Bill Text: IL SB0690 | 2019-2020 | 101st General Assembly | Chaptered


Bill Title: Amends the Invest in Kids Act. Makes a technical change in a Section concerning the short title.

Spectrum: Strong Partisan Bill (Democrat 10-1)

Status: (Passed) 2019-06-28 - Public Act . . . . . . . . . 101-0031 [SB0690 Detail]

Download: Illinois-2019-SB0690-Chaptered.html



Public Act 101-0031
SB0690 EnrolledLRB101 04451 HLH 49459 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Article 5. Leveling the Playing Field for Illinois Retail Act
Section 5-1. Short title. This Article may be cited as the
Leveling the Playing Field for Illinois Retail Act. References
in this Article to "this Act" means this Article.
Section 5-5. Findings. The General Assembly finds that
certified service providers and certified automated systems
simplify use and occupation tax compliance for out-of-state
sellers, which fosters higher levels of accurate tax collection
and remittance and generates administrative savings and new
marginal tax revenue for both State and local taxing
jurisdictions. By making the services of certified service
providers and certified automated systems available to remote
retailers without charge as provided in this Act, the State
will substantially eliminate the burden on those remote
retailers to collect and remit both State and local taxing
jurisdiction use and occupation taxes. While providing a means
for remote retailers to collect and remit tax on an even basis
with Illinois retailers, this Act also protects existing local
tax revenue streams by retaining origin sourcing for all
transactions by retailers maintaining a physical presence in
Illinois.
Section 5-10. Definitions. As used in this Act:
"Certified service provider" means an agent certified by
the Department to perform the remote retailer's use and
occupation tax functions, as outlined in the contract between
the State and the certified service provider.
"Certified automated system" means an automated software
system that is certified by the State as meeting all
performance and tax calculation standards required by
Department rules.
"Department" means the Department of Revenue.
"Remote retailer" means a retailer as defined in Section 1
of the Retailers' Occupation Tax Act that has an obligation to
collect State and local retailers' occupation tax under
subsection (b) of Section 2 of the Retailers' Occupation Tax
Act.
"Retailers' occupation tax" means the tax levied under the
Retailers' Occupation Tax Act and all applicable local
retailers' occupation taxes collected by the Department in
conjunction with the State retailers' occupation tax.
Section 5-15. Certification of certified service
providers. The Department shall, no later than December 31,
2019, establish standards for the certification of certified
service providers and certified automated systems and may act
jointly with other states to accomplish these ends.
The Department may take other actions reasonably required
to implement the provisions of this Act, including the adoption
of rules and emergency rules and the procurement of goods and
services, which also may be coordinated jointly with other
states.
Section 5-20. Provision of databases. The Department
shall, no later than July 1, 2020:
(1) provide and maintain an electronic, downloadable
database of defined product categories that identifies the
taxability of each category;
(2) provide and maintain an electronic, downloadable
database of all retailers' occupation tax rates for the
jurisdictions in this State that levy a retailers'
occupation tax; and
(3) provide and maintain an electronic, downloadable
database that assigns delivery addresses in this State to
the applicable taxing jurisdictions.
Section 5-25. Certification. The Department shall, no
later than July 1, 2020:
(1) provide uniform minimum standards that companies
wishing to be designated as a certified service provider in
this State must meet; those minimum standards must include
an expedited certification process for companies that have
been certified in at least 5 other states;
(2) provide uniform minimum standards that certified
automated systems must meet; those minimum standards may
include an expedited certification process for automated
systems that have been certified in at least 5 other
states;
(3) establish a certification process to review the
systems of companies wishing to be designated as a
certified service provider in this State or of companies
wishing to use a certified automated process; this
certification process shall provide that companies that
meet all required standards and whose systems have been
tested and approved by the Department for properly
determining the taxability of items to be sold, the correct
tax rate to apply to a transaction, and the appropriate
jurisdictions to which the tax shall be remitted, shall be
certified;
(4) enter into a contractual relationship with each
company that qualifies as a certified service provider or
that will be using a certified automated system; those
contracts shall, at a minimum, provide:
(A) the responsibilities of the certified service
provider and the remote retailers that contract with
the certified service provider or the user of a
certified automated system related to liability for
proper collection and remittance of use and occupation
taxes;
(B) the responsibilities of the certified service
provider and the remote retailers that contract with
the certified service provider or the user of a
certified service provider related to record keeping
and auditing;
(C) for the protection and confidentiality of tax
information; and
(D) compensation equal to 1.75% of the tax dollars
collected and remitted to the State by a certified
service provider on a timely basis on behalf of remote
retailers; remote retailers using a certified service
provider may not claim the vendor's discount allowed
under the Retailers' Occupation Tax Act or the Service
Occupation Tax Act.
The provisions of this Section shall supersede the
provisions of the Illinois Procurement Code.
Section 5-30. Relief from liability. Beginning January 1,
2020, remote retailers using certified service providers or
certified automated systems and their certified service
providers or certified automated systems providers are
relieved from liability to the State for having charged and
collected the incorrect amount of use or occupation tax
resulting from a certified service provider or certified
automated system relying, at the time of the sale, on: (1)
erroneous data provided by the State in database files on tax
rates, boundaries, or taxing jurisdictions; or (2) erroneous
data provided by the State concerning the taxability of
products and services.
The Department shall, to the best of its ability, assign
addresses to the proper local taxing jurisdiction using a
9-digit zip code identifier. On an annual basis, the Department
shall make available to local taxing jurisdictions the taxing
jurisdiction boundaries determined by the Department for their
verification. If a jurisdiction fails to verify their taxing
jurisdiction boundaries to the Department in any given year,
the Department shall assign retailers' occupation tax revenue
from remote retail sales based on its best information. In that
case, tax revenues from remote retail sales remitted to a
taxing jurisdiction based on erroneous local tax boundary
information will be assigned to the correct taxing jurisdiction
on a prospective basis upon notice of the boundary error from a
local taxing jurisdiction. No certified service provider or
remote retailer using a certified automated system shall be
subject to a class action brought on behalf of customers and
arising from, or in any way related to, an overpayment of
retailers' occupation tax collected by the certified service
provider if, at the time of the sale, they relied on
information provided by the Department, regardless of whether
that claim is characterized as a tax refund claim. Nothing in
this Section affects a customer's right to seek a refund from
the remote retailer as provided in this Act.
Section 5-97. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
Article 10. Parking Excise Tax Act
Section 10-1. Short title. This Article may be cited as the
Parking Excise Tax Act. References in this Article to "this
Act" mean this Article.
Section 10-5. Definitions.
"Booking intermediary" means any person or entity that
facilitates the processing and fulfillment of reservation
transactions between an operator and a person or entity
desiring parking in a parking lot or garage of that operator.
"Charge or fee paid for parking" means the gross amount of
consideration for the use or privilege of parking a motor
vehicle in or upon any parking lot or garage in the State,
collected by an operator and valued in money, whether received
in money or otherwise, including cash, credits, property, and
services, determined without any deduction for costs or
expenses, but not including charges that are added to the
charge or fee on account of the tax imposed by this Act or on
account of any other tax imposed on the charge or fee. "Charge
or fee paid for parking" excludes separately stated charges not
for the use or privilege or parking and excludes amounts
retained by or paid to a booking intermediary for services
provided by the booking intermediary. If any separately stated
charge is not optional, it shall be presumed that it is part of
the charge for the use or privilege or parking.
"Department" means the Department of Revenue.
"Operator" means any person who engages in the business of
operating a parking area or garage, or who, directly or through
an agreement or arrangement with another party, collects the
consideration for parking or storage of motor vehicles,
recreational vehicles, or other self-propelled vehicles, at
that parking place. This includes, but is not limited to, any
facilitator or aggregator that collects from the purchaser the
charge or fee paid for parking. "Operator" does not include a
bank, credit card company, payment processor, booking
intermediary, or person whose involvement is limited to
performing functions that are similar to those performed by a
bank, credit card company, payment processor, or booking
intermediary.
"Parking area or garage" means any real estate, building,
structure, premises, enclosure or other place, whether
enclosed or not, except a public way, within the State, where
motor vehicles, recreational vehicles, or other self-propelled
vehicles, are stored, housed or parked for hire, charge, fee or
other valuable consideration in a condition ready for use, or
where rent or compensation is paid to the owner, manager,
operator or lessee of the premises for the housing, storing,
sheltering, keeping or maintaining motor vehicles,
recreational vehicles, or other self-propelled vehicles.
"Parking area or garage" includes any parking area or garage,
whether the vehicle is parked by the owner of the vehicle or by
the operator or an attendant.
"Person" means any natural individual, firm, trust,
estate, partnership, association, joint stock company, joint
venture, corporation, limited liability company, or a
receiver, trustee, guardian, or other representative appointed
by order of any court.
"Purchase price" means the consideration paid for the
purchase of a parking space in a parking area or garage, valued
in money, whether received in money or otherwise, including
cash, gift cards, credits, and property, and shall be
determined without any deduction on account of the cost of
materials used, labor or service costs, or any other expense
whatsoever.
"Purchase price" includes any and all charges that the
recipient pays related to or incidental to obtaining the use or
privilege of using a parking space in a parking area or garage,
including but not limited to any and all related markups,
service fees, convenience fees, facilitation fees,
cancellation fees, overtime fees, or other such charges,
regardless of terminology. However, "purchase price" shall not
include consideration paid for:
(1) optional, separately stated charges not for the use
or privilege of using a parking space in the parking area
or garage;
(2) any charge for a dishonored check;
(3) any finance or credit charge, penalty or charge for
delayed payment, or discount for prompt payment;
(4) any purchase by a purchaser if the operator is
prohibited by federal or State Constitution, treaty,
convention, statute or court decision from collecting the
tax from such purchaser;
(5) the isolated or occasional sale of parking spaces
subject to tax under this Act by a person who does not hold
himself out as being engaged (or who does not habitually
engage) in selling of parking spaces; and
(6) any amounts added to a purchaser's bills because of
charges made pursuant to the tax imposed by this Act. If
credit is extended, then the amount thereof shall be
included only as and when payments are made.
"Purchaser" means any person who acquires a parking space
in a parking area or garage for use for valuable consideration.
"Use" means the exercise by any person of any right or
power over, or the enjoyment of, a parking space in a parking
area or garage subject to tax under this Act.
Section 10-10. Imposition of tax; calculation of tax.
(a) Beginning on January 1, 2020, a tax is imposed on the
privilege of using in this State a parking space in a parking
area or garage for the use of parking one or more motor
vehicles, recreational vehicles, or other self-propelled
vehicles, at the rate of:
(1) 6% of the purchase price for a parking space paid
for on an hourly, daily, or weekly basis; and
(2) 9% of the purchase price for a parking space paid
for on a monthly or annual basis.
(b) The tax shall be collected from the purchaser by the
operator.
(c) An operator that has paid or remitted the tax imposed
by this Act to another operator in connection with the same
parking transaction, or the use of the same parking space, that
is subject to tax under this Act, shall be entitled to a credit
for such tax paid or remitted against the amount of tax owed
under this Act, provided that the other operator is registered
under this Act. The operator claiming the credit shall have the
burden of proving it is entitled to claim a credit.
(d) If any operator erroneously collects tax or collects
more from the purchaser than the purchaser's liability for the
transaction, the purchaser shall have a legal right to claim a
refund of such amount from the operator. However, if such
amount is not refunded to the purchaser for any reason, the
operator is liable to pay such amount to the Department.
(e) The tax imposed by this Section is not imposed with
respect to any transaction in interstate commerce, to the
extent that the transaction may not, under the Constitution and
statutes of the United States, be made the subject of taxation
by this State.
Section 10-15. Filing of returns and deposit of proceeds.
On or before the last day of each calendar month, every
operator engaged in the business of providing to purchasers
parking areas and garages in this State during the preceding
calendar month shall file a return with the Department,
stating:
(1) the name of the operator;
(2) the address of its principal place of business and
the address of the principal place of business from which
it provides parking areas and garages in this State;
(3) the total amount of receipts received by the
operator during the preceding calendar month or quarter, as
the case may be, from sales of parking spaces to purchasers
in parking areas or garages during the preceding calendar
month or quarter;
(4) deductions allowed by law;
(5) the total amount of receipts received by the
operator during the preceding calendar month or quarter
upon which the tax was computed;
(6) the amount of tax due; and
(7) such other reasonable information as the
Department may require.
If an operator ceases to engage in the kind of business
that makes it responsible for filing returns under this Act,
then that operator shall file a final return under this Act
with the Department on or before the last day of the month
after discontinuing such business.
All returns required to be filed and payments required to
be made under this Act shall be by electronic means. Taxpayers
who demonstrate hardship in filing or paying electronically may
petition the Department to waive the electronic filing or
payment requirement, or both. The Department may require a
separate return for the tax under this Act or combine the
return for the tax under this Act with the return for other
taxes.
If the same person has more than one business registered
with the Department under separate registrations under this
Act, that person shall not file each return that is due as a
single return covering all such registered businesses but shall
file separate returns for each such registered business.
If the operator is a corporation, the return filed on
behalf of that corporation shall be signed by the president,
vice-president, secretary, or treasurer, or by a properly
accredited agent of such corporation.
The operator filing the return under this Act shall, at the
time of filing the return, pay to the Department the amount of
tax imposed by this Act less a discount of 1.75%, not to exceed
$1,000 per month, which is allowed to reimburse the operator
for the expenses incurred in keeping records, preparing and
filing returns, remitting the tax, and supplying data to the
Department on request.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, as shown on an original
return, the Department may authorize the taxpayer to credit
such excess payment against liability subsequently to be
remitted to the Department under this Act, in accordance with
reasonable rules adopted by the Department. If the Department
subsequently determines that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's
discount shall be reduced by an amount equal to the difference
between the discount as applied to the credit taken and that
actually due, and that taxpayer shall be liable for penalties
and interest on such difference.
Section 10-20. Exemptions. The tax imposed by this Act
shall not apply to:
(1) parking in a parking area or garage operated by the
federal government or its instrumentalities that has been
issued an active tax exemption number by the Department
under Section 1g of the Retailers' Occupation Tax Act; for
this exemption to apply, the parking area or garage must be
operated by the federal government or its
instrumentalities; the exemption under this paragraph (1)
does not apply if the parking area or garage is operated by
a third party, whether under a lease or other contractual
arrangement, or any other manner whatsoever;
(2) residential off-street parking for home or
apartment tenants or condominium occupants, if the
arrangement for such parking is provided in the home or
apartment lease or in a separate writing between the
landlord and tenant, or in a condominium agreement between
the condominium association and the owner, occupant, or
guest of a unit, whether the parking charge is payable to
the landlord, condominium association, or to the operator
of the parking spaces;
(3) parking by hospital employees in a parking space
that is owned and operated by the hospital for which they
work; and
(4) parking in a parking area or garage where 3 or
fewer motor vehicles are stored, housed, or parked for
hire, charge, fee or other valuable consideration, if the
operator of the parking area or garage does not act as the
operator of more than a total of 3 parking spaces located
in the State; if any operator of parking areas or garages,
including any facilitator or aggregator, acts as an
operator of more than 3 parking spaces in total that are
located in the State, then this exemption shall not apply
to any of those spaces.
