of the municipality, or (ii) includes land uses 18 that have been approved by the planning commission of the 19 municipality. 20 (3) The redevelopment plan establishes the 21 estimated dates of completion of the redevelopment 22 project and retirement of obligations issued to finance 23 redevelopment project costs. Those dates shall not be 24 later than December 31 of the year in which the payment 25 to the municipal treasurer as provided in subsection (b) 26 of Section 11-74.4-8 of this Act is to be made with 27 respect to ad valorem taxes levied in the twenty-third 28 calendar year after the year in which the ordinance 29 approving the redevelopment project area is adopted if 30 the ordinance was adopted on or after January 15, 1981, 31 and not later than December 31 of the year in which the 32 payment to the municipal treasurer as provided in 33 subsection (b) of Section 11-74.4-8 of this Act is to be 34 made with respect to ad valorem taxes levied in the SB1854 Enrolled -300- LRB9215370EGfg 1 thirty-fifth calendar year after the year in which the 2 ordinance approving the redevelopment project area is 3 adopted: 4 (A) if the ordinance was adopted before 5 January 15, 1981, or 6 (B) if the ordinance was adopted in December 7 1983, April 1984, July 1985, or December 1989, or 8 (C) if the ordinance was adopted in December 9 1987 and the redevelopment project is located within 10 one mile of Midway Airport, or 11 (D) if the ordinance was adopted before 12 January 1, 1987 by a municipality in Mason County, 13 or 14 (E) if the municipality is subject to the 15 Local Government Financial Planning and Supervision 16 Act or the Financially Distressed City Law, or 17 (F) if the ordinance was adopted in December 18 1984 by the Village of Rosemont, or 19 (G) if the ordinance was adopted on December 20 31, 1986 by a municipality located in Clinton County 21 for which at least $250,000 of tax increment bonds 22 were authorized on June 17, 1997, or if the 23 ordinance was adopted on December 31, 1986 by a 24 municipality with a population in 1990 of less than 25 3,600 that is located in a county with a population 26 in 1990 of less than 34,000 and for which at least 27 $250,000 of tax increment bonds were authorized on 28 June 17, 1997, or 29 (H) if the ordinance was adopted on October 5, 30 1982 by the City of Kankakee, or if the ordinance 31 was adopted on December 29, 1986 by East St. Louis, 32 or 33 (I) if the ordinance was adopted on November 34 12, 1991 by the Village of Sauget, or SB1854 Enrolled -301- LRB9215370EGfg 1 (J) if the ordinance was adopted on February 2 11, 1985 by the City of Rock Island, or 3 (K) if the ordinance was adopted before 4 December 18, 1986 by the City of Moline, or 5 (L) if the ordinance was adopted in September 6 1988 by Sauk Village, or 7 (M) if the ordinance was adopted in October 8 1993 by Sauk Village, or 9 (N) if the ordinance was adopted on December 10 29, 1986 by the City of Galva, or 11 (O) if the ordinance was adopted in March 1991 12 by the City of Centreville, or 13 (P)(L)if the ordinance was adopted on 14 January 23, 1991 by the City of East St. Louis. 15 However, for redevelopment project areas for which 16 bonds were issued before July 29, 1991, or for which 17 contracts were entered into before June 1, 1988, in 18 connection with a redevelopment project in the area 19 within the State Sales Tax Boundary, the estimated dates 20 of completion of the redevelopment project and retirement 21 of obligations to finance redevelopment project costs may 22 be extended by municipal ordinance to December 31, 2013. 23 The extension allowed by this amendatory Act of 1993 24 shall not apply to real property tax increment allocation 25 financing under Section 11-74.4-8. 26 A municipality may by municipal ordinance amend an 27 existing redevelopment plan to conform to this paragraph 28 (3) as amended by Public Act 91-478, which municipal 29 ordinance may be adopted without further hearing or 30 notice and without complying with the procedures provided 31 in this Act pertaining to an amendment to or the initial 32 approval of a redevelopment plan and project and 33 designation of a redevelopment project area. 34 Those dates, for purposes of real property tax SB1854 Enrolled -302- LRB9215370EGfg 1 increment allocation financing pursuant to Section 2 11-74.4-8 only, shall be not more than 35 years for 3 redevelopment project areas that were adopted on or after 4 December 16, 1986 and for which at least $8 million worth 5 of municipal bonds were authorized on or after December 6 19, 1989 but before January 1, 1990; provided that the 7 municipality elects to extend the life of the 8 redevelopment project area to 35 years by the adoption of 9 an ordinance after at least 14 but not more than 30 days' 10 written notice to the taxing bodies, that would otherwise 11 constitute the joint review board for the redevelopment 12 project area, before the adoption of the ordinance. 13 Those dates, for purposes of real property tax 14 increment allocation financing pursuant to Section 15 11-74.4-8 only, shall be not more than 35 years for 16 redevelopment project areas that were established on or 17 after December 1, 1981 but before January 1, 1982 and for 18 which at least $1,500,000 worth of tax increment revenue 19 bonds were authorized on or after September 30, 1990 but 20 before July 1, 1991; provided that the municipality 21 elects to extend the life of the redevelopment project 22 area to 35 years by the adoption of an ordinance after at 23 least 14 but not more than 30 days' written notice to the 24 taxing bodies, that would otherwise constitute the joint 25 review board for the redevelopment project area, before 26 the adoption of the ordinance. 27 (3.5) The municipality finds, in the case of an 28 industrial park conservation area, also that the 29 municipality is a labor surplus municipality and that the 30 implementation of the redevelopment plan will reduce 31 unemployment, create new jobs and by the provision of new 32 facilities enhance the tax base of the taxing districts 33 that extend into the redevelopment project area. 34 (4) If any incremental revenues are being utilized SB1854 Enrolled -303- LRB9215370EGfg 1 under Section 8(a)(1) or 8(a)(2) of this Act in 2 redevelopment project areas approved by ordinance after 3 January 1, 1986, the municipality finds: (a) that the 4 redevelopment project area would not reasonably be 5 developed without the use of such incremental revenues, 6 and (b) that such incremental revenues will be 7 exclusively utilized for the development of the 8 redevelopment project area. 9 (5) On and after November 1, 1999, if the 10 redevelopment plan will not result in displacement of 10 11 or more residents from inhabited units, and the 12 municipality certifies in the plan that such displacement 13 will not result from the plan, a housing impact study 14 need not be performed. If, however, the redevelopment 15 plan would result in the displacement of residents from 16 10 or more inhabited residential units, or if the 17 redevelopment project area contains 75 or more inhabited 18 residential units and no certification is made, then the 19 municipality shall prepare, as part of the separate 20 feasibility report required by subsection (a) of Section 21 11-74.4-5, a housing impact study. 22 Part I of the housing impact study shall include (i) 23 data as to whether the residential units are single 24 family or multi-family units, (ii) the number and type of 25 rooms within the units, if that information is available, 26 (iii) whether the units are inhabited or uninhabited, as 27 determined not less than 45 days before the date that the 28 ordinance or resolution required by subsection (a) of 29 Section 11-74.4-5 is passed, and (iv) data as to the 30 racial and ethnic composition of the residents in the 31 inhabited residential units. The data requirement as to 32 the racial and ethnic composition of the residents in the 33 inhabited residential units shall be deemed to be fully 34 satisfied by data from the most recent federal census. SB1854 Enrolled -304- LRB9215370EGfg 1 Part II of the housing impact study shall identify 2 the inhabited residential units in the proposed 3 redevelopment project area that are to be or may be 4 removed. If inhabited residential units are to be 5 removed, then the housing impact study shall identify (i) 6 the number and location of those units that will or may 7 be removed, (ii) the municipality's plans for relocation 8 assistance for those residents in the proposed 9 redevelopment project area whose residences are to be 10 removed, (iii) the availability of replacement housing 11 for those residents whose residences are to be removed, 12 and shall identify the type, location, and cost of the 13 housing, and (iv) the type and extent of relocation 14 assistance to be provided. 15 (6) On and after November 1, 1999, the housing 16 impact study required by paragraph (5) shall be 17 incorporated in the redevelopment plan for the 18 redevelopment project area. 19 (7) On and after November 1, 1999, no redevelopment 20 plan shall be adopted, nor an existing plan amended, nor 21 shall residential housing that is occupied by households 22 of low-income and very low-income persons in currently 23 existing redevelopment project areas be removed after 24 November 1, 1999 unless the redevelopment plan provides, 25 with respect to inhabited housing units that are to be 26 removed for households of low-income and very low-income 27 persons, affordable housing and relocation assistance not 28 less than that which would be provided under the federal 29 Uniform Relocation Assistance and Real Property 30 Acquisition Policies Act of 1970 and the regulations 31 under that Act, including the eligibility criteria. 32 Affordable housing may be either existing or newly 33 constructed housing. For purposes of this paragraph (7), 34 "low-income households", "very low-income households", SB1854 Enrolled -305- LRB9215370EGfg 1 and "affordable housing" have the meanings set forth in 2 the Illinois Affordable Housing Act. The municipality 3 shall make a good faith effort to ensure that this 4 affordable housing is located in or near the 5 redevelopment project area within the municipality. 6 (8) On and after November 1, 1999, if, after the 7 adoption of the redevelopment plan for the redevelopment 8 project area, any municipality desires to amend its 9 redevelopment plan to remove more inhabited residential 10 units than specified in its original redevelopment plan, 11 that increase in the number of units to be removed shall 12 be deemed to be a change in the nature of the 13 redevelopment plan as to require compliance with the 14 procedures in this Act pertaining to the initial approval 15 of a redevelopment plan. 16 (9) For redevelopment project areas designated 17 prior to November 1, 1999, the redevelopment plan may be 18 amended without further joint review board meeting or 19 hearing, provided that the municipality shall give notice 20 of any such changes by mail to each affected taxing 21 district and registrant on the interested party registry, 22 to authorize the municipality to expend tax increment 23 revenues for redevelopment project costs defined by 24 paragraphs (5) and (7.5), subparagraphs (E) and (F) of 25 paragraph (11), and paragraph (11.5) of subsection (q) of 26 Section 11-74.4-3, so long as the changes do not increase 27 the total estimated redevelopment project costs set out 28 in the redevelopment plan by more than 5% after 29 adjustment for inflation from the date the plan was 30 adopted. 31 (o) "Redevelopment project" means any public and private 32 development project in furtherance of the objectives of a 33 redevelopment plan. On and after November 1, 1999 (the 34 effective date of Public Act 91-478), no redevelopment plan SB1854 Enrolled -306- LRB9215370EGfg 1 may be approved or amended that includes the development of 2 vacant land (i) with a golf course and related clubhouse and 3 other facilities or (ii) designated by federal, State, 4 county, or municipal government as public land for outdoor 5 recreational activities or for nature preserves and used for 6 that purpose within 5 years prior to the adoption of the 7 redevelopment plan. For the purpose of this subsection, 8 "recreational activities" is limited to mean camping and 9 hunting. 10 (p) "Redevelopment project area" means an area 11 designated by the municipality, which is not less in the 12 aggregate than 1 1/2 acres and in respect to which the 13 municipality has made a finding that there exist conditions 14 which cause the area to be classified as an industrial park 15 conservation area or a blighted area or a conservation area, 16 or a combination of both blighted areas and conservation 17 areas. 18 (q) "Redevelopment project costs" mean and include the 19 sum total of all reasonable or necessary costs incurred or 20 estimated to be incurred, and any such costs incidental to a 21 redevelopment plan and a redevelopment project. Such costs 22 include, without limitation, the following: 23 (1) Costs of studies, surveys, development of 24 plans, and specifications, implementation and 25 administration of the redevelopment plan including but 26 not limited to staff and professional service costs for 27 architectural, engineering, legal, financial, planning or 28 other services, provided however that no charges for 29 professional services may be based on a percentage of the 30 tax increment collected; except that on and after 31 November 1, 1999 (the effective date of Public Act 32 91-478), no contracts for professional services, 33 excluding architectural and engineering services, may be 34 entered into if the terms of the contract extend beyond a SB1854 Enrolled -307- LRB9215370EGfg 1 period of 3 years. In addition, "redevelopment project 2 costs" shall not include lobbying expenses. After 3 consultation with the municipality, each tax increment 4 consultant or advisor to a municipality that plans to 5 designate or has designated a redevelopment project area 6 shall inform the municipality in writing of any contracts 7 that the consultant or advisor has entered into with 8 entities or individuals that have received, or are 9 receiving, payments financed by tax increment revenues 10 produced by the redevelopment project area with respect 11 to which the consultant or advisor has performed, or will 12 be performing, service for the municipality. This 13 requirement shall be satisfied by the consultant or 14 advisor before the commencement of services for the 15 municipality and thereafter whenever any other contracts 16 with those individuals or entities are executed by the 17 consultant or advisor; 18 (1.5) After July 1, 1999, annual administrative 19 costs shall not include general overhead or 20 administrative costs of the municipality that would still 21 have been incurred by the municipality if the 22 municipality had not designated a redevelopment project 23 area or approved a redevelopment plan; 24 (1.6) The cost of marketing sites within the 25 redevelopment project area to prospective businesses, 26 developers, and investors; 27 (2) Property assembly costs, including but not 28 limited to acquisition of land and other property, real 29 or personal, or rights or interests therein, demolition 30 of buildings, site preparation, site improvements that 31 serve as an engineered barrier addressing ground level or 32 below ground environmental contamination, including, but 33 not limited to parking lots and other concrete or asphalt 34 barriers, and the clearing and grading of land; SB1854 Enrolled -308- LRB9215370EGfg 1 (3) Costs of rehabilitation, reconstruction or 2 repair or remodeling of existing public or private 3 buildings, fixtures, and leasehold improvements; and the 4 cost of replacing an existing public building if pursuant 5 to the implementation of a redevelopment project the 6 existing public building is to be demolished to use the 7 site for private investment or devoted to a different use 8 requiring private investment; 9 (4) Costs of the construction of public works or 10 improvements, except that on and after November 1, 1999, 11 redevelopment project costs shall not include the cost of 12 constructing a new municipal public building principally 13 used to provide offices, storage space, or conference 14 facilities or vehicle storage, maintenance, or repair for 15 administrative, public safety, or public works personnel 16 and that is not intended to replace an existing public 17 building as provided under paragraph (3) of subsection 18 (q) of Section 11-74.4-3 unless either (i) the 19 construction of the new municipal building implements a 20 redevelopment project that was included in a 21 redevelopment plan that was adopted by the municipality 22 prior to November 1, 1999 or (ii) the municipality makes 23 a reasonable determination in the redevelopment plan, 24 supported by information that provides the basis for that 25 determination, that the new municipal building is 26 required to meet an increase in the need for public 27 safety purposes anticipated to result from the 28 implementation of the redevelopment plan; 29 (5) Costs of job training and retraining projects, 30 including the cost of "welfare to work" programs 31 implemented by businesses located within the 32 redevelopment project area; 33 (6) Financing costs, including but not limited to 34 all necessary and incidental expenses related to the SB1854 Enrolled -309- LRB9215370EGfg 1 issuance of obligations and which may include payment of 2 interest on any obligations issued hereunder including 3 interest accruing during the estimated period of 4 construction of any redevelopment project for which such 5 obligations are issued and for not exceeding 36 months 6 thereafter and including reasonable reserves related 7 thereto; 8 (7) To the extent the municipality by written 9 agreement accepts and approves the same, all or a portion 10 of a taxing district's capital costs resulting from the 11 redevelopment project necessarily incurred or to be 12 incurred within a taxing district in furtherance of the 13 objectives of the redevelopment plan and project. 14 (7.5) For redevelopment project areas designated 15 (or redevelopment project areas amended to add or 16 increase the number of tax-increment-financing assisted 17 housing units) on or after November 1, 1999, an 18 elementary, secondary, or unit school district's 19 increased costs attributable to assisted housing units 20 located within the redevelopment project area for which 21 the developer or redeveloper receives financial 22 assistance through an agreement with the municipality or 23 because the municipality incurs the cost of necessary 24 infrastructure improvements within the boundaries of the 25 assisted housing sites necessary for the completion of 26 that housing as authorized by this Act, and which costs 27 shall be paid by the municipality from the Special Tax 28 Allocation Fund when the tax increment revenue is 29 received as a result of the assisted housing units and 30 shall be calculated annually as follows: 31 (A) for foundation districts, excluding any 32 school district in a municipality with a population 33 in excess of 1,000,000, by multiplying the 34 district's increase in attendance resulting from the SB1854 Enrolled -310- LRB9215370EGfg 1 net increase in new students enrolled in that school 2 district who reside in housing units within the 3 redevelopment project area that have received 4 financial assistance through an agreement with the 5 municipality or because the municipality incurs the 6 cost of necessary infrastructure improvements within 7 the boundaries of the housing sites necessary for 8 the completion of that housing as authorized by this 9 Act since the designation of the redevelopment 10 project area by the most recently available per 11 capita tuition cost as defined in Section 10-20.12a 12 of the School Code less any increase in general 13 State aid as defined in Section 18-8.05 of the 14 School Code attributable to these added new students 15 subject to the following annual limitations: 16 (i) for unit school districts with a 17 district average 1995-96 Per Capita Tuition 18 Charge of less than $5,900, no more than 25% of 19 the total amount of property tax increment 20 revenue produced by those housing units that 21 have received tax increment finance assistance 22 under this Act; 23 (ii) for elementary school districts with 24 a district average 1995-96 Per Capita Tuition 25 Charge of less than $5,900, no more than 17% of 26 the total amount of property tax increment 27 revenue produced by those housing units that 28 have received tax increment finance assistance 29 under this Act; and 30 (iii) for secondary school districts with 31 a district average 1995-96 Per Capita Tuition 32 Charge of less than $5,900, no more than 8% of 33 the total amount of property tax increment 34 revenue produced by those housing units that SB1854 Enrolled -311- LRB9215370EGfg 1 have received tax increment finance assistance 2 under this Act. 3 (B) For alternate method districts, flat grant 4 districts, and foundation districts with a district 5 average 1995-96 Per Capita Tuition Charge equal to 6 or more than $5,900, excluding any school district 7 with a population in excess of 1,000,000, by 8 multiplying the district's increase in attendance 9 resulting from the net increase in new students 10 enrolled in that school district who reside in 11 housing units within the redevelopment project area 12 that have received financial assistance through an 13 agreement with the municipality or because the 14 municipality incurs the cost of necessary 15 infrastructure improvements within the boundaries of 16 the housing sites necessary for the completion of 17 that housing as authorized by this Act since the 18 designation of the redevelopment project area by the 19 most recently available per capita tuition cost as 20 defined in Section 10-20.12a of the School Code less 21 any increase in general state aid as defined in 22 Section 18-8.05 of the School Code attributable to 23 these added new students subject to the following 24 annual limitations: 25 (i) for unit school districts, no more 26 than 40% of the total amount of property tax 27 increment revenue produced by those housing 28 units that have received tax increment finance 29 assistance under this Act; 30 (ii) for elementary school districts, no 31 more than 27% of the total amount of property 32 tax increment revenue produced by those housing 33 units that have received tax increment finance 34 assistance under this Act; and SB1854 Enrolled -312- LRB9215370EGfg 1 (iii) for secondary school districts, no 2 more than 13% of the total amount of property 3 tax increment revenue produced by those housing 4 units that have received tax increment finance 5 assistance under this Act. 6 (C) For any school district in a municipality 7 with a population in excess of 1,000,000, the 8 following restrictions shall apply to the 9 reimbursement of increased costs under this 10 paragraph (7.5): 11 (i) no increased costs shall be 12 reimbursed unless the school district certifies 13 that each of the schools affected by the 14 assisted housing project is at or over its 15 student capacity; 16 (ii) the amount reimburseable shall be 17 reduced by the value of any land donated to the 18 school district by the municipality or 19 developer, and by the value of any physical 20 improvements made to the schools by the 21 municipality or developer; and 22 (iii) the amount reimbursed may not 23 affect amounts otherwise obligated by the terms 24 of any bonds, notes, or other funding 25 instruments, or the terms of any redevelopment 26 agreement. 27 Any school district seeking payment under this 28 paragraph (7.5) shall, after July 1 and before 29 September 30 of each year, provide the municipality 30 with reasonable evidence to support its claim for 31 reimbursement before the municipality shall be 32 required to approve or make the payment to the 33 school district. If the school district fails to 34 provide the information during this period in any SB1854 Enrolled -313- LRB9215370EGfg 1 year, it shall forfeit any claim to reimbursement 2 for that year. School districts may adopt a 3 resolution waiving the right to all or a portion of 4 the reimbursement otherwise required by this 5 paragraph (7.5). By acceptance of this 6 reimbursement the school district waives the right 7 to directly or indirectly set aside, modify, or 8 contest in any manner the establishment of the 9 redevelopment project area or projects; 10 (8) Relocation costs to the extent that a 11 municipality determines that relocation costs shall be 12 paid or is required to make payment of relocation costs 13 by federal or State law or in order to satisfy 14 subparagraph (7) of subsection (n); 15 (9) Payment in lieu of taxes; 16 (10) Costs of job training, retraining, advanced 17 vocational education or career education, including but 18 not limited to courses in occupational, semi-technical or 19 technical fields leading directly to employment, incurred 20 by one or more taxing districts, provided that such costs 21 (i) are related to the establishment and maintenance of 22 additional job training, advanced vocational education or 23 career education programs for persons employed or to be 24 employed by employers located in a redevelopment project 25 area; and (ii) when incurred by a taxing district or 26 taxing districts other than the municipality, are set 27 forth in a written agreement by or among the municipality 28 and the taxing district or taxing districts, which 29 agreement describes the program to be undertaken, 30 including but not limited to the number of employees to 31 be trained, a description of the training and services to 32 be provided, the number and type of positions available 33 or to be available, itemized costs of the program and 34 sources of funds to pay for the same, and the term of the SB1854 Enrolled -314- LRB9215370EGfg 1 agreement. Such costs include, specifically, the payment 2 by community college districts of costs pursuant to 3 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public 4 Community College Act and by school districts of costs 5 pursuant to Sections 10-22.20a and 10-23.3a of The School 6 Code; 7 (11) Interest cost incurred by a redeveloper 8 related to the construction, renovation or rehabilitation 9 of a redevelopment project provided that: 10 (A) such costs are to be paid directly from 11 the special tax allocation fund established pursuant 12 to this Act; 13 (B) such payments in any one year may not 14 exceed 30% of the annual interest costs incurred by 15 the redeveloper with regard to the redevelopment 16 project during that year; 17 (C) if there are not sufficient funds 18 available in the special tax allocation fund to make 19 the payment pursuant to this paragraph (11) then the 20 amounts so due shall accrue and be payable when 21 sufficient funds are available in the special tax 22 allocation fund; 23 (D) the total of such interest payments paid 24 pursuant to this Act may not exceed 30% of the total 25 (i) cost paid or incurred by the redeveloper for the 26 redevelopment project plus (ii) redevelopment 27 project costs excluding any property assembly costs 28 and any relocation costs incurred by a municipality 29 pursuant to this Act; and 30 (E) the cost limits set forth in subparagraphs 31 (B) and (D) of paragraph (11) shall be modified for 32 the financing of rehabilitated or new housing units 33 for low-income households and very low-income 34 households, as defined in Section 3 of the Illinois SB1854 Enrolled -315- LRB9215370EGfg 1 Affordable Housing Act. The percentage of 75% shall 2 be substituted for 30% in subparagraphs (B) and (D) 3 of paragraph (11). 4 (F) Instead of the eligible costs provided by 5 subparagraphs (B) and (D) of paragraph (11), as 6 modified by this subparagraph, and notwithstanding 7 any other provisions of this Act to the contrary, 8 the municipality may pay from tax increment revenues 9 up to 50% of the cost of construction of new housing 10 units to be occupied by low-income households and 11 very low-income households as defined in Section 3 12 of the Illinois Affordable Housing Act. The cost of 13 construction of those units may be derived from the 14 proceeds of bonds issued by the municipality under 15 this Act or other constitutional or statutory 16 authority or from other sources of municipal revenue 17 that may be reimbursed from tax increment revenues 18 or the proceeds of bonds issued to finance the 19 construction of that housing. 20 The eligible costs provided under this 21 subparagraph (F) of paragraph (11) shall be an 22 eligible cost for the construction, renovation, and 23 rehabilitation of all low and very low-income 24 housing units, as defined in Section 3 of the 25 Illinois Affordable Housing Act, within the 26 redevelopment project area. If the low and very 27 low-income units are part of a residential 28 redevelopment project that includes units not 29 affordable to low and very low-income households, 30 only the low and very low-income units shall be 31 eligible for benefits under subparagraph (F) of 32 paragraph (11). The standards for maintaining the 33 occupancy by low-income households and very 34 low-income households, as defined in Section 3 of SB1854 Enrolled -316- LRB9215370EGfg 1 the Illinois Affordable Housing Act, of those units 2 constructed with eligible costs made available under 3 the provisions of this subparagraph (F) of paragraph 4 (11) shall be established by guidelines adopted by 5 the municipality. The responsibility for annually 6 documenting the initial occupancy of the units by 7 low-income households and very low-income 8 households, as defined in Section 3 of the Illinois 9 Affordable Housing Act, shall be that of the then 10 current owner of the property. For ownership units, 11 the guidelines will provide, at a minimum, for a 12 reasonable recapture of funds, or other appropriate 13 methods designed to preserve the original 14 affordability of the ownership units. For rental 15 units, the guidelines will provide, at a minimum, 16 for the affordability of rent to low and very 17 low-income households. As units become available, 18 they shall be rented to income-eligible tenants. The 19 municipality may modify these guidelines from time 20 to time; the guidelines, however, shall be in effect 21 for as long as tax increment revenue is being used 22 to pay for costs associated with the units or for 23 the retirement of bonds issued to finance the units 24 or for the life of the redevelopment project area, 25 whichever is later. 26 (11.5) If the redevelopment project area is located 27 within a municipality with a population of more than 28 100,000, the cost of day care services for children of 29 employees from low-income families working for businesses 30 located within the redevelopment project area and all or 31 a portion of the cost of operation of day care centers 32 established by redevelopment project area businesses to 33 serve employees from low-income families working in 34 businesses located in the redevelopment project area. SB1854 Enrolled -317- LRB9215370EGfg 1 For the purposes of this paragraph, "low-income families" 2 means families whose annual income does not exceed 80% of 3 the municipal, county, or regional median income, 4 adjusted for family size, as the annual income and 5 municipal, county, or regional median income are 6 determined from time to time by the United States 7 Department of Housing and Urban Development. 8 (12) Unless explicitly stated herein the cost of 9 construction of new privately-owned buildings shall not 10 be an eligible redevelopment project cost. 11 (13) After November 1, 1999 (the effective date of 12 Public Act 91-478), none of the redevelopment project 13 costs enumerated in this subsection shall be eligible 14 redevelopment project costs if those costs would provide 15 direct financial support to a retail entity initiating 16 operations in the redevelopment project area while 17 terminating operations at another Illinois location 18 within 10 miles of the redevelopment project area but 19 outside the boundaries of the redevelopment project area 20 municipality. For purposes of this paragraph, 21 termination means a closing of a retail operation that is 22 directly related to the opening of the same operation or 23 like retail entity owned or operated by more than 50% of 24 the original ownership in a redevelopment project area, 25 but it does not mean closing an operation for reasons 26 beyond the control of the retail entity, as documented by 27 the retail entity, subject to a reasonable finding by the 28 municipality that the current location contained 29 inadequate space, had become economically obsolete, or 30 was no longer a viable location for the retailer or 31 serviceman. 32 If a special service area has been established pursuant 33 to the Special Service Area Tax Act or Special Service Area 34 Tax Law, then any tax increment revenues derived from the tax SB1854 Enrolled -318- LRB9215370EGfg 1 imposed pursuant to the Special Service Area Tax Act or 2 Special Service Area Tax Law may be used within the 3 redevelopment project area for the purposes permitted by that 4 Act or Law as well as the purposes permitted by this Act. 5 (r) "State Sales Tax Boundary" means the redevelopment 6 project area or the amended redevelopment project area 7 boundaries which are determined pursuant to subsection (9) of 8 Section 11-74.4-8a of this Act. The Department of Revenue 9 shall certify pursuant to subsection (9) of Section 10 11-74.4-8a the appropriate boundaries eligible for the 11 determination of State Sales Tax Increment. 12 (s) "State Sales Tax Increment" means an amount equal to 13 the increase in the aggregate amount of taxes paid by 14 retailers and servicemen, other than retailers and servicemen 15 subject to the Public Utilities Act, on transactions at 16 places of business located within a State Sales Tax Boundary 17 pursuant to the Retailers' Occupation Tax Act, the Use Tax 18 Act, the Service Use Tax Act, and the Service Occupation Tax 19 Act, except such portion of such increase that is paid into 20 the State and Local Sales Tax Reform Fund, the Local 21 Government Distributive Fund, the Local Government Tax 22 Fund and the County and Mass Transit District Fund, for as 23 long as State participation exists, over and above the 24 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts 25 or the Revised Initial Sales Tax Amounts for such taxes as 26 certified by the Department of Revenue and paid under those 27 Acts by retailers and servicemen on transactions at places of 28 business located within the State Sales Tax Boundary during 29 the base year which shall be the calendar year immediately 30 prior to the year in which the municipality adopted tax 31 increment allocation financing, less 3.0% of such amounts 32 generated under the Retailers' Occupation Tax Act, Use Tax 33 Act and Service Use Tax Act and the Service Occupation Tax 34 Act, which sum shall be appropriated to the Department of SB1854 Enrolled -319- LRB9215370EGfg 1 Revenue to cover its costs of administering and enforcing 2 this Section. For purposes of computing the aggregate amount 3 of such taxes for base years occurring prior to 1985, the 4 Department of Revenue shall compute the Initial Sales Tax 5 Amount for such taxes and deduct therefrom an amount equal to 6 4% of the aggregate amount of taxes per year for each year 7 the base year is prior to 1985, but not to exceed a total 8 deduction of 12%. The amount so determined shall be known as 9 the "Adjusted Initial Sales Tax Amount". For purposes of 10 determining the State Sales Tax Increment the Department of 11 Revenue shall for each period subtract from the tax amounts 12 received from retailers and servicemen on transactions 13 located in the State Sales Tax Boundary, the certified 14 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts 15 or Revised Initial Sales Tax Amounts for the Retailers' 16 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act 17 and the Service Occupation Tax Act. For the State Fiscal 18 Year 1989 this calculation shall be made by utilizing the 19 calendar year 1987 to determine the tax amounts received. For 20 the State Fiscal Year 1990, this calculation shall be made by 21 utilizing the period from January 1, 1988, until September 22 30, 1988, to determine the tax amounts received from 23 retailers and servicemen, which shall have deducted therefrom 24 nine-twelfths of the certified Initial Sales Tax Amounts, 25 Adjusted Initial Sales Tax Amounts or the Revised Initial 26 Sales Tax Amounts as appropriate. For the State Fiscal Year 27 1991, this calculation shall be made by utilizing the period 28 from October 1, 1988, until June 30, 1989, to determine the 29 tax amounts received from retailers and servicemen, which 30 shall have deducted therefrom nine-twelfths of the certified 31 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax 32 Amounts or the Revised Initial Sales Tax Amounts as 33 appropriate. For every State Fiscal Year thereafter, the 34 applicable period shall be the 12 months beginning July 1 and SB1854 Enrolled -320- LRB9215370EGfg 1 ending on June 30, to determine the tax amounts received 2 which shall have deducted therefrom the certified Initial 3 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the 4 Revised Initial Sales Tax Amounts. Municipalities intending 5 to receive a distribution of State Sales Tax Increment must 6 report a list of retailers to the Department of Revenue by 7 October 31, 1988 and by July 31, of each year thereafter. 8 (t) "Taxing districts" means counties, townships, cities 9 and incorporated towns and villages, school, road, park, 10 sanitary, mosquito abatement, forest preserve, public health, 11 fire protection, river conservancy, tuberculosis sanitarium 12 and any other municipal corporations or districts with the 13 power to levy taxes. 14 (u) "Taxing districts' capital costs" means those costs 15 of taxing districts for capital improvements that are found 16 by the municipal corporate authorities to be necessary and 17 directly result from the redevelopment project. 