Section 10-25. Collection of tax.
(a) Beginning with bills issued or charges collected for a
purchase of a parking space in a parking area or garage on and
after January 1, 2020, the tax imposed by this Act shall be
collected from the purchaser by the operator at the rate stated
in Section 10-10 and shall be remitted to the Department as
provided in this Act. All charges for parking spaces in a
parking area or garage are presumed subject to tax collection.
Operators shall collect the tax from purchasers by adding the
tax to the amount of the purchase price received from the
purchaser. The tax imposed by the Act shall when collected be
stated as a distinct item separate and apart from the purchase
price of the service subject to tax under this Act. However,
where it is not possible to state the tax separately the
Department may by rule exempt such purchases from this
requirement so long as purchasers are notified by language on
the invoice or notified by a sign that the tax is included in
the purchase price.
(b) Any person purchasing a parking space in a parking area
or garage subject to tax under this Act as to which there has
been no charge made to him of the tax imposed by Section 10-10,
shall make payment of the tax imposed by Section 10-10 of this
Act in the form and manner provided by the Department, such
payment to be made to the Department in the manner and form
required by the Department not later than the 20th day of the
month following the month of purchase of the parking space.
Section 10-30. Registration of operators.
(a) A person who engages in business as an operator of a
parking area or garage in this State shall register with the
Department. Application for a certificate of registration
shall be made to the Department, by electronic means, in the
form and manner prescribed by the Department and shall contain
any reasonable information the Department may require. Upon
receipt of the application for a certificate of registration in
proper form and manner, the Department shall issue to the
applicant a certificate of registration. Operators who
demonstrate that they do not have access to the Internet or
demonstrate hardship in applying electronically may petition
the Department to waive the electronic application
requirements.
(b) The Department may refuse to issue or reissue a
certificate of registration to any applicant for the reasons
set forth in Section 2505-380 of the Department of Revenue Law
of the Civil Administrative Code of Illinois.
(c) Any person aggrieved by any decision of the Department
under this Section may, within 20 days after notice of such
decision, protest and request a hearing, whereupon the
Department shall give notice to such person of the time and
place fixed for such hearing and shall hold a hearing in
conformity with the provisions of this Act and then issue its
final administrative decision in the matter to such person. In
the absence of such a protest within 20 days, the Department's
decision shall become final without any further determination
being made or notice given.
Section 10-35. Revocation of certificate of registration.
(a) The Department may, after notice and a hearing as
provided in this Act, revoke the certificate of registration of
any operator who violates any of the provisions of this Act or
any rule adopted pursuant to this Act. Before revocation of a
certificate of registration, the Department shall, within 90
days after non-compliance and at least 7 days prior to the date
of the hearing, give the operator so accused notice in writing
of the charge against him or her, and on the date designated
shall conduct a hearing upon this matter. The lapse of such
90-day period shall not preclude the Department from conducting
revocation proceedings at a later date if necessary. Any
hearing held under this Section shall be conducted by the
Director or by any officer or employee of the Department
designated in writing by the Director.
(b) The Department may revoke a certificate of registration
for the reasons set forth in Section 2505-380 of the Department
of Revenue Law of the Civil Administrative Code of Illinois.
(c) Upon the hearing of any such proceeding, the Director
or any officer or employee of the Department designated in
writing by the Director may administer oaths, and the
Department may procure by its subpoena the attendance of
witnesses and, by its subpoena duces tecum, the production of
relevant books and papers. Any circuit court, upon application
either of the operator or of the Department, may, by order duly
entered, require the attendance of witnesses and the production
of relevant books and papers before the Department in any
hearing relating to the revocation of certificates of
registration. Upon refusal or neglect to obey the order of the
court, the court may compel obedience thereof by proceedings
for contempt.
(d) The Department may, by application to any circuit
court, obtain an injunction requiring any person who engages in
business as an operator under this Act to obtain a certificate
of registration. Upon refusal or neglect to obey the order of
the court, the court may compel obedience by proceedings for
contempt.
Section 10-40. Valet services.
(a) Persons engaged in the business of providing valet
services are subject to the tax imposed by this Act on the
purchase price received in connection with their valet parking
operations.
(b) Persons engaged in the business of providing valet
services are entitled to take the credit in subsection (c) of
Section 10-10.
(c) Tips received by persons parking cars for persons
engaged in the business of providing valet services are not
subject to the tax imposed by this Act if the tips are retained
by the person receiving the tip. If the tips are turned over to
the valet business, the tips shall be included in the purchase
price.
Section 10-45. Tax collected as debt owed to State. The tax
herein required to be collected by any operator or valet
business and any such tax collected by that person, shall
constitute a debt owed by that person to this State.
Section 10-50. Incorporation by reference. All of the
provisions of Sections 1, 2a, 2b, 3 (except provisions relating
to transaction returns and except for provisions that are
inconsistent with this Act), in respect to all provisions
therein other than the State rate of tax) 4, 5, 5a, 5b, 5c, 5d,
5e, 5f, 5g, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and
13 of the Retailers' Occupation Tax Act that are not
inconsistent with this Act, and all provisions of the Uniform
Penalty and Interest Act shall apply, as far as practicable, to
the subject matter of this Act to the same extent as if such
provisions were included in this Act.
Section 10-55. Deposit of proceeds from parking excise tax.
The moneys received by the Department from the tax imposed by
this Act shall be deposited into the Capital Projects Fund.
Article 15. Amendatory Provisions
Section 15-5. The Illinois Administrative Procedure Act is
amended by changing Section 5-45 as follows:
(5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
Sec. 5-45. Emergency rulemaking.
(a) "Emergency" means the existence of any situation that
any agency finds reasonably constitutes a threat to the public
interest, safety, or welfare.
(b) If any agency finds that an emergency exists that
requires adoption of a rule upon fewer days than is required by
Section 5-40 and states in writing its reasons for that
finding, the agency may adopt an emergency rule without prior
notice or hearing upon filing a notice of emergency rulemaking
with the Secretary of State under Section 5-70. The notice
shall include the text of the emergency rule and shall be
published in the Illinois Register. Consent orders or other
court orders adopting settlements negotiated by an agency may
be adopted under this Section. Subject to applicable
constitutional or statutory provisions, an emergency rule
becomes effective immediately upon filing under Section 5-65 or
at a stated date less than 10 days thereafter. The agency's
finding and a statement of the specific reasons for the finding
shall be filed with the rule. The agency shall take reasonable
and appropriate measures to make emergency rules known to the
persons who may be affected by them.
(c) An emergency rule may be effective for a period of not
longer than 150 days, but the agency's authority to adopt an
identical rule under Section 5-40 is not precluded. No
emergency rule may be adopted more than once in any 24-month
period, except that this limitation on the number of emergency
rules that may be adopted in a 24-month period does not apply
to (i) emergency rules that make additions to and deletions
from the Drug Manual under Section 5-5.16 of the Illinois
Public Aid Code or the generic drug formulary under Section
3.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
emergency rules adopted by the Pollution Control Board before
July 1, 1997 to implement portions of the Livestock Management
Facilities Act, (iii) emergency rules adopted by the Illinois
Department of Public Health under subsections (a) through (i)
of Section 2 of the Department of Public Health Act when
necessary to protect the public's health, (iv) emergency rules
adopted pursuant to subsection (n) of this Section, (v)
emergency rules adopted pursuant to subsection (o) of this
Section, or (vi) emergency rules adopted pursuant to subsection
(c-5) of this Section. Two or more emergency rules having
substantially the same purpose and effect shall be deemed to be
a single rule for purposes of this Section.
(c-5) To facilitate the maintenance of the program of group
health benefits provided to annuitants, survivors, and retired
employees under the State Employees Group Insurance Act of
1971, rules to alter the contributions to be paid by the State,
annuitants, survivors, retired employees, or any combination
of those entities, for that program of group health benefits,
shall be adopted as emergency rules. The adoption of those
rules shall be considered an emergency and necessary for the
public interest, safety, and welfare.
(d) In order to provide for the expeditious and timely
implementation of the State's fiscal year 1999 budget,
emergency rules to implement any provision of Public Act 90-587
or 90-588 or any other budget initiative for fiscal year 1999
may be adopted in accordance with this Section by the agency
charged with administering that provision or initiative,
except that the 24-month limitation on the adoption of
emergency rules and the provisions of Sections 5-115 and 5-125
do not apply to rules adopted under this subsection (d). The
adoption of emergency rules authorized by this subsection (d)
shall be deemed to be necessary for the public interest,
safety, and welfare.
(e) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2000 budget,
emergency rules to implement any provision of Public Act 91-24
or any other budget initiative for fiscal year 2000 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (e). The adoption of
emergency rules authorized by this subsection (e) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(f) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2001 budget,
emergency rules to implement any provision of Public Act 91-712
or any other budget initiative for fiscal year 2001 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (f). The adoption of
emergency rules authorized by this subsection (f) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(g) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2002 budget,
emergency rules to implement any provision of Public Act 92-10
or any other budget initiative for fiscal year 2002 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (g). The adoption of
emergency rules authorized by this subsection (g) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(h) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2003 budget,
emergency rules to implement any provision of Public Act 92-597
or any other budget initiative for fiscal year 2003 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (h). The adoption of
emergency rules authorized by this subsection (h) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(i) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2004 budget,
emergency rules to implement any provision of Public Act 93-20
or any other budget initiative for fiscal year 2004 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (i). The adoption of
emergency rules authorized by this subsection (i) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(j) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2005 budget as provided under the Fiscal Year 2005 Budget
Implementation (Human Services) Act, emergency rules to
implement any provision of the Fiscal Year 2005 Budget
Implementation (Human Services) Act may be adopted in
accordance with this Section by the agency charged with
administering that provision, except that the 24-month
limitation on the adoption of emergency rules and the
provisions of Sections 5-115 and 5-125 do not apply to rules
adopted under this subsection (j). The Department of Public Aid
may also adopt rules under this subsection (j) necessary to
administer the Illinois Public Aid Code and the Children's
Health Insurance Program Act. The adoption of emergency rules
authorized by this subsection (j) shall be deemed to be
necessary for the public interest, safety, and welfare.
(k) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2006 budget, emergency rules to implement any provision of
Public Act 94-48 or any other budget initiative for fiscal year
2006 may be adopted in accordance with this Section by the
agency charged with administering that provision or
initiative, except that the 24-month limitation on the adoption
of emergency rules and the provisions of Sections 5-115 and
5-125 do not apply to rules adopted under this subsection (k).
The Department of Healthcare and Family Services may also adopt
rules under this subsection (k) necessary to administer the
Illinois Public Aid Code, the Senior Citizens and Persons with
Disabilities Property Tax Relief Act, the Senior Citizens and
Disabled Persons Prescription Drug Discount Program Act (now
the Illinois Prescription Drug Discount Program Act), and the
Children's Health Insurance Program Act. The adoption of
emergency rules authorized by this subsection (k) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(l) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2007 budget, the Department of Healthcare and Family Services
may adopt emergency rules during fiscal year 2007, including
rules effective July 1, 2007, in accordance with this
subsection to the extent necessary to administer the
Department's responsibilities with respect to amendments to
the State plans and Illinois waivers approved by the federal
Centers for Medicare and Medicaid Services necessitated by the
requirements of Title XIX and Title XXI of the federal Social
Security Act. The adoption of emergency rules authorized by
this subsection (l) shall be deemed to be necessary for the
public interest, safety, and welfare.
(m) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2008 budget, the Department of Healthcare and Family Services
may adopt emergency rules during fiscal year 2008, including
rules effective July 1, 2008, in accordance with this
subsection to the extent necessary to administer the
Department's responsibilities with respect to amendments to
the State plans and Illinois waivers approved by the federal
Centers for Medicare and Medicaid Services necessitated by the
requirements of Title XIX and Title XXI of the federal Social
Security Act. The adoption of emergency rules authorized by
this subsection (m) shall be deemed to be necessary for the
public interest, safety, and welfare.
(n) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2010 budget, emergency rules to implement any provision of
Public Act 96-45 or any other budget initiative authorized by
the 96th General Assembly for fiscal year 2010 may be adopted
in accordance with this Section by the agency charged with
administering that provision or initiative. The adoption of
emergency rules authorized by this subsection (n) shall be
deemed to be necessary for the public interest, safety, and
welfare. The rulemaking authority granted in this subsection
(n) shall apply only to rules promulgated during Fiscal Year
2010.
(o) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2011 budget, emergency rules to implement any provision of
Public Act 96-958 or any other budget initiative authorized by
the 96th General Assembly for fiscal year 2011 may be adopted
in accordance with this Section by the agency charged with
administering that provision or initiative. The adoption of
emergency rules authorized by this subsection (o) is deemed to
be necessary for the public interest, safety, and welfare. The
rulemaking authority granted in this subsection (o) applies
only to rules promulgated on or after July 1, 2010 (the
effective date of Public Act 96-958) through June 30, 2011.
(p) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 97-689,
emergency rules to implement any provision of Public Act 97-689
may be adopted in accordance with this subsection (p) by the
agency charged with administering that provision or
initiative. The 150-day limitation of the effective period of
emergency rules does not apply to rules adopted under this
subsection (p), and the effective period may continue through
June 30, 2013. The 24-month limitation on the adoption of
emergency rules does not apply to rules adopted under this
subsection (p). The adoption of emergency rules authorized by
this subsection (p) is deemed to be necessary for the public
interest, safety, and welfare.
(q) In order to provide for the expeditious and timely
implementation of the provisions of Articles 7, 8, 9, 11, and
12 of Public Act 98-104, emergency rules to implement any
provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
may be adopted in accordance with this subsection (q) by the
agency charged with administering that provision or
initiative. The 24-month limitation on the adoption of
emergency rules does not apply to rules adopted under this
subsection (q). The adoption of emergency rules authorized by
this subsection (q) is deemed to be necessary for the public
interest, safety, and welfare.
(r) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 98-651,
emergency rules to implement Public Act 98-651 may be adopted
in accordance with this subsection (r) by the Department of
Healthcare and Family Services. The 24-month limitation on the
adoption of emergency rules does not apply to rules adopted
under this subsection (r). The adoption of emergency rules
authorized by this subsection (r) is deemed to be necessary for
the public interest, safety, and welfare.
(s) In order to provide for the expeditious and timely
implementation of the provisions of Sections 5-5b.1 and 5A-2 of
the Illinois Public Aid Code, emergency rules to implement any
provision of Section 5-5b.1 or Section 5A-2 of the Illinois
Public Aid Code may be adopted in accordance with this
subsection (s) by the Department of Healthcare and Family
Services. The rulemaking authority granted in this subsection
(s) shall apply only to those rules adopted prior to July 1,
2015. Notwithstanding any other provision of this Section, any
emergency rule adopted under this subsection (s) shall only
apply to payments made for State fiscal year 2015. The adoption
of emergency rules authorized by this subsection (s) is deemed
to be necessary for the public interest, safety, and welfare.