18 (v) As used in subsection (a) of Section 11-74.4-3 of 19 this Act, "vacant land" means any parcel or combination of 20 parcels of real property without industrial, commercial, and 21 residential buildings which has not been used for commercial 22 agricultural purposes within 5 years prior to the designation 23 of the redevelopment project area, unless the parcel is 24 included in an industrial park conservation area or the 25 parcel has been subdivided; provided that if the parcel was 26 part of a larger tract that has been divided into 3 or more 27 smaller tracts that were accepted for recording during the 28 period from 1950 to 1990, then the parcel shall be deemed to 29 have been subdivided, and all proceedings and actions of the 30 municipality taken in that connection with respect to any 31 previously approved or designated redevelopment project area 32 or amended redevelopment project area are hereby validated 33 and hereby declared to be legally sufficient for all purposes 34 of this Act. For purposes of this Section and only for land SB1854 Enrolled -321- LRB9215370EGfg 1 subject to the subdivision requirements of the Plat Act, land 2 is subdivided when the original plat of the proposed 3 Redevelopment Project Area or relevant portion thereof has 4 been properly certified, acknowledged, approved, and recorded 5 or filed in accordance with the Plat Act and a preliminary 6 plat, if any, for any subsequent phases of the proposed 7 Redevelopment Project Area or relevant portion thereof has 8 been properly approved and filed in accordance with the 9 applicable ordinance of the municipality. 10 (w) "Annual Total Increment" means the sum of each 11 municipality's annual Net Sales Tax Increment and each 12 municipality's annual Net Utility Tax Increment. The ratio 13 of the Annual Total Increment of each municipality to the 14 Annual Total Increment for all municipalities, as most 15 recently calculated by the Department, shall determine the 16 proportional shares of the Illinois Tax Increment Fund to be 17 distributed to each municipality. 18 (Source: P.A. 91-261, eff. 7-23-99; 91-477, eff. 8-11-99; 19 91-478, eff. 11-1-99; 91-642, eff. 8-20-99; 91-763, eff. 20 6-9-00; 92-263, eff. 8-7-01; 92-406, eff. 1-1-02; revised 21 9-19-01.) 22 (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7) 23 Sec. 11-74.4-7. Obligations secured by the special tax 24 allocation fund set forth in Section 11-74.4-8 for the 25 redevelopment project area may be issued to provide for 26 redevelopment project costs. Such obligations, when so 27 issued, shall be retired in the manner provided in the 28 ordinance authorizing the issuance of such obligations by the 29 receipts of taxes levied as specified in Section 11-74.4-9 30 against the taxable property included in the area, by 31 revenues as specified by Section 11-74.4-8a and other revenue 32 designated by the municipality. A municipality may in the 33 ordinance pledge all or any part of the funds in and to be SB1854 Enrolled -322- LRB9215370EGfg 1 deposited in the special tax allocation fund created pursuant 2 to Section 11-74.4-8 to the payment of the redevelopment 3 project costs and obligations. Any pledge of funds in the 4 special tax allocation fund shall provide for distribution to 5 the taxing districts and to the Illinois Department of 6 Revenue of moneys not required, pledged, earmarked, or 7 otherwise designated for payment and securing of the 8 obligations and anticipated redevelopment project costs and 9 such excess funds shall be calculated annually and deemed to 10 be "surplus" funds. In the event a municipality only applies 11 or pledges a portion of the funds in the special tax 12 allocation fund for the payment or securing of anticipated 13 redevelopment project costs or of obligations, any such funds 14 remaining in the special tax allocation fund after complying 15 with the requirements of the application or pledge, shall 16 also be calculated annually and deemed "surplus" funds. All 17 surplus funds in the special tax allocation fund shall be 18 distributed annually within 180 days after the close of the 19 municipality's fiscal year by being paid by the municipal 20 treasurer to the County Collector, to the Department of 21 Revenue and to the municipality in direct proportion to the 22 tax incremental revenue received as a result of an increase 23 in the equalized assessed value of property in the 24 redevelopment project area, tax incremental revenue received 25 from the State and tax incremental revenue received from the 26 municipality, but not to exceed as to each such source the 27 total incremental revenue received from that source. The 28 County Collector shall thereafter make distribution to the 29 respective taxing districts in the same manner and proportion 30 as the most recent distribution by the county collector to 31 the affected districts of real property taxes from real 32 property in the redevelopment project area. 33 Without limiting the foregoing in this Section, the 34 municipality may in addition to obligations secured by the SB1854 Enrolled -323- LRB9215370EGfg 1 special tax allocation fund pledge for a period not greater 2 than the term of the obligations towards payment of such 3 obligations any part or any combination of the following: (a) 4 net revenues of all or part of any redevelopment project; (b) 5 taxes levied and collected on any or all property in the 6 municipality; (c) the full faith and credit of the 7 municipality; (d) a mortgage on part or all of the 8 redevelopment project; or (e) any other taxes or anticipated 9 receipts that the municipality may lawfully pledge. 10 Such obligations may be issued in one or more series 11 bearing interest at such rate or rates as the corporate 12 authorities of the municipality shall determine by ordinance. 13 Such obligations shall bear such date or dates, mature at 14 such time or times not exceeding 20 years from their 15 respective dates, be in such denomination, carry such 16 registration privileges, be executed in such manner, be 17 payable in such medium of payment at such place or places, 18 contain such covenants, terms and conditions, and be subject 19 to redemption as such ordinance shall provide. Obligations 20 issued pursuant to this Act may be sold at public or private 21 sale at such price as shall be determined by the corporate 22 authorities of the municipalities. No referendum approval of 23 the electors shall be required as a condition to the issuance 24 of obligations pursuant to this Division except as provided 25 in this Section. 26 In the event the municipality authorizes issuance of 27 obligations pursuant to the authority of this Division 28 secured by the full faith and credit of the municipality, 29 which obligations are other than obligations which may be 30 issued under home rule powers provided by Article VII, 31 Section 6 of the Illinois Constitution, or pledges taxes 32 pursuant to (b) or (c) of the second paragraph of this 33 section, the ordinance authorizing the issuance of such 34 obligations or pledging such taxes shall be published within SB1854 Enrolled -324- LRB9215370EGfg 1 10 days after such ordinance has been passed in one or more 2 newspapers, with general circulation within such 3 municipality. The publication of the ordinance shall be 4 accompanied by a notice of (1) the specific number of voters 5 required to sign a petition requesting the question of the 6 issuance of such obligations or pledging taxes to be 7 submitted to the electors; (2) the time in which such 8 petition must be filed; and (3) the date of the prospective 9 referendum. The municipal clerk shall provide a petition 10 form to any individual requesting one. 11 If no petition is filed with the municipal clerk, as 12 hereinafter provided in this Section, within 30 days after 13 the publication of the ordinance, the ordinance shall be in 14 effect. But, if within that 30 day period a petition is 15 filed with the municipal clerk, signed by electors in the 16 municipality numbering 10% or more of the number of 17 registered voters in the municipality, asking that the 18 question of issuing obligations using full faith and credit 19 of the municipality as security for the cost of paying for 20 redevelopment project costs, or of pledging taxes for the 21 payment of such obligations, or both, be submitted to the 22 electors of the municipality, the corporate authorities of 23 the municipality shall call a special election in the manner 24 provided by law to vote upon that question, or, if a general, 25 State or municipal election is to be held within a period of 26 not less than 30 or more than 90 days from the date such 27 petition is filed, shall submit the question at the next 28 general, State or municipal election. If it appears upon the 29 canvass of the election by the corporate authorities that a 30 majority of electors voting upon the question voted in favor 31 thereof, the ordinance shall be in effect, but if a majority 32 of the electors voting upon the question are not in favor 33 thereof, the ordinance shall not take effect. 34 The ordinance authorizing the obligations may provide SB1854 Enrolled -325- LRB9215370EGfg 1 that the obligations shall contain a recital that they are 2 issued pursuant to this Division, which recital shall be 3 conclusive evidence of their validity and of the regularity 4 of their issuance. 5 In the event the municipality authorizes issuance of 6 obligations pursuant to this Section secured by the full 7 faith and credit of the municipality, the ordinance 8 authorizing the obligations may provide for the levy and 9 collection of a direct annual tax upon all taxable property 10 within the municipality sufficient to pay the principal 11 thereof and interest thereon as it matures, which levy may be 12 in addition to and exclusive of the maximum of all other 13 taxes authorized to be levied by the municipality, which 14 levy, however, shall be abated to the extent that monies from 15 other sources are available for payment of the obligations 16 and the municipality certifies the amount of said monies 17 available to the county clerk. 18 A certified copy of such ordinance shall be filed with 19 the county clerk of each county in which any portion of the 20 municipality is situated, and shall constitute the authority 21 for the extension and collection of the taxes to be deposited 22 in the special tax allocation fund. 23 A municipality may also issue its obligations to refund 24 in whole or in part, obligations theretofore issued by such 25 municipality under the authority of this Act, whether at or 26 prior to maturity, provided however, that the last maturity 27 of the refunding obligations shall not be expressed to mature 28 later than December 31 of the year in which the payment to 29 the municipal treasurer as provided in subsection (b) of 30 Section 11-74.4-8 of this Act is to be made with respect to 31 ad valorem taxes levied in the twenty-third calendar year 32 after the year in which the ordinance approving the 33 redevelopment project area is adopted if the ordinance was 34 adopted on or after January 15, 1981, and not later than SB1854 Enrolled -326- LRB9215370EGfg 1 December 31 of the year in which the payment to the municipal 2 treasurer as provided in subsection (b) of Section 11-74.4-8 3 of this Act is to be made with respect to ad valorem taxes 4 levied in the thirty-fifth calendar year after the year in 5 which the ordinance approving the redevelopment project area 6 is adopted (A) if the ordinance was adopted before January 7 15, 1981, or (B) if the ordinance was adopted in December 8 1983, April 1984, July 1985, or December 1989, or (C) if the 9 ordinance was adopted in December, 1987 and the redevelopment 10 project is located within one mile of Midway Airport, or (D) 11 if the ordinance was adopted before January 1, 1987 by a 12 municipality in Mason County, or (E) if the municipality is 13 subject to the Local Government Financial Planning and 14 Supervision Act or the Financially Distressed City Law, or 15 (F) if the ordinance was adopted in December 1984 by the 16 Village of Rosemont, or (G) if the ordinance was adopted on 17 December 31, 1986 by a municipality located in Clinton County 18 for which at least $250,000 of tax increment bonds were 19 authorized on June 17, 1997, or if the ordinance was adopted 20 on December 31, 1986 by a municipality with a population in 21 1990 of less than 3,600 that is located in a county with a 22 population in 1990 of less than 34,000 and for which at least 23 $250,000 of tax increment bonds were authorized on June 17, 24 1997, or (H) if the ordinance was adopted on October 5, 1982 25 by the City of Kankakee, or (I) if the ordinance was adopted 26 on December 29, 1986 by East St. Louis, or if the ordinance 27 was adopted on November 12, 1991 by the Village of Sauget, or 28 (J) if the ordinance was adopted on February 11, 1985 by the 29 City of Rock Island, or (K) if the ordinance was adopted 30 before December 18, 1986 by the City of Moline, or (L) if the 31 ordinance was adopted in September 1988 by Sauk Village, or 32 (M) if the ordinance was adopted in October 1993 by Sauk 33 Village, or (N) if the ordinance was adopted on December 29, 34 1986 by the City of Galva, or (O) if the ordinance was SB1854 Enrolled -327- LRB9215370EGfg 1 adopted in March 1991 by the City of Centreville, or (P)(L)2 if the ordinance was adopted on January 23, 1991 by the City 3 of East St. Louis and, for redevelopment project areas for 4 which bonds were issued before July 29, 1991, in connection 5 with a redevelopment project in the area within the State 6 Sales Tax Boundary and which were extended by municipal 7 ordinance under subsection (n) of Section 11-74.4-3, the last 8 maturity of the refunding obligations shall not be expressed 9 to mature later than the date on which the redevelopment 10 project area is terminated or December 31, 2013, whichever 11 date occurs first. 12 In the event a municipality issues obligations under home 13 rule powers or other legislative authority the proceeds of 14 which are pledged to pay for redevelopment project costs, the 15 municipality may, if it has followed the procedures in 16 conformance with this division, retire said obligations from 17 funds in the special tax allocation fund in amounts and in 18 such manner as if such obligations had been issued pursuant 19 to the provisions of this division. 20 All obligations heretofore or hereafter issued pursuant 21 to this Act shall not be regarded as indebtedness of the 22 municipality issuing such obligations or any other taxing 23 district for the purpose of any limitation imposed by law. 24 (Source: P.A. 91-261, eff. 7-23-99; 91-477, eff. 8-11-99; 25 91-478, eff. 11-1-99; 91-642, eff. 8-20-99; 91-763, eff. 26 6-9-00; 92-263, eff. 8-7-01; 92-406, eff. 1-1-02; revised 27 10-10-01.) 28 (65 ILCS 5/11-95-7) (from Ch. 24, par. 11-95-7) 29 Sec. 11-95-7. Whenever a petition signed by at least 10% 30 of the electors of a municipality with a population of less 31 than 500,000 is filed with the municipal clerk the municipal 32 clerk shall certify the question of the establishment, 33 maintenance, and conduct of a recreation system for SB1854 Enrolled -328- LRB9215370EGfg 1 submission to the electors at an election in accordance with 2 the general election law.to the electors.The petition 3 shall request the corporate authorities of the municipality 4 to establish, maintain, and conduct a supervised recreation 5 system and to levy an annual tax for the establishment, 6 conduct, and maintenance thereof. The petition shall 7 designate the minimum tax to be levied except that in no case 8 shall the tax be more than 0.09%.09%of the value, as 9 equalized or assessed by the Department of Revenue, of all 10 taxable property within the corporate limits of the 11 municipality. 12 The corporate authorities may accumulate funds from the 13 proceeds of such tax for the purpose of building, repairs and 14 improvements for recreation purposes in excess of current 15 requirements for such purposes but subject to the limitation 16 set herein. 17 (Source: P.A. 81-1489; 81-1509; revised 12-13-01.) 18 Section 35. The Metropolitan Water Reclamation District 19 Act is amended by setting forth and renumbering multiple 20 versions of Sections 283 and 285 as follows: 21 (70 ILCS 2605/283) 22 Sec. 283. District enlarged. Upon the effective date of 23 this amendatory Act of the 91st General Assembly, the 24 corporate limits of the Metropolitan Water Reclamation 25 District Act are extended to include within those limits the 26 following described tract of land, and that tract is annexed 27 to the District. 28 THAT PART OF SECTIONS 21, 28 AND 33, TOWNSHIP 42 NORTH, 29 RANGE 9 EAST OF THE THIRD PRINCIPAL MERIDIAN DESCRIBED AS 30 FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF THE 31 NORTHEAST QUARTER OF SAID SECTION 28; THENCE SOUTH 00 32 DEGREES 19 MINUTES 35 SECONDS EAST ALONG THE EAST LINE OF SB1854 Enrolled -329- LRB9215370EGfg 1 THE SOUTHEAST QUARTER OF SAID SECTION 28, A DISTANCE OF 2 2624.22 FEET TO THE SOUTHEAST CORNER OF SAID SECTION 28; 3 THENCE SOUTH 00 DEGREES 04 MINUTES 45 SECONDS EAST ALONG 4 THE EAST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 5 33, A DISTANCE OF 643.38 FEET; THENCE SOUTH 89 DEGREES 40 6 MINUTES 35 SECONDS WEST, A DISTANCE OF 1079.11 FEET TO A 7 POINT ON A LINE 1079.10 FEET WEST OF AND PARALLEL WITH 8 THE EAST LINE OF SAID SECTION 33; THENCE SOUTH 00 DEGREES 9 04 MINUTES 45 SECONDS EAST ALONG SAID PARALLEL LINE, A 10 DISTANCE OF 281.47 FEET; THENCE NORTH 89 DEGREES 40 11 MINUTES 35 SECONDS EAST, A DISTANCE OF 1079.11 FEET TO A 12 POINT ON THE EAST LINE OF SAID SECTION 33; THENCE SOUTH 13 00 DEGREES 04 MINUTES 45 SECONDS EAST ALONG SAID EAST 14 LINE, A DISTANCE OF 1707.93 FEET TO THE SOUTHEAST CORNER 15 OF THE NORTHEAST QUARTER OF SAID SECTION 33; THENCE NORTH 16 89 DEGREES 58 MINUTES 22 SECONDS WEST ALONG THE SOUTH 17 LINE OF SAID NORTHEAST QUARTER, A DISTANCE OF 1079.10 18 FEET TO A POINT ON A LINE 1079.10 FEET WEST OF AND 19 PARALLEL WITH THE EAST LINE OF SAID SECTION 33; THENCE 20 NORTH 00 DEGREES 04 MINUTES 45 SECONDS WEST ALONG SAID 21 PARALLEL LINE, A DISTANCE OF 1313.07 FEET TO A POINT ON 22 THE SOUTH LINE OF THE NORTH HALF OF THE NORTHEAST QUARTER 23 OF SAID SECTION 33; THENCE SOUTH 89 DEGREES 51 MINUTES 05 24 SECONDS WEST ALONG THE SOUTH LINE OF THE NORTH HALF OF 25 SAID NORTHEAST QUARTER, A DISTANCE OF 1334.88 FEET; 26 THENCE NORTH 22 DEGREES 20 MINUTES 04 SECONDS EAST A 27 DISTANCE OF 241.05 FEET TO A POINT ON A NON-TANGENT 28 CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE 29 NORTHEASTERLY AND HAVING A RADIUS OF 165.00 FEET AND A 30 CHORD BEARING OF NORTH 42 DEGREES 58 MINUTES 45 SECONDS 31 WEST, AN ARC LENGTH OF 91.17 FEET TO A POINT ON A 32 NON-TANGENT LINE; THENCE SOUTH 62 DEGREES 51 MINUTES 00 33 SECONDS WEST, A DISTANCE OF 135.00 FEET; THENCE NORTH 50 34 DEGREES 00 MINUTES 12 SECONDS WEST, A DISTANCE OF 114.07 SB1854 Enrolled -330- LRB9215370EGfg 1 FEET TO A POINT ON THE EAST LINE OF ILLINOIS ROUTE 59; 2 THENCE NORTH 00 DEGREES 11 MINUTES 17 SECONDS WEST ALONG 3 SAID EAST LINE, A DISTANCE OF 523.87 FEET; THENCE SOUTH 4 84 DEGREES 58 MINUTES 24 SECONDS EAST, A DISTANCE OF 5 228.14 FEET TO A POINT ON A NON-TANGENT CURVE; THENCE 6 NORTHERLY ALONG A CURVE CONCAVE WESTERLY AND HAVING A 7 RADIUS OF 1501.93 FEET AND A CHORD BEARING OF NORTH 01 8 DEGREES 29 MINUTES 47 SECONDS WEST, AN ARC LENGTH OF 9 341.98 FEET; THENCE SOUTH 81 DEGREES 58 MINUTES 50 10 SECONDS WEST, A DISTANCE OF 221.47 FEET TO A POINT ON 11 SAID EASTERLY RIGHT OF WAY LINE OF ILLINOIS ROUTE 59; 12 THENCE NORTHERLY ALONG THE EAST LINE OF SAID ILLINOIS 13 ROUTE 59 FOR THE FOLLOWING EIGHT COURSES; (1) THENCE 14 NORTH 00 DEGREES 11 MINUTES 17 SECONDS WEST, A DISTANCE 15 OF 193.36 FEET TO A POINT ON THE SOUTH LINE OF SAID 16 SECTION 28; (2) THENCE NORTH 00 DEGREES 11 MINUTES 05 17 SECONDS WEST, A DISTANCE OF 2637.83 FEET TO A POINT ON 18 THE SOUTH LINE OF THE NORTH HALF OF SAID SECTION 28; (3) 19 THENCE NORTH 00 DEGREES 12 MINUTES 10 SECONDS WEST, A 20 DISTANCE OF 485.70 FEET TO A POINT ON A CURVE; (4) THENCE 21 NORTHERLY ALONG A NON-TANGENT CURVE CONCAVE EASTERLY 22 HAVING A RADIUS OF 4724.70 FEET AND A CHORD BEARING OF 23 NORTH 06 DEGREES 32 MINUTES 11 SECONDS EAST WITH AN ARC 24 LENGTH OF 1111.22; (5) THENCE NORTH 13 DEGREES 16 MINUTES 25 19 SECONDS EAST, A DISTANCE OF 303.90 FEET TO A POINT ON 26 A CURVE; (6) THENCE NORTHERLY ALONG A NON-TANGENT CURVE 27 CONCAVE WESTERLY HAVING A RADIUS OF 1482.40 FEET AND A 28 CHORD BEARING OF NORTH 06 DEGREES 58 MINUTES 21 SECONDS 29 WEST WITH AN ARC LENGTH OF 1047.56 FEET; (7) THENCE 30 NORTHERLY ALONG A NON-TANGENT CURVE CONCAVE EASTERLY 31 HAVING A RADIUS OF 2242.01 FEET AND A CHORD BEARING OF 32 NORTH 20 DEGREES 03 MINUTES 26 SECONDS EAST WITH AN ARC 33 LENGTH OF 384.99 FEET; (8) THENCE NORTH 24 DEGREES 58 34 MINUTES 30 SECONDS EAST, A DISTANCE OF 2212.09 FEET TO A SB1854 Enrolled -331- LRB9215370EGfg 1 POINT ON THE NORTH LINE OF THE SOUTH HALF OF SAID SECTION 2 21; THENCE SOUTH 89 DEGREES 51 MINUTES 08 SECONDS EAST 3 ALONG SAID NORTH LINE, A DISTANCE OF 533.41 FEET; THENCE 4 NORTH 00 DEGREES 21 MINUTES 39 SECONDS WEST, A DISTANCE 5 OF 1131.30 FEET TO A POINT ON THE EAST LINE OF SAID 6 ILLINOIS ROUTE 59; THENCE NORTHERLY ALONG SAID EAST LINE 7 FOR THE FOLLOWING 3 COURSES; (1) THENCE NORTH 24 DEGREES 8 58 MINUTES 30 SECONDS EAST, A DISTANCE OF 1195.93 FEET; 9 (2) THENCE NORTH 27 DEGREES 49 MINUTES 55 SECONDS EAST, A 10 DISTANCE OF 200.22 FEET; (3) THENCE NORTH 24 DEGREES 58 11 MINUTES 12 SECONDS EAST, A DISTANCE OF 257.37 FEET TO A 12 POINT ON THE NORTH LINE OF SAID SECTION 21; THENCE NORTH 13 89 DEGREES 57 MINUTES 47 SECONDS EAST ALONG SAID NORTH 14 LINE, A DISTANCE OF 134.37 FEET; THENCE SOUTH 36 DEGREES 15 57 MINUTES 24 SECONDS WEST, A DISTANCE OF 285.13 FEET; 16 THENCE SOUTH 00 DEGREES 14 MINUTES 47 SECONDS EAST, A 17 DISTANCE OF 600.00 FEET; THENCE SOUTH 82 DEGREES 06 18 MINUTES 19 SECONDS EAST, A DISTANCE OF 221.79 FEET TO A 19 POINT ON A CURVE BEING THE WEST LINE OF BARTLETT ROAD; 20 THENCE ALONG THE WEST LINE OF SAID BARTLETT ROAD FOR THE 21 FOLLOWING SEVEN COURSES; (1) THENCE SOUTHERLY ALONG A 22 NON-TANGENT CURVE CONCAVE EASTERLY HAVING A RADIUS OF 23 5779.65 FEET AND A CHORD BEARING OF SOUTH 06 DEGREES 40 24 MINUTES 43 SECONDS WEST WITH AN ARC LENGTH OF 182.71 25 FEET; (2) THENCE SOUTH 89 DEGREES 50 MINUTES 29 SECONDS 26 WEST, A DISTANCE OF 13.94 FEET; (3) THENCE SOUTH 00 27 DEGREES 09 MINUTES 31 SECONDS EAST, A DISTANCE OF 154.30 28 FEET TO A POINT ON A CURVE; (4) THENCE SOUTHERLY ALONG A 29 NON-TANGENT CURVE CONCAVE EASTERLY HAVING A RADIUS OF 30 5779.65 FEET AND A CHORD BEARING OF SOUTH 02 DEGREES 02 31 MINUTES 21 SECONDS WEST WITH AN ARC LENGTH 443.40 FEET; 32 (5) THENCE NORTH 89 DEGREES 50 MINUTES 29 SECONDS EAST, A 33 DISTANCE OF 17.00 FEET; (6) THENCE SOUTH 00 DEGREES 09 34 MINUTES 31 SECONDS EAST, A DISTANCE OF 991.17 FEET; (7) SB1854 Enrolled -332- LRB9215370EGfg 1 THENCE SOUTH 00 DEGREES 11 MINUTES 19 SECONDS EAST, A 2 DISTANCE OF 389.83 FEET; THENCE NORTH 89 DEGREES 48 3 MINUTES 41 SECONDS EAST, A DISTANCE OF 33.00 FEET TO A 4 POINT ON THE EAST LINE OF SAID SECTION 21; THENCE SOUTH 5 00 DEGREES 11 MINUTES 19 SECONDS EAST ALONG SAID EAST 6 LINE, A DISTANCE OF 2245.24 FEET TO THE NORTHEAST CORNER 7 OF SAID SECTION 28; THENCE NORTH 89 DEGREES 50 MINUTES 29 8 SECONDS WEST ALONG THE NORTH LINE OF SAID SECTION 28, A 9 DISTANCE OF 123.76 FEET TO A POINT ON A LINE 123.76 FEET 10 WEST OF AND PARALLEL WITH THE EAST LINE OF THE NORTHEAST 11 QUARTER OF SAID SECTION 28; THENCE SOUTH 00 DEGREES 27 12 MINUTES 50 SECONDS EAST ALONG SAID PARALLEL LINE; A 13 DISTANCE OF 173.25 FEET TO A POINT ON A LINE 173.24 FEET 14 SOUTH OF AND PARALLEL WITH THE NORTH LINE OF SAID SECTION 15 28; THENCE SOUTH 89 DEGREES 50 MINUTES 29 SECONDS EAST 16 ALONG SAID PARALLEL LINE, A DISTANCE OF 123.76 FEET TO A 17 POINT ON THE EAST LINE OF SAID SECTION 28; THENCE SOUTH 18 00 DEGREES 27 MINUTES 50 SECONDS EAST ALONG SAID EAST 19 LINE, A DISTANCE OF 2454.80 FEET TO THE POINT OF 20 BEGINNING, IN COOK COUNTY, ILLINOIS. 21 (Source: P.A. 91-945, eff. 2-9-01.) 22 (70 ILCS 2605/285) 23 Sec. 285. District enlarged. Upon the effective date of 24 this amendatory Act of the 91st General Assembly, the 25 corporate limits of the Metropolitan Water Reclamation 26 District Act are extended to include within those limits the 27 following described tracts of land, and those tracts are 28 annexed to the District. 29 PARCEL 2: 30 THAT PART OF THE SOUTHWEST 1/4 OF SECTION 30 LYING SOUTH 31 OF THE SOUTHERLY RIGHT OF WAY LINE OF ILLINOIS STATE 32 ROUTE 72, COMMONLY KNOWN AS NEW HIGGINS ROAD, (EXCEPT THE 33 WEST 190 FEET THEREOF) ALL IN TOWNSHIP 42 NORTH, RANGE 9, SB1854 Enrolled -333- LRB9215370EGfg 1 EAST OF THE THIRD PRINCIPAL MERIDIAN, 2 ALSO THE NORTHWEST 1/4 OF SECTION 31 (EXCEPT THE WEST 190 3 FEET THEREOF AND EXCEPT THE SOUTH 1501.64 FEET AS 4 MEASURED ALONG THE EAST AND WEST LINES THEREOF), ALL IN 5 TOWNSHIP 42 NORTH, RANGE 9, EAST OF THE THIRD PRINCIPAL 6 MERIDIAN, 7 ALSO COMMENCING AT THE NORTHWEST CORNER OF THE NORTHEAST 8 1/4 OF SECTION 31, TOWNSHIP 42 NORTH, RANGE 9, EAST OF 9 THE THIRD PRINCIPAL MERIDIAN, FOR A PLACE OF BEGINNING; 10 THENCE SOUTH 0 DEGREES 12 MINUTES WEST 2640.0 FEET TO A 11 FENCE CORNER AND THE CENTER OF SAID SECTION 31; THENCE 12 SOUTH 89 DEGREES 54 MINUTES EAST 2640.70 FEET TO THE 13 SOUTHEAST CORNER OF THE NORTHEAST 1/4 OF SAID SECTION 31; 14 THENCE NORTHERLY ALONG A FENCE LINE 1306.73 FEET TO A 15 FENCE CORNER; THENCE NORTH 89 DEGREES 20 MINUTES WEST 16 ALONG A FENCE LINE 1318.55 FEET TO THE CENTER LINE OF A 17 PUBLIC ROAD KNOWN AS BEVERLY LAKE ROAD; THENCE NORTH 0 18 DEGREES 14 MINUTES WEST ALONG THE CENTER OF SAID ROAD 19 958.02 FEET; THENCE NORTH 89 DEGREES 10 MINUTES WEST 20 ALONG A CYCLONE FENCE 218.60 FEET TO A FENCE CORNER; 21 THENCE NORTHERLY ALONG A CYCLONE FENCE 195.0 FEET TO A 22 RIGHT OF WAY MONUMENT; THENCE NORTH 80 DEGREES 40 MINUTES 23 WEST ALONG THE SOUTH RIGHT OF WAY OF ROUTE 72, 238.0 FEET 24 TO A RIGHT OF WAY MONUMENT; THENCE NORTH 78 DEGREES 35 25 MINUTES WEST ALONG THE SOUTH RIGHT OF ACCESS LINE OF SAID 26 ROUTE 72, 507.0 FEET TO A RIGHT OF WAY MONUMENT; THENCE 27 NORTH 76 DEGREES 12 MINUTES WEST ALONG THE SOUTH RIGHT OF 28 WAY OF ROUTE 72, 336.50 FEET TO A CONCRETE RIGHT OF WAY 29 MONUMENT ON THE WEST LINE OF THE SOUTHEAST 1/4 OF SECTION 30 30; THENCE SOUTH 0 DEGREES 12 MINUTES WEST 49.31 FEET TO 31 THE PLACE OF BEGINNING, 32 (EXCEPT THAT PART LYING EAST OF THE CENTER LINE OF 33 BEVERLY ROAD; 34 AND EXCEPT THAT PART FALLING WITHIN THE FOLLOWING SB1854 Enrolled -334- LRB9215370EGfg 1 DESCRIBED TRACT OF LAND: 2 BEGINNING AT THE INTERSECTION OF THE CENTER LINE OF 3 BEVERLY ROAD AND THE RIGHT OF WAY LINE OF HIGGINS ROAD IN 4 SECTION 31, TOWNSHIP 42 NORTH, RANGE 9, EAST OF THE THIRD 5 PRINCIPAL MERIDIAN; THENCE SOUTHERLY ALONG THE CENTER 6 LINE OF BEVERLY ROAD 165 FEET; THENCE WESTERLY 243.59 7 FEET; THENCE NORTHERLY 195.81 FEET TO THE SOUTH RIGHT OF 8 WAY LINE OF HIGGINS ROAD; THENCE SOUTHEASTERLY ALONG THE 9 SOUTH RIGHT OF WAY LINE OF HIGGINS ROAD TO THE PLACE OF 10 BEGINNING; 11 AND EXCEPT THAT PART DEDICATED FOR BEVERLY ROAD BY PLAT 12 OF DEDICATION RECORDED SEPTEMBER 16, 1988 AS DOCUMENT 13 88424906), 14 ALSO THE SOUTH 1501.64 FEET AS MEASURED ALONG THE EAST 15 AND WEST LINES OF THE NORTHWEST 1/4 OF SECTION 31 (EXCEPT 16 THE WEST 190 FEET THEREOF), ALL IN TOWNSHIP 42 NORTH, 17 RANGE 9, EAST OF THE THIRD PRINCIPAL MERIDIAN, 18 ALSO THE NORTHWEST 1/4 OF THE SOUTHEAST 1/4 AND THE NORTH 19 10 RODS OF THE SOUTHWEST 1/4 OF THE SOUTHEAST 1/4; THE 20 NORTH 1/2 OF THE SOUTHWEST 1/4 AND THE NORTH 10 RODS OF 21 THE SOUTHEAST 1/4 OF THE SOUTHWEST 1/4 ALL IN SECTION 31, 22 TOWNSHIP 42 NORTH, RANGE 9, EAST OF THE THIRD PRINCIPAL 23 MERIDIAN, (EXCEPT THEREFROM THE WEST 190 FEET OF THE 24 NORTHWEST 1/4 OF THE SOUTHWEST 1/4 OF SAID SECTION 31 AND 25 EXCEPT THE SOUTH 75.00 FEET OF THE WEST 211.00 FEET OF 26 THE EAST 370.75 FEET OF THE NORTHEAST 1/4 OF THE 27 SOUTHWEST 1/4 OF SECTION 31, TOWNSHIP 42 NORTH, RANGE 9, 28 EAST OF THE THIRD PRINCIPAL MERIDIAN, AND EXCEPT THE 29 NORTH 10 RODS (165.00 FEET) OF THE WEST 211.00 FEET OF 30 THE EAST 370.75 FEET OF THE SOUTHEAST 1/4 OF THE 31 SOUTHWEST 1/4 OF SECTION 31, TOWNSHIP 42 NORTH, RANGE 9, 32 EAST OF THE THIRD PRINCIPAL MERIDIAN, IN COOK COUNTY, 33 ILLINOIS. 34 ALSO THE SOUTHWEST 1/4 OF THE SOUTHWEST 1/4 OF SECTION SB1854 Enrolled -335- LRB9215370EGfg 1 31, TOWNSHIP 42 NORTH, RANGE 9, EAST OF THE THIRD 2 PRINCIPAL MERIDIAN (EXCEPT THE WEST 190 FEET THEREOF AND 3 EXCEPT THAT PART OF THE SOUTHWEST 1/4 OF SECTION 31, 4 TOWNSHIP 42 NORTH, RANGE 9, EAST OF THE THIRD PRINCIPAL 5 MERIDIAN, DESCRIBED AS BEGINNING AT A POINT ON THE SOUTH 6 LINE OF SAID SECTION WHICH IS 190.0 FEET EAST OF THE 7 SOUTHWEST CORNER OF SAID SECTION; THENCE NORTH ALONG A 8 STRAIGHT LINE 190.0 FEET EAST OF AND PARALLEL WITH THE 9 WEST LINE OF SAID SECTION FOR A DISTANCE OF 150.0 FEET; 10 THENCE SOUTHEASTERLY TO A POINT ON THE SOUTH LINE OF SAID 11 SECTION WHICH IS 250.0 FEET EAST OF THE POINT OF 12 BEGINNING; THENCE WEST ALONG THE SOUTH LINE OF SAID 13 SECTION 250.0 FEET TO THE POINT OF BEGINNING), IN COOK 14 COUNTY, ILLINOIS. 15 ALSO THAT PART OF THE SOUTHWEST 1/4 OF SECTION 31, 16 TOWNSHIP 42 NORTH, RANGE 9, EAST OF THE THIRD PRINCIPAL 17 MERIDIAN, DESCRIBED AS BEGINNING AT A POINT ON THE SOUTH 18 LINE OF SAID SECTION WHICH IS 190.0 FEET EAST OF THE 19 SOUTHWEST CORNER OF SAID SECTION; THENCE NORTH ALONG A 20 STRAIGHT LINE 190.0 FEET EAST OF AND PARALLEL WITH THE 21 WEST LINE OF SAID SECTION FOR A DISTANCE OF 150.0 FEET; 22 THENCE SOUTHEASTERLY TO A POINT ON THE SOUTH LINE OF SAID 23 SECTION WHICH IS 250.0 FEET EAST OF THE POINT OF 24 BEGINNING; THENCE WEST ALONG THE SOUTH LINE OF SAID 25 SECTION 250.0 FEET TO THE POINT OF BEGINNING, IN COOK 26 COUNTY, ILLINOIS. 27 ALSO THAT PART OF SECTION 5, TOWNSHIP 41 NORTH, RANGE 9, 28 EAST OF THE THIRD PRINCIPAL MERIDIAN, LYING NORTHERLY OF 29 THE NORTHERLY LINE OF PREMISES CONVEYED TO THE ILLINOIS 30 STATE TOLL HIGHWAY COMMISSION BY WARRANTY DEED DATED JUNE 31 11, 1956 AND RECORDED JUNE 12, 1956 AS DOCUMENT NUMBER 32 16607889 AND LYING EASTERLY OF THE PREMISES CONVEYED TO 33 COMMONWEALTH EDISON COMPANY BY WARRANTY DEED DATED 34 JANUARY 2, 1963 AND RECORDED JANUARY 7, 1963 AS DOCUMENT SB1854 Enrolled -336- LRB9215370EGfg 1 NUMBER 18690041, AND LYING WESTERLY OF THE EAST LINE OF 2 THE SOUTHWEST 1/4 OF THE SOUTHWEST 1/4 OF SECTION 31, 3 TOWNSHIP 42 NORTH, RANGE 9, EAST OF THE THIRD PRINCIPAL 4 MERIDIAN, EXTENDED SOUTHERLY TO THE AFORESAID NORTHERLY 5 LINE OF ILLINOIS STATE TOLL HIGHWAY, 6 ALSO THAT PART OF THE NORTHEAST 1/4 OF SECTION 31, 7 TOWNSHIP 42 NORTH, RANGE 9, EAST OF THE THIRD PRINCIPAL 8 MERIDIAN, DESCRIBED AS FOLLOWS: 9 BEGINNING AT THE INTERSECTION OF THE CENTER LINE OF 10 BEVERLY ROAD AND THE SOUTH RIGHT OF WAY LINE OF HIGGINS 11 ROAD; THENCE SOUTHERLY ALONG THE CENTER LINE OF BEVERLY 12 ROAD 165 FEET; THENCE WESTERLY 243.59 FEET; THENCE 13 NORTHERLY 195.81 FEET TO THE SOUTH RIGHT OF WAY LINE OF 14 HIGGINS ROAD; THENCE SOUTHERLY ALONG THE SOUTH RIGHT OF 15 WAY LINE OF HIGGINS ROAD TO THE PLACE OF BEGINNING, ALL 16 IN COOK COUNTY, ILLINOIS. 17 PARCEL 3: 18 THE SOUTH 70 RODS (1155.00 FEET) OF THE SOUTHEAST 1/4 OF 19 THE SOUTHWEST 1/4 OF SECTION 31, TOWNSHIP 42 NORTH, RANGE 20 9 EAST OF THE THIRD PRINCIPAL MERIDIAN, 21 ALSO THE SOUTH 70 RODS (1155.00 FEET) OF THE SOUTHWEST 22 1/4 OF THE SOUTHEAST 1/4 OF SECTION 31, TOWNSHIP 42 23 NORTH, RANGE 9 EAST OF THE THIRD PRINCIPAL MERIDIAN 24 (EXCEPTING THAT PART THEREOF LYING EAST AND SOUTH OF THE 25 WEST AND NORTH LINES OF THE LAND CONVEYED TO THE ILLINOIS 26 STATE TOLL HIGHWAY AUTHORITY BY DEED RECORDED JULY 29, 27 1994 AS DOCUMENT NO. 94-667,873, SAID WEST AND NORTH 28 LINES DESCRIBED AS COMMENCING AT THE SOUTHEAST CORNER OF 29 SAID SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER FOR A 30 POINT OF BEGINNING; THENCE SOUTH 89 DEGREES 47 MINUTES 33 31 SECONDS WEST ALONG THE SOUTH LINE OF SAID SECTION 31 A 32 DISTANCE OF 32.56 FEET; THENCE NORTH 06 DEGREES 06 33 MINUTES 43 SECONDS WEST 297.65 FEET; THENCE NORTH 00 34 DEGREES 52 MINUTES 23 SECONDS EAST 400.65 FEET; THENCE SB1854 Enrolled -337- LRB9215370EGfg 1 SOUTH 89 DEGREES 54 MINUTES 16 SECONDS EAST 58.81 FEET TO 2 THE EAST LINE OF SAID SOUTHWEST QUARTER OF THE SOUTHEAST 3 QUARTER), 4 ALSO ALL THAT PART OF FRACTIONAL SECTION 5, TOWNSHIP 41 5 NORTH, RANGE 9 EAST OF THE THIRD PRINCIPAL MERIDIAN, 6 LYING (i) NORTHERLY OF THE NORTHERLY LINE OF THE PREMISES 7 CONVEYED TO THE ILLINOIS STATE TOLL HIGHWAY COMMISSION BY 8 DEED RECORDED JUNE 12, 1956 AS DOCUMENT NO. 16607889; 9 (ii) EASTERLY OF THE EAST LINE OF THE SOUTHWEST 1/4 OF 10 THE SOUTHWEST 1/4 OF SECTION 31, TOWNSHIP 42 NORTH, RANGE 11 9 EAST OF THE THIRD PRINCIPAL MERIDIAN, EXTENDED 12 SOUTHERLY TO THE AFORESAID NORTHERLY LINE OF THE ILLINOIS 13 STATE TOLL HIGHWAY; AND (iii) WESTERLY OF THE EAST 279.0 14 FEET OF SAID SECTION 5, EXCEPTING THEREFROM THE FOLLOWING 15 DESCRIBED TRACT CONVEYED TO THE ILLINOIS STATE TOLL 16 HIGHWAY AUTHORITY BY DEED RECORDED JULY 29, 1994 AS 17 DOCUMENT NO. 94-667,873: 18 COMMENCING AT THE NORTHEAST CORNER OF SAID SECTION 5; 19 THENCE SOUTH 89 DEGREES 58 MINUTES 08 SECONDS WEST ALONG 20 THE NORTH LINE OF SAID SECTION 5 A DISTANCE OF 279.00 21 FEET TO THE WEST LINE OF THE EAST 279.00 FEET OF SAID 22 SECTION 5 FOR A POINT OF BEGINNING; THENCE CONTINUING 23 SOUTH 89 DEGREES 58 MINUTES 08 SECONDS WEST ALONG SAID 24 NORTH LINE 13.53 FEET; THENCE SOUTH 06 DEGREES 06 MINUTES 25 43 SECONDS EAST 61.86 FEET TO THE NORTH RIGHT OF WAY LINE 26 OF THE NORTHERN ILLINOIS TOLL HIGHWAY AS CONVEYED BY DEED 27 DOCUMENT NO. 16607889 RECORDED JUNE 12, 1956; THENCE 28 NORTH 89 DEGREES 51 MINUTES 14 SECONDS EAST ALONG SAID 29 NORTH RIGHT OF WAY LINE 6.71 FEET TO SAID WEST LINE OF 30 THE EAST 279.00 FEET; THENCE NORTH 00 DEGREES 13 MINUTES 31 12 SECONDS EAST ALONG SAID WEST LINE 61.50 FEET TO THE 32 POINT OF BEGINNING; 33 SAID PREMISES ALSO BEING CAPABLE OF BEING LEGALLY 34 DESCRIBED AS FOLLOWS: SB1854 Enrolled -338- LRB9215370EGfg 1 THAT PART OF FRACTIONAL SECTION 5, TOWNSHIP 41 NORTH, 2 RANGE 9 EAST OF THE THIRD PRINCIPAL MERIDIAN LYING (i) 3 NORTHERLY OF THE PREMISES CONVEYED TO THE ILLINOIS STATE 4 TOLL HIGHWAY COMMISSION BY DEED RECORDED JUNE 12, 1956 AS 5 DOCUMENT NO. 16607889; (ii) EAST OF THE WEST LINE OF THE 6 SOUTHEAST 1/4 OF THE SOUTHWEST 1/4 OF SECTION 31, 7 TOWNSHIP 42 NORTH, RANGE 9 EAST OF THE THIRD PRINCIPAL 8 MERIDIAN, EXTENDED STRAIGHT SOUTH; AND (iii) WESTERLY OF 9 THE FOLLOWING DESCRIBED LINE; BEGINNING AT A POINT ON THE 10 NORTH LINE OF SAID FRACTIONAL SECTION 5, 13.53 FEET WEST 11 OF THE WEST LINE OF THE EAST 279.00 FEET OF SAID 12 FRACTIONAL SECTION 5; AND THENCE SOUTHEASTERLY ALONG A 13 STRAIGHT LINE 61.86 FEET, MORE OR LESS, TO A POINT ON THE 14 NORTHERLY LINE OF SAID PREMISES CONVEYED BY DOCUMENT NO. 15 16607889, 6.71 FEET WESTERLY OF SAID WEST LINE OF THE 16 EAST 279.00 FEET OF FRACTIONAL SECTION 5, ALL IN COOK 17 COUNTY, ILLINOIS. 18 PARCEL 4: 19 THAT PART OF THE FOLLOWING DESCRIBED TRACT: 20 THAT PART OF FRACTIONAL SECTIONS 5 AND 6, TOWNSHIP 41 21 NORTH, RANGE 9 EAST OF THE THIRD PRINCIPAL MERIDIAN, 22 DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER 23 OF SAID FRACTIONAL SECTION 5; THENCE EAST ALONG THE NORTH 24 LINE OF SAID FRACTIONAL SECTION 5, 1128.36 FEET, MORE OR 25 LESS, TO THE WESTERLY RIGHT-OF-WAY LINE OF PUBLIC SERVICE 26 COMPANY (NOW COMMONWEALTH EDISON COMPANY) BY DEED 27 DOCUMENT NO. 9693090 RECORDED JUNE 21, 1927; THENCE 28 SOUTHERLY ALONG SAID WESTERLY RIGHT-OF-WAY LINE OF PUBLIC 29 SERVICE COMPANY 3725.69 FEET, MORE OR LESS, TO THE CENTER 30 LINE OF SHOE FACTORY ROAD BY DOCUMENT NO. 9202301 31 RECORDED MARCH 10, 1926; THENCE WESTERLY ALONG SAID 32 CENTER LINE OF SHOE FACTORY ROAD 1079.49 FEET, MORE OR 33 LESS, TO A POINT ON THE CENTER LINE OF SHOE FACTORY ROAD 34 BY DOCUMENT NO. 13018010 RECORDED JANUARY 15, 1943, 75.40 SB1854 Enrolled -339- LRB9215370EGfg 1 FEET EASTERLY OF THE POINT OF INTERSECTION OF THE EAST 2 LINE OF SECTION 7 IN THE AFORESAID TOWNSHIP AND RANGE AND 3 SAID CENTER LINE OF SHOE FACTORY ROAD AS MEASURED ALONG 4 SAID CENTER LINE OF SHOE FACTORY ROAD; THENCE NORTHERLY 5 ALONG A STRAIGHT LINE 3828.58 FEET, MORE OR LESS, TO A 6 POINT ON THE NORTH LINE OF SAID FRACTIONAL SECTION 6, 7 33.00 FEET WEST OF THE AFORESAID NORTHWEST CORNER OF 8 FRACTIONAL SECTION 5; AND THENCE EAST ALONG SAID NORTH 9 LINE OF FRACTIONAL SECTION 6, 33.00 FEET TO THE CORNER OF 10 BEGINNING, EXCEPT THAT PART THEREOF LYING SOUTHERLY OF 11 THE NORTHERLY RIGHT-OF-WAY LINE OF THE ILLINOIS STATE 12 TOLL HIGHWAY AS CONVEYED TO OR TAKEN BY THE ILLINOIS 13 STATE TOLL HIGHWAY COMMISSION, AS SAID NORTHERLY 14 RIGHT-OF-WAY LINE IS OCCUPIED AND MONUMENTED; THAT LIES 15 EAST OF A LINE DRAWN AT AN ANGLE OF SOUTH 1 DEGREE 30 16 MINUTES EAST FROM THE NORTHWEST CORNER OF FRACTIONAL 17 SECTION 5. 18 PARCEL 5: 19 THAT PART OF THE FOLLOWING DESCRIBED TRACT: 20 THAT PART OF FRACTIONAL SECTIONS 5 AND 6, TOWNSHIP 41 21 NORTH, RANGE 9 EAST OF THE THIRD PRINCIPAL MERIDIAN, 22 DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER 23 OF SAID FRACTIONAL SECTION 5; THENCE EAST ALONG THE NORTH 24 LINE OF SAID FRACTIONAL SECTION 5, 1128.36 FEET, MORE OR 25 LESS, TO THE WESTERLY RIGHT-OF-WAY LINE OF PUBLIC SERVICE 26 COMPANY (NOW COMMONWEALTH EDISON COMPANY) BY DEED 27 DOCUMENT NO. 9693090 RECORDED JUNE 21, 1927; THENCE 28 SOUTHERLY ALONG SAID WESTERLY RIGHT-OF-WAY LINE OF PUBLIC 29 SERVICE COMPANY 3725.69 FEET, MORE OR LESS, TO THE CENTER 30 LINE OF SHOE FACTORY ROAD BY DOCUMENT NO. 9202301 31 RECORDED MARCH 10, 1926; THENCE WESTERLY ALONG SAID 32 CENTER LINE OF SHOE FACTORY ROAD 1079.49 FEET, MORE OR 33 LESS, TO A POINT ON THE CENTER LINE OF SHOE FACTORY ROAD 34 BY DOCUMENT NO. 13018010 RECORDED JANUARY 15, 1943, 75.40 SB1854 Enrolled -340- LRB9215370EGfg 1 FEET EASTERLY OF THE POINT OF INTERSECTION OF THE EAST 2 LINE OF SECTION 7 IN THE AFORESAID TOWNSHIP AND RANGE AND 3 SAID CENTER LINE OF SHOE FACTORY ROAD AS MEASURED ALONG 4 SAID CENTER LINE OF SHOE FACTORY ROAD; THENCE NORTHERLY 5 ALONG A STRAIGHT LINE 3828.58 FEET, MORE OR LESS, TO A 6 POINT ON THE NORTH LINE OF SAID FRACTIONAL SECTION 6, 7 33.00 FEET WEST OF THE AFORESAID NORTHWEST CORNER OF 8 FRACTIONAL SECTION 5; AND THENCE EAST ALONG SAID NORTH 9 LINE OF FRACTIONAL SECTION 6, 33.00 FEET TO THE CORNER OF 10 BEGINNING, EXCEPT THAT PART THEREOF LYING SOUTHERLY OF 11 THE NORTHERLY RIGHT-OF-WAY LINE OF THE ILLINOIS STATE 12 TOLL HIGHWAY AS CONVEYED TO OR TAKEN BY THE ILLINOIS 13 STATE TOLL HIGHWAY COMMISSION, AS SAID NORTHERLY 14 RIGHT-OF-WAY LINE IS OCCUPIED AND MONUMENTED; 15 WHICH LIES WEST OF A LINE DRAWN AT AN ANGLE OF SOUTH 1° 16 30' EAST FROM THE NORTHWEST CORNER OF FRACTIONAL SECTION 17 5, 18 ALSO THAT PART OF FRACTIONAL SECTION 6, TOWNSHIP 41 19 NORTH, RANGE 9 EAST OF THE THIRD PRINCIPAL MERIDIAN, 20 DESCRIBED AS FOLLOWS: BEGINNING AT THE POINT OF 21 INTERSECTION OF THE EAST LINE OF SECTION 7 IN THE 22 AFORESAID TOWNSHIP AND RANGE AND THE CENTER LINE OF SHOE 23 FACTORY ROAD BY DOCUMENT NO. 13018010 RECORDED JANUARY 24 15, 1943; THENCE WESTERLY ALONG SAID CENTER LINE OF SHOE 25 FACTORY ROAD 208.65 FEET, MORE OR LESS, TO A POINT ON THE 26 EASTERLY LINE OF THE L. CURCE FARM BY DOCUMENT NO. 27 16785517 RECORDED DECEMBER 20, 1956 EXTENDED SOUTHERLY TO 28 SAID CENTER LINE OF SHOE FACTORY ROAD; THENCE NORTHERLY 29 ALONG SAID EASTERLY LINE OF THE L. CURCE FARM EXTENDED 30 SOUTHERLY AND SAID EASTERLY LINE OF THE L. CURCE FARM 31 3827.48 FEET, MORE OR LESS, TO A POINT ON THE NORTH LINE 32 OF SAID FRACTIONAL SECTION 6, 238.48 FEET WEST OF THE 33 NORTHWEST CORNER OF FRACTIONAL SECTION 5 IN THE AFORESAID 34 TOWNSHIP AND RANGE; THENCE EAST ALONG SAID NORTH LINE OF SB1854 Enrolled -341- LRB9215370EGfg 1 SECTION 6, 205.48 FEET, MORE OR LESS, TO A POINT 33.00 2 FEET WEST OF SAID NORTHWEST CORNER OF FRACTIONAL SECTION 3 5; THENCE SOUTHERLY ALONG A STRAIGHT LINE 3828.58 FEET, 4 MORE OR LESS, TO A POINT ON SAID CENTER LINE OF SHOE 5 FACTORY ROAD 75.40 FEET EASTERLY OF THE POINT OF 6 BEGINNING AS MEASURED ALONG SAID CENTER LINE OF SHOE 7 FACTORY ROAD; AND THENCE WESTERLY ALONG SAID CENTER LINE 8 OF SHOE FACTORY ROAD 75.40 FEET TO THE POINT OF 9 BEGINNING, EXCEPT THAT PART THEREOF LYING SOUTHERLY OF 10 THE NORTHERLY RIGHT-OF-WAY LINE OF THE ILLINOIS STATE 11 TOLL HIGHWAY AS CONVEYED TO OR TAKEN BY THE ILLINOIS 12 STATE TOLL HIGHWAY COMMISSION, AS SAID NORTHERLY 13 RIGHT-OF-WAY LINE IS OCCUPIED AND MONUMENTED, ALL IN COOK 14 COUNTY, ILLINOIS. 