(t) In order to provide for the expeditious and timely
implementation of the provisions of Article II of Public Act
99-6, emergency rules to implement the changes made by Article
II of Public Act 99-6 to the Emergency Telephone System Act may
be adopted in accordance with this subsection (t) by the
Department of State Police. The rulemaking authority granted in
this subsection (t) shall apply only to those rules adopted
prior to July 1, 2016. The 24-month limitation on the adoption
of emergency rules does not apply to rules adopted under this
subsection (t). The adoption of emergency rules authorized by
this subsection (t) is deemed to be necessary for the public
interest, safety, and welfare.
(u) In order to provide for the expeditious and timely
implementation of the provisions of the Burn Victims Relief
Act, emergency rules to implement any provision of the Act may
be adopted in accordance with this subsection (u) by the
Department of Insurance. The rulemaking authority granted in
this subsection (u) shall apply only to those rules adopted
prior to December 31, 2015. The adoption of emergency rules
authorized by this subsection (u) is deemed to be necessary for
the public interest, safety, and welfare.
(v) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 99-516,
emergency rules to implement Public Act 99-516 may be adopted
in accordance with this subsection (v) by the Department of
Healthcare and Family Services. The 24-month limitation on the
adoption of emergency rules does not apply to rules adopted
under this subsection (v). The adoption of emergency rules
authorized by this subsection (v) is deemed to be necessary for
the public interest, safety, and welfare.
(w) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 99-796,
emergency rules to implement the changes made by Public Act
99-796 may be adopted in accordance with this subsection (w) by
the Adjutant General. The adoption of emergency rules
authorized by this subsection (w) is deemed to be necessary for
the public interest, safety, and welfare.
(x) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 99-906,
emergency rules to implement subsection (i) of Section 16-115D,
subsection (g) of Section 16-128A, and subsection (a) of
Section 16-128B of the Public Utilities Act may be adopted in
accordance with this subsection (x) by the Illinois Commerce
Commission. The rulemaking authority granted in this
subsection (x) shall apply only to those rules adopted within
180 days after June 1, 2017 (the effective date of Public Act
99-906). The adoption of emergency rules authorized by this
subsection (x) is deemed to be necessary for the public
interest, safety, and welfare.
(y) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-23,
emergency rules to implement the changes made by Public Act
100-23 to Section 4.02 of the Illinois Act on the Aging,
Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
Section 55-30 of the Alcoholism and Other Drug Abuse and
Dependency Act, and Sections 74 and 75 of the Mental Health and
Developmental Disabilities Administrative Act may be adopted
in accordance with this subsection (y) by the respective
Department. The adoption of emergency rules authorized by this
subsection (y) is deemed to be necessary for the public
interest, safety, and welfare.
(z) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-554,
emergency rules to implement the changes made by Public Act
100-554 to Section 4.7 of the Lobbyist Registration Act may be
adopted in accordance with this subsection (z) by the Secretary
of State. The adoption of emergency rules authorized by this
subsection (z) is deemed to be necessary for the public
interest, safety, and welfare.
(aa) In order to provide for the expeditious and timely
initial implementation of the changes made to Articles 5, 5A,
12, and 14 of the Illinois Public Aid Code under the provisions
of Public Act 100-581, the Department of Healthcare and Family
Services may adopt emergency rules in accordance with this
subsection (aa). The 24-month limitation on the adoption of
emergency rules does not apply to rules to initially implement
the changes made to Articles 5, 5A, 12, and 14 of the Illinois
Public Aid Code adopted under this subsection (aa). The
adoption of emergency rules authorized by this subsection (aa)
is deemed to be necessary for the public interest, safety, and
welfare.
(bb) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-587,
emergency rules to implement the changes made by Public Act
100-587 to Section 4.02 of the Illinois Act on the Aging,
Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
subsection (b) of Section 55-30 of the Alcoholism and Other
Drug Abuse and Dependency Act, Section 5-104 of the Specialized
Mental Health Rehabilitation Act of 2013, and Section 75 and
subsection (b) of Section 74 of the Mental Health and
Developmental Disabilities Administrative Act may be adopted
in accordance with this subsection (bb) by the respective
Department. The adoption of emergency rules authorized by this
subsection (bb) is deemed to be necessary for the public
interest, safety, and welfare.
(cc) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-587,
emergency rules may be adopted in accordance with this
subsection (cc) to implement the changes made by Public Act
100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois
Pension Code by the Board created under Article 14 of the Code;
Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by
the Board created under Article 15 of the Code; and Sections
16-190.5 and 16-190.6 of the Illinois Pension Code by the Board
created under Article 16 of the Code. The adoption of emergency
rules authorized by this subsection (cc) is deemed to be
necessary for the public interest, safety, and welfare.
(dd) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-864,
emergency rules to implement the changes made by Public Act
100-864 to Section 3.35 of the Newborn Metabolic Screening Act
may be adopted in accordance with this subsection (dd) by the
Secretary of State. The adoption of emergency rules authorized
by this subsection (dd) is deemed to be necessary for the
public interest, safety, and welfare.
(ee) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-1172 this
amendatory Act of the 100th General Assembly, emergency rules
implementing the Illinois Underground Natural Gas Storage
Safety Act may be adopted in accordance with this subsection by
the Department of Natural Resources. The adoption of emergency
rules authorized by this subsection is deemed to be necessary
for the public interest, safety, and welfare.
(ff) (ee) In order to provide for the expeditious and
timely initial implementation of the changes made to Articles
5A and 14 of the Illinois Public Aid Code under the provisions
of Public Act 100-1181 this amendatory Act of the 100th General
Assembly, the Department of Healthcare and Family Services may
on a one-time-only basis adopt emergency rules in accordance
with this subsection (ff) (ee). The 24-month limitation on the
adoption of emergency rules does not apply to rules to
initially implement the changes made to Articles 5A and 14 of
the Illinois Public Aid Code adopted under this subsection (ff)
(ee). The adoption of emergency rules authorized by this
subsection (ff) (ee) is deemed to be necessary for the public
interest, safety, and welfare.
(gg) (ff) In order to provide for the expeditious and
timely implementation of the provisions of Public Act 101-1
this amendatory Act of the 101st General Assembly, emergency
rules may be adopted by the Department of Labor in accordance
with this subsection (gg) (ff) to implement the changes made by
Public Act 101-1 this amendatory Act of the 101st General
Assembly to the Minimum Wage Law. The adoption of emergency
rules authorized by this subsection (gg) (ff) is deemed to be
necessary for the public interest, safety, and welfare.
(hh) In order to provide for the expeditious and timely
implementation of the provisions of the Leveling the Playing
Field for Illinois Retail Act, emergency rules may be adopted
in accordance with this subsection (hh) to implement the
changes made by the Leveling the Playing Field for Illinois
Retail Act. The adoption of emergency rules authorized by this
subsection (hh) is deemed to be necessary for the public
interest, safety, and welfare.
(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;
100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.
6-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;
100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff.
3-8-19; 101-1, eff. 2-19-19; revised 4-2-19.)
Section 15-10. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois is
amended by adding Section 605-1025 as follows:
(20 ILCS 605/605-1025 new)
Sec. 605-1025. Data center investment.
(a) The Department shall issue certificates of exemption
from the Retailers' Occupation Tax Act, the Use Tax Act, the
Service Use Tax Act, and the Service Occupation Tax Act, all
locally-imposed retailers' occupation taxes administered and
collected by the Department, the Chicago non-titled Use Tax,
the Electricity Excise Tax Act, and a credit certification
against the taxes imposed under subsections (a) and (b) of
Section 201 of the Illinois Income Tax Act to qualifying
Illinois data centers.
(b) For taxable years beginning on or after January 1,
2019, the Department shall award credits against the taxes
imposed under subsections (a) and (b) of Section 201 of the
Illinois Income Tax Act as provided in Section 229 of the
Illinois Income Tax Act.
(c) For purposes of this Section:
"Data center" means a facility: (1) whose primary
services are the storage, management, and processing of
digital data; and (2) that is used to house (i) computer
and network systems, including associated components such
as servers, network equipment and appliances,
telecommunications, and data storage systems, (ii) systems
for monitoring and managing infrastructure performance,
(iii) Internet-related equipment and services, (iv) data
communications connections, (v) environmental controls,
(vi) fire protection systems, and (vii) security systems
and services.
"Qualifying Illinois data center" means a new or
existing data center that:
(1) is located in the State of Illinois;
(2) in the case of an existing data center, made a
capital investment of at least $250,000,000
collectively by the data center operator and the
tenants of all of its data centers over the 60-month
period immediately prior to January 1, 2020 or
committed to make a capital investment of at least
$250,000,000 over a 60-month period commencing before
January 1, 2020 and ending after January 1, 2020; or
(3) in the case of a new data center, makes a
capital investment of at least $250,000,000 over a
60-month period; and
(4) in the case of both existing and new data
centers, results in the creation of at least 20
full-time or full-time equivalent new jobs over a
period of 60 months by the data center operator and the
tenants of the data center, collectively, associated
with the operation or maintenance of the data center;
those jobs must have a total compensation equal to or
greater than 120% of the median wage paid to full-time
employees in the county where the data center is
located, as determined by the U.S. Bureau of Labor
Statistics; and
(5) is carbon neutral or attains certification
under one or more of the following green building
standards:
(A) BREEAM for New Construction or BREEAM
In-Use;
(B) ENERGY STAR;
(C) Envision;
(D) ISO 50001-energy management;
(E) LEED for Building Design and Construction
or LEED for Operations and Maintenance;
(F) Green Globes for New Construction or Green
Globes for Existing Buildings;
(G) UL 3223; or
(H) an equivalent program approved by the
Department of Commerce and Economic Opportunity.
"Full-time equivalent job" means a job in which the new
employee works for the owner, operator, contractor, or
tenant of a data center or for a corporation under contract
with the owner, operator or tenant of a data center at a
rate of at least 35 hours per week. An owner, operator or
tenant who employs labor or services at a specific site or
facility under contract with another may declare one
full-time, permanent job for every 1,820 man hours worked
per year under that contract. Vacations, paid holidays, and
sick time are included in this computation. Overtime is not
considered a part of regular hours.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks; cabinets;
telecommunications cabling infrastructure; raised floor
systems; peripheral components or systems; software;
mechanical, electrical, or plumbing systems; battery
systems; cooling systems and towers; temperature control
systems; other cabling; and other data center
infrastructure equipment and systems necessary to operate
qualified tangible personal property, including fixtures;
and component parts of any of the foregoing, including
installation, maintenance, repair, refurbishment, and
replacement of qualified tangible personal property to
generate, transform, transmit, distribute, or manage
electricity necessary to operate qualified tangible
personal property; and all other tangible personal
property that is essential to the operations of a computer
data center. "Qualified tangible personal property" also
includes building materials physically incorporated in to
the qualifying data center.
To document the exemption allowed under this Section, the
retailer must obtain from the purchaser a copy of the
certificate of eligibility issued by the Department.
(d) New and existing data centers seeking a certificate of
exemption for new or existing facilities shall apply to the
Department in the manner specified by the Department. The
Department shall determine the duration of the certificate of
exemption awarded under this Act. The duration of the
certificate of exemption may not exceed 20 calendar years. The
Department and any data center seeking the exemption, including
a data center operator on behalf of itself and its tenants,
must enter into a memorandum of understanding that at a minimum
provides:
(1) the details for determining the amount of capital
investment to be made;
(2) the number of new jobs created;
(3) the timeline for achieving the capital investment
and new job goals;
(4) the repayment obligation should those goals not be
achieved and any conditions under which repayment by the
qualifying data center or data center tenant claiming the
exemption will be required;
(5) the duration of the exemption; and
(6) other provisions as deemed necessary by the
Department.
(e) Beginning July 1, 2021, and each year thereafter, the
Department shall annually report to the Governor and the
General Assembly on the outcomes and effectiveness of this
amendatory Act of the 101st General Assembly that shall include
the following:
(1) the name of each recipient business;
(2) the location of the project;
(3) the estimated value of the credit;
(4) the number of new jobs and, if applicable, retained
jobs pledged as a result of the project; and
(5) whether or not the project is located in an
underserved area.
(f) New and existing data centers seeking a certificate of
exemption related to the rehabilitation or construction of data
centers in the State shall require the contractor and all
subcontractors to comply with the requirements of Section 30-22
of the Illinois Procurement Code as they apply to responsible
bidders and to present satisfactory evidence of that compliance
to the Department.
(g) New and existing data centers seeking a certificate of
exemption for the rehabilitation or construction of data
centers in the State shall require the contractor to enter into
a project labor agreement approved by the Department.
(h) Any qualifying data center issued a certificate of
exemption under this Section must annually report to the
Department the total data center tax benefits that are received
by the business. Reports are due no later than May 31 of each
year and shall cover the previous calendar year. The first
report is for the 2019 calendar year and is due no later than
May 31, 2020.
To the extent that a business issued a certificate of
exemption under this Section has obtained an Enterprise Zone
Building Materials Exemption Certificate or a High Impact
Business Building Materials Exemption Certificate, no
additional reporting for those building materials exemption
benefits is required under this Section.
Failure to file a report under this subsection (h) may
result in suspension or revocation of the certificate of
exemption. The Department shall adopt rules governing
suspension or revocation of the certificate of exemption,
including the length of suspension. Factors to be considered in
determining whether a data center certificate of exemption
shall be suspended or revoked include, but are not limited to,
prior compliance with the reporting requirements, cooperation
in discontinuing and correcting violations, the extent of the
violation, and whether the violation was willful or
inadvertent.
(i) The Department shall not issue any new certificates of
exemption under the provisions of this Section after July 1,
2029. This sunset shall not affect any existing certificates of
exemption in effect on July 1, 2029.
Section 15-20. The State Finance Act is amended by adding
Sections 5.891, 5.893, and 5.894 as follows:
(30 ILCS 105/5.891 new)
Sec. 5.891. The Transportation Renewal Fund.
(30 ILCS 105/5.893 new)
Sec. 5.893. The Regional Transportation Authority Capital
Improvement Fund.
(30 ILCS 105/5.894 new)
Sec. 5.894. The Downstate Mass Transportation Capital
Improvement Fund.
Section 15-25. The Illinois Income Tax Act is amended by
adding Section 229 as follows:
(35 ILCS 5/229 new)
Sec. 229. Data center construction employment tax credit.
(a) A taxpayer who has been awarded a credit by the
Department of Commerce and Economic Opportunity under Section
605-1025 of the Department of Commerce and Economic Opportunity
Law of the Civil Administrative Code of Illinois is entitled to
a credit against the taxes imposed under subsections (a) and
(b) of Section 201 of this Act. The amount of the credit shall
be 20% of the wages paid during the taxable year to a full-time
or part-time employee of a construction contractor employed by
a certified data center if those wages are paid for the
construction of a new data center in a geographic area that
meets any one of the following criteria:
(1) the area has a poverty rate of at least 20%,
according to the latest federal decennial census;
(2) 75% or more of the children in the area participate
in the federal free lunch program, according to reported
statistics from the State Board of Education;
(3) 20% or more of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program (SNAP); or
(4) the area has an average unemployment rate, as
determined by the Department of Employment Security, that
is more than 120% of the national unemployment average, as
determined by the U.S. Department of Labor, for a period of
at least 2 consecutive calendar years preceding the date of
the application.