15 (Source: P.A. 91-945, eff. 2-9-01.) 16 (70 ILCS 2605/286) 17 Sec. 286.283.District enlarged. Upon the effective 18 date of this amendatory Act of the 91st General Assembly, the 19 corporate limits of the Metropolitan Water Reclamation 20 District are extended to include within those limits the 21 following described tracts of land that are annexed to the 22 District: 23 Parcel 1: 24 The Northwest 1/4 of the Northeast 1/4 of Section 15, 25 Township 35 North, Range 14, East of the Third Principal 26 Meridian (except the South 66 feet thereof conveyed to 27 Chicago District Pipeline Company, a corporation by deed 28 recorded as document 14832873 and except the North 49.50 29 feet of the South 115.5 of the East 660.0 feet thereof, 30 conveyed to Chicago District Pipeline Company, a 31 corporation, by deed recorded on September 3, 1958 as 32 document 17306418). 33 Parcel 2: SB1854 Enrolled -342- LRB9215370EGfg 1 The South 66 feet of the Northwest 1/4 of the Northeast 2 1/4 of Section 15, Township 35 North, Range 14 East of 3 the Third Principal Meridian in Cook County, Illinois. 4 Parcel 3: 5 The South 66 feet of the Northeast 1/4 of the Northeast 6 1/4 of Section 15, Township 35 North, Range 14 East of 7 the Third Principal Meridian, in Cook County, Illinois. 8 Parcel 4: 9 That part of the Northeast quarter of the Northeast 10 quarter of Section 15, Township 35 North, Range 14 East 11 of the Third Principal Meridian, Cook County, Illinois, 12 described as follows: commencing at the Northeast corner 13 of said Northeast quarter; thence South 89 degrees 11 14 minutes 17 seconds West along the North line of said 15 Northeast quarter a distance of 604.04 feet to the point 16 of beginning; thence South 00 degrees 58 minutes 21 17 seconds East a distance of 1209.86 feet to an iron rod on 18 the North line of the South 115.50 feet of the Northeast 19 quarter of the Northeast quarter of said Section 15; 20 thence South 89 degrees 13 minutes 25 seconds West along 21 last said North line a distance of 720.22 feet to an iron 22 rod on the West line of the Northeast quarter of the 23 Northeast quarter of said Section 15; thence North 00 24 degrees 58 minutes 21 seconds West along last said West 25 line a distance of 1209.41 feet to an iron rod being the 26 Northwest corner of the Northeast quarter of the 27 Northeast quarter of said Section 15; thence North 89 28 degrees 11 minutes 17 seconds East along the North line 29 of said Northeast quarter a distance of 720.22 feet to 30 the point of beginning, containing 20.00 acres. 31 (Source: P.A. 91-942, eff. 2-9-01; revised 3-19-01.) 32 (70 ILCS 2605/287) 33 Sec. 287.285.District enlarged. Upon the effective SB1854 Enrolled -343- LRB9215370EGfg 1 date of this amendatory Act of the 92nd General Assembly, the 2 corporate limits of the Metropolitan Water Reclamation 3 District are extended to include within those limits the 4 following described tract of land, and that tract is annexed 5 to the District. 6 THAT PART OF THE NORTH HALF OF SECTION 8, TOWNSHIP 41 7 NORTH, RANGE 9 EAST OF THE THIRD PRINCIPAL MERIDIAN DESCRIBED 8 AS FOLLOWS: 9 COMMENCING AT THE NORTHWEST CORNER OF SAID SECTION 8, 10 THENCE SOUTH 00 DEGREES 29 MINUTES 11 SECONDS WEST 11 (ILLINOIS STATE PLACE GRID - EAST ZONE), ALONG THE WEST 12 LINE OF SAID SECTION 8, AS MONUMENTED, A DISTANCE OF 13 1138.22 FEET TO THE CENTERLINE OF SHOE FACTORY ROAD PER 14 DOCUMENT NUMBER 12259969; THENCE THE FOLLOWING ONE COURSE 15 AND DISTANCE ALONG SAID CENTERLINE, SOUTH 89 DEGREES 56 16 MINUTES 54 SECONDS EAST A DISTANCE OF 75.47 FEET TO THE 17 SOUTHEAST CORNER OF A PARCEL OF LAND CONVEYED TO COOK 18 COUNTY ILLINOIS BY DOCUMENT NUMBER 14665399, THENCE NORTH 19 01 DEGREE 16 MINUTES 56 SECONDS WEST, ALONG THE EAST LINE 20 OF SAID PARCEL, A DISTANCE OF 50.01 FEET TO THE NORTHEAST 21 CORNER OF SAID PARCEL; THENCE SOUTH 89 DEGREES 56 MINUTES 22 54 SECONDS EAST A DISTANCE OF 95.80 FEET TO A POINT OF 23 CURVATURE; THENCE EASTERLY ALONG THE ARC OF A TANGENTIAL 24 CURVE, CONCAVE TO THE NORTH AND HAVING A RADIUS OF 25 4000.00 FEET, A DISTANCE OF 697.96 FEET TO A POINT OF 26 TANGENCY; THENCE NORTH 80 DEGREES 03 MINUTES 14 SECONDS 27 EAST A DISTANCE OF 286.47 FEET TO THE WEST LINE OF THE 28 190.00 FOOT-WIDE COMED PARCEL, AS MONUMENTED AND 29 OCCUPIED, PER DOCUMENT NUMBERS 9693094, 9693090 AND 30 18690041, POINT ALSO BEING THE NORTHWEST CORNER OF A 31 PARCEL OF LAND CONVEYED FOR PUBLIC RIGHT-OF-WAY PURPOSES 32 PER DOCUMENT NUMBER 14176170, ALSO BEING THE POINT OF 33 BEGINNING; THENCE CONTINUING NORTH 80 DEGREES 03 MINUTES 34 14 SECONDS EAST, ALONG THE NORTH LINE OF SAID SB1854 Enrolled -344- LRB9215370EGfg 1 RIGHT-OF-WAY PARCEL, A DISTANCE OF 152.32 FEET TO THE 2 NORTHEAST CORNER THEREOF; THENCE SOUTH 00 DEGREES 04 3 MINUTES 04 SECONDS WEST, ALONG THE EAST LINE OF SAID 4 PARCEL, A DISTANCE OF 50.77 FEET TO THE NORTHWEST CORNER 5 OF BERNER ESTATES, ACCORDING TO THE PLAT THEREOF RECORDED 6 FEBRUARY 7, 1958 AS DOCUMENT NUMBER 17129065; THENCE 7 NORTH 80 DEGREES 03 MINUTES 14 SECONDS EAST, ALONG THE 8 NORTH LINE THEREOF, A DISTANCE OF 66.01 FEET; THENCE 9 SOUTH 00 DEGREES 04 MINUTES 04 SECONDS WEST A DISTANCE OF 10 50.77 FEET TO THE SOUTHERLY RIGHT-OF-WAY LINE OF SHOE 11 FACTORY AS DEDICATED BY SAID BERNER ESTATES; THENCE SOUTH 12 80 DEGREES 03 MINUTES 14 SECONDS WEST, ALONG SAID 13 SOUTHERLY LINE AND THE SOUTH LINE OF THE AFOREMENTIONED 14 RIGHT-OF-WAY PARCEL PER DOCUMENT 14176170, A DISTANCE OF 15 218.33 FEET TO THE WEST LINE OF SAID PARCEL PER DOCUMENT 16 NUMBER 14176170; THENCE NORTH 00 DEGREES 04 MINUTES 04 17 SECONDS EAST, ALONG SAID WEST LINE, A DISTANCE OF 101.55 18 FEET TO THE POINT OF BEGINNING, CONTAINING 0.4254 ACRES , 19 MORE OR LESS, AND LYING IN COOK COUNTY, ILLINOIS. 20 (Source: P.A. 92-143, eff. 7-24-01; revised 9-13-01.) 21 Section 36. The Regional Transportation Authority Act is 22 amended by changing Section 4.03 as follows: 23 (70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03) 24 Sec. 4.03. Taxes. 25 (a) In order to carry out any of the powers or purposes 26 of the Authority, the Board may by ordinance adopted with the 27 concurrence of 9 of the then Directors, impose throughout the 28 metropolitan region any or all of the taxes provided in this 29 Section. Except as otherwise provided in this Act, taxes 30 imposed under this Section and civil penalties imposed 31 incident thereto shall be collected and enforced by the State 32 Department of Revenue. The Department shall have the power to SB1854 Enrolled -345- LRB9215370EGfg 1 administer and enforce the taxes and to determine all rights 2 for refunds for erroneous payments of the taxes. 3 (b) The Board may impose a public transportation tax 4 upon all persons engaged in the metropolitan region in the 5 business of selling at retail motor fuel for operation of 6 motor vehicles upon public highways. The tax shall be at a 7 rate not to exceed 5% of the gross receipts from the sales of 8 motor fuel in the course of the business. As used in this 9 Act, the term "motor fuel" shall have the same meaning as in 10 the Motor Fuel Tax LawAct. The Board may provide for 11 details of the tax. The provisions of any tax shall conform, 12 as closely as may be practicable, to the provisions of the 13 Municipal Retailers Occupation Tax Act, including without 14 limitation, conformity to penalties with respect to the tax 15 imposed and as to the powers of the State Department of 16 Revenue to promulgate and enforce rules and regulations 17 relating to the administration and enforcement of the 18 provisions of the tax imposed, except that reference in the 19 Act to any municipality shall refer to the Authority and the 20 tax shall be imposed only with regard to receipts from sales 21 of motor fuel in the metropolitan region, at rates as limited 22 by this Section. 23 (c) In connection with the tax imposed under paragraph 24 (b) of this Section the Board may impose a tax upon the 25 privilege of using in the metropolitan region motor fuel for 26 the operation of a motor vehicle upon public highways, the 27 tax to be at a rate not in excess of the rate of tax imposed 28 under paragraph (b) of this Section. The Board may provide 29 for details of the tax. 30 (d) The Board may impose a motor vehicle parking tax 31 upon the privilege of parking motor vehicles at off-street 32 parking facilities in the metropolitan region at which a fee 33 is charged, and may provide for reasonable classifications in 34 and exemptions to the tax, for administration and enforcement SB1854 Enrolled -346- LRB9215370EGfg 1 thereof and for civil penalties and refunds thereunder and 2 may provide criminal penalties thereunder, the maximum 3 penalties not to exceed the maximum criminal penalties 4 provided in the Retailers' Occupation Tax Act. The Authority 5 may collect and enforce the tax itself or by contract with 6 any unit of local government. The State Department of 7 Revenue shall have no responsibility for the collection and 8 enforcement unless the Department agrees with the Authority 9 to undertake the collection and enforcement. As used in this 10 paragraph, the term "parking facility" means a parking area 11 or structure having parking spaces for more than 2 vehicles 12 at which motor vehicles are permitted to park in return for 13 an hourly, daily, or other periodic fee, whether publicly or 14 privately owned, but does not include parking spaces on a 15 public street, the use of which is regulated by parking 16 meters. 17 (e) The Board may impose a Regional Transportation 18 Authority Retailers' Occupation Tax upon all persons engaged 19 in the business of selling tangible personal property at 20 retail in the metropolitan region. In Cook County the tax 21 rate shall be 1% of the gross receipts from sales of food for 22 human consumption that is to be consumed off the premises 23 where it is sold (other than alcoholic beverages, soft drinks 24 and food that has been prepared for immediate consumption) 25 and prescription and nonprescription medicines, drugs, 26 medical appliances and insulin, urine testing materials, 27 syringes and needles used by diabetics, and 3/4% of the gross 28 receipts from other taxable sales made in the course of that 29 business. In DuPage, Kane, Lake, McHenry, and Will Counties, 30 the tax rate shall be 1/4% of the gross receipts from all 31 taxable sales made in the course of that business. The tax 32 imposed under this Section and all civil penalties that may 33 be assessed as an incident thereof shall be collected and 34 enforced by the State Department of Revenue. The Department SB1854 Enrolled -347- LRB9215370EGfg 1 shall have full power to administer and enforce this Section; 2 to collect all taxes and penalties so collected in the manner 3 hereinafter provided; and to determine all rights to credit 4 memoranda arising on account of the erroneous payment of tax 5 or penalty hereunder. In the administration of, and 6 compliance with this Section, the Department and persons who 7 are subject to this Section shall have the same rights, 8 remedies, privileges, immunities, powers and duties, and be 9 subject to the same conditions, restrictions, limitations, 10 penalties, exclusions, exemptions and definitions of terms, 11 and employ the same modes of procedure, as are prescribed in 12 Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 13 (in respect to all provisions therein other than the State 14 rate of tax), 2c, 3 (except as to the disposition of taxes 15 and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 16 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 17 of the Retailers' Occupation Tax Act and Section 3-7 of the 18 Uniform Penalty and Interest Act, as fully as if those 19 provisions were set forth herein. 20 Persons subject to any tax imposed under the authority 21 granted in this Section may reimburse themselves for their 22 seller's tax liability hereunder by separately stating the 23 tax as an additional charge, which charge may be stated in 24 combination in a single amount with State taxes that sellers 25 are required to collect under the Use Tax Act, under any 26 bracket schedules the Department may prescribe. 27 Whenever the Department determines that a refund should 28 be made under this Section to a claimant instead of issuing a 29 credit memorandum, the Department shall notify the State 30 Comptroller, who shall cause the warrant to be drawn for the 31 amount specified, and to the person named, in the 32 notification from the Department. The refund shall be paid 33 by the State Treasurer out of the Regional Transportation 34 Authority tax fund established under paragraph (n) of this SB1854 Enrolled -348- LRB9215370EGfg 1 Section. 2 If a tax is imposed under this subsection (e), a tax 3 shall also be imposed under subsections (f) and (g) of this 4 Section. 5 For the purpose of determining whether a tax authorized 6 under this Section is applicable, a retail sale by a producer 7 of coal or other mineral mined in Illinois, is a sale at 8 retail at the place where the coal or other mineral mined in 9 Illinois is extracted from the earth. This paragraph does not 10 apply to coal or other mineral when it is delivered or 11 shipped by the seller to the purchaser at a point outside 12 Illinois so that the sale is exempt under the Federal 13 Constitution as a sale in interstate or foreign commerce. 14 Nothing in this Section shall be construed to authorize 15 the Regional Transportation Authority to impose a tax upon 16 the privilege of engaging in any business that under the 17 Constitution of the United States may not be made the subject 18 of taxation by this State. 19 (f) If a tax has been imposed under paragraph (e), a 20 Regional Transportation Authority Service Occupation Tax 21 shall also be imposed upon all persons engaged, in the 22 metropolitan region in the business of making sales of 23 service, who as an incident to making the sales of service, 24 transfer tangible personal property within the metropolitan 25 region, either in the form of tangible personal property or 26 in the form of real estate as an incident to a sale of 27 service. In Cook County, the tax rate shall be: (1) 1% of 28 the serviceman's cost price of food prepared for immediate 29 consumption and transferred incident to a sale of service 30 subject to the service occupation tax by an entity licensed 31 under the Hospital Licensing Act or the Nursing Home Care Act 32 that is located in the metropolitan region; (2) 1% of the 33 selling price of food for human consumption that is to be 34 consumed off the premises where it is sold (other than SB1854 Enrolled -349- LRB9215370EGfg 1 alcoholic beverages, soft drinks and food that has been 2 prepared for immediate consumption) and prescription and 3 nonprescription medicines, drugs, medical appliances and 4 insulin, urine testing materials, syringes and needles used 5 by diabetics; and (3) 3/4% of the selling price from other 6 taxable sales of tangible personal property transferred. In 7 DuPage, Kane, Lake, McHenry and Will Counties the rate shall 8 be 1/4% of the selling price of all tangible personal 9 property transferred. 10 The tax imposed under this paragraph and all civil 11 penalties that may be assessed as an incident thereof shall 12 be collected and enforced by the State Department of Revenue. 13 The Department shall have full power to administer and 14 enforce this paragraph; to collect all taxes and penalties 15 due hereunder; to dispose of taxes and penalties collected in 16 the manner hereinafter provided; and to determine all rights 17 to credit memoranda arising on account of the erroneous 18 payment of tax or penalty hereunder. In the administration 19 of and compliance with this paragraph, the Department and 20 persons who are subject to this paragraph shall have the same 21 rights, remedies, privileges, immunities, powers and duties, 22 and be subject to the same conditions, restrictions, 23 limitations, penalties, exclusions, exemptions and 24 definitions of terms, and employ the same modes of procedure, 25 as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in 26 respect to all provisions therein other than the State rate 27 of tax), 4 (except that the reference to the State shall be 28 to the Authority), 5, 7, 8 (except that the jurisdiction to 29 which the tax shall be a debt to the extent indicated in that 30 Section 8 shall be the Authority), 9 (except as to the 31 disposition of taxes and penalties collected, and except that 32 the returned merchandise credit for this tax may not be taken 33 against any State tax), 10, 11, 12 (except the reference 34 therein to Section 2b of the Retailers' Occupation Tax Act), SB1854 Enrolled -350- LRB9215370EGfg 1 13 (except that any reference to the State shall mean the 2 Authority), the first paragraph of Section 15, 16, 17, 18, 19 3 and 20 of the Service Occupation Tax Act and Section 3-7 of 4 the Uniform Penalty and Interest Act, as fully as if those 5 provisions were set forth herein. 6 Persons subject to any tax imposed under the authority 7 granted in this paragraph may reimburse themselves for their 8 serviceman's tax liability hereunder by separately stating 9 the tax as an additional charge, that charge may be stated in 10 combination in a single amount with State tax that servicemen 11 are authorized to collect under the Service Use Tax Act, 12 under any bracket schedules the Department may prescribe. 13 Whenever the Department determines that a refund should 14 be made under this paragraph to a claimant instead of issuing 15 a credit memorandum, the Department shall notify the State 16 Comptroller, who shall cause the warrant to be drawn for the 17 amount specified, and to the person named in the notification 18 from the Department. The refund shall be paid by the State 19 Treasurer out of the Regional Transportation Authority tax 20 fund established under paragraph (n) of this Section. 21 Nothing in this paragraph shall be construed to authorize 22 the Authority to impose a tax upon the privilege of engaging 23 in any business that under the Constitution of the United 24 States may not be made the subject of taxation by the State. 25 (g) If a tax has been imposed under paragraph (e), a tax 26 shall also be imposed upon the privilege of using in the 27 metropolitan region, any item of tangible personal property 28 that is purchased outside the metropolitan region at retail 29 from a retailer, and that is titled or registered with an 30 agency of this State's government. In Cook County the tax 31 rate shall be 3/4% of the selling price of the tangible 32 personal property, as "selling price" is defined in the Use 33 Tax Act. In DuPage, Kane, Lake, McHenry and Will counties 34 the tax rate shall be 1/4% of the selling price of the SB1854 Enrolled -351- LRB9215370EGfg 1 tangible personal property, as "selling price" is defined in 2 the Use Tax Act. The tax shall be collected from persons 3 whose Illinois address for titling or registration purposes 4 is given as being in the metropolitan region. The tax shall 5 be collected by the Department of Revenue for the Regional 6 Transportation Authority. The tax must be paid to the State, 7 or an exemption determination must be obtained from the 8 Department of Revenue, before the title or certificate of 9 registration for the property may be issued. The tax or proof 10 of exemption may be transmitted to the Department by way of 11 the State agency with which, or the State officer with whom, 12 the tangible personal property must be titled or registered 13 if the Department and the State agency or State officer 14 determine that this procedure will expedite the processing of 15 applications for title or registration. 16 The Department shall have full power to administer and 17 enforce this paragraph; to collect all taxes, penalties and 18 interest due hereunder; to dispose of taxes, penalties and 19 interest collected in the manner hereinafter provided; and to 20 determine all rights to credit memoranda or refunds arising 21 on account of the erroneous payment of tax, penalty or 22 interest hereunder. In the administration of and compliance 23 with this paragraph, the Department and persons who are 24 subject to this paragraph shall have the same rights, 25 remedies, privileges, immunities, powers and duties, and be 26 subject to the same conditions, restrictions, limitations, 27 penalties, exclusions, exemptions and definitions of terms 28 and employ the same modes of procedure, as are prescribed in 29 Sections 2 (except the definition of "retailer maintaining a 30 place of business in this State"), 3 through 3-80 (except 31 provisions pertaining to the State rate of tax, and except 32 provisions concerning collection or refunding of the tax by 33 retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions 34 pertaining to claims by retailers and except the last SB1854 Enrolled -352- LRB9215370EGfg 1 paragraph concerning refunds), 20, 21 and 22 of the Use Tax 2 Act, and are not inconsistent with this paragraph, as fully 3 as if those provisions were set forth herein. 4 Whenever the Department determines that a refund should 5 be made under this paragraph to a claimant instead of issuing 6 a credit memorandum, the Department shall notify the State 7 Comptroller, who shall cause the order to be drawn for the 8 amount specified, and to the person named in the notification 9 from the Department. The refund shall be paid by the State 10 Treasurer out of the Regional Transportation Authority tax 11 fund established under paragraph (n) of this Section. 12 (h) The Authority may impose a replacement vehicle tax 13 of $50 on any passenger car as defined in Section 1-157 of 14 the Illinois Vehicle Code purchased within the metropolitan 15 region by or on behalf of an insurance company to replace a 16 passenger car of an insured person in settlement of a total 17 loss claim. The tax imposed may not become effective before 18 the first day of the month following the passage of the 19 ordinance imposing the tax and receipt of a certified copy of 20 the ordinance by the Department of Revenue. The Department 21 of Revenue shall collect the tax for the Authority in 22 accordance with Sections 3-2002 and 3-2003 of the Illinois 23 Vehicle Code. 24 The Department shall immediately pay over to the State 25 Treasurer, ex officio, as trustee, all taxes collected 26 hereunder. On or before the 25th day of each calendar month, 27 the Department shall prepare and certify to the Comptroller 28 the disbursement of stated sums of money to the Authority. 29 The amount to be paid to the Authority shall be the amount 30 collected hereunder during the second preceding calendar 31 month by the Department, less any amount determined by the 32 Department to be necessary for the payment of refunds. 33 Within 10 days after receipt by the Comptroller of the 34 disbursement certification to the Authority provided for in SB1854 Enrolled -353- LRB9215370EGfg 1 this Section to be given to the Comptroller by the 2 Department, the Comptroller shall cause the orders to be 3 drawn for that amount in accordance with the directions 4 contained in the certification. 5 (i) The Board may not impose any other taxes except as 6 it may from time to time be authorized by law to impose. 7 (j) A certificate of registration issued by the State 8 Department of Revenue to a retailer under the Retailers' 9 Occupation Tax Act or under the Service Occupation Tax Act 10 shall permit the registrant to engage in a business that is 11 taxed under the tax imposed under paragraphs (b), (e), (f) or 12 (g) of this Section and no additional registration shall be 13 required under the tax. A certificate issued under the Use 14 Tax Act or the Service Use Tax Act shall be applicable with 15 regard to any tax imposed under paragraph (c) of this 16 Section. 17 (k) The provisions of any tax imposed under paragraph 18 (c) of this Section shall conform as closely as may be 19 practicable to the provisions of the Use Tax Act, including 20 without limitation conformity as to penalties with respect to 21 the tax imposed and as to the powers of the State Department 22 of Revenue to promulgate and enforce rules and regulations 23 relating to the administration and enforcement of the 24 provisions of the tax imposed. The taxes shall be imposed 25 only on use within the metropolitan region and at rates as 26 provided in the paragraph. 27 (l) The Board in imposing any tax as provided in 28 paragraphs (b) and (c) of this Section, shall, after seeking 29 the advice of the State Department of Revenue, provide means 30 for retailers, users or purchasers of motor fuel for purposes 31 other than those with regard to which the taxes may be 32 imposed as provided in those paragraphs to receive refunds of 33 taxes improperly paid, which provisions may be at variance 34 with the refund provisions as applicable under the Municipal SB1854 Enrolled -354- LRB9215370EGfg 1 Retailers Occupation Tax Act. The State Department of 2 Revenue may provide for certificates of registration for 3 users or purchasers of motor fuel for purposes other than 4 those with regard to which taxes may be imposed as provided 5 in paragraphs (b) and (c) of this Section to facilitate the 6 reporting and nontaxability of the exempt sales or uses. 7 (m) Any ordinance imposing or discontinuing any tax 8 under this Section shall be adopted and a certified copy 9 thereof filed with the Department on or before June 1, 10 whereupon the Department of Revenue shall proceed to 11 administer and enforce this Section on behalf of the Regional 12 Transportation Authority as of September 1 next following 13 such adoption and filing. Beginning January 1, 1992, an 14 ordinance or resolution imposing or discontinuing the tax 15 hereunder shall be adopted and a certified copy thereof filed 16 with the Department on or before the first day of July, 17 whereupon the Department shall proceed to administer and 18 enforce this Section as of the first day of October next 19 following such adoption and filing. Beginning January 1, 20 1993, an ordinance or resolution imposing or discontinuing 21 the tax hereunder shall be adopted and a certified copy 22 thereof filed with the Department on or before the first day 23 of October, whereupon the Department shall proceed to 24 administer and enforce this Section as of the first day of 25 January next following such adoption and filing. 26 (n) The State Department of Revenue shall, upon 27 collecting any taxes as provided in this Section, pay the 28 taxes over to the State Treasurer as trustee for the 29 Authority. The taxes shall be held in a trust fund outside 30 the State Treasury. On or before the 25th day of each 31 calendar month, the State Department of Revenue shall prepare 32 and certify to the Comptroller of the State of Illinois the 33 amount to be paid to the Authority, which shall be the then 34 balance in the fund, less any amount determined by the SB1854 Enrolled -355- LRB9215370EGfg 1 Department to be necessary for the payment of refunds. The 2 State Department of Revenue shall also certify to the 3 Authority the amount of taxes collected in each County other 4 than Cook County in the metropolitan region less the amount 5 necessary for the payment of refunds to taxpayers in the 6 County. With regard to the County of Cook, the certification 7 shall specify the amount of taxes collected within the City 8 of Chicago less the amount necessary for the payment of 9 refunds to taxpayers in the City of Chicago and the amount 10 collected in that portion of Cook County outside of Chicago 11 less the amount necessary for the payment of refunds to 12 taxpayers in that portion of Cook County outside of Chicago. 13 Within 10 days after receipt by the Comptroller of the 14 certification of the amount to be paid to the Authority, the 15 Comptroller shall cause an order to be drawn for the payment 16 for the amount in accordance with the direction in the 17 certification. 18 In addition to the disbursement required by the preceding 19 paragraph, an allocation shall be made in July 1991 and each 20 year thereafter to the Regional Transportation Authority. 21 The allocation shall be made in an amount equal to the 22 average monthly distribution during the preceding calendar 23 year (excluding the 2 months of lowest receipts) and the 24 allocation shall include the amount of average monthly 25 distribution from the Regional Transportation Authority 26 Occupation and Use Tax Replacement Fund. The distribution 27 made in July 1992 and each year thereafter under this 28 paragraph and the preceding paragraph shall be reduced by the 29 amount allocated and disbursed under this paragraph in the 30 preceding calendar year. The Department of Revenue shall 31 prepare and certify to the Comptroller for disbursement the 32 allocations made in accordance with this paragraph. 33 (o) Failure to adopt a budget ordinance or otherwise to 34 comply with Section 4.01 of this Act or to adopt a Five-year SB1854 Enrolled -356- LRB9215370EGfg 1 Program or otherwise to comply with paragraph (b) of Section 2 2.01 of this Act shall not affect the validity of any tax 3 imposed by the Authority otherwise in conformity with law. 4 (p) At no time shall a public transportation tax or 5 motor vehicle parking tax authorized under paragraphs (b), 6 (c) and (d) of this Section be in effect at the same time as 7 any retailers' occupation, use or service occupation tax 8 authorized under paragraphs (e), (f) and (g) of this Section 9 is in effect. 10 Any taxes imposed under the authority provided in 11 paragraphs (b), (c) and (d) shall remain in effect only until 12 the time as any tax authorized by paragraphs (e), (f) or (g) 13 of this Section are imposed and becomes effective. Once any 14 tax authorized by paragraphs (e), (f) or (g) is imposed the 15 Board may not reimpose taxes as authorized in paragraphs (b), 16 (c) and (d) of the Section unless any tax authorized by 17 paragraphs (e), (f) or (g) of this Section becomes 18 ineffective by means other than an ordinance of the Board. 19 (q) Any existing rights, remedies and obligations 20 (including enforcement by the Regional Transportation 21 Authority) arising under any tax imposed under paragraphs 22 (b), (c) or (d) of this Section shall not be affected by the 23 imposition of a tax under paragraphs (e), (f) or (g) of this 24 Section. 25 (Source: P.A. 91-51, eff. 6-30-99; 92-221, eff. 8-2-01; 26 revised 12-07-01.) 27 Section 37. The School Code is amended by changing 28 Sections 1D-1, 2-3.35, 14-9.01, 18-8.05, 22-27, and 34A-403.1 29 and renumbering Section 14-1.09.02 as follows: 30 (105 ILCS 5/1D-1) 31 Sec. 1D-1. Block grant funding. 32 (a) For fiscal year 1996 and each fiscal year SB1854 Enrolled -357- LRB9215370EGfg 1 thereafter, the State Board of Education shall award to a 2 school district having a population exceeding 500,000 3 inhabitants a general education block grant and an 4 educational services block grant, determined as provided in 5 this Section, in lieu of distributing to the district 6 separate State funding for the programs described in 7 subsections (b) and (c). The provisions of this Section, 8 however, do not apply to any federal funds that the district 9 is entitled to receive. In accordance with Section 2-3.32, 10 all block grants are subject to an audit. Therefore, block 11 grant receipts and block grant expenditures shall be recorded 12 to the appropriate fund code for the designated block grant. 13 (b) The general education block grant shall include the 14 following programs: REI Initiative, Summer Bridges, Preschool 15 At Risk, K-6 Comprehensive Arts, School Improvement Support, 16 Urban Education, Scientific Literacy, Substance Abuse 17 Prevention, Second Language Planning, Staff Development, 18 Outcomes and Assessment, K-6 Reading Improvement, Truants' 19 Optional Education, Hispanic Programs, Agriculture Education, 20 Gifted Education, Parental Education, Prevention Initiative, 21 Report Cards, and Criminal Background Investigations. 22 Notwithstanding any other provision of law, all amounts paid 23 under the general education block grant from State 24 appropriations to a school district in a city having a 25 population exceeding 500,000 inhabitants shall be 26 appropriated and expended by the board of that district for 27 any of the programs included in the block grant or any of the 28 board's lawful purposes. 29 (c) The educational services block grant shall include 30 the following programs: Bilingual, Regular and Vocational 31 Transportation, State Lunch and Free Breakfast Program, 32 Special Education (Personnel, Extraordinary, Transportation, 33 Orphanage, Private Tuition), Summer School, Educational 34 Service Centers, and Administrator's Academy. This SB1854 Enrolled -358- LRB9215370EGfg 1 subsection (c) does not relieve the district of its 2 obligation to provide the services required under a program 3 that is included within the educational services block grant. 4 It is the intention of the General Assembly in enacting the 5 provisions of this subsection (c) to relieve the district of 6 the administrative burdens that impede efficiency and 7 accompany single-program funding. The General Assembly 8 encourages the board to pursue mandate waivers pursuant to 9 Section 2-3.25g. 10 (d) For fiscal year 1996 and each fiscal year 11 thereafter, the amount of the district's block grants shall 12 be determined as follows: (i) with respect to each program 13 that is included within each block grant, the district shall 14 receive an amount equal to the same percentage of the current 15 fiscal year appropriation made for that program as the 16 percentage of the appropriation received by the district from 17 the 1995 fiscal year appropriation made for that program, and 18 (ii) the total amount that is due the district under the 19 block grant shall be the aggregate of the amounts that the 20 district is entitled to receive for the fiscal year with 21 respect to each program that is included within the block 22 grant that the State Board of Education shall award the 23 district under this Section for that fiscal year. In the 24 case of the Summer Bridges program, the amount of the 25 district's block grant shall be equal to 44% of the amount of 26 the current fiscal year appropriation made for that program. 27 (e) The district is not required to file any application 28 or other claim in order to receive the block grants to which 29 it is entitled under this Section. The State Board of 30 Education shall make payments to the district of amounts due 31 under the district's block grants on a schedule determined by 32 the State Board of Education. 33 (f) A school district to which this Section applies 34 shall report to the State Board of Education on its use of SB1854 Enrolled -359- LRB9215370EGfg 1 the block grants in such form and detail as the State Board 2 of Education may specify. 3 (g) This paragraph provides for the treatment of block 4 grants under Article 1C for purposes of calculating the 5 amount of block grants for a district under this Section. 6 Those block grants under Article 1CICare, for this purpose, 7 treated as included in the amount of appropriation for the 8 various programs set forth in paragraph (b) above. The 9 appropriation in each current fiscal year for each block 10 grant under Article 1C shall be treated for these purposes as 11 appropriations for the individual program included in that 12 block grant. The proportion of each block grant so allocated 13 to each such program included in it shall be the proportion 14 which the appropriation for that program was of all 15 appropriations for such purposes now in that block grant, in 16 fiscal 1995. 17 (Source: P.A. 90-566, eff. 1-2-98; 90-653, eff. 7-29-98; 18 91-711, eff. 7-1-00; revised 12-04-01.) 19 (105 ILCS 5/2-3.35) (from Ch. 122, par. 2-3.35) 20 Sec. 2-3.35. Department of School District Organization. 21 To establish a Department of School District Organization to 22 assist local school districts in studying school district 23 organization problems so as to improve educational 24 opportunities for the students and: 25 (1) To provide consultant service to local school 26 districts to help them determine and understand the 27 necessary quality educational program needed for the 28 youth of today, and the necessary services and resources 29 to develop and support it. 30 (2) To provide consultant service to school 31 districts that need to reorganize through consolidation, 32 joint agreements, etc., in order to provide for a quality 33 educational program. SB1854 Enrolled -360- LRB9215370EGfg 1 (3) To provide consultant service to school 2 districts needing help to solve internal organizational 3 problems that must be solved to provide a quality 4 educational program. 5 (4) To provide information annually to the School 6 Problems Commission regarding progress made in improving 7 school district organization as well as school district 8 reorganization. Such factual information should provide 9 a basis for legislation to solve organizational problems 10 for school districts when they cannot or will not be 11 solved at the local school district level. 12 (5) May make area surveys of strengths and 13 weaknesses of local school districts and recommend, where 14 necessary, a course of action to meet adequate standards. 15 (Source: Laws 1967, p. 2639; revised 12-06-01.) 16 (105 ILCS 5/14-1.09.2) 17 Sec. 14-1.09.2.14-1.09.02.School Social Work Services. 18 In the public schools, social work services may be provided 19 by qualified specialists who hold Type 73 School Service 20 Personnel Certificates endorsed for school social work issued 21 by the State Teacher Certification Board. 22 School social work services may include, but are not 23 limited to: 24 (1) Identifying students in need of special 25 education services by conducting a social-developmental 26 study in a case study evaluation; 27 (2) Developing and implementing comprehensive 28 interventions with students, parents, and teachers that 29 will enhance student adjustment to, and performance in, 30 the school setting; 31 (3) Consulting and collaborating with teachers and 32 other school personnel regarding behavior management and 33 intervention plans and inclusion in support of special SB1854 Enrolled -361- LRB9215370EGfg 1 education students in regular classroom settings; 2 (4) Counseling with students, parents, and teachers 3 in accordance with the rules and regulations governing 4 provision of related services, provided that parent 5 permission must be obtained in writing before a student 6 participates in a group counseling session; 7 (5) Acting as a liaison between the public schools 8 and community resources; 9 (6) Developing and implementing school-based 10 prevention programs including mediation and violence 11 prevention; 12 (7) Providing crisis intervention within the school 13 setting; 14 (8) Supervising school social work interns enrolled 15 in school social work programs that meet the standards 16 established by the State Board of Education; 17 (9) Providing parent education and counseling as 18 appropriate in relation to the child's educational 19 assessment; and 20 (10) Assisting in completing a functional 21 behavioral assessment, as well as assisting in the 22 development of nonaversive behavioral intervention 23 strategies. 24 Nothing in this Section prohibits other certified 25 professionals from providing any of the services listed in 26 this Section for which they are appropriately trained. 27 (Source: P.A. 92-362, eff. 8-15-01; revised 10-9-01.) 28 (105 ILCS 5/14-9.01) (from Ch. 122, par. 14-9.01) 29 Sec. 14-9.01. Qualifications of teachers, other 30 professional personnel and necessary workers. No person 31 shall be employed to teach any class or program authorized by 32 this Article who does not hold a valid teacher's certificate 33 as provided by law and unless he has had such special SB1854 Enrolled -362- LRB9215370EGfg 1 training as the State Board of Education may require. No 2 special certificate or endorsement to a special certificate 3 issued under Section 21-421.4on or after July 1, 1994, 4 shall be valid for teaching students with visual disabilities 5 unless the person to whom the certificate or endorsement is 6 issued has attained satisfactory performance on an 7 examination that is designed to assess competency in Braille 8 reading and writing skills according to standards that the 9 State Board of Education may adopt. Evidence of successfully 10 completing the examination of Braille reading and writing 11 skills must be submitted to the State Board of Education 12 prior to an applicant's examination of the subject matter 13 knowledge test required under Section 21-1a. Beginning July 14 1, 1995, in addition to other requirements, a candidate for a 15 teaching certification in the area of the deaf and hard of 16 hearing granted by the Illinois State Board of Education for 17 teaching deaf and hard of hearing students in grades 18 pre-school through grade 12 must demonstrate a minimum 19 proficiency in sign language as determined by the Illinois 20 State Board of Education. All other professional personnel 21 employed in any class, service, or program authorized by this 22 Article shall hold such certificates and shall have had such 23 special training as the State Board of Education may require; 24 provided that in a school district organized under Article 25 34, the school district may employ speech and language 26 pathologists who are licensed under the Illinois 27 Speech-Language Pathology and Audiology Practice Act but who 28 do not hold a certificate issued under the School Code if the 29 district certifies that a chronic shortage of certified 30 personnel exists. Nothing contained in this Act prohibits 31 the school board from employing necessary workers to assist 32 the teacher with the special educational facilities, except 33 that all such necessary workers must have had such training 34 as the State Board of Education may require. SB1854 Enrolled -363- LRB9215370EGfg 1 No later than January 1, 1993, the State Board of 2 Education shall develop, in consultation with the Advisory 3 Council on the Education of Children with Disabilities and 4 the Advisory Council on Bilingual Education, rules governing 5 the qualifications for certification of teachers and school 6 service personnel providing services to limited English 7 proficient students receiving special education and related 8 services. 9 The employment of any teacher in a special education 10 program provided for in Sections 14-1.01 to 14-14.01, 11 inclusive, shall be subject to the provisions of Sections 12 24-11 to 24-16, inclusive. Any teacher employed in a special 13 education program, prior to the effective date of this 14 amendatory Act of 1987, in which 2 or more districts 15 participate shall enter upon contractual continued service in 16 each of the participating districts subject to the provisions 17 of Sections 24-11 to 24-16, inclusive. 18 (Source: P.A. 88-45; 88-49; 88-670, eff. 12-2-94; 89-397, 19 eff. 8-20-95; 89-636, eff. 8-9-96; 89-698, eff. 1-14-97; 20 revised 1-7-02.) 21 (105 ILCS 5/18-8.05) 22 Sec. 18-8.05. Basis for apportionment of general State 23 financial aid and supplemental general State aid to the 24 common schools for the 1998-1999 and subsequent school years. 25 (A) General Provisions. 26 (1) The provisions of this Section apply to the 27 1998-1999 and subsequent school years. The system of general 28 State financial aid provided for in this Section is designed 29 to assure that, through a combination of State financial aid 30 and required local resources, the financial support provided 31 each pupil in Average Daily Attendance equals or exceeds a 32 prescribed per pupil Foundation Level. This formula approach 33 imputes a level of per pupil Available Local Resources and SB1854 Enrolled -364- LRB9215370EGfg 1 provides for the basis to calculate a per pupil level of 2 general State financial aid that, when added to Available 3 Local Resources, equals or exceeds the Foundation Level. The 4 amount of per pupil general State financial aid for school 5 districts, in general, varies in inverse relation to 6 Available Local Resources. Per pupil amounts are based upon 7 each school district's Average Daily Attendance as that term 8 is defined in this Section. 9 (2) In addition to general State financial aid, school 10 districts with specified levels or concentrations of pupils 11 from low income households are eligible to receive 12 supplemental general State financial aid grants as provided 13 pursuant to subsection (H). The supplemental State aid grants 14 provided for school districts under subsection (H) shall be 15 appropriated for distribution to school districts as part of 16 the same line item in which the general State financial aid 17 of school districts is appropriated under this Section. 18 (3) To receive financial assistance under this Section, 19 school districts are required to file claims with the State 20 Board of Education, subject to the following requirements: 21 (a) Any school district which fails for any given 22 school year to maintain school as required by law, or to 23 maintain a recognized school is not eligible to file for 24 such school year any claim upon the Common School Fund. 25 In case of nonrecognition of one or more attendance 26 centers in a school district otherwise operating 27 recognized schools, the claim of the district shall be 28 reduced in the proportion which the Average Daily 29 Attendance in the attendance center or centers bear to 30 the Average Daily Attendance in the school district. A 31 "recognized school" means any public school which meets 32 the standards as established for recognition by the State 33 Board of Education. A school district or attendance 34 center not having recognition status at the end of a SB1854 Enrolled -365- LRB9215370EGfg 1 school term is entitled to receive State aid payments due 2 upon a legal claim which was filed while it was 3 recognized. 4 (b) School district claims filed under this Section 5 are subject to Sections 18-9, 18-10, and 18-12, except as 6 otherwise provided in this Section. 7 (c) If a school district operates a full year 8 school under Section 10-19.1, the general State aid to 9 the school district shall be determined by the State 10 Board of Education in accordance with this Section as 11 near as may be applicable. 12 (d) (Blank). 13 (4) Except as provided in subsections (H) and (L), the 14 board of any district receiving any of the grants provided 15 for in this Section may apply those funds to any fund so 16 received for which that board is authorized to make 17 expenditures by law. 18 School districts are not required to exert a minimum 19 Operating Tax Rate in order to qualify for assistance under 20 this Section. 21 (5) As used in this Section the following terms, when 22 capitalized, shall have the meaning ascribed herein: 23 (a) "Average Daily Attendance": A count of pupil 24 attendance in school, averaged as provided for in 25 subsection (C) and utilized in deriving per pupil 26 financial support levels. 27 (b) "Available Local Resources": A computation of 28 local financial support, calculated on the basis of 29 Average Daily Attendance and derived as provided pursuant 30 to subsection (D). 31 (c) "Corporate Personal Property Replacement 32 Taxes": Funds paid to local school districts pursuant to 33 "An Act in relation to the abolition of ad valorem 34 personal property tax and the replacement of revenues SB1854 Enrolled -366- LRB9215370EGfg 1 lost thereby, and amending and repealing certain Acts and 2 parts of Acts in connection therewith", certified August 3 14, 1979, as amended (Public Act 81-1st S.S.-1). 4 (d) "Foundation Level": A prescribed level of per 5 pupil financial support as provided for in subsection 6 (B). 7 (e) "Operating Tax Rate": All school district 8 property taxes extended for all purposes, except Bond and 9 Interest, Summer School, Rent, Capital Improvement, and 10 Vocational Education Building purposes. 11 (B) Foundation Level. 12 (1) The Foundation Level is a figure established by the 13 State representing the minimum level of per pupil financial 14 support that should be available to provide for the basic 15 education of each pupil in Average Daily Attendance. As set 16 forth in this Section, each school district is assumed to 17 exert a sufficient local taxing effort such that, in 18 combination with the aggregate of general State financial aid 19 provided the district, an aggregate of State and local 20 resources are available to meet the basic education needs of 21 pupils in the district. 22 (2) For the 1998-1999 school year, the Foundation Level 23 of support is $4,225. For the 1999-2000 school year, the 24 Foundation Level of support is $4,325. For the 2000-2001 25 school year, the Foundation Level of support is $4,425. 26 (3) For the 2001-2002 school year and each school year 27 thereafter, the Foundation Level of support is $4,560 or such 28 greater amount as may be established by law by the General 29 Assembly. 30 (C) Average Daily Attendance. 31 (1) For purposes of calculating general State aid 32 pursuant to subsection (E), an Average Daily Attendance 33 figure shall be utilized. The Average Daily Attendance SB1854 Enrolled -367- LRB9215370EGfg 1 figure for formula calculation purposes shall be the monthly 2 average of the actual number of pupils in attendance of each 3 school district, as further averaged for the best 3 months of 4 pupil attendance for each school district. In compiling the 5 figures for the number of pupils in attendance, school 6 districts and the State Board of Education shall, for 7 purposes of general State aid funding, conform attendance 8 figures to the requirements of subsection (F). 9 (2) The Average Daily Attendance figures utilized in 10 subsection (E) shall be the requisite attendance data for the 11 school year immediately preceding the school year for which 12 general State aid is being calculated or the average of the 13 attendance data for the 3 preceding school years, whichever 14 is greater. The Average Daily Attendance figures utilized in 15 subsection (H) shall be the requisite attendance data for the 16 school year immediately preceding the school year for which 17 general State aid is being calculated. 18 (D) Available Local Resources. 19 (1) For purposes of calculating general State aid 20 pursuant to subsection (E), a representation of Available 21 Local Resources per pupil, as that term is defined and 22 determined in this subsection, shall be utilized. Available 23 Local Resources per pupil shall include a calculated dollar 24 amount representing local school district revenues from local 25 property taxes and from Corporate Personal Property 26 Replacement Taxes, expressed on the basis of pupils in 27 Average Daily Attendance. 28 (2) In determining a school district's revenue from 29 local property taxes, the State Board of Education shall 30 utilize the equalized assessed valuation of all taxable 31 property of each school district as of September 30 of the 32 previous year. The equalized assessed valuation utilized 33 shall be obtained and determined as provided in subsection 34 (G). SB1854 Enrolled -368- LRB9215370EGfg 1 (3) For school districts maintaining grades kindergarten 2 through 12, local property tax revenues per pupil shall be 3 calculated as the product of the applicable equalized 4 assessed valuation for the district multiplied by 3.00%, and 5 divided by the district's Average Daily Attendance figure. 6 For school districts maintaining grades kindergarten through 7 8, local property tax revenues per pupil shall be calculated 8 as the product of the applicable equalized assessed valuation 9 for the district multiplied by 2.30%, and divided by the 10 district's Average Daily Attendance figure. For school 11 districts maintaining grades 9 through 12, local property tax 12 revenues per pupil shall be the applicable equalized assessed 13 valuation of the district multiplied by 1.05%, and divided by 14 the district's Average Daily Attendance figure. 15 (4) The Corporate Personal Property Replacement Taxes 16 paid to each school district during the calendar year 2 years 17 before the calendar year in which a school year begins, 18 divided by the Average Daily Attendance figure for that 19 district, shall be added to the local property tax revenues 20 per pupil as derived by the application of the immediately 21 preceding paragraph (3). The sum of these per pupil figures 22 for each school district shall constitute Available Local 23 Resources as that term is utilized in subsection (E) in the 24 calculation of general State aid. 25 (E) Computation of General State Aid. 26 (1) For each school year, the amount of general State 27 aid allotted to a school district shall be computed by the 28 State Board of Education as provided in this subsection. 29 (2) For any school district for which Available Local 30 Resources per pupil is less than the product of 0.93 times 31 the Foundation Level, general State aid for that district 32 shall be calculated as an amount equal to the Foundation 33 Level minus Available Local Resources, multiplied by the 34 Average Daily Attendance of the school district. SB1854 Enrolled -369- LRB9215370EGfg 1 (3) For any school district for which Available Local 2 Resources per pupil is equal to or greater than the product 3 of 0.93 times the Foundation Level and less than the product 4 of 1.75 times the Foundation Level, the general State aid per 5 pupil shall be a decimal proportion of the Foundation Level 6 derived using a linear algorithm. Under this linear 7 algorithm, the calculated general State aid per pupil shall 8 decline in direct linear fashion from 0.07 times the 9 Foundation Level for a school district with Available Local 10 Resources equal to the product of 0.93 times the Foundation 11 Level, to 0.05 times the Foundation Level for a school 12 district with Available Local Resources equal to the product 13 of 1.75 times the Foundation Level. The allocation of 14 general State aid for school districts subject to this 15 paragraph 3 shall be the calculated general State aid per 16 pupil figure multiplied by the Average Daily Attendance of 17 the school district. 18 (4) For any school district for which Available Local 19 Resources per pupil equals or exceeds the product of 1.75 20 times the Foundation Level, the general State aid for the 21 school district shall be calculated as the product of $218 22 multiplied by the Average Daily Attendance of the school 23 district. 24 (5) The amount of general State aid allocated to a 25 school district for the 1999-2000 school year meeting the 26 requirements set forth in paragraph (4) of subsection (G) 27 shall be increased by an amount equal to the general State 28 aid that would have been received by the district for the 29 1998-1999 school year by utilizing the Extension Limitation 30 Equalized Assessed Valuation as calculated in paragraph (4) 31 of subsection (G) less the general State aid allotted for the 32 1998-1999 school year. This amount shall be deemed a one 33 time increase, and shall not affect any future general State 34 aid allocations. SB1854 Enrolled -370- LRB9215370EGfg 1 (F) Compilation of Average Daily Attendance. 2 (1) Each school district shall, by July 1 of each year, 3 submit to the State Board of Education, on forms prescribed 4 by the State Board of Education, attendance figures for the 5 school year that began in the preceding calendar year. The 6 attendance information so transmitted shall identify the 7 average daily attendance figures for each month of the school 8 year, except that any days of attendance in August shall be 9 added to the month of September and any days of attendance in 10 June shall be added to the month of May. 11 Except as otherwise provided in this Section, days of 12 attendance by pupils shall be counted only for sessions of 13 not less than 5 clock hours of school work per day under 14 direct supervision of: (i) teachers, or (ii) non-teaching 15 personnel or volunteer personnel when engaging in 16 non-teaching duties and supervising in those instances 17 specified in subsection (a) of Section 10-22.34 and paragraph 18 10 of Section 34-18, with pupils of legal school age and in 19 kindergarten and grades 1 through 12. 20 Days of attendance by tuition pupils shall be accredited 21 only to the districts that pay the tuition to a recognized 22 school. 23 (2) Days of attendance by pupils of less than 5 clock 24 hours of school shall be subject to the following provisions 25 in the compilation of Average Daily Attendance. 26 (a) Pupils regularly enrolled in a public school 27 for only a part of the school day may be counted on the 28 basis of 1/6 day for every class hour of instruction of 29 40 minutes or more attended pursuant to such enrollment, 30 unless a pupil is enrolled in a block-schedule format of 31 80 minutes or more of instruction, in which case the 32 pupil may be counted on the basis of the proportion of 33 minutes of school work completed each day to the minimum 34 number of minutes that school work is required to be held SB1854 Enrolled -371- LRB9215370EGfg 1 that day. 2 (b) Days of attendance may be less than 5 clock 3 hours on the opening and closing of the school term, and 4 upon the first day of pupil attendance, if preceded by a 5 day or days utilized as an institute or teachers' 6 workshop. 7 (c) A session of 4 or more clock hours may be 8 counted as a day of attendance upon certification by the 9 regional superintendent, and approved by the State 10 Superintendent of Education to the extent that the 11 district has been forced to use daily multiple sessions. 12 (d) A session of 3 or more clock hours may be 13 counted as a day of attendance (1) when the remainder of 14 the school day or at least 2 hours in the evening of that 15 day is utilized for an in-service training program for 16 teachers, up to a maximum of 5 days per school year of 17 which a maximum of 4 days of such 5 days may be used for 18 parent-teacher conferences, provided a district conducts 19 an in-service training program for teachers which has 20 been approved by the State Superintendent of Education; 21 or, in lieu of 4 such days, 2 full days may be used, in 22 which event each such day may be counted as a day of 23 attendance; and (2) when days in addition to those 24 provided in item (1) are scheduled by a school pursuant 25 to its school improvement plan adopted under Article 34 26 or its revised or amended school improvement plan adopted 27 under Article 2, provided that (i) such sessions of 3 or 28 more clock hours are scheduled to occur at regular 29 intervals, (ii) the remainder of the school days in which 30 such sessions occur are utilized for in-service training 31 programs or other staff development activities for 32 teachers, and (iii) a sufficient number of minutes of 33 school work under the direct supervision of teachers are 34 added to the school days between such regularly scheduled SB1854 Enrolled -372- LRB9215370EGfg 1 sessions to accumulate not less than the number of 2 minutes by which such sessions of 3 or more clock hours 3 fall short of 5 clock hours. Any full days used for the 4 purposes of this paragraph shall not be considered for 5 computing average daily attendance. Days scheduled for 6 in-service training programs, staff development 7 activities, or parent-teacher conferences may be 8 scheduled separately for different grade levels and 9 different attendance centers of the district. 10 (e) A session of not less than one clock hour of 11 teaching hospitalized or homebound pupils on-site or by 12 telephone to the classroom may be counted as 1/2 day of 13 attendance, however these pupils must receive 4 or more 14 clock hours of instruction to be counted for a full day 15 of attendance. 16 (f) A session of at least 4 clock hours may be 17 counted as a day of attendance for first grade pupils, 18 and pupils in full day kindergartens, and a session of 2 19 or more hours may be counted as 1/2 day of attendance by 20 pupils in kindergartens which provide only 1/2 day of 21 attendance. 22 (g) For children with disabilities who are below 23 the age of 6 years and who cannot attend 2 or more clock 24 hours because of their disability or immaturity, a 25 session of not less than one clock hour may be counted as 26 1/2 day of attendance; however for such children whose 27 educational needs so require a session of 4 or more clock 28 hours may be counted as a full day of attendance. 29 (h) A recognized kindergarten which provides for 30 only 1/2 day of attendance by each pupil shall not have 31 more than 1/2 day of attendance counted in any one day. 32 However, kindergartens may count 2 1/2 days of attendance 33 in any 5 consecutive school days. When a pupil attends 34 such a kindergarten for 2 half days on any one school SB1854 Enrolled -373- LRB9215370EGfg 1 day, the pupil shall have the following day as a day 2 absent from school, unless the school district obtains 3 permission in writing from the State Superintendent of 4 Education. Attendance at kindergartens which provide for 5 a full day of attendance by each pupil shall be counted 6 the same as attendance by first grade pupils. Only the 7 first year of attendance in one kindergarten shall be 8 counted, except in case of children who entered the 9 kindergarten in their fifth year whose educational 10 development requires a second year of kindergarten as 11 determined under the rules and regulations of the State 12 Board of Education. 13 (G) Equalized Assessed Valuation Data. 14 (1) For purposes of the calculation of Available Local 15 Resources required pursuant to subsection (D), the State 16 Board of Education shall secure from the Department of 17 Revenue the value as equalized or assessed by the Department 18 of Revenue of all taxable property of every school district, 19 together with (i) the applicable tax rate used in extending 20 taxes for the funds of the district as of September 30 of the 21 previous year and (ii) the limiting rate for all school 22 districts subject to property tax extension limitations as 23 imposed under the Property Tax Extension Limitation Law. 24 This equalized assessed valuation, as adjusted further by 25 the requirements of this subsection, shall be utilized in the 26 calculation of Available Local Resources. 27 (2) The equalized assessed valuation in paragraph (1) 28 shall be adjusted, as applicable, in the following manner: 29 (a) For the purposes of calculating State aid under 30 this Section, with respect to any part of a school 31 district within a redevelopment project area in respect 32 to which a municipality has adopted tax increment 33 allocation financing pursuant to the Tax Increment 34 Allocation Redevelopment Act, Sections 11-74.4-1 through SB1854 Enrolled -374- LRB9215370EGfg 1 11-74.4-11 of the Illinois Municipal Code or the 2 Industrial Jobs Recovery Law, Sections 11-74.6-1 through 3 11-74.6-50 of the Illinois Municipal Code, no part of the 4 current equalized assessed valuation of real property 5 located in any such project area which is attributable to 6 an increase above the total initial equalized assessed 7 valuation of such property shall be used as part of the 8 equalized assessed valuation of the district, until such 9 time as all redevelopment project costs have been paid, 10 as provided in Section 11-74.4-8 of the Tax Increment 11 Allocation Redevelopment Act or in Section 11-74.6-35 of 12 the Industrial Jobs Recovery Law. For the purpose of the 13 equalized assessed valuation of the district, the total 14 initial equalized assessed valuation or the current 15 equalized assessed valuation, whichever is lower, shall 16 be used until such time as all redevelopment project 17 costs have been paid. 18 (b) The real property equalized assessed valuation 19 for a school district shall be adjusted by subtracting 20 from the real property value as equalized or assessed by 21 the Department of Revenue for the district an amount 22 computed by dividing the amount of any abatement of taxes 23 under Section 18-170 of the Property Tax Code by 3.00% 24 for a district maintaining grades kindergarten through 25 12, by 2.30% for a district maintaining grades 26 kindergarten through 8, or by 1.05% for a district 27 maintaining grades 9 through 12 and adjusted by an amount 28 computed by dividing the amount of any abatement of taxes 29 under subsection (a) of Section 18-165 of the Property 30 Tax Code by the same percentage rates for district type 31 as specified in this subparagraph (b). 32 (3) For the 1999-2000 school year and each school year 33 thereafter, if a school district meets all of the criteria of 34 this subsection (G)(3), the school district's Available Local SB1854 Enrolled -375- LRB9215370EGfg 1 Resources shall be calculated under subsection (D) using the 2 district's Extension Limitation Equalized Assessed Valuation 3 as calculated under this subsection (G)(3). 4 For purposes of this subsection (G)(3) the following 5 terms shall have the following meanings: 6 "Budget Year": The school year for which general 7 State aid is calculated and awarded under subsection (E). 8 "Base Tax Year": The property tax levy year used to 9 calculate the Budget Year allocation of general State 10 aid. 11 "Preceding Tax Year": The property tax levy year 12 immediately preceding the Base Tax Year. 13 "Base Tax Year's Tax Extension": The product of the 14 equalized assessed valuation utilized by the County Clerk 15 in the Base Tax Year multiplied by the limiting rate as 16 calculated by the County Clerk and defined in the 17 Property Tax Extension Limitation Law. 18 "Preceding Tax Year's Tax Extension": The product of 19 the equalized assessed valuation utilized by the County 20 Clerk in the Preceding Tax Year multiplied by the 21 Operating Tax Rate as defined in subsection (A). 22 "Extension Limitation Ratio": A numerical ratio, 23 certified by the County Clerk, in which the numerator is 24 the Base Tax Year's Tax Extension and the denominator is 25 the Preceding Tax Year's Tax Extension. 26 "Operating Tax Rate": The operating tax rate as 27 defined in subsection (A). 28 If a school district is subject to property tax extension 29 limitations as imposed under the Property Tax Extension 30 Limitation Law, the State Board of Education shall calculate 31 the Extension Limitation Equalized Assessed Valuation of that 32 district. For the 1999-2000 school year, the Extension 33 Limitation Equalized Assessed Valuation of a school district 34 as calculated by the State Board of Education shall be equal SB1854 Enrolled -376- LRB9215370EGfg 1 to the product of the district's 1996 Equalized Assessed 2 Valuation and the district's Extension Limitation Ratio. For 3 the 2000-2001 school year and each school year thereafter, 4 the Extension Limitation Equalized Assessed Valuation of a 5 school district as calculated by the State Board of Education 6 shall be equal to the product of the Equalized Assessed 7 Valuation last used in the calculation of general State aid 8 and the district's Extension Limitation Ratio. If the 9 Extension Limitation Equalized Assessed Valuation of a school 10 district as calculated under this subsection (G)(3) is less 11 than the district's equalized assessed valuation as 12 calculated pursuant to subsections (G)(1) and (G)(2), then 13 for purposes of calculating the district's general State aid 14 for the Budget Year pursuant to subsection (E), that 15 Extension Limitation Equalized Assessed Valuation shall be 16 utilized to calculate the district's Available Local 17 Resources under subsection (D). 18 (4) For the purposes of calculating general State aid 19 for the 1999-2000 school year only, if a school district 20 experienced a triennial reassessment on the equalized 21 assessed valuation used in calculating its general State 22 financial aid apportionment for the 1998-1999 school year, 23 the State Board of Education shall calculate the Extension 24 Limitation Equalized Assessed Valuation that would have been 25 used to calculate the district's 1998-1999 general State aid. 26 This amount shall equal the product of the equalized assessed 27 valuation used to calculate general State aid for the 28 1997-1998 school year and the district's Extension Limitation 29 Ratio. If the Extension Limitation Equalized Assessed 30 Valuation of the school district as calculated under this 31 paragraph (4) is less than the district's equalized assessed 32 valuation utilized in calculating the district's 1998-1999 33 general State aid allocation, then for purposes of 34 calculating the district's general State aid pursuant to SB1854 Enrolled -377- LRB9215370EGfg 1 paragraph (5) of subsection (E), that Extension Limitation 2 Equalized Assessed Valuation shall be utilized to calculate 3 the district's Available Local Resources. 4 (5) For school districts having a majority of their 5 equalized assessed valuation in any county except Cook, 6 DuPage, Kane, Lake, McHenry, or Will, if the amount of 7 general State aid allocated to the school district for the 8 1999-2000 school year under the provisions of subsection (E), 9 (H), and (J) of this Section is less than the amount of 10 general State aid allocated to the district for the 1998-1999 11 school year under these subsections, then the general State 12 aid of the district for the 1999-2000 school year only shall 13 be increased by the difference between these amounts. The 14 total payments made under this paragraph (5) shall not exceed 15 $14,000,000. Claims shall be prorated if they exceed 16 $14,000,000. 17 (H) Supplemental General State Aid. 18 (1) In addition to the general State aid a school 19 district is allotted pursuant to subsection (E), qualifying 20 school districts shall receive a grant, paid in conjunction 21 with a district's payments of general State aid, for 22 supplemental general State aid based upon the concentration 23 level of children from low-income households within the 24 school district. Supplemental State aid grants provided for 25 school districts under this subsection shall be appropriated 26 for distribution to school districts as part of the same line 27 item in which the general State financial aid of school 28 districts is appropriated under this Section. For purposes of 29 this subsection, the term "Low-Income Concentration Level" 30 shall be the low-income eligible pupil count from the most 31 recently available federal census divided by the Average 32 Daily Attendance of the school district. If, however, (i) the 33 percentage decrease from the 2 most recent federal censuses 34 in the low-income eligible pupil count of a high school SB1854 Enrolled -378- LRB9215370EGfg 1 district with fewer than 400 students exceeds by 75% or more 2 the percentage change in the total low-income eligible pupil 3 count of contiguous elementary school districts, whose 4 boundaries are coterminous with the high school district, or 5 (ii) a high school district within 2 counties and serving 5 6 elementary school districts, whose boundaries are coterminous 7 with the high school district, has a percentage decrease from 8 the 2 most recent federal censuses in the low-income eligible 9 pupil count and there is a percentage increase in the total 10 low-income eligible pupil count of a majority of the 11 elementary school districts in excess of 50% from the 2 most 12 recent federal censuses, then the high school district's 13 low-income eligible pupil count from the earlier federal 14 census shall be the number used as the low-income eligible 15 pupil count for the high school district, for purposes of 16 this subsection (H). The changes made to this paragraph (1) 17 by Public Act 92-28this amendatory Act of the 92nd General18Assemblyshall apply to supplemental general State aid grants 19 paid in fiscal year 1999 and in each fiscal year thereafter 20 and to any State aid payments made in fiscal year 1994 21 through fiscal year 1998 pursuant to subsection 1(n) of 22 Section 18-8 of this Code (which was repealed on July 1, 23 1998), and any high school district that is affected by 24 Public Act 92-28this amendatory Act of the 92nd General25Assemblyis entitled to a recomputation of its supplemental 26 general State aid grant or State aid paid in any of those 27 fiscal years. This recomputation shall not be affected by 28 any other funding. 29 (2) Supplemental general State aid pursuant to this 30 subsection (H) shall be provided as follows for the 31 1998-1999, 1999-2000, and 2000-2001 school years only: 32 (a) For any school district with a Low Income 33 Concentration Level of at least 20% and less than 35%, 34 the grant for any school year shall be $800 multiplied by SB1854 Enrolled -379- LRB9215370EGfg 1 the low income eligible pupil count. 2 (b) For any school district with a Low Income 3 Concentration Level of at least 35% and less than 50%, 4 the grant for the 1998-1999 school year shall be $1,100 5 multiplied by the low income eligible pupil count. 6 (c) For any school district with a Low Income 7 Concentration Level of at least 50% and less than 60%, 8 the grant for the 1998-99 school year shall be $1,500 9 multiplied by the low income eligible pupil count. 10 (d) For any school district with a Low Income 11 Concentration Level of 60% or more, the grant for the 12 1998-99 school year shall be $1,900 multiplied by the low 13 income eligible pupil count. 14 (e) For the 1999-2000 school year, the per pupil 15 amount specified in subparagraphs (b), (c), and (d) 16 immediately above shall be increased to $1,243, $1,600, 17 and $2,000, respectively. 18 (f) For the 2000-2001 school year, the per pupil 19 amounts specified in subparagraphs (b), (c), and (d) 20 immediately above shall be $1,273, $1,640, and $2,050, 21 respectively. 22 (2.5) Supplemental general State aid pursuant to this 23 subsection (H) shall be provided as follows for the 2001-2002 24 school year and each school year thereafter: 25 (a) For any school district with a Low Income 26 Concentration Level of less than 10%, the grant for each 27 school year shall be $355 multiplied by the low income 28 eligible pupil count. 29 (b) For any school district with a Low Income 30 Concentration Level of at least 10% and less than 20%, 31 the grant for each school year shall be $675 multiplied 32 by the low income eligible pupil count. 33 (c) For any school district with a Low Income 34 Concentration Level of at least 20% and less than 35%, SB1854 Enrolled -380- LRB9215370EGfg 1 the grant for each school year shall be $1,190 multiplied 2 by the low income eligible pupil count. 3 (d) For any school district with a Low Income 4 Concentration Level of at least 35% and less than 50%, 5 the grant for each school year shall be $1,333 multiplied 6 by the low income eligible pupil count. 7 (e) For any school district with a Low Income 8 Concentration Level of at least 50% and less than 60%, 9 the grant for each school year shall be $1,680 multiplied 10 by the low income eligible pupil count. 11 (f) For any school district with a Low Income 12 Concentration Level of 60% or more, the grant for each 13 school year shall be $2,080 multiplied by the low income 14 eligible pupil count. 15 (3) School districts with an Average Daily Attendance of 16 more than 1,000 and less than 50,000 that qualify for 17 supplemental general State aid pursuant to this subsection 18 shall submit a plan to the State Board of Education prior to 19 October 30 of each year for the use of the funds resulting 20 from this grant of supplemental general State aid for the 21 improvement of instruction in which priority is given to 22 meeting the education needs of disadvantaged children. Such 23 plan shall be submitted in accordance with rules and 24 regulations promulgated by the State Board of Education. 