If the taxpayer is a partnership, a Subchapter S
corporation, or a limited liability company that has elected
partnership tax treatment, the credit shall be allowed to the
partners, shareholders, or members in accordance with the
determination of income and distributive share of income under
Sections 702 and 704 and subchapter S of the Internal Revenue
Code, as applicable. The Department, in cooperation with the
Department of Commerce and Economic Opportunity, shall adopt
rules to enforce and administer this Section. This Section is
exempt from the provisions of Section 250 of this Act.
(b) In no event shall a credit under this Section reduce
the taxpayer's liability to less than zero. If the amount of
the credit exceeds the tax liability for the year, the excess
may be carried forward and applied to the tax liability of the
5 taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset a liability, the earlier credit
shall be applied first.
(c) No credit shall be allowed with respect to any
certification for any taxable year ending after the revocation
of the certification by the Department of Commerce and Economic
Opportunity. Upon receiving notification by the Department of
Commerce and Economic Opportunity of the revocation of
certification, the Department shall notify the taxpayer that no
credit is allowed for any taxable year ending after the
revocation date, as stated in such notification. If any credit
has been allowed with respect to a certification for a taxable
year ending after the revocation date, any refund paid to the
taxpayer for that taxable year shall, to the extent of that
credit allowed, be an erroneous refund within the meaning of
Section 912 of this Act.
Section 15-30. The Use Tax Act is amended by changing
Sections 2 and 3-5 as follows:
(35 ILCS 105/2) (from Ch. 120, par. 439.2)
Sec. 2. Definitions.
"Use" means the exercise by any person of any right or
power over tangible personal property incident to the ownership
of that property, except that it does not include the sale of
such property in any form as tangible personal property in the
regular course of business to the extent that such property is
not first subjected to a use for which it was purchased, and
does not include the use of such property by its owner for
demonstration purposes: Provided that the property purchased
is deemed to be purchased for the purpose of resale, despite
first being used, to the extent to which it is resold as an
ingredient of an intentionally produced product or by-product
of manufacturing. "Use" does not mean the demonstration use or
interim use of tangible personal property by a retailer before
he sells that tangible personal property. For watercraft or
aircraft, if the period of demonstration use or interim use by
the retailer exceeds 18 months, the retailer shall pay on the
retailers' original cost price the tax imposed by this Act, and
no credit for that tax is permitted if the watercraft or
aircraft is subsequently sold by the retailer. "Use" does not
mean the physical incorporation of tangible personal property,
to the extent not first subjected to a use for which it was
purchased, as an ingredient or constituent, into other tangible
personal property (a) which is sold in the regular course of
business or (b) which the person incorporating such ingredient
or constituent therein has undertaken at the time of such
purchase to cause to be transported in interstate commerce to
destinations outside the State of Illinois: Provided that the
property purchased is deemed to be purchased for the purpose of
resale, despite first being used, to the extent to which it is
resold as an ingredient of an intentionally produced product or
by-product of manufacturing.
"Watercraft" means a Class 2, Class 3, or Class 4
watercraft as defined in Section 3-2 of the Boat Registration
and Safety Act, a personal watercraft, or any boat equipped
with an inboard motor.
"Purchase at retail" means the acquisition of the ownership
of or title to tangible personal property through a sale at
retail.
"Purchaser" means anyone who, through a sale at retail,
acquires the ownership of tangible personal property for a
valuable consideration.
"Sale at retail" means any transfer of the ownership of or
title to tangible personal property to a purchaser, for the
purpose of use, and not for the purpose of resale in any form
as tangible personal property to the extent not first subjected
to a use for which it was purchased, for a valuable
consideration: Provided that the property purchased is deemed
to be purchased for the purpose of resale, despite first being
used, to the extent to which it is resold as an ingredient of
an intentionally produced product or by-product of
manufacturing. For this purpose, slag produced as an incident
to manufacturing pig iron or steel and sold is considered to be
an intentionally produced by-product of manufacturing. "Sale
at retail" includes any such transfer made for resale unless
made in compliance with Section 2c of the Retailers' Occupation
Tax Act, as incorporated by reference into Section 12 of this
Act. Transactions whereby the possession of the property is
transferred but the seller retains the title as security for
payment of the selling price are sales.
"Sale at retail" shall also be construed to include any
Illinois florist's sales transaction in which the purchase
order is received in Illinois by a florist and the sale is for
use or consumption, but the Illinois florist has a florist in
another state deliver the property to the purchaser or the
purchaser's donee in such other state.
Nonreusable tangible personal property that is used by
persons engaged in the business of operating a restaurant,
cafeteria, or drive-in is a sale for resale when it is
transferred to customers in the ordinary course of business as
part of the sale of food or beverages and is used to deliver,
package, or consume food or beverages, regardless of where
consumption of the food or beverages occurs. Examples of those
items include, but are not limited to nonreusable, paper and
plastic cups, plates, baskets, boxes, sleeves, buckets or other
containers, utensils, straws, placemats, napkins, doggie bags,
and wrapping or packaging materials that are transferred to
customers as part of the sale of food or beverages in the
ordinary course of business.
The purchase, employment and transfer of such tangible
personal property as newsprint and ink for the primary purpose
of conveying news (with or without other information) is not a
purchase, use or sale of tangible personal property.
"Selling price" means the consideration for a sale valued
in money whether received in money or otherwise, including
cash, credits, property other than as hereinafter provided, and
services, but, prior to January 1, 2020, not including the
value of or credit given for traded-in tangible personal
property where the item that is traded-in is of like kind and
character as that which is being sold; beginning January 1,
2020, "selling price" includes the portion of the value of or
credit given for traded-in motor vehicles of the First Division
as defined in Section 1-146 of the Illinois Vehicle Code of
like kind and character as that which is being sold that
exceeds $10,000. "Selling price" , and shall be determined
without any deduction on account of the cost of the property
sold, the cost of materials used, labor or service cost or any
other expense whatsoever, but does not include interest or
finance charges which appear as separate items on the bill of
sale or sales contract nor charges that are added to prices by
sellers on account of the seller's tax liability under the
"Retailers' Occupation Tax Act", or on account of the seller's
duty to collect, from the purchaser, the tax that is imposed by
this Act, or, except as otherwise provided with respect to any
cigarette tax imposed by a home rule unit, on account of the
seller's tax liability under any local occupation tax
administered by the Department, or, except as otherwise
provided with respect to any cigarette tax imposed by a home
rule unit on account of the seller's duty to collect, from the
purchasers, the tax that is imposed under any local use tax
administered by the Department. Effective December 1, 1985,
"selling price" shall include charges that are added to prices
by sellers on account of the seller's tax liability under the
Cigarette Tax Act, on account of the seller's duty to collect,
from the purchaser, the tax imposed under the Cigarette Use Tax
Act, and on account of the seller's duty to collect, from the
purchaser, any cigarette tax imposed by a home rule unit.
Notwithstanding any law to the contrary, for any motor
vehicle, as defined in Section 1-146 of the Vehicle Code, that
is sold on or after January 1, 2015 for the purpose of leasing
the vehicle for a defined period that is longer than one year
and (1) is a motor vehicle of the second division that: (A) is
a self-contained motor vehicle designed or permanently
converted to provide living quarters for recreational,
camping, or travel use, with direct walk through access to the
living quarters from the driver's seat; (B) is of the van
configuration designed for the transportation of not less than
7 nor more than 16 passengers; or (C) has a gross vehicle
weight rating of 8,000 pounds or less or (2) is a motor vehicle
of the first division, "selling price" or "amount of sale"
means the consideration received by the lessor pursuant to the
lease contract, including amounts due at lease signing and all
monthly or other regular payments charged over the term of the
lease. Also included in the selling price is any amount
received by the lessor from the lessee for the leased vehicle
that is not calculated at the time the lease is executed,
including, but not limited to, excess mileage charges and
charges for excess wear and tear. For sales that occur in
Illinois, with respect to any amount received by the lessor
from the lessee for the leased vehicle that is not calculated
at the time the lease is executed, the lessor who purchased the
motor vehicle does not incur the tax imposed by the Use Tax Act
on those amounts, and the retailer who makes the retail sale of
the motor vehicle to the lessor is not required to collect the
tax imposed by this Act or to pay the tax imposed by the
Retailers' Occupation Tax Act on those amounts. However, the
lessor who purchased the motor vehicle assumes the liability
for reporting and paying the tax on those amounts directly to
the Department in the same form (Illinois Retailers' Occupation
Tax, and local retailers' occupation taxes, if applicable) in
which the retailer would have reported and paid such tax if the
retailer had accounted for the tax to the Department. For
amounts received by the lessor from the lessee that are not
calculated at the time the lease is executed, the lessor must
file the return and pay the tax to the Department by the due
date otherwise required by this Act for returns other than
transaction returns. If the retailer is entitled under this Act
to a discount for collecting and remitting the tax imposed
under this Act to the Department with respect to the sale of
the motor vehicle to the lessor, then the right to the discount
provided in this Act shall be transferred to the lessor with
respect to the tax paid by the lessor for any amount received
by the lessor from the lessee for the leased vehicle that is
not calculated at the time the lease is executed; provided that
the discount is only allowed if the return is timely filed and
for amounts timely paid. The "selling price" of a motor vehicle
that is sold on or after January 1, 2015 for the purpose of
leasing for a defined period of longer than one year shall not
be reduced by the value of or credit given for traded-in
tangible personal property owned by the lessor, nor shall it be
reduced by the value of or credit given for traded-in tangible
personal property owned by the lessee, regardless of whether
the trade-in value thereof is assigned by the lessee to the
lessor. In the case of a motor vehicle that is sold for the
purpose of leasing for a defined period of longer than one
year, the sale occurs at the time of the delivery of the
vehicle, regardless of the due date of any lease payments. A
lessor who incurs a Retailers' Occupation Tax liability on the
sale of a motor vehicle coming off lease may not take a credit
against that liability for the Use Tax the lessor paid upon the
purchase of the motor vehicle (or for any tax the lessor paid
with respect to any amount received by the lessor from the
lessee for the leased vehicle that was not calculated at the
time the lease was executed) if the selling price of the motor
vehicle at the time of purchase was calculated using the
definition of "selling price" as defined in this paragraph.
Notwithstanding any other provision of this Act to the
contrary, lessors shall file all returns and make all payments
required under this paragraph to the Department by electronic
means in the manner and form as required by the Department.
This paragraph does not apply to leases of motor vehicles for
which, at the time the lease is entered into, the term of the
lease is not a defined period, including leases with a defined
initial period with the option to continue the lease on a
month-to-month or other basis beyond the initial defined
period.
The phrase "like kind and character" shall be liberally
construed (including but not limited to any form of motor
vehicle for any form of motor vehicle, or any kind of farm or
agricultural implement for any other kind of farm or
agricultural implement), while not including a kind of item
which, if sold at retail by that retailer, would be exempt from
retailers' occupation tax and use tax as an isolated or
occasional sale.
"Department" means the Department of Revenue.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian or other representative appointed
by order of any court.
"Retailer" means and includes every person engaged in the
business of making sales at retail as defined in this Section.
A person who holds himself or herself out as being engaged
(or who habitually engages) in selling tangible personal
property at retail is a retailer hereunder with respect to such
sales (and not primarily in a service occupation)
notwithstanding the fact that such person designs and produces
such tangible personal property on special order for the
purchaser and in such a way as to render the property of value
only to such purchaser, if such tangible personal property so
produced on special order serves substantially the same
function as stock or standard items of tangible personal
property that are sold at retail.
A person whose activities are organized and conducted
primarily as a not-for-profit service enterprise, and who
engages in selling tangible personal property at retail
(whether to the public or merely to members and their guests)
is a retailer with respect to such transactions, excepting only
a person organized and operated exclusively for charitable,
religious or educational purposes either (1), to the extent of
sales by such person to its members, students, patients or
inmates of tangible personal property to be used primarily for
the purposes of such person, or (2), to the extent of sales by
such person of tangible personal property which is not sold or
offered for sale by persons organized for profit. The selling
of school books and school supplies by schools at retail to
students is not "primarily for the purposes of" the school
which does such selling. This paragraph does not apply to nor
subject to taxation occasional dinners, social or similar
activities of a person organized and operated exclusively for
charitable, religious or educational purposes, whether or not
such activities are open to the public.
A person who is the recipient of a grant or contract under
Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
serves meals to participants in the federal Nutrition Program
for the Elderly in return for contributions established in
amount by the individual participant pursuant to a schedule of
suggested fees as provided for in the federal Act is not a
retailer under this Act with respect to such transactions.
Persons who engage in the business of transferring tangible
personal property upon the redemption of trading stamps are
retailers hereunder when engaged in such business.
The isolated or occasional sale of tangible personal
property at retail by a person who does not hold himself out as
being engaged (or who does not habitually engage) in selling
such tangible personal property at retail or a sale through a
bulk vending machine does not make such person a retailer
hereunder. However, any person who is engaged in a business
which is not subject to the tax imposed by the "Retailers'
Occupation Tax Act" because of involving the sale of or a
contract to sell real estate or a construction contract to
improve real estate, but who, in the course of conducting such
business, transfers tangible personal property to users or
consumers in the finished form in which it was purchased, and
which does not become real estate, under any provision of a
construction contract or real estate sale or real estate sales
agreement entered into with some other person arising out of or
because of such nontaxable business, is a retailer to the
extent of the value of the tangible personal property so
transferred. If, in such transaction, a separate charge is made
for the tangible personal property so transferred, the value of
such property, for the purposes of this Act, is the amount so
separately charged, but not less than the cost of such property
to the transferor; if no separate charge is made, the value of
such property, for the purposes of this Act, is the cost to the
transferor of such tangible personal property.
"Retailer maintaining a place of business in this State",
or any like term, means and includes any of the following
retailers:
(1) A retailer having or maintaining within this State,
directly or by a subsidiary, an office, distribution house,
sales house, warehouse or other place of business, or any
agent or other representative operating within this State
under the authority of the retailer or its subsidiary,
irrespective of whether such place of business or agent or
other representative is located here permanently or
temporarily, or whether such retailer or subsidiary is
licensed to do business in this State. However, the
ownership of property that is located at the premises of a
printer with which the retailer has contracted for printing
and that consists of the final printed product, property
that becomes a part of the final printed product, or copy
from which the printed product is produced shall not result
in the retailer being deemed to have or maintain an office,
distribution house, sales house, warehouse, or other place
of business within this State.
(1.1) (Blank). A retailer having a contract with a
person located in this State under which the person, for a
commission or other consideration based upon the sale of
tangible personal property by the retailer, directly or
indirectly refers potential customers to the retailer by
providing to the potential customers a promotional code or
other mechanism that allows the retailer to track purchases
referred by such persons. Examples of mechanisms that allow
the retailer to track purchases referred by such persons
include but are not limited to the use of a link on the
person's Internet website, promotional codes distributed
through the person's hand-delivered or mailed material,
and promotional codes distributed by the person through
radio or other broadcast media. The provisions of this
paragraph (1.1) shall apply only if the cumulative gross
receipts from sales of tangible personal property by the
retailer to customers who are referred to the retailer by
all persons in this State under such contracts exceed
$10,000 during the preceding 4 quarterly periods ending on
the last day of March, June, September, and December. A
retailer meeting the requirements of this paragraph (1.1)
shall be presumed to be maintaining a place of business in
this State but may rebut this presumption by submitting
proof that the referrals or other activities pursued within
this State by such persons were not sufficient to meet the
nexus standards of the United States Constitution during
the preceding 4 quarterly periods.
(1.2) (Blank). Beginning July 1, 2011, a retailer
having a contract with a person located in this State under
which:
(A) the retailer sells the same or substantially
similar line of products as the person located in this
State and does so using an identical or substantially
similar name, trade name, or trademark as the person
located in this State; and
(B) the retailer provides a commission or other
consideration to the person located in this State based
upon the sale of tangible personal property by the
retailer.
The provisions of this paragraph (1.2) shall apply only if
the cumulative gross receipts from sales of tangible
personal property by the retailer to customers in this
State under all such contracts exceed $10,000 during the
preceding 4 quarterly periods ending on the last day of
March, June, September, and December.
(2) (Blank). A retailer soliciting orders for tangible
personal property by means of a telecommunication or
television shopping system (which utilizes toll free
numbers) which is intended by the retailer to be broadcast
by cable television or other means of broadcasting, to
consumers located in this State.
(3) (Blank). A retailer, pursuant to a contract with a
broadcaster or publisher located in this State, soliciting
orders for tangible personal property by means of
advertising which is disseminated primarily to consumers
located in this State and only secondarily to bordering
jurisdictions.
(4) (Blank). A retailer soliciting orders for tangible
personal property by mail if the solicitations are
substantial and recurring and if the retailer benefits from
any banking, financing, debt collection,
telecommunication, or marketing activities occurring in
this State or benefits from the location in this State of
authorized installation, servicing, or repair facilities.
(5) (Blank). A retailer that is owned or controlled by
the same interests that own or control any retailer
engaging in business in the same or similar line of
business in this State.
(6) (Blank). A retailer having a franchisee or licensee
operating under its trade name if the franchisee or
licensee is required to collect the tax under this Section.
(7) (Blank). A retailer, pursuant to a contract with a
cable television operator located in this State,
soliciting orders for tangible personal property by means
of advertising which is transmitted or distributed over a
cable television system in this State.
(8) (Blank). A retailer engaging in activities in
Illinois, which activities in the state in which the retail
business engaging in such activities is located would
constitute maintaining a place of business in that state.
(9) Beginning October 1, 2018 through June 30, 2020, a
retailer making sales of tangible personal property to
purchasers in Illinois from outside of Illinois if:
(A) the cumulative gross receipts from sales of
tangible personal property to purchasers in Illinois
are $100,000 or more; or
(B) the retailer enters into 200 or more separate
transactions for the sale of tangible personal
property to purchasers in Illinois.
The retailer shall determine on a quarterly basis,
ending on the last day of March, June, September, and
December, whether he or she meets the criteria of either
subparagraph (A) or (B) of this paragraph (9) for the
preceding 12-month period. If the retailer meets the
criteria of either subparagraph (A) or (B) for a 12-month
period, he or she is considered a retailer maintaining a
place of business in this State and is required to collect
and remit the tax imposed under this Act and file returns
for one year. At the end of that one-year period, the
retailer shall determine whether the retailer met the
criteria of either subparagraph (A) or (B) during the
preceding 12-month period. If the retailer met the criteria
in either subparagraph (A) or (B) for the preceding
12-month period, he or she is considered a retailer
maintaining a place of business in this State and is
required to collect and remit the tax imposed under this
Act and file returns for the subsequent year. If at the end
of a one-year period a retailer that was required to
collect and remit the tax imposed under this Act determines
that he or she did not meet the criteria in either
subparagraph (A) or (B) during the preceding 12-month
period, the retailer shall subsequently determine on a
quarterly basis, ending on the last day of March, June,
September, and December, whether he or she meets the
criteria of either subparagraph (A) or (B) for the
preceding 12-month period.
"Bulk vending machine" means a vending machine, containing
unsorted confections, nuts, toys, or other items designed
primarily to be used or played with by children which, when a
coin or coins of a denomination not larger than $0.50 are
inserted, are dispensed in equal portions, at random and
without selection by the customer.
(Source: P.A. 99-78, eff. 7-20-15; 100-587, eff. 6-4-18.)
(35 ILCS 105/3-5)
Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
(2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.
(3) Personal property purchased by a not-for-profit arts or
cultural organization that establishes, by proof required by
the Department by rule, that it has received an exemption under
Section 501(c)(3) of the Internal Revenue Code and that is
organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35), however, an entity
otherwise eligible for this exemption shall not make tax-free
purchases unless it has an active identification number issued
by the Department.
(4) Personal property purchased by a governmental body, by
a corporation, society, association, foundation, or
institution organized and operated exclusively for charitable,
religious, or educational purposes, or by a not-for-profit
corporation, society, association, foundation, institution, or
organization that has no compensated officers or employees and
that is organized and operated primarily for the recreation of
persons 55 years of age or older. A limited liability company
may qualify for the exemption under this paragraph only if the
limited liability company is organized and operated
exclusively for educational purposes. On and after July 1,
1987, however, no entity otherwise eligible for this exemption
shall make tax-free purchases unless it has an active exemption
identification number issued by the Department.
(5) Until July 1, 2003, a passenger car that is a
replacement vehicle to the extent that the purchase price of
the car is subject to the Replacement Vehicle Tax.
(6) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new and
used, and including that manufactured on special order,
certified by the purchaser to be used primarily for graphic
arts production, and including machinery and equipment
purchased for lease. Equipment includes chemicals or chemicals
acting as catalysts but only if the chemicals or chemicals
acting as catalysts effect a direct and immediate change upon a
graphic arts product. Beginning on July 1, 2017, graphic arts
machinery and equipment is included in the manufacturing and
assembling machinery and equipment exemption under paragraph
(18).
(7) Farm chemicals.
(8) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
(9) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(10) A motor vehicle that is used for automobile renting,
as defined in the Automobile Renting Occupation and Use Tax
Act.
(11) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required to
be registered under Section 3-809 of the Illinois Vehicle Code,
but excluding other motor vehicles required to be registered
under the Illinois Vehicle Code. Horticultural polyhouses or
hoop houses used for propagating, growing, or overwintering
plants shall be considered farm machinery and equipment under
this item (11). Agricultural chemical tender tanks and dry
boxes shall include units sold separately from a motor vehicle
required to be licensed and units sold mounted on a motor
vehicle required to be licensed if the selling price of the
tender is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (11) is exempt from the
provisions of Section 3-90.
(12) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the conduct
of its business as an air common carrier, for a flight destined
for or returning from a location or locations outside the
United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to
or used by an air carrier, certified by the carrier to be used
for consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports at
least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
(13) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages purchased at retail from a retailer, to the
extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the
employees who participate directly in preparing, serving,
hosting or cleaning up the food or beverage function with
respect to which the service charge is imposed.
(14) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of rigs,
rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
tubular goods, including casing and drill strings, (iii) pumps
and pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
(15) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including that
manufactured on special order, certified by the purchaser to be
used primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
(16) Until July 1, 2023, coal and aggregate exploration,
mining, off-highway hauling, processing, maintenance, and
reclamation equipment, including replacement parts and
equipment, and including equipment purchased for lease, but
excluding motor vehicles required to be registered under the
Illinois Vehicle Code. The changes made to this Section by
Public Act 97-767 apply on and after July 1, 2003, but no claim
for credit or refund is allowed on or after August 16, 2013
(the effective date of Public Act 98-456) for such taxes paid
during the period beginning July 1, 2003 and ending on August
16, 2013 (the effective date of Public Act 98-456).
(17) Until July 1, 2003, distillation machinery and
equipment, sold as a unit or kit, assembled or installed by the
retailer, certified by the user to be used only for the
production of ethyl alcohol that will be used for consumption
as motor fuel or as a component of motor fuel for the personal
use of the user, and not subject to sale or resale.
(18) Manufacturing and assembling machinery and equipment
used primarily in the process of manufacturing or assembling
tangible personal property for wholesale or retail sale or
lease, whether that sale or lease is made directly by the
manufacturer or by some other person, whether the materials
used in the process are owned by the manufacturer or some other
person, or whether that sale or lease is made apart from or as
an incident to the seller's engaging in the service occupation
of producing machines, tools, dies, jigs, patterns, gauges, or
other similar items of no commercial value on special order for
a particular purchaser. The exemption provided by this
paragraph (18) does not include machinery and equipment used in
(i) the generation of electricity for wholesale or retail sale;
(ii) the generation or treatment of natural or artificial gas
for wholesale or retail sale that is delivered to customers
through pipes, pipelines, or mains; or (iii) the treatment of
water for wholesale or retail sale that is delivered to
customers through pipes, pipelines, or mains. The provisions of
Public Act 98-583 are declaratory of existing law as to the
meaning and scope of this exemption. Beginning on July 1, 2017,
the exemption provided by this paragraph (18) includes, but is
not limited to, graphic arts machinery and equipment, as
defined in paragraph (6) of this Section.
(19) Personal property delivered to a purchaser or
purchaser's donee inside Illinois when the purchase order for
that personal property was received by a florist located
outside Illinois who has a florist located inside Illinois
deliver the personal property.
(20) Semen used for artificial insemination of livestock
for direct agricultural production.
(21) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (21) is exempt from the provisions
of Section 3-90, and the exemption provided for under this item
(21) applies for all periods beginning May 30, 1995, but no
claim for credit or refund is allowed on or after January 1,
2008 for such taxes paid during the period beginning May 30,
2000 and ending on January 1, 2008.
(22) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the equipment is leased in a
manner that does not qualify for this exemption or is used in
any other non-exempt manner, the lessor shall be liable for the
tax imposed under this Act or the Service Use Tax Act, as the
case may be, based on the fair market value of the property at
the time the non-qualifying use occurs. No lessor shall collect
or attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax
has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall have
a legal right to claim a refund of that amount from the lessor.
If, however, that amount is not refunded to the lessee for any
reason, the lessor is liable to pay that amount to the
Department.
(23) Personal property purchased by a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time the lessor would otherwise be subject to the
tax imposed by this Act, to a governmental body that has been
issued an active sales tax exemption identification number by
the Department under Section 1g of the Retailers' Occupation
Tax Act. If the property is leased in a manner that does not
qualify for this exemption or used in any other non-exempt
manner, the lessor shall be liable for the tax imposed under
this Act or the Service Use Tax Act, as the case may be, based
on the fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt
to collect an amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or the
Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such
amount from the lessee, the lessee shall have a legal right to
claim a refund of that amount from the lessor. If, however,
that amount is not refunded to the lessee for any reason, the
lessor is liable to pay that amount to the Department.
(24) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated for
disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(25) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in the
performance of infrastructure repairs in this State, including
but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer
line extensions, water distribution and purification
facilities, storm water drainage and retention facilities, and
sewage treatment facilities, resulting from a State or
federally declared disaster in Illinois or bordering Illinois
when such repairs are initiated on facilities located in the
declared disaster area within 6 months after the disaster.
(26) Beginning July 1, 1999, game or game birds purchased
at a "game breeding and hunting preserve area" as that term is
used in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-90.
(27) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the Department
to be organized and operated exclusively for educational
purposes. For purposes of this exemption, "a corporation,
limited liability company, society, association, foundation,
or institution organized and operated exclusively for
educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful
branches of learning by methods common to public schools and
that compare favorably in their scope and intensity with the
course of study presented in tax-supported schools, and
vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less
than 6 weeks duration and designed to prepare individuals to
follow a trade or to pursue a manual, technical, mechanical,
industrial, business, or commercial occupation.
(28) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-90.
(29) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and other
items, and replacement parts for these machines. Beginning
January 1, 2002 and through June 30, 2003, machines and parts
for machines used in commercial, coin-operated amusement and
vending business if a use or occupation tax is paid on the
gross receipts derived from the use of the commercial,
coin-operated amusement and vending machines. This paragraph
is exempt from the provisions of Section 3-90.
(30) Beginning January 1, 2001 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks, and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
(31) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), computers and communications equipment
utilized for any hospital purpose and equipment used in the
diagnosis, analysis, or treatment of hospital patients
purchased by a lessor who leases the equipment, under a lease
of one year or longer executed or in effect at the time the
lessor would otherwise be subject to the tax imposed by this
Act, to a hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the equipment is leased in a
manner that does not qualify for this exemption or is used in
any other nonexempt manner, the lessor shall be liable for the
tax imposed under this Act or the Service Use Tax Act, as the
case may be, based on the fair market value of the property at
the time the nonqualifying use occurs. No lessor shall collect
or attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax
has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall have
a legal right to claim a refund of that amount from the lessor.
If, however, that amount is not refunded to the lessee for any
reason, the lessor is liable to pay that amount to the
Department. This paragraph is exempt from the provisions of
Section 3-90.
(32) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), personal property purchased by a lessor who
leases the property, under a lease of one year or longer
executed or in effect at the time the lessor would otherwise be
subject to the tax imposed by this Act, to a governmental body
that has been issued an active sales tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the property is leased in a
manner that does not qualify for this exemption or used in any
other nonexempt manner, the lessor shall be liable for the tax
imposed under this Act or the Service Use Tax Act, as the case
may be, based on the fair market value of the property at the
time the nonqualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that purports
to reimburse that lessor for the tax imposed by this Act or the
Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such
amount from the lessee, the lessee shall have a legal right to
claim a refund of that amount from the lessor. If, however,
that amount is not refunded to the lessee for any reason, the
lessor is liable to pay that amount to the Department. This
paragraph is exempt from the provisions of Section 3-90.
(33) On and after July 1, 2003 and through June 30, 2004,
the use in this State of motor vehicles of the second division
with a gross vehicle weight in excess of 8,000 pounds and that
are subject to the commercial distribution fee imposed under
Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
1, 2004 and through June 30, 2005, the use in this State of
motor vehicles of the second division: (i) with a gross vehicle
weight rating in excess of 8,000 pounds; (ii) that are subject
to the commercial distribution fee imposed under Section
3-815.1 of the Illinois Vehicle Code; and (iii) that are
primarily used for commercial purposes. Through June 30, 2005,
this exemption applies to repair and replacement parts added
after the initial purchase of such a motor vehicle if that
motor vehicle is used in a manner that would qualify for the
rolling stock exemption otherwise provided for in this Act. For
purposes of this paragraph, the term "used for commercial
purposes" means the transportation of persons or property in
furtherance of any commercial or industrial enterprise,
whether for-hire or not.
(34) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued under
Title IV of the Environmental Protection Act. This paragraph is
exempt from the provisions of Section 3-90.