25 (4) School districts with an Average Daily Attendance of 26 50,000 or more that qualify for supplemental general State 27 aid pursuant to this subsection shall be required to 28 distribute from funds available pursuant to this Section, no 29 less than $261,000,000 in accordance with the following 30 requirements: 31 (a) The required amounts shall be distributed to 32 the attendance centers within the district in proportion 33 to the number of pupils enrolled at each attendance 34 center who are eligible to receive free or reduced-price SB1854 Enrolled -381- LRB9215370EGfg 1 lunches or breakfasts under the federal Child Nutrition 2 Act of 1966 and under the National School Lunch Act 3 during the immediately preceding school year. 4 (b) The distribution of these portions of 5 supplemental and general State aid among attendance 6 centers according to these requirements shall not be 7 compensated for or contravened by adjustments of the 8 total of other funds appropriated to any attendance 9 centers, and the Board of Education shall utilize funding 10 from one or several sources in order to fully implement 11 this provision annually prior to the opening of school. 12 (c) Each attendance center shall be provided by the 13 school district a distribution of noncategorical funds 14 and other categorical funds to which an attendance center 15 is entitled under law in order that the general State aid 16 and supplemental general State aid provided by 17 application of this subsection supplements rather than 18 supplants the noncategorical funds and other categorical 19 funds provided by the school district to the attendance 20 centers. 21 (d) Any funds made available under this subsection 22 that by reason of the provisions of this subsection are 23 not required to be allocated and provided to attendance 24 centers may be used and appropriated by the board of the 25 district for any lawful school purpose. 26 (e) Funds received by an attendance center pursuant 27 to this subsection shall be used by the attendance center 28 at the discretion of the principal and local school 29 council for programs to improve educational opportunities 30 at qualifying schools through the following programs and 31 services: early childhood education, reduced class size 32 or improved adult to student classroom ratio, enrichment 33 programs, remedial assistance, attendance improvement, 34 and other educationally beneficial expenditures which SB1854 Enrolled -382- LRB9215370EGfg 1 supplement the regular and basic programs as determined 2 by the State Board of Education. Funds provided shall not 3 be expended for any political or lobbying purposes as 4 defined by board rule. 5 (f) Each district subject to the provisions of this 6 subdivision (H)(4) shall submit an acceptable plan to 7 meet the educational needs of disadvantaged children, in 8 compliance with the requirements of this paragraph, to 9 the State Board of Education prior to July 15 of each 10 year. This plan shall be consistent with the decisions of 11 local school councils concerning the school expenditure 12 plans developed in accordance with part 4 of Section 13 34-2.3. The State Board shall approve or reject the plan 14 within 60 days after its submission. If the plan is 15 rejected, the district shall give written notice of 16 intent to modify the plan within 15 days of the 17 notification of rejection and then submit a modified plan 18 within 30 days after the date of the written notice of 19 intent to modify. Districts may amend approved plans 20 pursuant to rules promulgated by the State Board of 21 Education. 22 Upon notification by the State Board of Education 23 that the district has not submitted a plan prior to July 24 15 or a modified plan within the time period specified 25 herein, the State aid funds affected by that plan or 26 modified plan shall be withheld by the State Board of 27 Education until a plan or modified plan is submitted. 28 If the district fails to distribute State aid to 29 attendance centers in accordance with an approved plan, 30 the plan for the following year shall allocate funds, in 31 addition to the funds otherwise required by this 32 subsection, to those attendance centers which were 33 underfunded during the previous year in amounts equal to 34 such underfunding. SB1854 Enrolled -383- LRB9215370EGfg 1 For purposes of determining compliance with this 2 subsection in relation to the requirements of attendance 3 center funding, each district subject to the provisions 4 of this subsection shall submit as a separate document by 5 December 1 of each year a report of expenditure data for 6 the prior year in addition to any modification of its 7 current plan. If it is determined that there has been a 8 failure to comply with the expenditure provisions of this 9 subsection regarding contravention or supplanting, the 10 State Superintendent of Education shall, within 60 days 11 of receipt of the report, notify the district and any 12 affected local school council. The district shall within 13 45 days of receipt of that notification inform the State 14 Superintendent of Education of the remedial or corrective 15 action to be taken, whether by amendment of the current 16 plan, if feasible, or by adjustment in the plan for the 17 following year. Failure to provide the expenditure 18 report or the notification of remedial or corrective 19 action in a timely manner shall result in a withholding 20 of the affected funds. 21 The State Board of Education shall promulgate rules 22 and regulations to implement the provisions of this 23 subsection. No funds shall be released under this 24 subdivision (H)(4) to any district that has not submitted 25 a plan that has been approved by the State Board of 26 Education. 27 (I) General State Aid for Newly Configured School Districts. 28 (1) For a new school district formed by combining 29 property included totally within 2 or more previously 30 existing school districts, for its first year of existence 31 the general State aid and supplemental general State aid 32 calculated under this Section shall be computed for the new 33 district and for the previously existing districts for which 34 property is totally included within the new district. If the SB1854 Enrolled -384- LRB9215370EGfg 1 computation on the basis of the previously existing districts 2 is greater, a supplementary payment equal to the difference 3 shall be made for the first 4 years of existence of the new 4 district. 5 (2) For a school district which annexes all of the 6 territory of one or more entire other school districts, for 7 the first year during which the change of boundaries 8 attributable to such annexation becomes effective for all 9 purposes as determined under Section 7-9 or 7A-8, the general 10 State aid and supplemental general State aid calculated under 11 this Section shall be computed for the annexing district as 12 constituted after the annexation and for the annexing and 13 each annexed district as constituted prior to the annexation; 14 and if the computation on the basis of the annexing and 15 annexed districts as constituted prior to the annexation is 16 greater, a supplementary payment equal to the difference 17 shall be made for the first 4 years of existence of the 18 annexing school district as constituted upon such annexation. 19 (3) For 2 or more school districts which annex all of 20 the territory of one or more entire other school districts, 21 and for 2 or more community unit districts which result upon 22 the division (pursuant to petition under Section 11A-2) of 23 one or more other unit school districts into 2 or more parts 24 and which together include all of the parts into which such 25 other unit school district or districts are so divided, for 26 the first year during which the change of boundaries 27 attributable to such annexation or division becomes effective 28 for all purposes as determined under Section 7-9 or 11A-10, 29 as the case may be, the general State aid and supplemental 30 general State aid calculated under this Section shall be 31 computed for each annexing or resulting district as 32 constituted after the annexation or division and for each 33 annexing and annexed district, or for each resulting and 34 divided district, as constituted prior to the annexation or SB1854 Enrolled -385- LRB9215370EGfg 1 division; and if the aggregate of the general State aid and 2 supplemental general State aid as so computed for the 3 annexing or resulting districts as constituted after the 4 annexation or division is less than the aggregate of the 5 general State aid and supplemental general State aid as so 6 computed for the annexing and annexed districts, or for the 7 resulting and divided districts, as constituted prior to the 8 annexation or division, then a supplementary payment equal to 9 the difference shall be made and allocated between or among 10 the annexing or resulting districts, as constituted upon such 11 annexation or division, for the first 4 years of their 12 existence. The total difference payment shall be allocated 13 between or among the annexing or resulting districts in the 14 same ratio as the pupil enrollment from that portion of the 15 annexed or divided district or districts which is annexed to 16 or included in each such annexing or resulting district bears 17 to the total pupil enrollment from the entire annexed or 18 divided district or districts, as such pupil enrollment is 19 determined for the school year last ending prior to the date 20 when the change of boundaries attributable to the annexation 21 or division becomes effective for all purposes. The amount 22 of the total difference payment and the amount thereof to be 23 allocated to the annexing or resulting districts shall be 24 computed by the State Board of Education on the basis of 25 pupil enrollment and other data which shall be certified to 26 the State Board of Education, on forms which it shall provide 27 for that purpose, by the regional superintendent of schools 28 for each educational service region in which the annexing and 29 annexed districts, or resulting and divided districts are 30 located. 31 (3.5) Claims for financial assistance under this 32 subsection (I) shall not be recomputed except as expressly 33 provided under this Section. 34 (4) Any supplementary payment made under this subsection SB1854 Enrolled -386- LRB9215370EGfg 1 (I) shall be treated as separate from all other payments made 2 pursuant to this Section. 3 (J) Supplementary Grants in Aid. 4 (1) Notwithstanding any other provisions of this 5 Section, the amount of the aggregate general State aid in 6 combination with supplemental general State aid under this 7 Section for which each school district is eligible shall be 8 no less than the amount of the aggregate general State aid 9 entitlement that was received by the district under Section 10 18-8 (exclusive of amounts received under subsections 5(p) 11 and 5(p-5) of that Section) for the 1997-98 school year, 12 pursuant to the provisions of that Section as it was then in 13 effect. If a school district qualifies to receive a 14 supplementary payment made under this subsection (J), the 15 amount of the aggregate general State aid in combination with 16 supplemental general State aid under this Section which that 17 district is eligible to receive for each school year shall be 18 no less than the amount of the aggregate general State aid 19 entitlement that was received by the district under Section 20 18-8 (exclusive of amounts received under subsections 5(p) 21 and 5(p-5) of that Section) for the 1997-1998 school year, 22 pursuant to the provisions of that Section as it was then in 23 effect. 24 (2) If, as provided in paragraph (1) of this subsection 25 (J), a school district is to receive aggregate general State 26 aid in combination with supplemental general State aid under 27 this Section for the 1998-99 school year and any subsequent 28 school year that in any such school year is less than the 29 amount of the aggregate general State aid entitlement that 30 the district received for the 1997-98 school year, the school 31 district shall also receive, from a separate appropriation 32 made for purposes of this subsection (J), a supplementary 33 payment that is equal to the amount of the difference in the 34 aggregate State aid figures as described in paragraph (1). SB1854 Enrolled -387- LRB9215370EGfg 1 (3) (Blank). 2 (K) Grants to Laboratory and Alternative Schools. 3 In calculating the amount to be paid to the governing 4 board of a public university that operates a laboratory 5 school under this Section or to any alternative school that 6 is operated by a regional superintendent of schools, the 7 State Board of Education shall require by rule such reporting 8 requirements as it deems necessary. 9 As used in this Section, "laboratory school" means a 10 public school which is created and operated by a public 11 university and approved by the State Board of Education. The 12 governing board of a public university which receives funds 13 from the State Board under this subsection (K) may not 14 increase the number of students enrolled in its laboratory 15 school from a single district, if that district is already 16 sending 50 or more students, except under a mutual agreement 17 between the school board of a student's district of residence 18 and the university which operates the laboratory school. A 19 laboratory school may not have more than 1,000 students, 20 excluding students with disabilities in a special education 21 program. 22 As used in this Section, "alternative school" means a 23 public school which is created and operated by a Regional 24 Superintendent of Schools and approved by the State Board of 25 Education. Such alternative schools may offer courses of 26 instruction for which credit is given in regular school 27 programs, courses to prepare students for the high school 28 equivalency testing program or vocational and occupational 29 training. A regional superintendent of schools may contract 30 with a school district or a public community college district 31 to operate an alternative school. An alternative school 32 serving more than one educational service region may be 33 established by the regional superintendents of schools of the 34 affected educational service regions. An alternative school SB1854 Enrolled -388- LRB9215370EGfg 1 serving more than one educational service region may be 2 operated under such terms as the regional superintendents of 3 schools of those educational service regions may agree. 4 Each laboratory and alternative school shall file, on 5 forms provided by the State Superintendent of Education, an 6 annual State aid claim which states the Average Daily 7 Attendance of the school's students by month. The best 3 8 months' Average Daily Attendance shall be computed for each 9 school. The general State aid entitlement shall be computed 10 by multiplying the applicable Average Daily Attendance by the 11 Foundation Level as determined under this Section. 12 (L) Payments, Additional Grants in Aid and Other 13 Requirements. 14 (1) For a school district operating under the financial 15 supervision of an Authority created under Article 34A, the 16 general State aid otherwise payable to that district under 17 this Section, but not the supplemental general State aid, 18 shall be reduced by an amount equal to the budget for the 19 operations of the Authority as certified by the Authority to 20 the State Board of Education, and an amount equal to such 21 reduction shall be paid to the Authority created for such 22 district for its operating expenses in the manner provided in 23 Section 18-11. The remainder of general State school aid for 24 any such district shall be paid in accordance with Article 25 34A when that Article provides for a disposition other than 26 that provided by this Article. 27 (2) (Blank). 28 (3) Summer school. Summer school payments shall be made 29 as provided in Section 18-4.3. 30 (M) Education Funding Advisory Board. 31 The Education Funding Advisory Board, hereinafter in this 32 subsection (M) referred to as the "Board", is hereby created. 33 The Board shall consist of 5 members who are appointed by the SB1854 Enrolled -389- LRB9215370EGfg 1 Governor, by and with the advice and consent of the Senate. 2 The members appointed shall include representatives of 3 education, business, and the general public. One of the 4 members so appointed shall be designated by the Governor at 5 the time the appointment is made as the chairperson of the 6 Board. The initial members of the Board may be appointed any 7 time after the effective date of this amendatory Act of 1997. 8 The regular term of each member of the Board shall be for 4 9 years from the third Monday of January of the year in which 10 the term of the member's appointment is to commence, except 11 that of the 5 initial members appointed to serve on the 12 Board, the member who is appointed as the chairperson shall 13 serve for a term that commences on the date of his or her 14 appointment and expires on the third Monday of January, 2002, 15 and the remaining 4 members, by lots drawn at the first 16 meeting of the Board that is held after all 5 members are 17 appointed, shall determine 2 of their number to serve for 18 terms that commence on the date of their respective 19 appointments and expire on the third Monday of January, 2001, 20 and 2 of their number to serve for terms that commence on the 21 date of their respective appointments and expire on the third 22 Monday of January, 2000. All members appointed to serve on 23 the Board shall serve until their respective successors are 24 appointed and confirmed. Vacancies shall be filled in the 25 same manner as original appointments. If a vacancy in 26 membership occurs at a time when the Senate is not in 27 session, the Governor shall make a temporary appointment 28 until the next meeting of the Senate, when he or she shall 29 appoint, by and with the advice and consent of the Senate, a 30 person to fill that membership for the unexpired term. If 31 the Senate is not in session when the initial appointments 32 are made, those appointments shall be made as in the case of 33 vacancies. 34 The Education Funding Advisory Board shall be deemed SB1854 Enrolled -390- LRB9215370EGfg 1 established, and the initial members appointed by the 2 Governor to serve as members of the Board shall take office, 3 on the date that the Governor makes his or her appointment of 4 the fifth initial member of the Board, whether those initial 5 members are then serving pursuant to appointment and 6 confirmation or pursuant to temporary appointments that are 7 made by the Governor as in the case of vacancies. 8 The State Board of Education shall provide such staff 9 assistance to the Education Funding Advisory Board as is 10 reasonably required for the proper performance by the Board 11 of its responsibilities. 12 For school years after the 2000-2001 school year, the 13 Education Funding Advisory Board, in consultation with the 14 State Board of Education, shall make recommendations as 15 provided in this subsection (M) to the General Assembly for 16 the foundation level under subdivision (B)(3) of this Section 17 and for the supplemental general State aid grant level under 18 subsection (H) of this Section for districts with high 19 concentrations of children from poverty. The recommended 20 foundation level shall be determined based on a methodology 21 which incorporates the basic education expenditures of 22 low-spending schools exhibiting high academic performance. 23 The Education Funding Advisory Board shall make such 24 recommendations to the General Assembly on January 1 of odd 25 numbered years, beginning January 1, 2001. 26 (N) (Blank). 27 (O) References. 28 (1) References in other laws to the various subdivisions 29 of Section 18-8 as that Section existed before its repeal and 30 replacement by this Section 18-8.05 shall be deemed to refer 31 to the corresponding provisions of this Section 18-8.05, to 32 the extent that those references remain applicable. 33 (2) References in other laws to State Chapter 1 funds SB1854 Enrolled -391- LRB9215370EGfg 1 shall be deemed to refer to the supplemental general State 2 aid provided under subsection (H) of this Section. 3 (Source: P.A. 91-24, eff. 7-1-99; 91-93, eff. 7-9-99; 91-96, 4 eff. 7-9-99; 91-111, eff. 7-14-99; 91-357, eff. 7-29-99; 5 91-533, eff. 8-13-99; 92-7, eff. 6-29-01; 92-16, eff. 6 6-28-01; 92-28, eff. 7-1-01; 92-29, eff. 7-1-01; 92-269, eff. 7 8-7-01; revised 8-7-01.) 8 (105 ILCS 5/22-27) 9 Sec. 22-27. World War II and Korean Conflict veterans; 10 diplomas. 11 (a) Upontherequest, the school board of any district 12 that maintains grades 10 through 12 may award a diploma to 13 any honorably discharged veteran who: 14 (1) served in the armed forces of the United States 15 during World War II or the Korean Conflict; 16 (2) resided within an area currently within the 17 district; 18 (3) left high school before graduating in order to 19 serve in the armed forces of the United States; and 20 (4) has not received a high school diploma. 21 (b) The State Board of Education and the Department of 22 Veterans' Affairs may issue rules consistent with the 23 provisions of this Section that are necessary to implement 24 this Section. 25 (Source: P.A. 92-446, eff. 1-1-02; revised 12-04-01.) 26 (105 ILCS 5/34A-403.1) 27 Sec. 34A-403.1. Fiscal year 1994 contracts. 28 Notwithstanding any provision of this Article to the 29 contrary, the failure of a Board to have a Financial Plan 30 approved by the School Finance Authority within 90 days after 31 the effective date of this amendatory Act of 1993 shall not 32 impair the Board's power to enter into any contract or other SB1854 Enrolled -392- LRB9215370EGfg 1 obligation or the Authority's powers and responsibilities 2 under Sections 34A-404, 34A-40534-405, and 34A-405.2 or in 3 any other way affect the operations of the Board. 4 (Source: P.A. 88-511; revised 12-07-01.) 5 Section 38. The Public Community College Act is amended 6 by renumbering and changing Section 3.25.2 as follows: 7 (110 ILCS 805/3-25.2) (from Ch. 122, par. 103-25.2) 8 Sec. 3-25.2. Armed forces recruiting and training. 93.25.2.10 (a) To provide, on an equal basis, access to the campus 11 to the official recruiting representatives of the armed 12 forces of Illinois and the United States for the purpose of 13 informing students of the educational and career 14 opportunities available in the military if the board has 15 provided such access to persons or groups whose purpose is to 16 acquaint students with educational or occupational 17 opportunities available to them. The board is not required 18 to give greater notice regarding the right of access to 19 recruiting representatives than is given to other persons and 20 groups. 21 (b) To not bar or exclude from its curriculum, campus, 22 or school facilities any armed forces training program or 23 organization operated under the authority of the United 24 States government because the program or organization 25 complies with rules, regulations, or policies of the United 26 States government or any agency, branch, or department 27 thereof. 28 (Source: P.A. 87-788; revised 12-04-01.) 29 Section 39. The Nurses in Advancement Law is amended by 30 changing Section 1-20 as follows: SB1854 Enrolled -393- LRB9215370EGfg 1 (110 ILCS 970/1-20) (from Ch. 144, par. 2781-20) 2 Sec. 1-20. Scholarship requirements. It shall be lawful 3 for any organization to condition any loan or grant upon the 4 recipient's executing an agreement to commit not more than 5 5 years of his or her professional career to the goals 6 specifically outlined within the agreement including a 7 requirement that recipient practice nursing or medicine in 8 specifically designated practice and geographic areas. 9 Any agreement executed by an organization and any 10 recipient of loan or grant assistance shall contain a 11 provision for liquidated damages to be paid for any breach 12breechof any provision of the agreement, or any commitment 13 contained therein, together with attorney's fees and costs 14 for the enforcement thereof. Any such covenant shall be 15 valid and enforceable in the courts of this State as 16 liquidated damages and shall not be considered a penalty, 17 provided that the provision for liquidated damages does not 18 exceed $2,500 for each year remaining for the performance of 19 the agreement. 20 This Section shall not be construed as pertaining to or 21 limiting any liquidated damages resulting from scholarships 22 awarded under the Family Practice Residency Act. 23 (Source: P.A. 87-633; revised 12-04-01.) 24 Section 40. The Illinois Banking Act is amended by 25 changing Sections 14 and 48 as follows: 26 (205 ILCS 5/14) (from Ch. 17, par. 321) 27 Sec. 14. Stock. Unless otherwise provided for in this 28 Act provisions of general application to stock of a state 29 bank shall be as follows: 30 (1) All banks shall have their capital divided into 31 shares of a par value of not less than $1 each and not more 32 than $100 each, however, the par value of shares of a bank SB1854 Enrolled -394- LRB9215370EGfg 1 effecting a reverse stock split pursuant to item (8) of 2 subsection (a) of Section 17 may temporarily exceed this 3 limit provided it conforms to the limits immediately after 4 the reverse stock split is completed. No issue of capital 5 stock or preferred stock shall be valid until not less than 6 the par value of all such stock so issued shall be paid in 7 and notice thereof by the president, a vice-president or 8 cashier of the bank has been transmitted to the Commissioner. 9 In the case of an increase in capital stock by the 10 declaration of a stock dividend, the capitalization of 11 retained earnings effected by such stock dividend shall 12 constitute the payment for such shares required by the 13 preceding sentence, provided that the surplus of said bank 14 after such stock dividend shall be at least equal to fifty 15 per cent of the capital as increased. The charter shall not 16 limit or deny the voting power of the shares of any class of 17 stock except as provided in Section 15(3) of this Act. 18 (2) Pursuant to action taken in accordance with the 19 requirements of Section 17, a bank may issue preferred stock 20 of one or more classes as shall be approved by the 21 Commissioner as hereinafter provided, and make such amendment 22 to its charter as may be necessary for this purpose; but in 23 the case of any newly organized bank which has not yet issued 24 capital stock the requirements of Section 17 shall not apply. 25 (3) Without limiting the authority herein contained a 26 bank, when so provided in its charter and when approved by 27 the Commissioner, may issue shares of preferred stock: 28 (a) Subject to the right of the bank to redeem any 29 of such shares at not exceeding the price fixed by the 30 charter for the redemption thereof; 31 (b) Subject to the provisions of subsection (8) of 32 this Section 14 entitling the holders thereof to 33 cumulative or noncumulative dividends; 34 (c) Having preference over any other class or SB1854 Enrolled -395- LRB9215370EGfg 1 classes of shares as to the payment of dividends; 2 (d) Having preference as to the assets of the bank 3 over any other class or classes of shares upon the 4 voluntary or involuntary liquidation of the bank; 5 (e) Convertible into shares of any other class of 6 stock, provided that preferred shares shall not be 7 converted into shares of a different par value unless 8 that part of the capital of the bank represented by such 9 preferred shares is at the time of the conversion equal 10 to the aggregate par value of the shares into which the 11 preferred shares are to be converted. 12 (4) If any part of the capital of a bank consists of 13 preferred stock, the determination of whether or not the 14 capital of such bank is impaired and the amount of such 15 impairment shall be based upon the par value of its stock 16 even though the amount which the holders of such preferred 17 stock shall be entitled to receive in the event of retirement 18 or liquidation shall be in excess of the par value of such 19 preferred stock. 20 (5) Pursuant to action taken in accordance with the 21 requirements of Section 17 of this Act, a state bank may 22 provide for a specified number of authorized but unissued 23 shares of capital stock for one or more of the following 24 purposes: 25 (a) Reserved for issuance under stock option plan 26 or plans to directors, officers or employees; 27 (b) Reserved for issuance upon conversion of 28 convertible preferred stock issued pursuant to and in 29 compliance with the provisions of subsections (2) and (3) 30 of this Section 14. 31 (c) Reserved for issuance upon conversion of 32 convertible debentures or other convertible evidences of 33 indebtedness issued by a state bank, provided always that 34 the terms of such conversion have been approved by the SB1854 Enrolled -396- LRB9215370EGfg 1 Commissioner; 2 (d) Reserved for issuance by the declaration of a 3 stock dividend. If and when any shares of capital stock 4 are proposed to be authorized and reserved for any of the 5 purposes set forth in subparagraphs (a), (b) or (c) 6 above, the notice of the meeting, whether special or 7 annual, of stockholders at which such proposition is to 8 be considered shall be accompanied by a statement setting 9 forth or summarizing the terms upon which the shares of 10 capital stock so reserved are to be issued, and the 11 extent to which any preemptive rights of stockholders are 12 inapplicable to the issuance of the shares so reserved or 13 to the convertible preferred stock or convertible 14 debentures or other convertible evidences of 15 indebtedness, and the approving vote of the holders of at 16 least two-thirds of the outstanding shares of stock 17 entitled to vote at such meeting of the terms of such 18 issuance shall be requisite for the adoption of any 19 amendment providing for the reservation of authorized but 20 unissued shares for any of said purposes. Nothing in this 21 subsection (5) contained shall be deemed to authorize the 22 issuance of any capital stock for a consideration less 23 than the par value thereof. 24 (6) Upon written application to the Commissioner 60 days 25 prior to the proposed purchase and receipt of the written 26 approval of the Commissioner, a state bank may purchase and 27 hold as treasury stock such amounts of the total number of 28 issued and outstanding shares of its capital and preferred 29 stock outstanding as the Commissioner determines is 30 consistent with safety and soundness of the bank. The 31 Commissioner may specify the manner of accounting for the 32 treasury stock and the form of notice prior to ultimate 33 disposition of the shares. Except as authorized in this 34 subsection, it shall not be lawful for a state bank to SB1854 Enrolled -397- LRB9215370EGfg 1 purchase or hold any additional such shares or securities 2 described in subsection (2) of Section 37 unless necessary to 3 prevent loss upon a debt previously contracted in good faith, 4 in which event such shares or securities so purchased or 5 acquired shall, within 6 months from the time of purchase or 6 acquisition, be sold or disposed of at public or private 7 sale. Any state bank which intends to purchase and hold 8 treasury stock as authorized in this subsection (6) shall 9 file a written application with the Commissioner 60 days 10 prior to any such proposed purchase. The application shall 11 state the number of shares to be purchased, the consideration 12 for the shares, the name and address of the person from whom 13 the shares are to be purchased, if known, and the total 14 percentage of its issued and outstanding shares to be held by 15 the bank after the purchase. The total consideration paid by 16 a state bank for treasury stock shall reduce capital and 17 surplus of the bank for purposes of Sections of this Act 18 relating to lending and investment limits which require 19 computation of capital and surplus. After considering and 20 approving an application to purchase and hold treasury stock 21 under this subsection, the Commissioner may waive or reduce 22 the balance of the 60 day application period. The 23 Commissioner may specify the form of the application for 24 approval to acquire treasury stock and promulgate rules and 25 regulations for the administration of this subsection (6). A 26 state bank may,acquire or resell its ownownsshares as 27 treasury stock pursuant to this subsection (6) without a 28 change in its charter pursuant to Section 17. Such stock may 29 be held for any purpose permitted in subsection (5) of this 30 Section 14 or may be resold upon such reasonable terms as the 31 board of directors may determine provided notice is given to 32 the Commissioner prior to the resale of such stock. 33 (7) During the time that a state bank shall continue its 34 banking business, it shall not withdraw or permit to be SB1854 Enrolled -398- LRB9215370EGfg 1 withdrawn, either in the form of dividends or otherwise, any 2 portion of its capital, but nothing in this subsection shall 3 prevent a reduction or change of the capital stock or the 4 preferred stock under the provisions of Sections 17 through 5 30 of this Act, a purchase of treasury stock under the 6 provisions of subsection (6) of this Section 14 or a 7 redemption of preferred stock pursuant to charter provisions 8 therefor. 9 (8) (a) Subject to the provisions of this Act, the board 10 of directors of a state bank from time to time may 11 declare a dividend of so much of the net profits of such 12 bank as it shall judge expedient, but each bank before 13 the declaration of a dividend shall carry at least 14 one-tenth of its net profits since the date of the 15 declaration of the last preceding dividend, or since the 16 issuance of its charter in the case of its first 17 dividend, to its surplus until the same shall be equal to 18 its capital. 19 (b) No dividends shall be paid by a state bank 20 while it continues its banking business to an amount 21 greater than its net profits then on hand, deducting 22 first therefrom its losses and bad debts. All debts due 23 to a state bank on which interest is past due and unpaid 24 for a period of 6 months or more, unless the same are 25 well secured and in the process of collection, shall be 26 considered bad debts. 27 (9) A State bank may, but shall not be obliged to, issue 28 a certificate for a fractional share, and, by action of its 29 board of directors, may in lieu thereof, pay cash equal to 30 the value of the fractional share. A certificate for a 31 fractional share shall entitle the holder to exercise 32 fractional voting rights, to receive dividends, and to 33 participate in any of the assets of the bank in the event of 34 liquidation. SB1854 Enrolled -399- LRB9215370EGfg 1 (Source: P.A. 92-483, eff. 8-23-01; revised 12-07-01.) 2 (205 ILCS 5/48) (from Ch. 17, par. 359) 3 Sec. 48. Commissioner's powers; duties. The Commissioner 4 shall have the powers and authority, and is charged with the 5 duties and responsibilities designated in this Act, and a 6 State bank shall not be subject to any other visitorial power 7 other than as authorized by this Act, except those vested in 8 the courts, or upon prior consultation with the Commissioner, 9 a foreign bank regulator with an appropriate supervisory 10 interest in the parent or affiliate of a state bank. In the 11 performance of the Commissioner's duties: 12 (1) The Commissioner shall call for statements from all 13 State banks as provided in Section 47 at least one time 14 during each calendar quarter. 15 (2) (a) The Commissioner, as often as the Commissioner 16 shall deem necessary or proper, and no less frequently than 17 18 months following the preceding examination, shall appoint 18 a suitable person or persons to make an examination of the 19 affairs of every State bank, except that for every eligible 20 State bank, as defined by regulation, the Commissioner in 21 lieu of the examination may accept on an alternating basis 22 the examination made by the eligible State bank's appropriate 23 federal banking agency pursuant to Section 111 of the Federal 24 Deposit Insurance Corporation Improvement Act of 1991, 25 provided the appropriate federal banking agency has made such 26 an examination. A person so appointed shall not be a 27 stockholder or officer or employee of any bank which that 28 person may be directed to examine, and shall have powers to 29 make a thorough examination into all the affairs of the bank 30 and in so doing to examine any of the officers or agents or 31 employees thereof on oath and shall make a full and detailed 32 report of the condition of the bank to the Commissioner. In 33 making the examination the examiners shall include an SB1854 Enrolled -400- LRB9215370EGfg 1 examination of the affairs of all the affiliates of the bank, 2 as defined in subsection (b) of Section 35.2 of this Act, or 3 subsidiaries of the bank as shall be necessary to disclose 4 fully the conditions of the subsidiaries or affiliates, the 5 relations between the bank and the subsidiaries or affiliates 6 and the effect of those relations upon the affairs of the 7 bank, and in connection therewith shall have power to examine 8 any of the officers, directors, agents, or employees of the 9 subsidiaries or affiliates on oath. After May 31, 1997, the 10 Commissioner may enter into cooperative agreements with state 11 regulatory authorities of other states to provide for 12 examination of State bank branches in those states, and the 13 Commissioner may accept reports of examinations of State bank 14 branches from those state regulatory authorities. These 15 cooperative agreements may set forth the manner in which the 16 other state regulatory authorities may be compensated for 17 examinations prepared for and submitted to the Commissioner. 18 (b) After May 31, 1997, the Commissioner is authorized 19 to examine, as often as the Commissioner shall deem necessary 20 or proper, branches of out-of-state banks. The Commissioner 21 may establish and may assess fees to be paid to the 22 Commissioner for examinations under this subsection (b). The 23 fees shall be borne by the out-of-state bank, unless the fees 24 are borne by the state regulatory authority that chartered 25 the out-of-state bank, as determined by a cooperative 26 agreement between the Commissioner and the state regulatory 27 authority that chartered the out-of-state bank. 28 (2.5) Whenever any State bank, any subsidiary or 29 affiliate of a State bank, or after May 31, 1997, any branch 30 of an out-of-state bank causes to be performed, by contract 31 or otherwise, any bank services for itself, whether on or off 32 its premises: 33 (a) that performance shall be subject to 34 examination by the Commissioner to the same extent as if SB1854 Enrolled -401- LRB9215370EGfg 1 services were being performed by the bank or, after May 2 31, 1997, branch of the out-of-state bank itself on its 3 own premises; and 4 (b) the bank or, after May 31, 1997, branch of the 5 out-of-state bank shall notify the Commissioner of the 6 existence of a service relationship. The notification 7 shall be submitted with the first statement of condition 8 (as required by Section 47 of this Act) due after the 9 making of the service contract or the performance of the 10 service, whichever occurs first. The Commissioner shall 11 be notified of each subsequent contract in the same 12 manner. 