(35) Beginning January 1, 2010, materials, parts,
equipment, components, and furnishings incorporated into or
upon an aircraft as part of the modification, refurbishment,
completion, replacement, repair, or maintenance of the
aircraft. This exemption includes consumable supplies used in
the modification, refurbishment, completion, replacement,
repair, and maintenance of aircraft, but excludes any
materials, parts, equipment, components, and consumable
supplies used in the modification, replacement, repair, and
maintenance of aircraft engines or power plants, whether such
engines or power plants are installed or uninstalled upon any
such aircraft. "Consumable supplies" include, but are not
limited to, adhesive, tape, sandpaper, general purpose
lubricants, cleaning solution, latex gloves, and protective
films. This exemption applies only to the use of qualifying
tangible personal property by persons who modify, refurbish,
complete, repair, replace, or maintain aircraft and who (i)
hold an Air Agency Certificate and are empowered to operate an
approved repair station by the Federal Aviation
Administration, (ii) have a Class IV Rating, and (iii) conduct
operations in accordance with Part 145 of the Federal Aviation
Regulations. The exemption does not include aircraft operated
by a commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part 129
of the Federal Aviation Regulations. The changes made to this
paragraph (35) by Public Act 98-534 are declarative of existing
law.
(36) Tangible personal property purchased by a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt instruments
issued by the public-facilities corporation in connection with
the development of the municipal convention hall. This
exemption includes existing public-facilities corporations as
provided in Section 11-65-25 of the Illinois Municipal Code.
This paragraph is exempt from the provisions of Section 3-90.
(37) Beginning January 1, 2017, menstrual pads, tampons,
and menstrual cups.
(38) Merchandise that is subject to the Rental Purchase
Agreement Occupation and Use Tax. The purchaser must certify
that the item is purchased to be rented subject to a rental
purchase agreement, as defined in the Rental Purchase Agreement
Act, and provide proof of registration under the Rental
Purchase Agreement Occupation and Use Tax Act. This paragraph
is exempt from the provisions of Section 3-90.
(39) Tangible personal property purchased by a purchaser
who is exempt from the tax imposed by this Act by operation of
federal law. This paragraph is exempt from the provisions of
Section 3-90.
(40) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would have
qualified for a certificate of exemption prior to January 1,
2020 had this amendatory Act of the 101st General Assembly been
in effect, may apply for and obtain an exemption for subsequent
purchases of computer equipment or enabling software purchased
or leased to upgrade, supplement, or replace computer equipment
or enabling software purchased or leased in the original
investment that would have qualified.
The Department of Commerce and Economic Opportunity shall
grant a certificate of exemption under this item (40) to
qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (40):
"Data center" means a building or a series of buildings
rehabilitated or constructed to house working servers in
one physical location or multiple sites within the State of
Illinois.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks; cabinets;
telecommunications cabling infrastructure; raised floor
systems; peripheral components or systems; software;
mechanical, electrical, or plumbing systems; battery
systems; cooling systems and towers; temperature control
systems; other cabling; and other data center
infrastructure equipment and systems necessary to operate
qualified tangible personal property, including fixtures;
and component parts of any of the foregoing, including
installation, maintenance, repair, refurbishment, and
replacement of qualified tangible personal property to
generate, transform, transmit, distribute, or manage
electricity necessary to operate qualified tangible
personal property; and all other tangible personal
property that is essential to the operations of a computer
data center. The term "qualified tangible personal
property" also includes building materials physically
incorporated in to the qualifying data center. To document
the exemption allowed under this Section, the retailer must
obtain from the purchaser a copy of the certificate of
eligibility issued by the Department of Commerce and
Economic Opportunity.
This item (40) is exempt from the provisions of Section
3-90.
(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
100-22, eff. 7-6-17; 100-437, eff. 1-1-18; 100-594, eff.
6-29-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; revised
1-8-19.)
Section 15-35. The Service Use Tax Act is amended by
changing Section 3-5 as follows:
(35 ILCS 110/3-5)
Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
(2) Personal property purchased by a non-profit Illinois
county fair association for use in conducting, operating, or
promoting the county fair.
(3) Personal property purchased by a not-for-profit arts or
cultural organization that establishes, by proof required by
the Department by rule, that it has received an exemption under
Section 501(c)(3) of the Internal Revenue Code and that is
organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35) this amendatory Act of the
92nd General Assembly, however, an entity otherwise eligible
for this exemption shall not make tax-free purchases unless it
has an active identification number issued by the Department.
(4) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new and
used, and including that manufactured on special order or
purchased for lease, certified by the purchaser to be used
primarily for graphic arts production. Equipment includes
chemicals or chemicals acting as catalysts but only if the
chemicals or chemicals acting as catalysts effect a direct and
immediate change upon a graphic arts product. Beginning on July
1, 2017, graphic arts machinery and equipment is included in
the manufacturing and assembling machinery and equipment
exemption under Section 2 of this Act.
(6) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required to
be registered under Section 3-809 of the Illinois Vehicle Code,
but excluding other motor vehicles required to be registered
under the Illinois Vehicle Code. Horticultural polyhouses or
hoop houses used for propagating, growing, or overwintering
plants shall be considered farm machinery and equipment under
this item (7). Agricultural chemical tender tanks and dry boxes
shall include units sold separately from a motor vehicle
required to be licensed and units sold mounted on a motor
vehicle required to be licensed if the selling price of the
tender is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (7) is exempt from the
provisions of Section 3-75.
(8) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the conduct
of its business as an air common carrier, for a flight destined
for or returning from a location or locations outside the
United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to
or used by an air carrier, certified by the carrier to be used
for consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports at
least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
(9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages acquired as an incident to the purchase of a
service from a serviceman, to the extent that the proceeds of
the service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
(10) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of rigs,
rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
tubular goods, including casing and drill strings, (iii) pumps
and pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
(11) Proceeds from the sale of photoprocessing machinery
and equipment, including repair and replacement parts, both new
and used, including that manufactured on special order,
certified by the purchaser to be used primarily for
photoprocessing, and including photoprocessing machinery and
equipment purchased for lease.
(12) Until July 1, 2023, coal and aggregate exploration,
mining, off-highway hauling, processing, maintenance, and
reclamation equipment, including replacement parts and
equipment, and including equipment purchased for lease, but
excluding motor vehicles required to be registered under the
Illinois Vehicle Code. The changes made to this Section by
Public Act 97-767 apply on and after July 1, 2003, but no claim
for credit or refund is allowed on or after August 16, 2013
(the effective date of Public Act 98-456) for such taxes paid
during the period beginning July 1, 2003 and ending on August
16, 2013 (the effective date of Public Act 98-456).
(13) Semen used for artificial insemination of livestock
for direct agricultural production.
(14) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (14) is exempt from the provisions
of Section 3-75, and the exemption provided for under this item
(14) applies for all periods beginning May 30, 1995, but no
claim for credit or refund is allowed on or after January 1,
2008 (the effective date of Public Act 95-88) this amendatory
Act of the 95th General Assembly for such taxes paid during the
period beginning May 30, 2000 and ending on January 1, 2008
(the effective date of Public Act 95-88) this amendatory Act of
the 95th General Assembly.
(15) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the equipment is leased in a
manner that does not qualify for this exemption or is used in
any other non-exempt manner, the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case may
be, based on the fair market value of the property at the time
the non-qualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that purports
to reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid by
the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that amount
is not refunded to the lessee for any reason, the lessor is
liable to pay that amount to the Department.
(16) Personal property purchased by a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time the lessor would otherwise be subject to the
tax imposed by this Act, to a governmental body that has been
issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax
Act. If the property is leased in a manner that does not
qualify for this exemption or is used in any other non-exempt
manner, the lessor shall be liable for the tax imposed under
this Act or the Use Tax Act, as the case may be, based on the
fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt
to collect an amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid by
the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that amount
is not refunded to the lessee for any reason, the lessor is
liable to pay that amount to the Department.
(17) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated for
disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(18) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in the
performance of infrastructure repairs in this State, including
but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer
line extensions, water distribution and purification
facilities, storm water drainage and retention facilities, and
sewage treatment facilities, resulting from a State or
federally declared disaster in Illinois or bordering Illinois
when such repairs are initiated on facilities located in the
declared disaster area within 6 months after the disaster.
(19) Beginning July 1, 1999, game or game birds purchased
at a "game breeding and hunting preserve area" as that term is
used in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-75.
(20) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the Department
to be organized and operated exclusively for educational
purposes. For purposes of this exemption, "a corporation,
limited liability company, society, association, foundation,
or institution organized and operated exclusively for
educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful
branches of learning by methods common to public schools and
that compare favorably in their scope and intensity with the
course of study presented in tax-supported schools, and
vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less
than 6 weeks duration and designed to prepare individuals to
follow a trade or to pursue a manual, technical, mechanical,
industrial, business, or commercial occupation.
(21) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-75.
(22) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and other
items, and replacement parts for these machines. Beginning
January 1, 2002 and through June 30, 2003, machines and parts
for machines used in commercial, coin-operated amusement and
vending business if a use or occupation tax is paid on the
gross receipts derived from the use of the commercial,
coin-operated amusement and vending machines. This paragraph
is exempt from the provisions of Section 3-75.
(23) Beginning August 23, 2001 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks, and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
(24) Beginning on August 2, 2001 (the effective date of
Public Act 92-227) this amendatory Act of the 92nd General
Assembly, computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the equipment is leased in a
manner that does not qualify for this exemption or is used in
any other nonexempt manner, the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case may
be, based on the fair market value of the property at the time
the nonqualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that purports
to reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid by
the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that amount
is not refunded to the lessee for any reason, the lessor is
liable to pay that amount to the Department. This paragraph is
exempt from the provisions of Section 3-75.
(25) Beginning on August 2, 2001 (the effective date of
Public Act 92-227) this amendatory Act of the 92nd General
Assembly, personal property purchased by a lessor who leases
the property, under a lease of one year or longer executed or
in effect at the time the lessor would otherwise be subject to
the tax imposed by this Act, to a governmental body that has
been issued an active tax exemption identification number by
the Department under Section 1g of the Retailers' Occupation
Tax Act. If the property is leased in a manner that does not
qualify for this exemption or is used in any other nonexempt
manner, the lessor shall be liable for the tax imposed under
this Act or the Use Tax Act, as the case may be, based on the
fair market value of the property at the time the nonqualifying
use occurs. No lessor shall collect or attempt to collect an
amount (however designated) that purports to reimburse that
lessor for the tax imposed by this Act or the Use Tax Act, as
the case may be, if the tax has not been paid by the lessor. If
a lessor improperly collects any such amount from the lessee,
the lessee shall have a legal right to claim a refund of that
amount from the lessor. If, however, that amount is not
refunded to the lessee for any reason, the lessor is liable to
pay that amount to the Department. This paragraph is exempt
from the provisions of Section 3-75.
(26) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued under
Title IV of the Environmental Protection Act. This paragraph is
exempt from the provisions of Section 3-75.
(27) Beginning January 1, 2010, materials, parts,
equipment, components, and furnishings incorporated into or
upon an aircraft as part of the modification, refurbishment,
completion, replacement, repair, or maintenance of the
aircraft. This exemption includes consumable supplies used in
the modification, refurbishment, completion, replacement,
repair, and maintenance of aircraft, but excludes any
materials, parts, equipment, components, and consumable
supplies used in the modification, replacement, repair, and
maintenance of aircraft engines or power plants, whether such
engines or power plants are installed or uninstalled upon any
such aircraft. "Consumable supplies" include, but are not
limited to, adhesive, tape, sandpaper, general purpose
lubricants, cleaning solution, latex gloves, and protective
films. This exemption applies only to the use of qualifying
tangible personal property transferred incident to the
modification, refurbishment, completion, replacement, repair,
or maintenance of aircraft by persons who (i) hold an Air
Agency Certificate and are empowered to operate an approved
repair station by the Federal Aviation Administration, (ii)
have a Class IV Rating, and (iii) conduct operations in
accordance with Part 145 of the Federal Aviation Regulations.
The exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part 129
of the Federal Aviation Regulations. The changes made to this
paragraph (27) by Public Act 98-534 are declarative of existing
law.
(28) Tangible personal property purchased by a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt instruments
issued by the public-facilities corporation in connection with
the development of the municipal convention hall. This
exemption includes existing public-facilities corporations as
provided in Section 11-65-25 of the Illinois Municipal Code.
This paragraph is exempt from the provisions of Section 3-75.
(29) Beginning January 1, 2017, menstrual pads, tampons,
and menstrual cups.
(30) Tangible personal property transferred to a purchaser
who is exempt from the tax imposed by this Act by operation of
federal law. This paragraph is exempt from the provisions of
Section 3-75.
(31) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would have
qualified for a certificate of exemption prior to January 1,
2020 had this amendatory Act of the 101st General Assembly been
in effect, may apply for and obtain an exemption for subsequent
purchases of computer equipment or enabling software purchased
or leased to upgrade, supplement, or replace computer equipment
or enabling software purchased or leased in the original
investment that would have qualified.
The Department of Commerce and Economic Opportunity shall
grant a certificate of exemption under this item (31) to
qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (31):
"Data center" means a building or a series of buildings
rehabilitated or constructed to house working servers in
one physical location or multiple sites within the State of
Illinois.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks; cabinets;
telecommunications cabling infrastructure; raised floor
systems; peripheral components or systems; software;
mechanical, electrical, or plumbing systems; battery
systems; cooling systems and towers; temperature control
systems; other cabling; and other data center
infrastructure equipment and systems necessary to operate
qualified tangible personal property, including fixtures;
and component parts of any of the foregoing, including
installation, maintenance, repair, refurbishment, and
replacement of qualified tangible personal property to
generate, transform, transmit, distribute, or manage
electricity necessary to operate qualified tangible
personal property; and all other tangible personal
property that is essential to the operations of a computer
data center. The term "qualified tangible personal
property" also includes building materials physically
incorporated in to the qualifying data center. To document
the exemption allowed under this Section, the retailer must
obtain from the purchaser a copy of the certificate of
eligibility issued by the Department of Commerce and
Economic Opportunity.
This item (31) is exempt from the provisions of Section
3-75.
(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff.
1-4-19; revised 1-8-19.)
Section 15-40. The Service Occupation Tax Act is amended by
changing Section 3-5 as follows:
(35 ILCS 115/3-5)
Sec. 3-5. Exemptions. The following tangible personal
property is exempt from the tax imposed by this Act:
(1) Personal property sold by a corporation, society,
association, foundation, institution, or organization, other
than a limited liability company, that is organized and
operated as a not-for-profit service enterprise for the benefit
of persons 65 years of age or older if the personal property
was not purchased by the enterprise for the purpose of resale
by the enterprise.
(2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.
(3) Personal property purchased by any not-for-profit arts
or cultural organization that establishes, by proof required by
the Department by rule, that it has received an exemption under
Section 501(c)(3) of the Internal Revenue Code and that is
organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35) this amendatory Act of the
92nd General Assembly, however, an entity otherwise eligible
for this exemption shall not make tax-free purchases unless it
has an active identification number issued by the Department.
(4) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new and
used, and including that manufactured on special order or
purchased for lease, certified by the purchaser to be used
primarily for graphic arts production. Equipment includes
chemicals or chemicals acting as catalysts but only if the
chemicals or chemicals acting as catalysts effect a direct and
immediate change upon a graphic arts product. Beginning on July
1, 2017, graphic arts machinery and equipment is included in
the manufacturing and assembling machinery and equipment
exemption under Section 2 of this Act.
(6) Personal property sold by a teacher-sponsored student
organization affiliated with an elementary or secondary school
located in Illinois.