13 For purposes of this subsection (2.5), the term "bank 14 services" means services such as sorting and posting of 15 checks and deposits, computation and posting of interest and 16 other credits and charges, preparation and mailing of checks, 17 statements, notices, and similar items, or any other 18 clerical, bookkeeping, accounting, statistical, or similar 19 functions performed for a State bank, including but not 20 limited to electronic data processing related to those bank 21 services. 22 (3) The expense of administering this Act, including the 23 expense of the examinations of State banks as provided in 24 this Act, shall to the extent of the amounts resulting from 25 the fees provided for in paragraphs (a), (a-2), and (b) of 26 this subsection (3) be assessed against and borne by the 27 State banks: 28 (a) Each bank shall pay to the Commissioner a Call 29 Report Fee which shall be paid in quarterly installments 30 equal to one-fourth of the sum of the annual fixed fee of 31 $800, plus a variable fee based on the assets shown on 32 the quarterly statement of condition delivered to the 33 Commissioner in accordance with Section 47 for the 34 preceding quarter according to the following schedule: SB1854 Enrolled -402- LRB9215370EGfg 1 16¢ per $1,000 of the first $5,000,000 of total assets, 2 15¢ per $1,000 of the next $20,000,000 of total assets, 3 13¢ per $1,000 of the next $75,000,000 of total assets, 4 9¢ per $1,000 of the next $400,000,000 of total assets, 5 7¢ per $1,000 of the next $500,000,000 of total assets, 6 and 5¢ per $1,000 of all assets in excess of 7 $1,000,000,000, of the State bank. The Call Report Fee 8 shall be calculated by the Commissioner and billed to the 9 banks for remittance at the time of the quarterly 10 statements of condition provided for in Section 47. The 11 Commissioner may require payment of the fees provided in 12 this Section by an electronic transfer of funds or an 13 automatic debit of an account of each of the State banks. 14 In case more than one examination of any bank is deemed 15 by the Commissioner to be necessary in any examination 16 frequency cycle specified in subsection 2(a) of this 17 Section, and is performed at his direction, the 18 Commissioner may assess a reasonable additional fee to 19 recover the cost of the additional examination; provided, 20 however, that an examination conducted at the request of 21 the State Treasurer pursuant to the Uniform Disposition 22 of Unclaimed Property Act shall not be deemed to be an 23 additional examination under this Section. In lieu of the 24 method and amounts set forth in this paragraph (a) for 25 the calculation of the Call Report Fee, the Commissioner 26 may specify by rule that the Call Report Fees provided by 27 this Section may be assessed semiannually or some other 28 period and may provide in the rule the formula to be used 29 for calculating and assessing the periodic Call Report 30 Fees to be paid by State banks. 31 (a-1) If in the opinion of the Commissioner an 32 emergency exists or appears likely, the Commissioner may 33 assign an examiner or examiners to monitor the affairs of 34 a State bank with whatever frequency he deems SB1854 Enrolled -403- LRB9215370EGfg 1 appropriate, including but not limited to a daily basis. 2 The reasonable and necessary expenses of the Commissioner 3 during the period of the monitoring shall be borne by the 4 subject bank. The Commissioner shall furnish the State 5 bank a statement of time and expenses if requested to do 6 so within 30 days of the conclusion of the monitoring 7 period. 8 (a-2) On and after January 1, 1990, the reasonable 9 and necessary expenses of the Commissioner during 10 examination of the performance of electronic data 11 processing services under subsection (2.5) shall be borne 12 by the banks for which the services are provided. An 13 amount, based upon a fee structure prescribed by the 14 Commissioner, shall be paid by the banks or, after May 15 31, 1997, branches of out-of-state banks receiving the 16 electronic data processing services along with the Call 17 Report Fee assessed under paragraph (a) of this 18 subsection (3). 19 (a-3) After May 31, 1997, the reasonable and 20 necessary expenses of the Commissioner during examination 21 of the performance of electronic data processing services 22 under subsection (2.5) at or on behalf of branches of 23 out-of-state banks shall be borne by the out-of-state 24 banks, unless those expenses are borne by the state 25 regulatory authorities that chartered the out-of-state 26 banks, as determined by cooperative agreements between 27 the Commissioner and the state regulatory authorities 28 that chartered the out-of-state banks. 29 (b) "Fiscal year" for purposes of this Section 48 30 is defined as a period beginning July 1 of any year and 31 ending June 30 of the next year. The Commissioner shall 32 receive for each fiscal year, commencing with the fiscal 33 year ending June 30, 1987, a contingent fee equal to the 34 lesser of the aggregate of the fees paid by all State SB1854 Enrolled -404- LRB9215370EGfg 1 banks under paragraph (a) of subsection (3) for that 2 year, or the amount, if any, whereby the aggregate of the 3 administration expenses, as defined in paragraph (c), for 4 that fiscal year exceeds the sum of the aggregate of the 5 fees payable by all State banks for that year under 6 paragraph (a) of subsection (3), plus any amounts 7 transferred into the Bank and Trust Company Fund from the 8 State Pensions Fund for that year, plus all other amounts 9 collected by the Commissioner for that year under any 10 other provision of this Act, plus the aggregate of all 11 fees collected for that year by the Commissioner under 12 the Corporate Fiduciary Act, excluding the receivership 13 fees provided for in Section 5-10 of the Corporate 14 Fiduciary Act, and the Foreign Banking Office Act. The 15 aggregate amount of the contingent fee thus arrived at 16 for any fiscal year shall be apportioned amongst, 17 assessed upon, and paid by the State banks and foreign 18 banking corporations, respectively, in the same 19 proportion that the fee of each under paragraph (a) of 20 subsection (3), respectively, for that year bears to the 21 aggregate for that year of the fees collected under 22 paragraph (a) of subsection (3). The aggregate amount of 23 the contingent fee, and the portion thereof to be 24 assessed upon each State bank and foreign banking 25 corporation, respectively, shall be determined by the 26 Commissioner and shall be paid by each, respectively, 27 within 120 days of the close of the period for which the 28 contingent fee is computed and is payable, and the 29 Commissioner shall give 20 days advance notice of the 30 amount of the contingent fee payable by the State bank 31 and of the date fixed by the Commissioner for payment of 32 the fee. 33 (c) The "administration expenses" for any fiscal 34 year shall mean the ordinary and contingent expenses for SB1854 Enrolled -405- LRB9215370EGfg 1 that year incident to making the examinations provided 2 for by, and for otherwise administering, this Act, the 3 Corporate Fiduciary Act, excluding the expenses paid from 4 the Corporate Fiduciary Receivership account in the Bank 5 and Trust Company Fund, the Foreign Banking Office Act, 6 the Electronic Fund Transfer Act, and the Illinois Bank 7 Examiners' Education Foundation Act, including all 8 salaries and other compensation paid for personal 9 services rendered for the State by officers or employees 10 of the State, including the Commissioner and the Deputy 11 Commissioners, all expenditures for telephone and 12 telegraph charges, postage and postal charges, office 13 stationery, supplies and services, and office furniture 14 and equipment, including typewriters and copying and 15 duplicating machines and filing equipment, surety bond 16 premiums, and travel expenses of those officers and 17 employees, employees, expenditures or charges for the 18 acquisition, enlargement or improvement of, or for the 19 use of, any office space, building, or structure, or 20 expenditures for the maintenance thereof or for 21 furnishing heat, light, or power with respect thereto, 22 all to the extent that those expenditures are directly 23 incidental to such examinations or administration. The 24 Commissioner shall not be required by paragraphs (c) or 25 (d-1) of this subsection (3) to maintain in any fiscal 26 year's budget appropriated reserves for accrued vacation 27 and accrued sick leave that is required to be paid to 28 employees of the Commissioner upon termination of their 29 service with the Commissioner in an amount that is more 30 than is reasonably anticipated to be necessary for any 31 anticipated turnover in employees, whether due to normal 32 attrition or due to layoffs, terminations, or 33 resignations. 34 (d) The aggregate of all fees collected by the SB1854 Enrolled -406- LRB9215370EGfg 1 Commissioner under this Act, the Corporate Fiduciary Act, 2 or the Foreign Banking Office Act on and after July 1, 3 1979, shall be paid promptly after receipt of the same, 4 accompanied by a detailed statement thereof, into the 5 State treasury and shall be set apart in a special fund 6 to be known as the "Bank and Trust Company Fund", except 7 as provided in paragraph (c) of subsection (11) of this 8 Section. All earnings received from investments of funds 9 in the Bank and Trust Company Fund shall be deposited in 10 the Bank and Trust Company Fund and may be used for the 11 same purposes as fees deposited in that Fund. The amount 12 from time to time deposited into the Bank and Trust 13 Company Fund shall be used to offset the ordinary 14 administrative expenses of the Commissioner of Banks and 15 Real Estate as defined in this Section. Nothing in this 16 amendatory Act of 1979 shall prevent continuing the 17 practice of paying expenses involving salaries, 18 retirement, social security, and State-paid insurance 19 premiums of State officers by appropriations from the 20 General Revenue Fund. However, the General Revenue Fund 21 shall be reimbursed for those payments made on and after 22 July 1, 1979, by an annual transfer of funds from the 23 Bank and Trust Company Fund. 24 (d-1) Adequate funds shall be available in the Bank 25 and Trust Company Fund to permit the timely payment of 26 administration expenses. In each fiscal year the total 27 administration expenses shall be deducted from the total 28 fees collected by the Commissioner and the remainder 29 transferred into the Cash Flow Reserve Account, unless 30 the balance of the Cash Flow Reserve Account prior to the 31 transfer equals or exceeds one-fourth of the total 32 initial appropriations from the Bank and Trust Company 33 Fund for the subsequent year, in which case the remainder 34 shall be credited to State banks and foreign banking SB1854 Enrolled -407- LRB9215370EGfg 1 corporations and applied against their fees for the 2 subsequent year. The amount credited to each State bank 3 and foreign banking corporation shall be in the same 4 proportion as the Call Report Fees paid by each for the 5 year bear to the total Call Report Fees collected for the 6 year. If, after a transfer to the Cash Flow Reserve 7 Account is made or if no remainder is available for 8 transfer, the balance of the Cash Flow Reserve Account is 9 less than one-fourth of the total initial appropriations 10 for the subsequent year and the amount transferred is 11 less than 5% of the total Call Report Fees for the year, 12 additional amounts needed to make the transfer equal to 13 5% of the total Call Report Fees for the year shall be 14 apportioned amongst, assessed upon, and paid by the State 15 banks and foreign banking corporations in the same 16 proportion that the Call Report Fees of each, 17 respectively, for the year bear to the total Call Report 18 Fees collected for the year. The additional amounts 19 assessed shall be transferred into the Cash Flow Reserve 20 Account. For purposes of this paragraph (d-1), the 21 calculation of the fees collected by the Commissioner 22 shall exclude the receivership fees provided for in 23 Section 5-10 of the Corporate Fiduciary Act. 24 (e) The Commissioner may upon request certify to 25 any public record in his keeping and shall have authority 26 to levy a reasonable charge for issuing certifications of 27 any public record in his keeping. 28 (f) In addition to fees authorized elsewhere in 29 this Act, the Commissioner may, in connection with a 30 review, approval, or provision of a service, levy a 31 reasonable charge to recover the cost of the review, 32 approval, or service. 33 (4) Nothing contained in this Act shall be construed to 34 limit the obligation relative to examinations and reports of SB1854 Enrolled -408- LRB9215370EGfg 1 any State bank, deposits in which are to any extent insured 2 by the United States or any agency thereof, nor to limit in 3 any way the powers of the Commissioner with reference to 4 examinations and reports of that bank. 5 (5) The nature and condition of the assets in or 6 investment of any bonus, pension, or profit sharing plan for 7 officers or employees of every State bank or, after May 31, 8 1997, branch of an out-of-state bank shall be deemed to be 9 included in the affairs of that State bank or branch of an 10 out-of-state bank subject to examination by the Commissioner 11 under the provisions of subsection (2) of this Section, and 12 if the Commissioner shall find from an examination that the 13 condition of or operation of the investments or assets of the 14 plan is unlawful, fraudulent, or unsafe, or that any trustee 15 has abused his trust, the Commissioner shall, if the 16 situation so found by the Commissioner shall not be corrected 17 to his satisfaction within 60 days after the Commissioner has 18 given notice to the board of directors of the State bank or 19 out-of-state bank of his findings, report the facts to the 20 Attorney General who shall thereupon institute proceedings 21 against the State bank or out-of-state bank, the board of 22 directors thereof, or the trustees under such plan as the 23 nature of the case may require. 24 (6) The Commissioner shall have the power: 25 (a) To promulgate reasonable rules for the purpose 26 of administering the provisions of this Act. 27 (a-5) To impose conditions on any approval issued 28 by the Commissioner if he determines that the conditions 29 are necessary or appropriate. These conditions shall be 30 imposed in writing and shall continue in effect for the 31 period prescribed by the Commissioner. 32 (b) To issue orders against any person, if the 33 Commissioner has reasonable cause to believe that an 34 unsafe or unsound banking practice has occurred, is SB1854 Enrolled -409- LRB9215370EGfg 1 occurring, or is about to occur, if any person has 2 violated, is violating, or is about to violate any law, 3 rule, or written agreement with the Commissioner, or for 4 the purpose of administering the provisions of this Act,5 and any rule promulgated in accordance with this Act. 6 (b-1) To enter into agreements with a bank 7 establishing a program to correct the condition of the 8 bank or its practices. 9 (c) To appoint hearing officers to execute any of 10 the powers granted to the Commissioner under this Section 11 for the purpose of administering this Act and any rule 12 promulgated in accordance with this Act and otherwise to 13 authorize, in writing, an officer or employee of the 14 Office of Banks and Real Estate to exercise his powers 15 under this Act. 16 (d) To subpoena witnesses, to compel their 17 attendance, to administer an oath, to examine any person 18 under oath, and to require the production of any relevant 19 books, papers, accounts, and documents in the course of 20 and pursuant to any investigation being conducted, or any 21 action being taken, by the Commissioner in respect of any 22 matter relating to the duties imposed upon, or the powers 23 vested in, the Commissioner under the provisions of this 24 Act or any rule promulgated in accordance with this Act. 25 (e) To conduct hearings. 26 (7) Whenever, in the opinion of the Commissioner, any 27 director, officer, employee, or agent of a State bank or any 28 subsidiary or bank holding company of the bank or, after May 29 31, 1997, of any branch of an out-of-state bank or any 30 subsidiary or bank holding company of the bank shall have 31 violated any law, rule, or order relating to that bank or any 32 subsidiary or bank holding company of the bank, shall have 33 obstructed or impeded any examination or investigation by the 34 Commissioner, shall have engaged in an unsafe or unsound SB1854 Enrolled -410- LRB9215370EGfg 1 practice in conducting the business of that bank or any 2 subsidiary or bank holding company of the bank, or shall have 3 violated any law or engaged or participated in any unsafe or 4 unsound practice in connection with any financial institution 5 or other business entity such that the character and fitness 6 of the director, officer, employee, or agent does not assure 7 reasonable promise of safe and sound operation of the State 8 bank, the Commissioner may issue an order of removal. If, in 9 the opinion of the Commissioner, any former director, 10 officer, employee, or agent of a State bank or any subsidiary 11 or bank holding company of the bank, prior to the termination 12 of his or her service with that bank or any subsidiary or 13 bank holding company of the bank, violated any law, rule, or 14 order relating to that State bank or any subsidiary or bank 15 holding company of the bank, obstructed or impeded any 16 examination or investigation by the Commissioner, engaged in 17 an unsafe or unsound practice in conducting the business of 18 that bank or any subsidiary or bank holding company of the 19 bank, or violated any law or engaged or participated in any 20 unsafe or unsound practice in connection with any financial 21 institution or other business entity such that the character 22 and fitness of the director, officer, employee, or agent 23 would not have assured reasonable promise of safe and sound 24 operation of the State bank, the Commissioner may issue an 25 order prohibiting that person from further service with a 26 bank or any subsidiary or bank holding company of the bank as 27 a director, officer, employee, or agent. An order issued 28 pursuant to this subsection shall be served upon the 29 director, officer, employee, or agent. A copy of the order 30 shall be sent to each director of the bank affected by 31 registered mail. The person affected by the action may 32 request a hearing before the State Banking Board within 10 33 days after receipt of the order. The hearing shall be held 34 by the Board within 30 days after the request has been SB1854 Enrolled -411- LRB9215370EGfg 1 received by the Board. The Board shall make a determination 2 approving, modifying, or disapproving the order of the 3 Commissioner as its final administrative decision. If a 4 hearing is held by the Board, the Board shall make its 5 determination within 60 days from the conclusion of the 6 hearing. Any person affected by a decision of the Board under 7 this subsection (7) of Section 48 of this Act may have the 8 decision reviewed only under and in accordance with the 9 Administrative Review Law and the rules adopted pursuant 10 thereto. A copy of the order shall also be served upon the 11 bank of which he is a director, officer, employee, or agent, 12 whereupon he shall cease to be a director, officer, employee, 13 or agent of that bank. The Commissioner may institute a 14 civil action against the director, officer, or agent of the 15 State bank or, after May 31, 1997, of the branch of the 16 out-of-state bank against whom any order provided for by this 17 subsection (7) of this Section 48 has been issued, and 18 against the State bank or, after May 31, 1997, out-of-state 19 bank, to enforce compliance with or to enjoin any violation 20 of the terms of the order. Any person who has been the 21 subject of an order of removal or an order of prohibition 22 issued by the Commissioner under this subsection or Section 23 5-6 of the Corporate Fiduciary Act may not thereafter serve 24 as director, officer, employee, or agent of any State bank or 25 of any branch of any out-of-state bank, or of any corporate 26 fiduciary, as defined in Section 1-5.05 of the Corporate 27 Fiduciary Act, or of any other entity that is subject to 28 licensure or regulation by the Commissioner or the Office of 29 Banks and Real Estate unless the Commissioner has granted 30 prior approval in writing. 31 For purposes of this paragraph (7), "bank holding 32 company" has the meaning prescribed in Section 2 of the 33 Illinois Bank Holding Company Act of 1957. 34 (8) The Commissioner may impose civil penalties of up to SB1854 Enrolled -412- LRB9215370EGfg 1 $10,000 against any person for each violation of any 2 provision of this Act, any rule promulgated in accordance 3 with this Act, any order of the Commissioner, or any other 4 action which in the Commissioner's discretion is an unsafe or 5 unsound banking practice. 6 (9) The Commissioner may impose civil penalties of up to 7 $100 against any person for the first failure to comply with 8 reporting requirements set forth in the report of examination 9 of the bank and up to $200 for the second and subsequent 10 failures to comply with those reporting requirements. 11 (10) All final administrative decisions of the 12 Commissioner hereunder shall be subject to judicial review 13 pursuant to the provisions of the Administrative Review Law. 14 For matters involving administrative review, venue shall be 15 in either Sangamon County or Cook County. 16 (11) The endowment fund for the Illinois Bank Examiners' 17 Education Foundation shall be administered as follows: 18 (a) (Blank). 19 (b) The Foundation is empowered to receive 20 voluntary contributions, gifts, grants, bequests, and 21 donations on behalf of the Illinois Bank Examiners' 22 Education Foundation from national banks and other 23 persons for the purpose of funding the endowment of the 24 Illinois Bank Examiners' Education Foundation. 25 (c) The aggregate of all special educational fees 26 collected by the Commissioner and property received by 27 the Commissioner on behalf of the Illinois Bank 28 Examiners' Education Foundation under this subsection 29 (11) on or after June 30, 1986, shall be either (i) 30 promptly paid after receipt of the same, accompanied by a 31 detailed statement thereof, into the State Treasury and 32 shall be set apart in a special fund to be known as "The 33 Illinois Bank Examiners' Education Fund" to be invested 34 by either the Treasurer of the State of Illinois in the SB1854 Enrolled -413- LRB9215370EGfg 1 Public Treasurers' Investment Pool or in any other 2 investment he is authorized to make or by the Illinois 3 State Board of Investment as the board of trustees of the 4 Illinois Bank Examiners' Education Foundation may direct 5 or (ii) deposited into an account maintained in a 6 commercial bank or corporate fiduciary in the name of the 7 Illinois Bank Examiners' Education Foundation pursuant to 8 the order and direction of the Board of Trustees of the 9 Illinois Bank Examiners' Education Foundation. 10 (12) (Blank). 11 (Source: P.A. 91-16, eff. 7-1-99; 92-20, eff. 7-1-01; 92-483, 12 eff. 8-23-01; revised 9-10-01.) 13 Section 41. The Illinois Savings and Loan Act of 1985 is 14 amended by changing Section 3-10 as follows: 15 (205 ILCS 105/3-10) (from Ch. 17, par. 3303-10) 16 Sec. 3-10. Prohibited Activities. No officer, director, 17 employee or agent of an association shall knowingly: 18 (a) Receive any property of the association 19 otherwise than in the payment for a just demand and, with 20 intent to defraud, omit to make or cause or direct to be 21 made a full and true entry thereof in its books and 22 accounts; 23 (b) Concur in omitting to make any material entry 24 of the receipt or possession of association property in 25 the books and accounts of the association; 26 (c) Subject to the provisions of Section 7-47-1.3, 27 make any loan to, or purchase any loan or investment 28 from, the Commissioner or any supervisor, examiner, 29 employee, expert or other special assistant employed or 30 appointed by the Commissioner, or knowingly concur in the 31 making or purchasing of such loan or investment; and 32 (d) Directly or indirectly grant, give or transfer, SB1854 Enrolled -414- LRB9215370EGfg 1 or cause the same to be granted, given or transferred, or 2 concur in the granting, giving or transferring to the 3 Commissioner or any supervisor, examiner, employee, 4 expert or other special assistant employed or appointed 5 by the Commissioner any sum of money or any property as a 6 gift, reward, inducement, loan or otherwise. 7 (Source: P.A. 84-543; revised 12-07-01.) 8 Section 42. The Banking Emergencies Act is amended by 9 changing Section 1 as follows: 10 (205 ILCS 610/1) (from Ch. 17, par. 1001) 11 Sec. 1. Definitions.A.As used in this Act, unless the 12 context otherwise requires: 13 (1) "Commissioner" means the officer of this State 14 designated by law to exercise supervision over banks and 15 trust companies, and any other person lawfully exercising 16 such powers. 17 (2) "Bank" includes commercial banks, trust companies 18 and any branch thereof lawfully carrying on the business of 19 banking and, to the extent that the provisions hereof are not 20 inconsistent with and do not infringe upon paramount Federal 21 law, also includes national banks. 22 (3) "Officers" means the person or persons designated by 23 the board of directors, to act for the bank in carrying out 24 the provisions of this Act or, in the absence of any such 25 designation or of the officer or officers so designated, the 26 president or any other officer currently in charge of the 27 bank or of the office or offices in question. 28 (4) "Office" means any place at which a bank transacts 29 its business or conducts operations related to its business. 30 (5) "Emergency" means any condition or occurrence which 31 may interfere physically with the conduct of normal business 32 operations at one or more or all of the offices of a bank, or SB1854 Enrolled -415- LRB9215370EGfg 1 which poses an imminent or existing threat to the safety or 2 security of persons or property, or both at one or more or 3 all of the offices of a bank. Without limiting the 4 generality of the foregoing, an emergency may arise as a 5 result of any one or more of the following: natural 6 disasters; civil strife; power failures; computer failures; 7 interruption of communication facilities; robbery or 8 attempted robbery. 9 (Source: P.A. 92-483, eff. 8-23-01; revised 10-10-01.) 10 Section 43. The Corporate Fiduciary Act is amended by 11 changing the heading of Article IVA as follows: 12 (205 ILCS 620/Article IVA heading) 13 ARTICLE IVA. MULTISTATE TRUST ACTIVITIES 14 Section 44. The Transmitters of Money Act is amended by 15 changing Section 92 as follows: 16 (205 ILCS 657/92) 17 Sec. 92. Receivership. 18 (a) If the Director determines that a licensee is 19 insolvent or is violating this Act, he or she may appoint a 20 receiver. Under the direction of the Director, the receiver 21 shall, for the purpose of receivership, take possession of 22 and title to the books, records, and assets of the licensee. 23 The Director may require the receiver to provide security in 24 an amount the Director deems proper. Upon appointment of the 25 receiver, the Director shall have published, once each week 26 for 4 consecutive weeks in a newspaper having a general 27 circulation in the community, a notice informing all persons 28 who have claims against the licensee to present them to the 29 receiver. Within 10 days after the receiver takes possession, 30 the licensee may apply to the Circuit Court of Sangamon SB1854 Enrolled -416- LRB9215370EGfg 1 County to enjoin further proceedings. The receiver may 2 operate the business until the Director determines that 3 possession should be restored to the licensee or that the 4 business should be liquidated. 5 (b) If the Director determines that a business in 6 receivership should be liquidated, he or she shall direct the 7 Attorney General to file a complaint in the Circuit Court of 8 the county in which the business is located, in the name of 9 the People of the State of Illinois, for the orderly 10 liquidation and dissolution of the business and for an 11 injunction restraining the licensee and its officers and 12 directors from continuing the operation of the business. 13 Within 30 days after the day the Director determines that the 14 business should be liquidated, the receiver shall file with 15 the Director and with the clerk of the court that has charge 16 of the liquidation a correct list of all creditors, as shown 17 by the licensee's books and records, who have not presented 18 their claims. The list shall state the amount of the claim 19 after allowing all just credits, deductions, and set-offs as 20 shown by the licensee's books. These claims shall be deemed 21 proven unless some interested party files an objection within 22 the time fixed by the Director or court that has charge of 23 the liquidation. 24 (c) The General Assembly finds and declares that 25 transmitters of moneydebt management servicesprovide 26 important and vital services to Illinois citizens. It is 27 therefore declared to be the policy of this State that 28 customers who receive these services must be protected from 29 interruptions of services. To carry out this policy and to 30 insure that customers of a licensee are protected if it is 31 determined that a business in receivership should be 32 liquidated, the Director shall make a distribution of moneys 33 collected by the receiver in the following order of priority: 34 (1) Allowed claims for the actual necessary SB1854 Enrolled -417- LRB9215370EGfg 1 expenses of the receivership of the business being 2 liquidated, including: 3 (A) reasonable receiver's fees and receiver's 4 attorney's fees approved by the Director; 5 (B) all expenses of any preliminary or other 6 examinations into the condition of the receivership; 7 (C) all expenses incurred by the Director that 8 are incident to possession and control of any 9 property or records of the licensee's business; and 10 (D) reasonable expenses incurred by the 11 Director as the result of business agreements or 12 contractual arrangements necessary to insure that 13 the services of the licensee are delivered to the 14 community without interruption. These business 15 agreements or contractual arrangements may include, 16 but are not limited to, agreements made by the 17 Director, or by the receiver with the approval of 18 the Director, with banks, bonding companies, and 19 other types of financial institutions. 20 (2) Allowed unsecured claims for wages or salaries, 21 excluding vacation, severance, and sick leave pay earned 22 by employees within 90 days before the appointment of a 23 receiver. 24 (3) Allowed unsecured claims of any tax, and 25 interest and penalty on the tax. 26 (4) Allowed unsecured claims, other than a kind 27 specified in items (1), (2), and (3) of this subsection, 28 filed with the Director within the time the Director 29 fixes for filing claims. 30 (5) Allowed unsecured claims, other than a kind 31 specified in items (1), (2), and (3) of this subsection, 32 filed with the Director after the time fixed for filing 33 claims by the Director. 34 (6) Allowed creditor claims asserted by an owner, SB1854 Enrolled -418- LRB9215370EGfg 1 member, or stockholder of the business in liquidation. 2 (7) After one year from the final dissolution of 3 the licensee's business, all assets not used to satisfy 4 allowed claims shall be distributed pro rata to the 5 owner, owners, members, or stockholders of the business. 6 The Director shall pay all claims of equal priority 7 according to the schedule established in this subsection and 8 shall not pay claims of lower priority until all higher 9 priority claims are satisfied. If insufficient assets are 10 available to meet all claims of equal priority, those assets 11 shall be distributed pro rata among those claims. All 12 unclaimed assets of a licensee and the licensee's business 13 shall be deposited with the Director to be paid out when 14 proper claims are presented to the Director. 15 (d) Upon the order of the circuit court of the county in 16 which the business being liquidated is located, the receiver 17 may sell or compound any bad or doubtful debt, and on like 18 order may sell the personal property of the business on such 19 terms as the court approves. The receiver shall succeed to 20 whatever rights or remedies the unsecured creditors of the 21 business may have against the owner or owners, operators, 22 stockholders, directors, members, managers, or officers, 23 arising out of their claims against the licensee's business, 24 but nothing contained in this Section shall prevent those 25 creditors from filing their claims in the liquidation 26 proceeding. The receiver may enforce those rights or 27 remedies in any court of competent jurisdiction. 28 (e) At the close of a receivership, the receiver shall 29 turn over to the Director all books of account and ledgers of 30 the business for preservation. The Director shall hold all 31 records of receiverships received at any time for a period of 32 2 years after the close of the receivership. The records may 33 be destroyed at the termination of the 2-year period. All 34 expenses of the receivership including, but not limited to, SB1854 Enrolled -419- LRB9215370EGfg 1 reasonable receiver's and attorney's fees approved by the 2 Director, all expenses of any preliminary or other 3 examinations into the condition of the licensee's business or 4 the receivership, and all expenses incident to the possession 5 and control of any property or records of the business 6 incurred by the Director shall be paid out of the assets of 7 the licensee's business. These expenses shall be paid before 8 all other claims. 9 (f) Upon the filing of a complaint by the Attorney 10 General for the orderly liquidation and dissolution of a 11 licensee's business, as provided in this Act, all pending 12 suits and actions upon unsecured claims against the business 13 shall abate. Nothing contained in this Act, however, 14 prevents these claimants from filing their claims in the 15 liquidation proceeding. If a suit or an action is instituted 16 or maintained by the receiver on any bond or policy of 17 insurance issued pursuant to the requirements of this Act, 18 the bonding or insurance company sued shall not have the 19 right to interpose or maintain any counterclaim based upon 20 subrogation, upon any express or implied agreement of, or 21 right to, indemnity or exoneration, or upon any other express 22 or implied agreement with, or right against, the licensee's 23 business. Nothing contained in this Act prevents the bonding 24 or insurance company from filing this type of claim in the 25 liquidation proceeding. 26 (g) A licensee may not terminate its affairs and close 27 up its business unless it has first deposited with the 28 Director an amount of money equal to all of its debts, 29 liabilities, and lawful demands against it including the 30 costs and expenses of a proceeding under this Section, 31 surrendered to the Director its license, and filed with the 32 Director a statement of termination signed by the licensee 33 containing a pronouncement of intent to close up its business 34 and liquidate its liabilities and containing a sworn list SB1854 Enrolled -420- LRB9215370EGfg 1 itemizing in full all of its debts, liabilities, and lawful 2 demands against it. Corporate licensees must attach to, and 3 make a part of the statement of termination, a copy of a 4 resolution providing for the termination and closing up of 5 the licensee's affairs, certified by the secretary of the 6 licensee and duly adopted at a shareholders' meeting by the 7 holders of at least two-thirds of the outstanding shares 8 entitled to vote at the meeting. Upon the filing with the 9 Director of a statement of termination, the Director shall 10 cause notice of that action to be published once each week 11 for 3 consecutive weeks in a public newspaper of general 12 circulation published in the city or village where the 13 business is located, and if no newspaper is published in that 14 place, then in a public newspaper of general circulation 15 nearest to that city or village. The publication shall give 16 notice that the debts, liabilities, and lawful demands 17 against the business will be redeemed by the Director upon 18 demand in writing made by the owner thereof, at any time 19 within 3 years after the date of first publication. After 20 the expiration of the 3-year period, the Director shall 21 return to the person or persons designated in the statement 22 of termination to receive repayment, and in the proportion 23 specified in that statement, any balance of money remaining 24 in his or her possession after first deducting all unpaid 25 costs and expenses incurred in connection with a proceeding 26 under this Section. The Director shall receive for his or her 27 services, exclusive of costs and expenses, 2% of any amount 28 up to $5,000 and 1% of any amount in excess of $5,000 29 deposited with him or her under this Section by any business. 30 Nothing contained in this Section shall affect or impair the 31 liability of any bonding or insurance company on any bond or 32 insurance policy issued under this Act relating to the 33 business. 34 (Source: P.A. 92-400, eff. 1-1-02; revised 12-04-01.) SB1854 Enrolled -421- LRB9215370EGfg 1 Section 45. The Abused and Neglected Long Term Care 2 Facility Residents Reporting Act is amended by changing 3 Section 6.2 as follows: 4 (210 ILCS 30/6.2) (from Ch. 111 1/2, par. 4166.2) 5 (Section scheduled to be repealed on January 1, 2004) 6 Sec. 6.2. Inspector General. 7 (a) The Governor shall appoint, and the Senate shall 8 confirm, an Inspector General who shall function within the 9 Department of Human Services and report to the Secretary of 10 Human Services and the Governor. The Inspector General shall 11 investigate reports of suspected abuse or neglect (as those 12 terms are defined in Section 3 of this Act) of patients or 13 residents in any mental health or developmental disabilities 14 facility operated by the Department of Human Services and 15 shall have authority to investigate and take immediate action 16 on reports of abuse or neglect of recipients, whether 17 patients or residents, in any mental health or developmental 18 disabilities facility or program that is licensed or 19 certified by the Department of Human Services (as successor 20 to the Department of Mental Health and Developmental 21 Disabilities) or that is funded by the Department of Human 22 Services (as successor to the Department of Mental Health and 23 Developmental Disabilities) and is not licensed or certified 24 by any agency of the State. At the specific, written request 25 of an agency of the State other than the Department of Human 26 Services (as successor to the Department of Mental Health and 27 Developmental Disabilities), the Inspector General may 28 cooperate in investigating reports of abuse and neglect of 29 persons with mental illness or persons with developmental 30 disabilities. The Inspector General shall have no 31 supervision over or involvement in routine, programmatic, 32 licensure, or certification operations of the Department of 33 Human Services or any of its funded agencies. SB1854 Enrolled -422- LRB9215370EGfg 1 The Inspector General shall promulgate rules establishing 2 minimum requirements for reporting allegations of abuse and 3 neglect and initiating, conducting, and completing 4 investigations. The promulgated rules shall clearly set 5 forth that in instances where 2 or more State agencies could 6 investigate an allegation of abuse or neglect, the Inspector 7 General shall not conduct an investigation that is redundant 8 to an investigation conducted by another State agency. The 9 rules shall establish criteria for determining, based upon 10 the nature of the allegation, the appropriate method of 11 investigation, which may include, but need not be limited to, 12 site visits, telephone contacts, or requests for written 13 responses from agencies. The rules shall also clarify how the 14 Office of the Inspector General shall interact with the 15 licensing unit of the Department of Human Services in 16 investigations of allegations of abuse or neglect. Any 17 allegations or investigations of reports made pursuant to 18 this Act shall remain confidential until a final report is 19 completed. The resident or patient who allegedly was abused 20 or neglected and his or her legal guardian shall be informed 21 by the facility or agency of the report of alleged abuse or 22 neglect. Final reports regarding unsubstantiated or unfounded 23 allegations shall remain confidential, except that final 24 reports may be disclosed pursuant to Section 6 of this Act. 25 The Inspector General shall be appointed for a term of 4 26 years. 27 When the Office of the Inspector General has 28 substantiated a case of abuse or neglect, the Inspector 29 General shall include in the final report any mitigating or 30 aggravating circumstances that were identified during the 31 investigation. Upon determination that a report of neglect 32 is substantiated, the Inspector General shall then determine 33 whether such neglect rises to the level of egregious neglect. 34 (b) The Inspector General shall within 24 hours after SB1854 Enrolled -423- LRB9215370EGfg 1 receiving a report of suspected abuse or neglect determine 2 whether the evidence indicates that any possible criminal act 3 has been committed. If he determines that a possible criminal 4 act has been committed, or that special expertise is required 5 in the investigation, he shall immediately notify the 6 Department of State Police. The Department of State Police 7 shall investigate any report indicating a possible murder, 8 rape, or other felony. All investigations conducted by the 9 Inspector General shall be conducted in a manner designed to 10 ensure the preservation of evidence for possible use in a 11 criminal prosecution. 12 (b-5) The Inspector General shall make a determination 13 to accept or reject a preliminary report of the investigation 14 of alleged abuse or neglect based on established 15 investigative procedures. Notice of the Inspector General's 16 determination must be given to the person who claims to be 17 the victim of the abuse or neglect, to the person or persons 18 alleged to have been responsible for abuse or neglect, and to 19 the facility or agency. The facility or agency or the person 20 or persons alleged to have been responsible for the abuse or 21 neglect and the person who claims to be the victim of the 22 abuse or neglect may request clarification or reconsideration 23 based on additional information. For cases where the 24 allegation of abuse or neglect is substantiated, the 25 Inspector General shall require the facility or agency to 26 submit a written response. The written response from a 27 facility or agency shall address in a concise and reasoned 28 manner the actions that the agency or facility will take or 29 has taken to protect the resident or patient from abuse or 30 neglect, prevent reoccurrences, and eliminate problems 31 identified and shall include implementation and completion 32 dates for all such action. 33 (c) The Inspector General shall, within 10 calendar days 34 after the transmittal date of a completed investigation where SB1854 Enrolled -424- LRB9215370EGfg 1 abuse or neglect is substantiated or administrative action is 2 recommended, provide a complete report on the case to the 3 Secretary of Human Services and to the agency in which the 4 abuse or neglect is alleged to have happened. The complete 5 report shall include a written response from the agency or 6 facility operated by the State to the Inspector General that 7 addresses in a concise and reasoned manner the actions that 8 the agency or facility will take or has taken to protect the 9 resident or patient from abuse or neglect, prevent 10 reoccurrences, and eliminate problems identified and shall 11 include implementation and completion dates for all such 12 action. The Secretary of Human Services shall accept or 13 reject the response and establish how the Department will 14 determine whether the facility or program followed the 15 approved response. The Secretary may require Department 16 personnel to visit the facility or agency for training, 17 technical assistance, programmatic, licensure, or 18 certification purposes. Administrative action, including 19 sanctions, may be applied should the Secretary reject the 20 response or should the facility or agency fail to follow the 21 approved response. The facility or agency shall inform the 22 resident or patient and the legal guardian whether the 23 reported allegation was substantiated, unsubstantiated, or 24 unfounded. There shall be an appeals process for any person 25 or agency that is subject to any action based on a 26 recommendation or recommendations. 27 (d) The Inspector General may recommend to the 28 Departments of Public Health and Human Services sanctions to 29 be imposed against mental health and developmental 30 disabilities facilities under the jurisdiction of the 31 Department of Human Services for the protection of residents, 32 including appointment of on-site monitors or receivers, 33 transfer or relocation of residents, and closure of units. 34 The Inspector General may seek the assistance of the Attorney SB1854 Enrolled -425- LRB9215370EGfg 1 General or any of the several State's attorneys in imposing 2 such sanctions. 3 (e) The Inspector General shall establish and conduct 4 periodic training programs for Department employees 5 concerning the prevention and reporting of neglect and abuse. 6 (f) The Inspector General shall at all times be granted 7 access to any mental health or developmental disabilities 8 facility operated by the Department, shall establish and 9 conduct unannounced site visits to those facilities at least 10 once annually, and shall be granted access, for the purpose 11 of investigating a report of abuse or neglect, to any 12 facility or program funded by the Department that is subject 13 under the provisions of this Section to investigation by the 14 Inspector General for a report of abuse or neglect. 15 (g) Nothing in this Section shall limit investigations 16 by the Department of Human Services that may otherwise be 17 required by law or that may be necessary in that Department's 18 capacity as the central administrative authority responsible 19 for the operation of State mental health and developmental 20 disability facilities. 21 (g-5) After notice and an opportunity for a hearing that 22 is separate and distinct from the Office of the Inspector 23 General's appeals process as implemented under subsection (c) 24 of this Section, the Inspector General shall report to the 25 Department of Public Health's nurse aide registry under 26 Section 3-206.01 of the Nursing Home Care Act the identity of 27 individuals against whom there has been a substantiated 28 finding of physical or sexual abuse or egregious neglect of a 29 service recipient. 30 Nothing in this subsection shall diminish or impair the 31 rights of a person who is a member of a collective bargaining 32 unit pursuant to the Illinois Public Labor Relations Act or 33 pursuant to any federal labor statute. An individual who is a 34 member of a collective bargaining unit as described above SB1854 Enrolled -426- LRB9215370EGfg 1 shall not be reported to the Department of Public Health's 2 nurse aide registry until the exhaustion of that individual's 3 grievance and arbitration rights, or until 3 months after the 4 initiation of the grievance process, whichever occurs first, 5 provided that the Department of Human Services' hearing under 6 subsection (c), that is separate and distinct from the Office 7 of the Inspector General's appeals process, has concluded. 8 Notwithstanding anything hereinafter or previously provided, 9 if an action taken by an employer against an individual as a 10 result of the circumstances that led to a finding of physical 11 or sexual abuse or egregious neglect is later overturned 12 under a grievance or arbitration procedure provided for in 13 Section 8 of the Illinois Public Labor Relations Act or under 14 a collective bargaining agreement, the report must be removed 15 from the registry. 16 The Department of Human Services shall promulgate or 17 amend rules as necessary or appropriate to establish 18 procedures for reporting to the registry, including the 19 definition of egregious neglect, procedures for notice to the 20 individual and victim, appeal and hearing procedures, and 21 petition for removal of the report from the registry. The 22 portion of the rules pertaining to hearings shall provide 23 that, at the hearing, both parties may present written and 24 oral evidence. The Department shall be required to establish 25 by a preponderance of the evidence that the Office of the 26 Inspector General's finding of physical or sexual abuse or 27 egregious neglect warrants reporting to the Department of 28 Public Health's nurse aide registry under Section 3-206.01 of 29 the Nursing Home Care Act. 30 Notice to the individual shall include a clear and 31 concise statement of the grounds on which the report to the 32 registry is based and notice of the opportunity for a hearing 33 to contest the report. The Department of Human Services shall 34 provide the notice by certified mail to the last known SB1854 Enrolled -427- LRB9215370EGfg 1 address of the individual. The notice shall give the 2 individual an opportunity to contest the report in a hearing 3 before the Department of Human Services or to submit a 4 written response to the findings instead of requesting a 5 hearing. If the individual does not request a hearing or if 6 after notice and a hearing the Department of Human Services 7 finds that the report is valid, the finding shall be included 8 as part of the registry, as well as a brief statement from 9 the reported individual if he or she chooses to make a 10 statement. The Department of Public Health shall make 11 available to the public information reported to the registry. 12 In a case of inquiries concerning an individual listed in the 13 registry, any information disclosed concerning a finding of 14 abuse or neglect shall also include disclosure of the 15 individual's brief statement in the registry relating to the 16 reported finding or include a clear and accurate summary of 17 the statement. 18 At any time after the report of the registry, an 19 individual may petition the Department of Human Services for 20 removal from the registry of the finding against him or her. 21 Upon receipt of such a petition, the Department of Human 22 Services shall conduct an investigation and hearing on the 23 petition. Upon completion of the investigation and hearing, 24 the Department of Human Services shall report the removal of 25 the finding to the registry unless the Department of Human 26 Services determines that removal is not in the public 27 interest. 28 (h) This Section is repealed on January 1, 2004. 29 (Source: P.A. 91-169, eff. 7-16-99; 92-358, eff. 8-15-01; 30 92-473, eff. 1-1-02; revised 10-10-01.) 31 Section 46. The Nursing Home Care Act is amended by 32 changing Section 3-206.01 as follows: SB1854 Enrolled -428- LRB9215370EGfg 1 (210 ILCS 45/3-206.01) (from Ch. 111 1/2, par. 2 4153-206.01) 3 Sec. 3-206.01. Nurse aide registry. 4 (a) The Department shall establish and maintain a 5 registry of all individuals who have satisfactorily completed 6 the training required by Section 3-206. The registry shall 7 include the name of the nursing assistant, habilitation aide, 8 or child care aide, his or her current address, Social 9 Security number, and the date and location of the training 10 course completed by the individual, and the date of the 11 individual's last criminal records check. Any individual 12 placed on the registry is required to inform the Department 13 of any change of address within 30 days. A facility shall 14 not employ an individual as a nursing assistant, habilitation 15 aide, or child care aide unless the facility has inquired of 16 the Department as to information in the registry concerning 17 the individual and shall not employ anyone not on the 18 registry unless the individual is enrolled in a training 19 program under paragraph (5) of subsection (a) of Section 20 3-206 of this Act. 21 If the Department finds that a nursing assistant, 22 habilitation aide, or child care aide has abused a resident, 23 neglected a resident, or misappropriated resident property in 24 a facility, the Department shall notify the individual of 25 this finding by certified mail sent to the address contained 26 in the registry. The notice shall give the individual an 27 opportunity to contest the finding in a hearing before the 28 Department or to submit a written response to the findings in 29 lieu of requesting a hearing. If, after a hearing or if the 30 individual does not request a hearing, the Department finds 31 that the individual abused a resident, neglected a resident, 32 or misappropriated resident property in a facility, the 33 finding shall be included as part of the registry as well as 34 a brief statement from the individual, if he or she chooses SB1854 Enrolled -429- LRB9215370EGfg 1 to make such a statement. The Department shall make 2 information in the registry available to the public. In the 3 case of inquiries to the registry concerning an individual 4 listed in the registry, any information disclosed concerning 5 such a finding shall also include disclosure of any statement 6 in the registry relating to the finding or a clear and 7 accurate summary of the statement. 8 (b) The Department shall add to the nurse aide registry 9 records of findings as reported by the Inspector General or 10 remove from the nurse aide registry records of findings as 11 reported by the Department of Human Services, under Section 12 6.2 of the AbusedAbuseand Neglected Long Term Care Facility 13 Residents Reporting Act. 14 (Source: P.A. 91-598, eff. 1-1-00; 92-473, eff. 1-1-02; 15 revised 12-04-01.) 16 Section 47. The Emergency Medical Services (EMS) Systems 17 Act is amended by changing Sections 3.110, 3.220, and 3.250 18 as follows: 19 (210 ILCS 50/3.110) 20 Sec. 3.110. EMS system and trauma center confidentiality 21 and immunity. 22 (a) All information contained in or relating to any 23 medical audit performed of a trauma center's trauma services 24 pursuant to this Act or by an EMS Medical Director or his 25 designee of medical care rendered by System personnel, shall 26 be afforded the same status as is provided information 27 concerning medical studies in Article VIII, Part 21 of the 28 Code of Civil Procedure. Disclosure of such information to 29 the Department pursuant to this Act shall not be considered a 30 violation of Article VIII, Part 21 of the Code of Civil 31 Procedure. 32 (b) Hospitals, trauma centers and individuals that SB1854 Enrolled -430- LRB9215370EGfg 1 perform or participate in medical audits pursuant to this Act 2 shall be immune from civil liability to the same extent as 3 provided in Section 10.2 of the Hospital Licensing Act. 4 (c) All information relating to the State Emergency 5 Medical Services Disciplinary Review Board or a local review 6 board, except final decisions, shall be afforded the same 7 status as is provided information concerning medical studies 8 in Article VIII, Part 21 of the Code of Civil Procedure. 9 Disclosure of such information to the Department pursuant to 10 this Act shall not beeeconsidered a violation of Article 11 VIII, Part 21 of the Code of Civil Procedure. 12 (Source: P.A. 89-177, eff. 7-19-95; 90-144, eff. 7-23-97; 13 revised 12-07-01.) 14 (210 ILCS 50/3.220) 15 Sec. 3.220. EMS Assistance Fund. 16 (a) There is hereby created an "EMS Assistance Fund" 17 within the State treasury, for the purpose of receiving fines 18 and fees collected by the Illinois Department of Health 19 pursuant to this Actand the supplemental registration fees20collected pursuant to Section 3-821.1 of the Illinois Vehicle21Code. 22 (b) EMT licensure examination fees collected shall be 23 distributed by the Department to the Resource Hospital of the 24 EMS System in which the EMT candidate was educated, to be 25 used for educational and related expenses incurred by the 26 System's hospitals, as identified in the EMS System Program 27 Plan. 28 (c) All other moneys within this fund shall be 29 distributed by the Department to the EMS Regions for 30 disbursement in accordance with protocols established in the 31 EMS Region Plans, for the purposes of organization, 32 development and improvement of Emergency Medical Services 33 Systems, including but not limited to training of personnel SB1854 Enrolled -431- LRB9215370EGfg 1 and acquisition, modification and maintenance of necessary 2 supplies, equipment and vehicles. 3 (d) All fees and fines collected pursuant to this to 4 this Act shall be deposited into the EMS Assistance Fund. 5 (Source: P.A. 89-177, eff. 7-19-95; revised 12-07-01.) 6 (210 ILCS 50/3.250) 7 Sec. 3.250. Application of Administrative Procedure Act. 8 The provisions of the Illinois Administrative Procedure Act 9 are hereby expressly adopted and shall apply to all 10 administrative rules and procedures of the Department of 11 Public Health under this Act, except that in case of conflict 12 between the Illinois Administrative Procedure Act and this 13 Act the provisions of this Act shall control, and except that 14 Section 5-35 of5 ofthe Illinois Administrative Procedure 15 Act relating to procedures for rule-making does not apply to 16 the adoption of any rule required by federal law in 17 connection with which the Department is precluded by law from 18 exercising any discretion. 19 (Source: P.A. 89-177, eff. 7-19-95; revised 12-07-01.) 20 Section 48. The Illinois Insurance Code is amended by 21 setting forth and renumbering multiple versions of Section 22 155.37, changing Sections 370c and 424, and renumbering 23 Section 507.2 as follows: 24 (215 ILCS 5/155.37) 25 Sec. 155.37. Drug formulary; notice. Insurance 26 companies that transact the kinds of insurance authorized 27 under Class 1(b) or Class 2(a) of Section 4 of this Code and 28 provide coverage for prescription drugs through the use of a 29 drug formulary must notify insureds of any change in the 30 formulary. A company may comply with this Section by posting 31 changes in the formulary on its website. SB1854 Enrolled -432- LRB9215370EGfg 1 (Source: P.A. 92-440, eff. 8-17-01.) 2 (215 ILCS 5/155.38) 3 Sec. 155.38.155.37.Use of credit reports in connection 4 with certain policies. 5 (a) This Section applies to policies of insurance 6 defined in subsections (a), (b), and (c) of Section 143.13, 7 except that this Section does not apply to those personal 8 lines policies defined in subsection (c) of Section 143.13 9 that could be classified under clause (g) or (i) of Class 2 10 of Section 4 or to policies of insurance subject to Article 11 IX 1/2. 12 (b) An insurance company authorized to do business in 13 this State may not refuse to issue or renew a policy of 14 insurance solely on the basis of a credit report. An offer 15 by an insurance company to write a policy through an insurer 16 that is an affiliate, as defined in Section 131.1 of this 17 Code, with continuous coverage does not constitute a refusal 18 to issue a policy or a nonrenewal within the meaning of this 19 Section. "Credit report" means a collection of data 20 regarding a consumer's credit history, credit capacity, or 21 credit worthiness that has been assembled or evaluated by a 22 consumer reporting agency as defined in 15 USC 1681a(f). 23 (c) If a credit report is used in conjunction with other 24 criteria to underwrite an application or renewal of a policy 25 of insurance, it may not include or be based upon the race, 26 income, gender, religion, or national origin of the applicant 27 or insured. 28 (d) If a credit report is used in conjunction with other 29 criteria to refuse to issue or renew a policy of insurance, 30 the insurer shall provide the applicant or policyholder with 31 a notice of the underwriting action taken. For purposes of 32 this Section, compliance with the notification requirements 33 of the federal Fair Credit Reporting Act, 15 U.S.C. 1681 et SB1854 Enrolled -433- LRB9215370EGfg 1 seq., shall be considered to be in compliance with this 2 Section. 3 (Source: P.A. 92-480, eff. 10-1-01; revised 10-17-01.) 4 (215 ILCS 5/370c) (from Ch. 73, par. 982c) 5 Sec. 370c. Mental and emotional disorders. 6 (a) (1) On and after the effective date of this Section, 7 every insurer which delivers, issues for delivery or renews 8 or modifies group A&H policies providing coverage for 9 hospital or medical treatment or services for illness on an 10 expense-incurred basis shall offer to the applicant or group 11 policyholder subject to the insurers standards of 12 insurability, coverage for reasonable and necessary treatment 13 and services for mental, emotional or nervous disorders or 14 conditions, other than serious mental illnesses as defined in 15 item (2) of subsection (b), up to the limits provided in the 16 policy for other disorders or conditions, except (i) the 17 insured may be required to pay up to 50% of expenses incurred 18 as a result of the treatment or services, and (ii) the annual 19 benefit limit may be limited to the lesser of $10,000 or 25% 20 of the lifetime policy limit. 21 (2) Each insured that is covered for mental, emotional 22 or nervous disorders or conditions shall be free to select 23 the physician licensed to practice medicine in all its 24 branches, licensed clinical psychologist, licensed clinical 25 social worker, or licensed clinical professional counselor of 26 his choice to treat such disorders, and the insurer shall pay 27 the covered charges of such physician licensed to practice 28 medicine in all its branches, licensed clinical psychologist, 29 licensed clinical social worker, or licensed clinical 30 professional counselor up to the limits of coverage, provided 31 (i) the disorder or condition treated is covered by the 32 policy, and (ii) the physician, licensed psychologist, 33 licensed clinical social worker, or licensed clinical SB1854 Enrolled -434- LRB9215370EGfg 1 professional counselor is authorized to provide said services 2 under the statutes of this State and in accordance with 3 accepted principles of his profession. 4 (3) Insofar as this Section applies solely to licensed 5 clinical social workers and licensed clinical professional 6 counselors, those persons who may provide services to 7 individuals shall do so after the licensed clinical social 8 worker or licensed clinical professional counselor has 9 informed the patient of the desirability of the patient 10 conferring with the patient's primary care physician and the 11 licensed clinical social worker or licensed clinical 12 professional counselor has provided written notification to 13 the patient's primary care physician, if any, that services 14 are being provided to the patient. That notification may, 15 however, be waived by the patient on a written form. Those 16 forms shall be retained by the licensed clinical social 17 worker or licensed clinical professional counselor for a 18 period of not less than 5 years. 19 (b) (1) An insurer that provides coverage for hospital 20 or medical expenses under a group policy of accident and 21 health insurance or health care plan amended, delivered, 22 issued, or renewed after the effective date of this 23 amendatory Act of the 92nd General Assembly shall provide 24 coverage under the policy for treatment of serious mental 25 illness under the same terms and conditions as coverage for 26 hospital or medical expenses related to other illnesses and 27 diseases. The coverage required under this Section must 28 provide for same durational limits, amount limits, 29 deductibles, and co-insurance requirements for serious mental 30 illness as are provided for other illnesses and diseases. 31 This subsection does not apply to coverage provided to 32 employees by employers who have 50 or fewer employees. 33 (2) "Serious mental illness" means the following 34 psychiatric illnesses as defined in the most current edition SB1854 Enrolled -435- LRB9215370EGfg 1 of the Diagnostic and Statistical Manual (DSM) published by 2 the American Psychiatric Association: 3 (A) schizophrenia; 4 (B) paranoid and other psychotic disorders; 5 (C) bipolar disorders (hypomanic, manic, 6 depressive, and mixed); 7 (D) major depressive disorders (single episode or 8 recurrent); 9 (E) schizoaffective disorders (bipolar or 10 depressive); 11 (F) pervasive developmental disorders; 12 (G) obsessive-compulsive disorders; 13 (H) depression in childhood and adolescence; and 14 (I) panic disorder. 15 (3) Upon request of the reimbursing insurer, a provider 16 of treatment of serious mental illness shall furnish medical 17 records or other necessary data that substantiate that 18 initial or continued treatment is at all times medically 19 necessary. An insurer shall provide a mechanism for the 20 timely review by a provider holding the same license and 21 practicing in the same specialty as the patient's provider, 22 who is unaffiliated with the insurer, jointly selected by the 23 patient (or the patient's next of kin or legal representative 24 if the patient is unable to act for himself or herself), the 25 patient's provider, and the insurer in the event of a dispute 26 between the insurer and patient's provider regarding the 27 medical necessity of a treatment proposed by a patient's 28 provider. If the reviewing provider determines the treatment 29 to be medically necessary, the insurer shall provide 30 reimbursement for the treatment. Future contractual or 31 employment actions by the insurer regarding the patient's 32 provider may not be based on the provider's participation in 33 this procedure. Nothing prevents the insured from agreeing in 34 writing to continue treatment at his or her expense. When SB1854 Enrolled -436- LRB9215370EGfg 1 making a determination of the medical necessity for a 2 treatment modality for serous mental illness, an insurer must 3 make the determination in a manner that is consistent with 4 the manner used to make that determination with respect to 5 other diseases or illnesses covered under the policy, 6 including an appeals process. 7 (4) A group health benefit plan: 8 (A) shall provide coverage based upon medical 9 necessity for the following treatment of mental illness 10 in each calendar year; 11 (i) 45 days of inpatient treatment; and 12 (ii) 35 visits for outpatient treatment 13 including group and individual outpatient treatment; 14 (B) may not include a lifetime limit on the number 15 of days of inpatient treatment or the number of 16 outpatient visits covered under the plan; and 17 (C) shall include the same amount limits, 18 deductibles, copayments, and coinsurance factors for 19 serious mental illness as for physical illness. 20 (5) An issuer of a group health benefit plan may not 21 count toward the number of outpatient visits required to be 22 covered under this Section an outpatient visit for the 23 purpose of medication management and shall cover the 24 outpatient visits under the same terms and conditions as it 25 covers outpatient visits for the treatment of physical 26 illness. 27 (6) An issuer of a group health benefit plan may provide 28 or offer coverage required under this Section through a 29 managed care plan. 30 (7) This Section shall not be interpreted to require a 31 group health benefit plan to provide coverage for treatment 32 of: 33 (A) an addiction to a controlled substance or 34 cannabis that is used in violation of law; or SB1854 Enrolled -437- LRB9215370EGfg 1 (B) mental illness resulting from the use of a 2 controlled substance or cannabis in violation of law. 3 (8) This subsection (b) is inoperative after December 4 31, 2005. 5 (Source: P.A. 92-182, eff. 7-27-01; 92-185, eff. 1-1-02; 6 revised 9-18-01.) 7 (215 ILCS 5/424) (from Ch. 73, par. 1031) 8 Sec. 424. Unfair methods of competition and unfair or 9 deceptive acts or practices defined. The following are 10 hereby defined as unfair methods of competition and unfair 11 and deceptive acts or practices in the business of insurance: 12 (1) The commission by any person of any one or more of 13 the acts defined or prohibited by Sections 134, 147, 148, 14 149, 151, 155.22, 155.22a, 236, 237, 364, and 469 of this 15 Code. 16 (2) Entering into any agreement to commit, or by any 17 concerted action committing, any act of boycott, coercion or 18 intimidation resulting in or tending to result in 19 unreasonable restraint of, or monopoly in, the business of 20 insurance. 21 (3) Making or permitting, in the case of insurance of 22 the types enumerated in Classes 1, 2, and 3 of Section 4, any 23 unfair discrimination between individuals or risks of the 24 same class or of essentially the same hazard and expense 25 element because of the race, color, religion, or national 26 origin of such insurance risks or applicants. The 27 application of this Article to the types of insurance 28 enumerated in Class 1 of Section 4 shall in no way limit, 29 reduce, or impair the protections and remedies already 30 provided for by Sections 236 and 364 of this Code or any 31 other provision of this Code. 32 (4) Engaging in any of the acts or practices defined in 33 or prohibited by Sections 154.5 through 154.8 ofthethis SB1854 Enrolled -438- LRB9215370EGfg 1InsuranceCode. 2 (5) Making or charging any rate for insurance against 3 losses arising from the use or ownership of a motor vehicle 4 which requires a higher premium of any person by reason of 5 his physical handicap, race, color, religion, or national 6 origin. 7 (Source: P.A. 92-399, eff. 8-16-01; revised 12-07-01.) 8 (215 ILCS 5/500-77) 9 Sec. 500-77.507.2.Policyholder information and 10 exclusive ownership of expirations. 11 (a) As used in this Section, "expirations" means all 12 information relative to an insurance policy including, but 13 not limited to, the name and address of the insured, the 14 location and description of the property insured, the value 15 of the insurance policy, the inception date, the renewal 16 date, and the expiration date of the insurance policy, the 17 premiums, the limits and a description of the terms and 18 coverage of the insurance policy, and any other personal and 19 privileged information, as defined by Section 1003 of this 20 Code, compiled by a registered firm or furnished by the 21 insured to the insurer or any agent, contractor, or 22 representative of the insurer. 23 For purposes of this Section only, a registered firm also 24 includes a sole proprietorship that transacts the business of 25 insurance as an insurance agency. 26 (b) All "expirations" as defined in subsection (a) of 27 this Section shall be mutually and exclusively owned by the 28 insured and the registered firm. The limitations on the use 29 of expirations as provided in subsections (c) and (d) of this 30 Section shall be for mutual benefit of the insured and the 31 registered firm. 32 (c) Except as otherwise provided in this Section, for 33 purposes of soliciting, selling, or negotiating the renewal SB1854 Enrolled -439- LRB9215370EGfg 1 or sale of insurance coverage, insurance products, or 2 insurance services or for any other marketing purpose, a 3 registered firm shall own and have the exclusive use of 4 expirations, records, and other written or electronically 5 stored information directly related to an insurance 6 application submitted by, or an insurance policy written 7 through, the registered firm. No insurance company, managing 8 general agent, surplus lines insurance broker, wholesale 9 broker, group self-insurance fund, third-party administrator, 10 or any other entity, other than a financial institution as 11 defined in Section 1402 of this Code, shall use such 12 expirations, records, or other written or electronically 13 stored information to solicit, sell, or negotiate the renewal 14 or sale of insurance coverage, insurance products, or 15 insurance services to the insured or for any other marketing 16 purposes, either directly or by providing such information to 17 others, without, separate from the general agency contract, 18 the written consent of the registered firm. However, such 19 expirations, records, or other written or electronically 20 stored information may be used for any purpose necessary for 21 placing such business through the insurance producer 22 including reviewing an application and issuing or renewing a 23 policy and for loss control services. 24 (d) With respect to a registered firm, this Section 25 shall not apply: 26 (1) when the insured requests either orally or in 27 writing that another registered firm obtain quotes for 28 insurance from another insurance company or when the 29 insured requests in writing individually or through 30 another registered firm, that the insurance company renew 31 the policy; 32 (2) to policies in the Illinois Fair Plan, the 33 Illinois Automobile Insurance Plan, or the Illinois 34 Assigned Risk Plan for coverage under the Workers' SB1854 Enrolled -440- LRB9215370EGfg 1 Compensation Act and the Workers' Occupational Diseases 2 Act; 3 (3) when the insurance producer is employed by or 4 has agreed to act exclusively or primarily for one 5 company or group of affiliated insurance companies or to 6 a producer who submits to the company or group of 7 affiliated companies that are organized to transact 8 business in this State as a reciprocal company, as 9 defined in Article IV of this Code, every request or 10 application for insurance for the classes and lines 11 underwritten by the company or group of affiliated 12 companies; 13 (4) to policies providing life and accident and 14 health insurance; 15 (5) when the registered firm is in default for 16 nonpayment of premiums under the contract with the 17 insurer or is guilty of conversion of the insured's or 18 insurer's premiums or its license is revoked by or 19 surrendered to the Department; 20 (6) to any insurance company's obligations under 21 Sections 143.17 and 143.17a of this Code; or 22 (7) to any insurer that, separate from a producer 23 or registered firm, creates, develops, compiles, and 24 assembles its own, identifiable expirations as defined in 25 subsection (a). 26 For purposes of this Section, an insurance producer shall 27 be deemed to have agreed to act primarily for one company or 28 a group of affiliated insurance companies if the producer (i) 29 receives 75% or more of his or her insurance related 30 commissions from one company or a group of affiliated 31 companies or (ii) places 75% or more of his or her policies 32 with one company or a group of affiliated companies. 33 Nothing in this Section prohibits an insurance company, 34 with respect to any items herein, from conveying to the SB1854 Enrolled -441- LRB9215370EGfg 1 insured or the registered firm any additional benefits or 2 ownership rights including, but not limited to, the ownership 3 of expirations on any policy issued or the imposition of 4 further restrictions on the insurance company's use of the 5 insured's personal information. 6 (e) Nothing in this Section prevents a financial 7 institution, as defined in Section 1402 of this Code, from 8 obtaining from the insured, the insurer, or the registered 9 firm the expiration dates of an insurance policy placed on 10 collateral or otherwise used as security in connection with a 11 loan made or serviced by the financial institution when the 12 financial institution requires the expiration dates for 13 evidence of insurance. 14 (f) For purposes of this Section, "financial 15 institution" does not include an insurance company, 16 registered firm, managing general agent, surplus lines 17 broker, wholesale broker, group self-funded insurance fund, 18 or third-party administrator. 19 (g) The Director may adopt rules in accordance with 20 Section 401 of this Code for the enforcement of this Section. 21 (h) This Section applies to the expirations relative to 22 all policies of insurance bound, applied for, sold, renewed, 23 or otherwise taking effect on or after the effective date of 24 this amendatory Act of the 92nd General Assembly. 