(7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required to
be registered under Section 3-809 of the Illinois Vehicle Code,
but excluding other motor vehicles required to be registered
under the Illinois Vehicle Code. Horticultural polyhouses or
hoop houses used for propagating, growing, or overwintering
plants shall be considered farm machinery and equipment under
this item (7). Agricultural chemical tender tanks and dry boxes
shall include units sold separately from a motor vehicle
required to be licensed and units sold mounted on a motor
vehicle required to be licensed if the selling price of the
tender is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (7) is exempt from the
provisions of Section 3-55.
(8) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the conduct
of its business as an air common carrier, for a flight destined
for or returning from a location or locations outside the
United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to
or used by an air carrier, certified by the carrier to be used
for consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports at
least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
(9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages, to the extent that the proceeds of the
service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
(10) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of rigs,
rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
tubular goods, including casing and drill strings, (iii) pumps
and pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
(11) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including that
manufactured on special order, certified by the purchaser to be
used primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
(12) Until July 1, 2023, coal and aggregate exploration,
mining, off-highway hauling, processing, maintenance, and
reclamation equipment, including replacement parts and
equipment, and including equipment purchased for lease, but
excluding motor vehicles required to be registered under the
Illinois Vehicle Code. The changes made to this Section by
Public Act 97-767 apply on and after July 1, 2003, but no claim
for credit or refund is allowed on or after August 16, 2013
(the effective date of Public Act 98-456) for such taxes paid
during the period beginning July 1, 2003 and ending on August
16, 2013 (the effective date of Public Act 98-456).
(13) Beginning January 1, 1992 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks and food that has been prepared for immediate
consumption) and prescription and non-prescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
(14) Semen used for artificial insemination of livestock
for direct agricultural production.
(15) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (15) is exempt from the provisions
of Section 3-55, and the exemption provided for under this item
(15) applies for all periods beginning May 30, 1995, but no
claim for credit or refund is allowed on or after January 1,
2008 (the effective date of Public Act 95-88) for such taxes
paid during the period beginning May 30, 2000 and ending on
January 1, 2008 (the effective date of Public Act 95-88).
(16) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor
who leases the equipment, under a lease of one year or longer
executed or in effect at the time of the purchase, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act.
(17) Personal property sold to a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time of the purchase, to a governmental body that
has been issued an active tax exemption identification number
by the Department under Section 1g of the Retailers' Occupation
Tax Act.
(18) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated for
disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(19) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in the
performance of infrastructure repairs in this State, including
but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer
line extensions, water distribution and purification
facilities, storm water drainage and retention facilities, and
sewage treatment facilities, resulting from a State or
federally declared disaster in Illinois or bordering Illinois
when such repairs are initiated on facilities located in the
declared disaster area within 6 months after the disaster.
(20) Beginning July 1, 1999, game or game birds sold at a
"game breeding and hunting preserve area" as that term is used
in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-55.
(21) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the Department
to be organized and operated exclusively for educational
purposes. For purposes of this exemption, "a corporation,
limited liability company, society, association, foundation,
or institution organized and operated exclusively for
educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful
branches of learning by methods common to public schools and
that compare favorably in their scope and intensity with the
course of study presented in tax-supported schools, and
vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less
than 6 weeks duration and designed to prepare individuals to
follow a trade or to pursue a manual, technical, mechanical,
industrial, business, or commercial occupation.
(22) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-55.
(23) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and other
items, and replacement parts for these machines. Beginning
January 1, 2002 and through June 30, 2003, machines and parts
for machines used in commercial, coin-operated amusement and
vending business if a use or occupation tax is paid on the
gross receipts derived from the use of the commercial,
coin-operated amusement and vending machines. This paragraph
is exempt from the provisions of Section 3-55.
(24) Beginning on August 2, 2001 (the effective date of
Public Act 92-227) this amendatory Act of the 92nd General
Assembly, computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor
who leases the equipment, under a lease of one year or longer
executed or in effect at the time of the purchase, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. This paragraph is exempt from
the provisions of Section 3-55.
(25) Beginning on August 2, 2001 (the effective date of
Public Act 92-227) this amendatory Act of the 92nd General
Assembly, personal property sold to a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time of the purchase, to a governmental body that
has been issued an active tax exemption identification number
by the Department under Section 1g of the Retailers' Occupation
Tax Act. This paragraph is exempt from the provisions of
Section 3-55.
(26) Beginning on January 1, 2002 and through June 30,
2016, tangible personal property purchased from an Illinois
retailer by a taxpayer engaged in centralized purchasing
activities in Illinois who will, upon receipt of the property
in Illinois, temporarily store the property in Illinois (i) for
the purpose of subsequently transporting it outside this State
for use or consumption thereafter solely outside this State or
(ii) for the purpose of being processed, fabricated, or
manufactured into, attached to, or incorporated into other
tangible personal property to be transported outside this State
and thereafter used or consumed solely outside this State. The
Director of Revenue shall, pursuant to rules adopted in
accordance with the Illinois Administrative Procedure Act,
issue a permit to any taxpayer in good standing with the
Department who is eligible for the exemption under this
paragraph (26). The permit issued under this paragraph (26)
shall authorize the holder, to the extent and in the manner
specified in the rules adopted under this Act, to purchase
tangible personal property from a retailer exempt from the
taxes imposed by this Act. Taxpayers shall maintain all
necessary books and records to substantiate the use and
consumption of all such tangible personal property outside of
the State of Illinois.
(27) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued under
Title IV of the Environmental Protection Act. This paragraph is
exempt from the provisions of Section 3-55.
(28) Tangible personal property sold to a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt instruments
issued by the public-facilities corporation in connection with
the development of the municipal convention hall. This
exemption includes existing public-facilities corporations as
provided in Section 11-65-25 of the Illinois Municipal Code.
This paragraph is exempt from the provisions of Section 3-55.
(29) Beginning January 1, 2010, materials, parts,
equipment, components, and furnishings incorporated into or
upon an aircraft as part of the modification, refurbishment,
completion, replacement, repair, or maintenance of the
aircraft. This exemption includes consumable supplies used in
the modification, refurbishment, completion, replacement,
repair, and maintenance of aircraft, but excludes any
materials, parts, equipment, components, and consumable
supplies used in the modification, replacement, repair, and
maintenance of aircraft engines or power plants, whether such
engines or power plants are installed or uninstalled upon any
such aircraft. "Consumable supplies" include, but are not
limited to, adhesive, tape, sandpaper, general purpose
lubricants, cleaning solution, latex gloves, and protective
films. This exemption applies only to the transfer of
qualifying tangible personal property incident to the
modification, refurbishment, completion, replacement, repair,
or maintenance of an aircraft by persons who (i) hold an Air
Agency Certificate and are empowered to operate an approved
repair station by the Federal Aviation Administration, (ii)
have a Class IV Rating, and (iii) conduct operations in
accordance with Part 145 of the Federal Aviation Regulations.
The exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part 129
of the Federal Aviation Regulations. The changes made to this
paragraph (29) by Public Act 98-534 are declarative of existing
law.
(30) Beginning January 1, 2017, menstrual pads, tampons,
and menstrual cups.
(31) Tangible personal property transferred to a purchaser
who is exempt from tax by operation of federal law. This
paragraph is exempt from the provisions of Section 3-55.
(32) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would have
qualified for a certificate of exemption prior to January 1,
2020 had this amendatory Act of the 101st General Assembly been
in effect, may apply for and obtain an exemption for subsequent
purchases of computer equipment or enabling software purchased
or leased to upgrade, supplement, or replace computer equipment
or enabling software purchased or leased in the original
investment that would have qualified.
The Department of Commerce and Economic Opportunity shall
grant a certificate of exemption under this item (32) to
qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (32):
"Data center" means a building or a series of buildings
rehabilitated or constructed to house working servers in
one physical location or multiple sites within the State of
Illinois.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks; cabinets;
telecommunications cabling infrastructure; raised floor
systems; peripheral components or systems; software;
mechanical, electrical, or plumbing systems; battery
systems; cooling systems and towers; temperature control
systems; other cabling; and other data center
infrastructure equipment and systems necessary to operate
qualified tangible personal property, including fixtures;
and component parts of any of the foregoing, including
installation, maintenance, repair, refurbishment, and
replacement of qualified tangible personal property to
generate, transform, transmit, distribute, or manage
electricity necessary to operate qualified tangible
personal property; and all other tangible personal
property that is essential to the operations of a computer
data center. The term "qualified tangible personal
property" also includes building materials physically
incorporated in to the qualifying data center. To document
the exemption allowed under this Section, the retailer must
obtain from the purchaser a copy of the certificate of
eligibility issued by the Department of Commerce and
Economic Opportunity.
This item (32) is exempt from the provisions of Section
3-55.
(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff.
1-4-19; revised 1-8-19.)
Section 15-45. The Retailers' Occupation Tax Act is amended
by changing Sections 1, 2, 2-5, 2-12, and 2a as follows:
(35 ILCS 120/1) (from Ch. 120, par. 440)
Sec. 1. Definitions. "Sale at retail" means any transfer of
the ownership of or title to tangible personal property to a
purchaser, for the purpose of use or consumption, and not for
the purpose of resale in any form as tangible personal property
to the extent not first subjected to a use for which it was
purchased, for a valuable consideration: Provided that the
property purchased is deemed to be purchased for the purpose of
resale, despite first being used, to the extent to which it is
resold as an ingredient of an intentionally produced product or
byproduct of manufacturing. For this purpose, slag produced as
an incident to manufacturing pig iron or steel and sold is
considered to be an intentionally produced byproduct of
manufacturing. Transactions whereby the possession of the
property is transferred but the seller retains the title as
security for payment of the selling price shall be deemed to be
sales.
"Sale at retail" shall be construed to include any transfer
of the ownership of or title to tangible personal property to a
purchaser, for use or consumption by any other person to whom
such purchaser may transfer the tangible personal property
without a valuable consideration, and to include any transfer,
whether made for or without a valuable consideration, for
resale in any form as tangible personal property unless made in
compliance with Section 2c of this Act.
Sales of tangible personal property, which property, to the
extent not first subjected to a use for which it was purchased,
as an ingredient or constituent, goes into and forms a part of
tangible personal property subsequently the subject of a "Sale
at retail", are not sales at retail as defined in this Act:
Provided that the property purchased is deemed to be purchased
for the purpose of resale, despite first being used, to the
extent to which it is resold as an ingredient of an
intentionally produced product or byproduct of manufacturing.
"Sale at retail" shall be construed to include any Illinois
florist's sales transaction in which the purchase order is
received in Illinois by a florist and the sale is for use or
consumption, but the Illinois florist has a florist in another
state deliver the property to the purchaser or the purchaser's
donee in such other state.
Nonreusable tangible personal property that is used by
persons engaged in the business of operating a restaurant,
cafeteria, or drive-in is a sale for resale when it is
transferred to customers in the ordinary course of business as
part of the sale of food or beverages and is used to deliver,
package, or consume food or beverages, regardless of where
consumption of the food or beverages occurs. Examples of those
items include, but are not limited to nonreusable, paper and
plastic cups, plates, baskets, boxes, sleeves, buckets or other
containers, utensils, straws, placemats, napkins, doggie bags,
and wrapping or packaging materials that are transferred to
customers as part of the sale of food or beverages in the
ordinary course of business.
The purchase, employment and transfer of such tangible
personal property as newsprint and ink for the primary purpose
of conveying news (with or without other information) is not a
purchase, use or sale of tangible personal property.
A person whose activities are organized and conducted
primarily as a not-for-profit service enterprise, and who
engages in selling tangible personal property at retail
(whether to the public or merely to members and their guests)
is engaged in the business of selling tangible personal
property at retail with respect to such transactions, excepting
only a person organized and operated exclusively for
charitable, religious or educational purposes either (1), to
the extent of sales by such person to its members, students,
patients or inmates of tangible personal property to be used
primarily for the purposes of such person, or (2), to the
extent of sales by such person of tangible personal property
which is not sold or offered for sale by persons organized for
profit. The selling of school books and school supplies by
schools at retail to students is not "primarily for the
purposes of" the school which does such selling. The provisions
of this paragraph shall not apply to nor subject to taxation
occasional dinners, socials or similar activities of a person
organized and operated exclusively for charitable, religious
or educational purposes, whether or not such activities are
open to the public.
A person who is the recipient of a grant or contract under
Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
serves meals to participants in the federal Nutrition Program
for the Elderly in return for contributions established in
amount by the individual participant pursuant to a schedule of
suggested fees as provided for in the federal Act is not
engaged in the business of selling tangible personal property
at retail with respect to such transactions.
"Purchaser" means anyone who, through a sale at retail,
acquires the ownership of or title to tangible personal
property for a valuable consideration.
"Reseller of motor fuel" means any person engaged in the
business of selling or delivering or transferring title of
motor fuel to another person other than for use or consumption.
No person shall act as a reseller of motor fuel within this
State without first being registered as a reseller pursuant to
Section 2c or a retailer pursuant to Section 2a.
"Selling price" or the "amount of sale" means the
consideration for a sale valued in money whether received in
money or otherwise, including cash, credits, property, other
than as hereinafter provided, and services, but, prior to
January 1, 2020, not including the value of or credit given for
traded-in tangible personal property where the item that is
traded-in is of like kind and character as that which is being
sold; beginning January 1, 2020, "selling price" includes the
portion of the value of or credit given for traded-in motor
vehicles of the First Division as defined in Section 1-146 of
the Illinois Vehicle Code of like kind and character as that
which is being sold that exceeds $10,000. "Selling price" , and
shall be determined without any deduction on account of the
cost of the property sold, the cost of materials used, labor or
service cost or any other expense whatsoever, but does not
include charges that are added to prices by sellers on account
of the seller's tax liability under this Act, or on account of
the seller's duty to collect, from the purchaser, the tax that
is imposed by the Use Tax Act, or, except as otherwise provided
with respect to any cigarette tax imposed by a home rule unit,
on account of the seller's tax liability under any local
occupation tax administered by the Department, or, except as
otherwise provided with respect to any cigarette tax imposed by
a home rule unit on account of the seller's duty to collect,
from the purchasers, the tax that is imposed under any local
use tax administered by the Department. Effective December 1,
1985, "selling price" shall include charges that are added to
prices by sellers on account of the seller's tax liability
under the Cigarette Tax Act, on account of the sellers' duty to
collect, from the purchaser, the tax imposed under the
Cigarette Use Tax Act, and on account of the seller's duty to
collect, from the purchaser, any cigarette tax imposed by a
home rule unit.