25 (Source: P.A. 92-5, eff. 6-1-01; revised 10-17-01.) 26 Section 49. The Health Maintenance Organization Act is 27 amended by changing Sections 2-6, 3-1, and 4-6.5 as follows: 28 (215 ILCS 125/2-6) (from Ch. 111 1/2, par. 1406.2) 29 Sec. 2-6. Statutory deposits. 30 (a) An organization subject to the provisions of this 31 Act shall make and maintain with the Director through 32 December 30, 1993, for the protection of enrollees of the SB1854 Enrolled -442- LRB9215370EGfg 1 organization, a deposit of securities which are authorized 2 investments under paragraphs (1) and (2) of subsection (h) of 3 Section 3-1 having a fair market value equal to at least 4 $100,000. Effective December 31, 1993 and through December 5 30, 1994, the deposit shall have a fair market value at least 6 equal to $200,000. Effective December 31, 1994 and 7 thereafter, the deposit shall have a fair market value at 8 least equal to $300,000. An organization issued a 9 certificate of authority on or after the effective date of 10 this Amendatory Act of 1993, shall make and maintain with the 11 Director; for the protection of enrollees of the 12 organization, a deposit of securities which are authorized 13 investments under paragraphs (1) and (2) of subsection (h) of 14 Section 3-1 having a fair market value equal to at least 15 $300,000. The amount on deposit shall remain as an admitted 16 asset of the organization in the determination of its net 17 worth. The Director may release the required deposit of 18 securities upon receipt of an order of a court having proper 19 jurisdiction or upon: (i) certification by the organization 20 that it has no outstanding enrollee creditors, enrollees, 21 certificate holders, or enrollee obligations in effect and no 22 plans to engage in the business of insurance as a health 23 maintenance organization; (ii) receipt of a lawful resolution 24 of the organization's governing body effecting the surrender 25 of its certificate of authority, articles of incorporation, 26 or other organizational documents to their issuing 27 governmental officer for voluntary or administrative 28 dissolution; and (iii) receipt of the name and forwarding 29 address for each of the final officers and directors of the 30 organization, together with a plan of dissolution approved by 31 the Director. 32 (b) An organization that offers a point-of-service 33 product, as permitted by Article 4.5, must maintain an 34 additional deposit in an amount that is not less than the SB1854 Enrolled -443- LRB9215370EGfg 1 greater of 125% of the organization's annual projected 2 point-of-service claims or $300,000. 3 (Source: P.A. 92-75, eff. 7-12-01; 92-135, eff. 1-1-02; 4 revised 9-12-01.) 5 (215 ILCS 125/3-1) (from Ch. 111 1/2, par. 1407.3) 6 Sec. 3-1. Investment Regulations. 7 (a) Any health maintenance organization may invest its 8 funds as provided in this Section and not otherwise. A 9 health maintenance organization that is organized as an 10 insurance company may also acquire the investment assets 11 authorized for an insurance company pursuant to the laws 12 applicable to an insurance company in the organization's 13 state of domicile. Notwithstanding the provisions of this 14 Section, the Director may, after notice and hearing, order an 15 organization to limit or withdraw from certain investments, 16 or discontinue certain investment practices, to the extent 17 the Director finds that such investments or investment 18 practices are hazardous to the financial condition of the 19 organization. 20 (b) No investment or loan shall be made or engaged in by 21 any health maintenance organization unless the same have been 22 authorized or ratified by the board of directors or by a 23 committee thereof charged with the duty of supervising 24 investments and loans. Nothing contained in this subsection 25 shall prevent the board of directors of any such organization 26 from depositing any of its securities with a committee 27 appointed for the purpose of protecting the interest of 28 security holders or with the authorities of any state where 29 it is necessary to do so in order to secure permission to 30 transact its appropriate business therein, and nothing 31 contained in this subsection shall prevent the board of 32 directors of such organization from depositing any securities 33 as collateral for the securing of any bond required for the SB1854 Enrolled -444- LRB9215370EGfg 1 business of the organization. 2 (c) No health maintenance organization shall pay any 3 commission or brokerage for the purchase or sale of property 4 whether real or personal, in excess of that usual and 5 customary at the time and in the locality where such 6 purchases or sales are made, and information regarding 7 payments of commissions and brokerage shall be maintained. 8 (d) A health maintenance organization may not directly 9 or indirectly, unless it has notified the Director in writing 10 of its intention to enter into the transaction at least 30 11 days prior thereto, or any shorter period as the Director may 12 permit, and the Director has not disapproved it within that 13 period: 14 (1) make a loan to or other investment in an 15 officer or director of the organization or a person in 16 which the officer or director has any direct or indirect 17 financial interest; 18 (2) make a guarantee for the benefit of or in favor 19 of an officer or director of the organization or a person 20 in which the officer or director has any direct or 21 indirect financial interest; or 22 (3) enter into an agreement for the purchase or 23 sale of property from or to an officer or director of the 24 organization or a person in which the officer or director 25 has any direct or indirect financial interest. 26 For the purposes of this Section, an officer or director 27 shall not be deemed to have a financial interest by reason of 28 an interest that is held directly or indirectly through the 29 ownership of equity interests representing less than 2% of 30 all outstanding equity interests issued by a person that is a 31 party to the transaction, or solely by reason of that 32 individual's position as a director or officer of a person 33 that is a party to the transaction. 34 This subsection does not apply to a transaction between SB1854 Enrolled -445- LRB9215370EGfg 1 an organization and any of its subsidiaries or affiliates 2 that is entered into in compliance with Section 131.20a of 3 the Illinois Insurance Code, other than a transaction between 4 an insurer and its officer or director. 5 (e) In applying the percentage limitations imposed by 6 this Section there shall be used as a base the total of all 7 assets which would be admitted by this Section without regard 8 to percentage limitations. All legal measurements used as a 9 base in the determination of all investment qualifications 10 shall consist of the amounts determined at the most recent 11 year end adjusted for subsequent acquisition and disposition 12 of investments. 13 (f) Valuation of investments. Investments shall be 14 valued in accordance with the published valuation standards 15 of the National Association of Insurance Commissioners. 16 Securities investments as to which the National Association 17 of Insurance Commissioners has not published valuation 18 standards in its Valuations of Securities manual or its 19 successor publication shall be valued as follows: 20 (1) All obligations having a fixed term and rate 21 shall, if not in default as to principal or interest, be 22 valued as follows: if purchased at par, at the par value; 23 if purchased above or below par, on the basis of the 24 purchase price adjusted so as to bring the value to par 25 at maturity and so as to yield in the meantime the 26 effective rate of interest at which the purchase was 27 made; 28 (2) Common, preferred or guaranteed stocks shall be 29 valued at market value. 30 (3) Other security investments shall be valued in 31 accordance with regulations promulgated by the Director 32 pursuant to paragraph (6) of this subsection. 33 (4) Other investments, including real property, 34 shall be valued in accordance with regulations SB1854 Enrolled -446- LRB9215370EGfg 1 promulgated by the Director pursuant to paragraph (6) of 2 this subsection, but in no event shall such other 3 investments be valued at more than the purchase price. 4 The purchase price for real property includes capitalized 5 permanent improvements, less depreciation spread evenly 6 over the life of the property or, at the option of the 7 company, less depreciation computed on any basis 8 permitted under the Internal Revenue Code and regulations 9 thereunder. Such investments that have been affected by 10 permanent declines in value shall be valued at not more 11 than market value. 12 (5) Any investment, including real property, not 13 purchased by the Health Maintenance Organization but 14 acquired in satisfaction of a debt or otherwise shall be 15 valued in accordance with the applicable procedures for 16 that type of investment contained in this subsection. 17 For purposes of applying the valuation procedures, the 18 purchase price shall be deemed to be the market value at 19 the time the investment is acquired or, in the case of 20 any investment acquired in satisfaction of debt, the 21 amount of the debt, including interest, taxes and 22 expenses, whichever amount is less. 23 (6) The Director shall promulgate rules and 24 regulations for determining and calculating values to be 25 used in financial statements submitted to the Department 26 for investments. 27 (g) Definitions. As used in this Section, unless the 28 context otherwise requires. 29 (1) "Business Corporation" means corporations 30 organized for other than not for profit purposes. 31 (2) "Business Entity" includes sole 32 proprietorships, corporations, associations, partnerships 33 and business trusts. 34 (3) "Bank or Trust Company" means any bank or trust SB1854 Enrolled -447- LRB9215370EGfg 1 company organized under the laws of the United States or 2 any State thereof if said bank or trust company is 3 regularly examined pursuant to such laws and said bank or 4 trust company has the insurance protection afforded by an 5 agency of the United States government. 6 (4) "Capital" means capital stock paid-up, if any, 7 and its use in a provision does not imply that a 8 non-profit Health Maintenance Organization without stated 9 capital stock is excluded from the provision. The 10 capital of such an organization will be zero. 11 (5) "Direct" when used in connection with 12 "obligation" means that the designated obligor shall be 13 primarily liable on the instrument representing the 14 obligation. 15 (6) "Facility" means and includes real estate and 16 any and all forms of tangible personal property and 17 services used constituting an operating unit. 18 (7) "Guaranteed or insured" means that the 19 guarantor or insurer will perform or insure the 20 obligation of the obligor or will purchase the obligation 21 to the extent of the guaranty or insurance. 22 (8) "Mortgage" shall include a trust deed or other 23 lien on real property securing an obligation for the 24 payment of money. 25 (9) "Servicer" means a business entity that has a 26 contractual obligation to service a pool of mortgage 27 loans. The service provided shall include, but is not 28 limited to, collection of principal and interest, keeping 29 the accounts current, maintaining or confirming in force 30 hazard insurance and tax status and providing supportive 31 accounting services. 32 (10) "Single credit risk" means the direct, 33 guaranteed or insured obligations of any one business 34 entity including affiliates thereof. SB1854 Enrolled -448- LRB9215370EGfg 1 (11) "Surplus" means the amount properly shown as 2 total net worth on a company's balance sheet, plus all 3 voluntary reserves, but not including capital paid-up. 4 (12) "Tangible net worth" means the par value of 5 all issued and outstanding capital stock of a corporation 6 (or in the case of shares having no par value, the stated 7 value) and the amounts of all surplus accounts less the 8 sum of (a) such intangible assets as deferred charges, 9 organization and development expense, discount and 10 expense incurred in securing capital, good will, 11 trade-marks, trade-names and patents, (b) leasehold 12 improvements, and (c) any reserves carried by the 13 corporation and not otherwise deducted from assets. 14 (13) "Unconditional" when used in connection with 15 "obligation" means that nothing remains to be done or to 16 occur to make the designated obligor liable on the 17 instrument, and that the legal holder shall have the 18 status at least equal to that of general creditor of the 19 obligor. 20 (h) Authorized investments. Any Health Maintenance 21 Organization, except those organized as an insurance company, 22 may acquire the assets set forth in paragraphs 1 through 17, 23 inclusive. A Health Maintenance Organization that is 24 organized as an insurance company may acquire the investment 25 assets authorized for an insurance company pursuant to the 26 laws applicable to an insurance company in the organization's 27 state of domicile. Any restriction, exclusion or provision 28 appearing in any paragraph shall apply only with respect to 29 the authorization of the particular paragraph in which it 30 appears and shall not constitute a general prohibition and 31 shall not be applicable to any other paragraph. The 32 qualifications or disqualifications of an investment under 33 one paragraph shall not prevent its qualification in whole or 34 in part under another paragraph, and an investment authorized SB1854 Enrolled -449- LRB9215370EGfg 1 by more than one paragraph may be held under whichever 2 authorizing paragraph the organization elects. An investment 3 which qualified under any paragraph at the time it was 4 acquired or entered into by an organization shall continue to 5 be qualified under that paragraph. An investment in whole or 6 in part may be transferred from time to time, at the election 7 of the organization, to the authority of any paragraph under 8 which it qualifies, whether originally qualifying thereunder 9 or not. 10 (1) Direct obligations of the United States for the 11 payment of money, or obligations for the payment of money 12 to the extent guaranteed or insured as to the payment of 13 principal and interest by the United States. 14 (2) Direct obligations for the payment of money, 15 issued by an agency or instrumentality of the United 16 States, or obligations for the payment of money to the 17 extent guaranteed or insured as to the payment of 18 principal and interest by an agency or instrumentality of 19 the United States. 20 (3) Direct, general obligations of any state of the 21 United States for the payment of money, or obligations 22 for the payment of money to the extent guaranteed or 23 insured as to the payment of principal and interest by 24 any state of the United States, on the following 25 conditions: 26 (i) Such state has the power to levy taxes for 27 the prompt payment of the principal and interest of 28 such obligations; and 29 (ii) Such state shall not be in default in the 30 payment of principal or interest on any of its 31 direct, guaranteed or insured obligations at the 32 date of such investment. 33 (4) Direct, general obligations of any political 34 subdivision of any state of the United States for the SB1854 Enrolled -450- LRB9215370EGfg 1 payment of money, or obligations for the payment of money 2 to the extent guaranteed as to the payment of principal 3 and interest by any political subdivision of any state of 4 the United States, on the following conditions: 5 (i) The obligations are payable or guaranteed 6 from ad valorem taxes; 7 (ii) Such political subdivision is not in 8 default in the payment of principal or interest on 9 any of its direct or guaranteed obligations; 10 (iii) No investment shall be made under this 11 paragraph in obligations which are secured only by 12 special assessments for local improvements; and 13 (iv) An organization shall not invest under 14 this paragraph more than 2% of its admitted assets 15 in obligations issued or guaranteed by any one such 16 political subdivision. 17 (5) Anticipation obligations of any political 18 subdivision of any state of the United States, including 19 but not limited to bond anticipation notes, tax 20 anticipation notes and construction anticipation notes, 21 for the payment of money within 12 months from the 22 issuance of the obligation, on the following conditions: 23 (i) Such anticipation notes must be a direct 24 obligation of the issuer under conditions set forth 25 in paragraph 4; 26 (ii) Such political subdivision is not in 27 default in the payment of the principal or interest 28 on any of its direct general obligations or any 29 obligation guaranteed by such political subdivision; 30 (iii) The anticipated funds must be 31 specifically pledged to secure the obligation; 32 (iv) An organization shall not invest under 33 this paragraph more than 2% of its admitted assets 34 in the anticipation obligations issued by any one SB1854 Enrolled -451- LRB9215370EGfg 1 such political subdivision. 2 (6) Obligations of any state of the United States, 3 a political subdivision thereof, or a public 4 instrumentality of any one or more of the foregoing, for 5 the payment of money, on the following conditions: 6 (i) The obligations are payable from revenues 7 or earnings of a public utility of such state, 8 political subdivision, or public instrumentality 9 which are specifically pledged therefor; 10 (ii) The law under which the obligations are 11 issued requires such rates for service shall be 12 charged and collected at all times that they will 13 produce sufficient revenue or earnings together with 14 any other revenues or moneys pledged to pay all 15 operating and maintenance charges of the public 16 utility and all principal and interest on such 17 obligations; 18 (iii) No prior or parity obligations payable 19 from the revenues or earnings of that public utility 20 are in default at the date of such investment; 21 (iv) An organization shall not invest more 22 than 20% of its admitted assets under this 23 paragraph; and 24 (v) An organization shall not invest under 25 this Section more than 2% of its admitted assets in 26 the revenue obligations issued in connection with 27 any one facility. 28 (7) Obligations of any state of the United States, 29 a political subdivision thereof, or a public 30 instrumentality of any of the foregoing, for the payment 31 of money, on the following conditions: 32 (i) The obligations are payable from revenues 33 or earnings, excluding revenues or earnings from 34 public utilities, specifically pledged therefor by SB1854 Enrolled -452- LRB9215370EGfg 1 such state, political subdivision or public 2 instrumentality; 3 (ii) No prior or parity obligation of the same 4 issuer payable from revenues or earnings from the 5 same source has been in default as to principal or 6 interest during the 5 years next preceding the date 7 of such investment, but such issuer need not have 8 been in existence for that period, and obligations 9 acquired under this paragraph may be newly issued; 10 (iii) An organization shall not invest in 11 excess of 20% of its admitted assets under this 12 paragraph;and13 (iv) An organization shall not invest under 14 this paragraph more than 2% of its admitted assets 15 in the revenue obligations issued in connection with 16 any one facility; and 17 (v) An organization shall not invest under 18 this paragraph more than 2% of its admitted assets 19 in revenue obligations payable from revenue or 20 earning sources which are the contractual 21 responsibility of any one single credit risk. 22 (8) Direct, unconditional obligations of a solvent 23 business corporation for the payment of money, including 24 obligations to pay rent for equipment used in its 25 business or obligations for the payment of money to the 26 extent guaranteed or insured as to the payment of 27 principal and interest by any solvent business 28 corporation, on the following conditions: 29 (i) The corporation shall be incorporated 30 under the laws of the United States or any state of 31 the United States; 32 (ii) The corporation shall have tangible net 33 worth of not less than $1,000,000; 34 (iii) No such obligation, guarantee or SB1854 Enrolled -453- LRB9215370EGfg 1 insurance of the corporation has been in default as 2 to principal or interest during the 5 years 3 preceding the date of investment, but the 4 corporation need not have had obligations guarantees 5 or insurance outstanding during that period and need 6 not have been in existence for that period, and 7 obligations acquired under this paragraph may be 8 newly issued; 9 (iv) An organization shall not invest more 10 than 2% of its admitted assets in obligations 11 issued, guaranteed or insured by any one such 12 corporation; 13 (v) An organization may invest under this 14 paragraph up to an additional 2% of its admitted 15 assets in obligations which (i) are issued, 16 guaranteed or insured by any one or more such 17 corporations, each having a tangible net worth of 18 not less than $25,000,000 and (ii) mature within 12 19 months from the date of acquisition; 20 (vi) An organization may invest not more than 21 1/2 of 1% of its admitted assets in such obligations 22 of corporations which do not meet the condition of 23 subparagraph (ii) of this paragraph; and 24 (vii) An organization shall not invest more 25 than 75% of its admitted assets under this 26 paragraph. 27 (9) Direct, unconditional obligations for the 28 payment of money issued or obligations for the payment of 29 money to the extent guaranteed as to principal and 30 interest by a solvent not for profit corporation, on the 31 following conditions: 32 (i) The corporation shall be incorporated 33 under the laws of the United States or of any state 34 of the United States; SB1854 Enrolled -454- LRB9215370EGfg 1 (ii) The corporation shall have been in 2 existence for at least 5 years and shall have assets 3 of at least $2,000,000; 4 (iii) Revenues or other income from such 5 assets and the services or commodities dispensed by 6 the corporation shall be pledged for the payment of 7 the obligations or guarantees; 8 (iv) No such obligation or guarantee of the 9 corporation has been in default as to principal or 10 interest during the 5 years next preceding the date 11 of such investment, but the corporation need not 12 have had obligations or guarantees outstanding 13 during that period and obligations which are 14 acquired under this paragraph may be newly issued; 15 (v) An organization shall not invest more than 16 15% of its admitted assets under this paragraph; and 17 (vi) An organization shall not invest under 18 this paragraph more than 2% of its admitted assets 19 in the obligations issued or guaranteed by any one 20 such corporation. 21 (10) Direct, unconditional nondemand obligations 22 for the payment of money issued by a solvent bank, mutual 23 savings bank or trust company on the following 24 conditions: 25 (i) The bank, mutual savings bank or trust 26 company shall be incorporated under the laws of the 27 United States, or of any state of the United States; 28 (ii) The bank, mutual savings bank or trust 29 company shall have tangible net worth of not less 30 than $1,000,000; 31 (iii) Such obligations must be of the type 32 which are insured by an agency of the United States 33 or have a maturity of no more than 1 day; 34 (iv) An organization shall not invest under SB1854 Enrolled -455- LRB9215370EGfg 1 this paragraph more than the amount which is fully 2 insured by an agency of the United States plus 2% of 3 its admitted assets in nondemand obligations issued 4 by any one such financial institution; and 5 (v) An organization may invest under this 6 paragraph up to an additional 8% of its admitted 7 assets in nondemand obligations which (1) are issued 8 by any such banks, mutual savings banks or trust 9 companies, each having a tangible net worth of not 10 less than $25,000,000 and (2) mature within 12 11 months from the date of acquisition. 12 (11) Preferred or guaranteed stocks issued or 13 guaranteed by a solvent business corporation incorporated 14 under the laws of the United States or any state of the 15 United States, on the following conditions: 16 (i) The corporation shall have tangible net 17 worth of not less than $1,000,000; 18 (ii) If such stocks have been outstanding 19 prior to purchase, an organization shall not invest 20 under this paragraph in such stock if prescribed 21 current or cumulative dividends are in arrears; 22 (iii) An organization shall not invest more 23 than 33 1/3% of its admitted assets under this 24 paragraph and an organization shall not invest more 25 than 15% of its admitted assets under this paragraph 26 in stocks which, at the time of purchase, are not 27 Sinking Fund Stocks. An issue of preferred or 28 guaranteed stock shall be a Sinking Fund Stock when 29 (1) such issue is subject to a 100% mandatory 30 sinking fund or similar arrangement which will 31 provide for the redemption of the entire issue over 32 a period not longer than 40 years from the date of 33 purchase; (2) annual mandatory sinking fund 34 installments on each issue commence not more than 10 SB1854 Enrolled -456- LRB9215370EGfg 1 years from the date of issue; and (3) each annual 2 sinking fund installment provides for the purchase 3 or redemption of at least 2 1/2% of the original 4 number of shares of such issue; and 5 (iv) An organization shall not invest under 6 this paragraph more than 2% of its admitted assets 7 in the preferred or guaranteed stocks of any one 8 such corporation. 9 (12) Common stock issued by any solvent business 10 corporation incorporated under the laws of the United 11 States, or of any state of the United States, on the 12 following conditions: 13 (i) The issuing corporation must have tangible 14 net worth of $1,000,000 or more; 15 (ii) An organization may not invest more than 16 an amount equal to its net worth under this 17 paragraph; and 18 (iii) An organization may not invest under 19 this paragraph an amount equal to more than 10% of 20 its net worth in the common stock of any one 21 corporation. 22 (13) Shares of common stock or units of beneficial 23 interest issued by any solvent business corporation or 24 trust incorporated or organized under the laws of the 25 United States, or of any state of the United States, on 26 the following conditions: 27 (i) If the issuing corporation or trust is 28 advised by an investment advisor which is the 29 organization or an affiliate of the organization, 30 the issuing corporation or trust shall have net 31 assets of $100,000 or more, or if the issuing 32 corporation or trust has an unaffiliated investment 33 advisor, the issuing corporation or trust shall have 34 net assets of $10,000,000 or more; SB1854 Enrolled -457- LRB9215370EGfg 1 (ii) The issuing corporation or trust is 2 registered as an investment company with the 3 Securities and Exchange Commission under the 4 Investment Company Act of 1940, as amended; 5 (iii) An organization shall not invest under 6 this paragraph more than the greater of $100,000 or 7 10% of its admitted assets in any one bond fund, 8 municipal bond fund or money market fund; 9 (iv) An organization shall not invest under 10 this paragraph more than 10% of its net worth in any 11 one common stock fund, balanced fund or income fund; 12 (v) An organization shall not invest more than 13 50% of its admitted assets in bond funds, municipal 14 bond funds and money market funds under this 15 paragraph; and 16 (vi) An organization's investments in common 17 stock funds, balanced funds or income funds when 18 combined with its investments in common stocks made 19 under paragraph (12) shall not exceed the aggregate 20 limitation provided by subparagraph (ii) of 21 paragraph (12). 22 (14) Shares of, or accounts or deposits with 23 savings and loan associations or building and loan 24 associations, on the following conditions: 25 (i) The shares, accounts, or deposits, or 26 investments in any form legally issuable shall be of 27 a withdrawable type and issued by an association 28 which has the insurance protection afforded by the 29 Federal Savings and Loan Insurance Corporation; but 30 nonwithdrawable accounts which are not eligible for 31 insurance by the Federal Savings and Loan Insurance 32 Corporation shall not be eligible for investment 33 under this paragraph; 34 (ii) The association shall have tangible net SB1854 Enrolled -458- LRB9215370EGfg 1 worth of not less than $1,000,000; 2 (iii) The investment shall be in the name of 3 and owned by the organization, unless the account is 4 under a trusteeship with the organization named as 5 the beneficiary; 6 (iv) An organization shall not invest more 7 than 50% of its admitted assets under this 8 paragraph; and 9 (v) Under this paragraph, an organization 10 shall not invest in any one such association an 11 amount in excess of 2% of its admitted assets or an 12 amount which is fully insured by the Federal Savings 13 and Loan Insurance Corporation, whichever is 14 greater. 15 (15) Direct, unconditional obligations for the 16 payment of money secured by the pledge of any investment 17 which is authorized by any of the preceding paragraphs, 18 on the following conditions: 19 (i) The investment pledged shall by its terms 20 be legally assignable and shall be validly assigned 21 to the organization; 22 (ii) The investment pledged shall have a fair 23 market value which is at least 25% greater than the 24 amount invested under this paragraph, except that a 25 loan may be made up to 100% of the full fair market 26 value of collateral that would qualify as an 27 investment under paragraph (1) provided it qualifies 28 under condition (i) of this paragraph; and 29 (iii) An organization's investment under this 30 paragraph when added to its investment of the 31 category of the collateral pledged shall not cause 32 the sum to exceed the limits provided by the 33 paragraph authorizing that category of investments. 34 (16) Real estate (including leasehold estates and SB1854 Enrolled -459- LRB9215370EGfg 1 leasehold improvements) for the convenient accommodation 2 of the organization's business operations, including home 3 office, branch office, medical facilities and field 4 office operations, on the following conditions: 5 (i) Any parcel of real estate acquired under 6 this paragraph may include excess space for rent to 7 others, if it is reasonably anticipated that such 8 excess will be required by the organization for 9 expansion or if the excess is reasonably required in 10 order to have one or more buildings that will 11 function as an economic unit; 12 (ii) Such real estate may be subject to a 13 mortgage; and 14 (iii) The greater of the admitted value of the 15 asset as determined by subsection (f) or the 16 organization's equity plus all encumbrances on such 17 real estate owned by a company under this paragraph 18 shall not exceed 20% of its admitted assets, except 19 with the permission of the Director if he finds that 20 such percentage of its admitted assets is 21 insufficient to provide convenient accommodation for 22 the company's business; provided, however, an 23 organization that directly provides medical services 24 may invest an additional 20% of its admitted assets 25 in such real estate, not requiring the permission of 26 the Director. 27 (17) Any investments of any kind, in the complete 28 discretion of the organization, without regard to any 29 condition of, restriction in, or exclusion from 30 paragraphs (1) to (16), inclusive, and regardless of 31 whether the same or a similar type of investment has been 32 included in or omitted from any such paragraph, on the 33 following condition:(a)An organization shall not invest 34 under this paragraph more than the lesser of (i) 10% of SB1854 Enrolled -460- LRB9215370EGfg 1 its admitted assets, or (ii) 50% of the amount by which 2 its net worth exceeds the minimum requirements of a new 3 health maintenance organization to qualify for a 4 certificate of authority. 5 (Source: P.A. 92-140, eff. 7-24-01; revised 9-12-01.) 6 (215 ILCS 125/4-6.5) 7 Sec. 4-6.5. Required health benefits; Illinois Insurance 8 Code requirements. A health maintenance organization is 9 subject to the provisions of Sections 155.37, 356t, 356u, and 10 356z.1 of the Illinois Insurance Code. 11 (Source: P.A. 92-130, eff. 7-20-01; 92-440, eff. 8-17-01; 12 revised 9-12-01.) 13 Section 50. The Voluntary Health Services Plans Act is 14 amended by changing Section 10 as follows: 15 (215 ILCS 165/10) (from Ch. 32, par. 604) 16 Sec. 10. Application of Insurance Code provisions. 17 Health services plan corporations and all persons interested 18 therein or dealing therewith shall be subject to the 19 provisions of Articles IIA and XII 1/2 and Sections 3.1, 133, 20 140, 143, 143c, 149, 155.37, 354, 355.2, 356r, 356t, 356u, 21 356v, 356w, 356x, 356y, 356z.1, 367.2, 368a, 401, 401.1, 402, 22 403, 403A, 408, 408.2, and 412, and paragraphs (7) and (15) 23 of Section 367 of the Illinois Insurance Code. 24 (Source: P.A. 91-406, eff. 1-1-00; 91-549, eff. 8-14-99; 25 91-605, eff. 12-14-99; 91-788, eff. 6-9-00; 92-130, eff. 26 7-20-01; 92-440, eff. 8-17-01; revised 9-12-01.) 27 Section 51. The Telephone Company Act is amended by 28 changing Section 4 as follows: 29 (220 ILCS 65/4) (from Ch. 134, par. 20) SB1854 Enrolled -461- LRB9215370EGfg 1 Sec. 4. Right of condemnation. Every telecommunications 2telecommunciationscarrier as defined in the 3 Telecommunications Municipal Infrastructure Maintenance Fee 4 Act may, when it shall be necessary for the construction, 5 maintenance, alteration or extension of its 6 telecommunications system, or any part thereof, enter upon, 7 take or damage private property in the manner provided for 8 in, and the compensation therefor shall be ascertained and 9 made in conformity to the provisions of the Telegraph Act and 10 every telecommunications carrier is authorized to construct, 11 maintain, alter and extend its poles, wires, and other 12 appliances as a proper use of highways, along, upon, under 13 and across any highway, street, alley, public right-of-way 14 dedicated or commonly used for utility purposes, or water in 15 this State, but so as not to incommode the public in the use 16 thereof: Provided, that nothing in this act shall interfere 17 with the control now vested in cities, incorporated towns and 18 villages in relation to the regulation of the poles, wires, 19 cables and other appliances, and provided, that before any 20 such lines shall be constructed along any such highway, 21 street, alley, public right-of-way dedicated or commonly used 22 for utility purposes, or water it shall be the duty of the 23 telecommunications carrier proposing to construct any such 24 line, to give (in the case of cities, villages, and 25 incorporated towns) to the corporate authorities of the 26 municipality or their designees (hereinafter, municipal 27 corporate authorities) or (in other cases) to the highway 28 commissioners having jurisdiction and control over the road 29 or part thereof along and over which such line is proposed to 30 be constructed, notice in writing in the form of plans, 31 specifications, and documentation of the purpose and 32 intention of the company to construct such line over and 33 along the highway, street, alley, public right-of-way 34 dedicated or commonly used for utility purposes, or water, SB1854 Enrolled -462- LRB9215370EGfg 1 which notice shall be served at least 10 days before the line 2 shall be placed or constructed over and along the highway, 3 street, alley, public right-of-way dedicated or commonly used 4 for utility purposes, or water (30 days in the case of any 5 notice providing for excavation relating to new construction 6 in a public highway, street, alley, public right-of-way 7 dedicated or commonly used for utility purposes, or water); 8 and upon the giving of the notice it shall be the duty of the 9 municipal corporate authorities or the highway commissioners 10 to specify the portion of such highway, street, alley, public 11 right-of-way dedicated or commonly used for utility purposes, 12 or water upon which the line may be placed, used, and 13 constructed, and it shall thereupon be the duty of the 14 telecommunications retailer to provide the municipal 15 authorities or highway commissioners with any and all plans, 16 specifications, and documentation available and to construct 17 its line in accordance with such specifications; but in the 18 event that the municipal corporate authorities or the highway 19 commissioners fail to provide such specification within 10 20 days after the service of such notice, (25 days in the case 21 of excavation relating to new construction) then the 22 telecommunications retailer, without such specification 23 having been made, may proceed to place and erect its line 24 along the highway, street, alley, public right-of-way 25 dedicated or commonly used for utility purposes, or water by 26 placing its posts, poles and abutments so as not to interfere 27 with other proper uses of the highway, street, alley, public 28 right-of-way dedicated or commonly used for utility purposes, 29 or water. The telecommunications carrier proposing to 30 construct any such line shall comply with the provisions of 31 Section 9-113 of the Illinois Highway Code. Provided, that 32 the telecommunications carrier shall not have the right to 33 condemn any portion of the right-of-way of any railroad 34 company except as much thereof as is necessary to cross the SB1854 Enrolled -463- LRB9215370EGfg 1 same. 2 The Illinois Commerce Commission may adopt reasonable 3 rules governing the negotiation procedures that are used by a 4 telecommunications carrier during precondemnation 5 negotiations for the purchase of land rights-of-way and 6 easements, including procedures for providing information to 7 the public and affected landowners concerning the project and 8 the right-of-way easements sought in connection therewith. 9 Such rules may be made applicable to interstate, 10 competitive intrastate and noncompetitive intrastate 11 facilities, without regard to whether such facilities or the 12 telecommunications carrier proposing to construct and operate 13 them would otherwise be subject to the Illinois Commerce 14 Commission's jurisdiction under the Public Utilities Act, as 15 now or hereafter amended. However, as to facilities used to 16 provide exclusively interstate services or competitive 17 intrastate services or both, nothing in this Section confers 18 any power upon the Commission (i) to require the disclosure 19 of