Notwithstanding any law to the contrary, for any motor
vehicle, as defined in Section 1-146 of the Vehicle Code, that
is sold on or after January 1, 2015 for the purpose of leasing
the vehicle for a defined period that is longer than one year
and (1) is a motor vehicle of the second division that: (A) is
a self-contained motor vehicle designed or permanently
converted to provide living quarters for recreational,
camping, or travel use, with direct walk through access to the
living quarters from the driver's seat; (B) is of the van
configuration designed for the transportation of not less than
7 nor more than 16 passengers; or (C) has a gross vehicle
weight rating of 8,000 pounds or less or (2) is a motor vehicle
of the first division, "selling price" or "amount of sale"
means the consideration received by the lessor pursuant to the
lease contract, including amounts due at lease signing and all
monthly or other regular payments charged over the term of the
lease. Also included in the selling price is any amount
received by the lessor from the lessee for the leased vehicle
that is not calculated at the time the lease is executed,
including, but not limited to, excess mileage charges and
charges for excess wear and tear. For sales that occur in
Illinois, with respect to any amount received by the lessor
from the lessee for the leased vehicle that is not calculated
at the time the lease is executed, the lessor who purchased the
motor vehicle does not incur the tax imposed by the Use Tax Act
on those amounts, and the retailer who makes the retail sale of
the motor vehicle to the lessor is not required to collect the
tax imposed by the Use Tax Act or to pay the tax imposed by this
Act on those amounts. However, the lessor who purchased the
motor vehicle assumes the liability for reporting and paying
the tax on those amounts directly to the Department in the same
form (Illinois Retailers' Occupation Tax, and local retailers'
occupation taxes, if applicable) in which the retailer would
have reported and paid such tax if the retailer had accounted
for the tax to the Department. For amounts received by the
lessor from the lessee that are not calculated at the time the
lease is executed, the lessor must file the return and pay the
tax to the Department by the due date otherwise required by
this Act for returns other than transaction returns. If the
retailer is entitled under this Act to a discount for
collecting and remitting the tax imposed under this Act to the
Department with respect to the sale of the motor vehicle to the
lessor, then the right to the discount provided in this Act
shall be transferred to the lessor with respect to the tax paid
by the lessor for any amount received by the lessor from the
lessee for the leased vehicle that is not calculated at the
time the lease is executed; provided that the discount is only
allowed if the return is timely filed and for amounts timely
paid. The "selling price" of a motor vehicle that is sold on or
after January 1, 2015 for the purpose of leasing for a defined
period of longer than one year shall not be reduced by the
value of or credit given for traded-in tangible personal
property owned by the lessor, nor shall it be reduced by the
value of or credit given for traded-in tangible personal
property owned by the lessee, regardless of whether the
trade-in value thereof is assigned by the lessee to the lessor.
In the case of a motor vehicle that is sold for the purpose of
leasing for a defined period of longer than one year, the sale
occurs at the time of the delivery of the vehicle, regardless
of the due date of any lease payments. A lessor who incurs a
Retailers' Occupation Tax liability on the sale of a motor
vehicle coming off lease may not take a credit against that
liability for the Use Tax the lessor paid upon the purchase of
the motor vehicle (or for any tax the lessor paid with respect
to any amount received by the lessor from the lessee for the
leased vehicle that was not calculated at the time the lease
was executed) if the selling price of the motor vehicle at the
time of purchase was calculated using the definition of
"selling price" as defined in this paragraph. Notwithstanding
any other provision of this Act to the contrary, lessors shall
file all returns and make all payments required under this
paragraph to the Department by electronic means in the manner
and form as required by the Department. This paragraph does not
apply to leases of motor vehicles for which, at the time the
lease is entered into, the term of the lease is not a defined
period, including leases with a defined initial period with the
option to continue the lease on a month-to-month or other basis
beyond the initial defined period.
The phrase "like kind and character" shall be liberally
construed (including but not limited to any form of motor
vehicle for any form of motor vehicle, or any kind of farm or
agricultural implement for any other kind of farm or
agricultural implement), while not including a kind of item
which, if sold at retail by that retailer, would be exempt from
retailers' occupation tax and use tax as an isolated or
occasional sale.
"Gross receipts" from the sales of tangible personal
property at retail means the total selling price or the amount
of such sales, as hereinbefore defined. In the case of charge
and time sales, the amount thereof shall be included only as
and when payments are received by the seller. Receipts or other
consideration derived by a seller from the sale, transfer or
assignment of accounts receivable to a wholly owned subsidiary
will not be deemed payments prior to the time the purchaser
makes payment on such accounts.
"Department" means the Department of Revenue.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian or other representative appointed
by order of any court.
The isolated or occasional sale of tangible personal
property at retail by a person who does not hold himself out as
being engaged (or who does not habitually engage) in selling
such tangible personal property at retail, or a sale through a
bulk vending machine, does not constitute engaging in a
business of selling such tangible personal property at retail
within the meaning of this Act; provided that any person who is
engaged in a business which is not subject to the tax imposed
by this Act because of involving the sale of or a contract to
sell real estate or a construction contract to improve real
estate or a construction contract to engineer, install, and
maintain an integrated system of products, but who, in the
course of conducting such business, transfers tangible
personal property to users or consumers in the finished form in
which it was purchased, and which does not become real estate
or was not engineered and installed, under any provision of a
construction contract or real estate sale or real estate sales
agreement entered into with some other person arising out of or
because of such nontaxable business, is engaged in the business
of selling tangible personal property at retail to the extent
of the value of the tangible personal property so transferred.
If, in such a transaction, a separate charge is made for the
tangible personal property so transferred, the value of such
property, for the purpose of this Act, shall be the amount so
separately charged, but not less than the cost of such property
to the transferor; if no separate charge is made, the value of
such property, for the purposes of this Act, is the cost to the
transferor of such tangible personal property. Construction
contracts for the improvement of real estate consisting of
engineering, installation, and maintenance of voice, data,
video, security, and all telecommunication systems do not
constitute engaging in a business of selling tangible personal
property at retail within the meaning of this Act if they are
sold at one specified contract price.
A person who holds himself or herself out as being engaged
(or who habitually engages) in selling tangible personal
property at retail is a person engaged in the business of
selling tangible personal property at retail hereunder with
respect to such sales (and not primarily in a service
occupation) notwithstanding the fact that such person designs
and produces such tangible personal property on special order
for the purchaser and in such a way as to render the property
of value only to such purchaser, if such tangible personal
property so produced on special order serves substantially the
same function as stock or standard items of tangible personal
property that are sold at retail.
Persons who engage in the business of transferring tangible
personal property upon the redemption of trading stamps are
engaged in the business of selling such property at retail and
shall be liable for and shall pay the tax imposed by this Act
on the basis of the retail value of the property transferred
upon redemption of such stamps.
"Bulk vending machine" means a vending machine, containing
unsorted confections, nuts, toys, or other items designed
primarily to be used or played with by children which, when a
coin or coins of a denomination not larger than $0.50 are
inserted, are dispensed in equal portions, at random and
without selection by the customer.
"Remote retailer" means a retailer located outside of this
State that does not maintain within this State, directly or by
a subsidiary, an office, distribution house, sales house,
warehouse or other place of business, or any agent or other
representative operating within this State under the authority
of the retailer or its subsidiary, irrespective of whether such
place of business or agent is located here permanently or
temporarily or whether such retailer or subsidiary is licensed
to do business in this State.
(Source: P.A. 98-628, eff. 1-1-15; 98-1080, eff. 8-26-14.)
(35 ILCS 120/2) (from Ch. 120, par. 441)
Sec. 2. Tax imposed.
(a) A tax is imposed upon persons engaged in the business
of selling at retail tangible personal property, including
computer software, and including photographs, negatives, and
positives that are the product of photoprocessing, but not
including products of photoprocessing produced for use in
motion pictures for public commercial exhibition. Beginning
January 1, 2001, prepaid telephone calling arrangements shall
be considered tangible personal property subject to the tax
imposed under this Act regardless of the form in which those
arrangements may be embodied, transmitted, or fixed by any
method now known or hereafter developed. Sales of (1)
electricity delivered to customers by wire; (2) natural or
artificial gas that is delivered to customers through pipes,
pipelines, or mains; and (3) water that is delivered to
customers through pipes, pipelines, or mains are not subject to
tax under this Act. The provisions of this amendatory Act of
the 98th General Assembly are declaratory of existing law as to
the meaning and scope of this Act.
(b) Beginning on July 1, 2020, a remote retailer is engaged
in the occupation of selling at retail in Illinois for purposes
of this Act, if:
(1) the cumulative gross receipts from sales of
tangible personal property to purchasers in Illinois are
$100,000 or more; or
(2) the retailer enters into 200 or more separate
transactions for the sale of tangible personal property to
purchasers in Illinois.
Remote retailers that meet or exceed the threshold in
either paragraph (1) or (2) above shall be liable for all
applicable State and locally imposed retailers' occupation
taxes on all retail sales to Illinois purchasers.
The remote retailer shall determine on a quarterly basis,
ending on the last day of March, June, September, and December,
whether he or she meets the criteria of either paragraph (1) or
(2) of this subsection for the preceding 12-month period. If
the retailer meets the criteria of either paragraph (1) or (2)
for a 12-month period, he or she is considered a retailer
maintaining a place of business in this State and is required
to collect and remit the tax imposed under this Act and all
retailers' occupation tax imposed by local taxing
jurisdictions in Illinois, provided such local taxes are
administered by the Department, and to file all applicable
returns for one year. At the end of that one-year period, the
retailer shall determine whether the retailer met the criteria
of either paragraph (1) or (2) for the preceding 12-month
period. If the retailer met the criteria in either paragraph
(1) or (2) for the preceding 12-month period, he or she is
considered a retailer maintaining a place of business in this
State and is required to collect and remit all applicable State
and local retailers' occupation taxes and file returns for the
subsequent year. If, at the end of a one-year period, a
retailer that was required to collect and remit the tax imposed
under this Act determines that he or she did not meet the
criteria in either paragraph (1) or (2) during the preceding
12-month period, then the retailer shall subsequently
determine on a quarterly basis, ending on the last day of
March, June, September, and December, whether he or she meets
the criteria of either paragraph (1) or (2) for the preceding
12-month period.
(Source: P.A. 98-583, eff. 1-1-14.)
(35 ILCS 120/2-5)
Sec. 2-5. Exemptions. Gross receipts from proceeds from the
sale of the following tangible personal property are exempt
from the tax imposed by this Act:
(1) Farm chemicals.
(2) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by
the purchaser to be used primarily for production
agriculture or State or federal agricultural programs,
including individual replacement parts for the machinery
and equipment, including machinery and equipment purchased
for lease, and including implements of husbandry defined in
Section 1-130 of the Illinois Vehicle Code, farm machinery
and agricultural chemical and fertilizer spreaders, and
nurse wagons required to be registered under Section 3-809
of the Illinois Vehicle Code, but excluding other motor
vehicles required to be registered under the Illinois
Vehicle Code. Horticultural polyhouses or hoop houses used
for propagating, growing, or overwintering plants shall be
considered farm machinery and equipment under this item
(2). Agricultural chemical tender tanks and dry boxes shall
include units sold separately from a motor vehicle required
to be licensed and units sold mounted on a motor vehicle
required to be licensed, if the selling price of the tender
is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but
not limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders. Precision farming equipment
includes, but is not limited to, soil testing sensors,
computers, monitors, software, global positioning and
mapping systems, and other such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in
the computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not
limited to, the collection, monitoring, and correlation of
animal and crop data for the purpose of formulating animal
diets and agricultural chemicals. This item (2) is exempt
from the provisions of Section 2-70.
(3) Until July 1, 2003, distillation machinery and
equipment, sold as a unit or kit, assembled or installed by
the retailer, certified by the user to be used only for the
production of ethyl alcohol that will be used for
consumption as motor fuel or as a component of motor fuel
for the personal use of the user, and not subject to sale
or resale.
(4) Until July 1, 2003 and beginning again September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both
new and used, and including that manufactured on special
order or purchased for lease, certified by the purchaser to
be used primarily for graphic arts production. Equipment
includes chemicals or chemicals acting as catalysts but
only if the chemicals or chemicals acting as catalysts
effect a direct and immediate change upon a graphic arts
product. Beginning on July 1, 2017, graphic arts machinery
and equipment is included in the manufacturing and
assembling machinery and equipment exemption under
paragraph (14).
(5) A motor vehicle that is used for automobile
renting, as defined in the Automobile Renting Occupation
and Use Tax Act. This paragraph is exempt from the
provisions of Section 2-70.
(6) Personal property sold by a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(7) Until July 1, 2003, proceeds of that portion of the
selling price of a passenger car the sale of which is
subject to the Replacement Vehicle Tax.
(8) Personal property sold to an Illinois county fair
association for use in conducting, operating, or promoting
the county fair.
(9) Personal property sold to a not-for-profit arts or
cultural organization that establishes, by proof required
by the Department by rule, that it has received an
exemption under Section 501(c)(3) of the Internal Revenue
Code and that is organized and operated primarily for the
presentation or support of arts or cultural programming,
activities, or services. These organizations include, but
are not limited to, music and dramatic arts organizations
such as symphony orchestras and theatrical groups, arts and
cultural service organizations, local arts councils,
visual arts organizations, and media arts organizations.
On and after July 1, 2001 (the effective date of Public Act
92-35), however, an entity otherwise eligible for this
exemption shall not make tax-free purchases unless it has
an active identification number issued by the Department.
(10) Personal property sold by a corporation, society,
association, foundation, institution, or organization,
other than a limited liability company, that is organized
and operated as a not-for-profit service enterprise for the
benefit of persons 65 years of age or older if the personal
property was not purchased by the enterprise for the
purpose of resale by the enterprise.
(11) Personal property sold to a governmental body, to
a corporation, society, association, foundation, or
institution organized and operated exclusively for
charitable, religious, or educational purposes, or to a
not-for-profit corporation, society, association,
foundation, institution, or organization that has no
compensated officers or employees and that is organized and
operated primarily for the recreation of persons 55 years
of age or older. A limited liability company may qualify
for the exemption under this paragraph only if the limited
liability company is organized and operated exclusively
for educational purposes. On and after July 1, 1987,
however, no entity otherwise eligible for this exemption
shall make tax-free purchases unless it has an active
identification number issued by the Department.
(12) (Blank).
(12-5) On and after July 1, 2003 and through June 30,
2004, motor vehicles of the second division with a gross
vehicle weight in excess of 8,000 pounds that are subject
to the commercial distribution fee imposed under Section
3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
2004 and through June 30, 2005, the use in this State of
motor vehicles of the second division: (i) with a gross
vehicle weight rating in excess of 8,000 pounds; (ii) that
are subject to the commercial distribution fee imposed
under Section 3-815.1 of the Illinois Vehicle Code; and
(iii) that are primarily used for commercial purposes.
Through June 30, 2005, this exemption applies to repair and
replacement parts added after the initial purchase of such
a motor vehicle if that motor vehicle is used in a manner
that would qualify for the rolling stock exemption
otherwise provided for in this Act. For purposes of this
paragraph, "used for commercial purposes" means the
transportation of persons or property in furtherance of any
commercial or industrial enterprise whether for-hire or
not.
(13) Proceeds from sales to owners, lessors, or
shippers of tangible personal property that is utilized by
interstate carriers for hire for use as rolling stock
moving in interstate commerce and equipment operated by a
telecommunications provider, licensed as a common carrier
by the Federal Communications Commission, which is
permanently installed in or affixed to aircraft moving in
interstate commerce.
(14) Machinery and equipment that will be used by the
purchaser, or a lessee of the purchaser, primarily in the
process of manufacturing or assembling tangible personal
property for wholesale or retail sale or lease, whether the
sale or lease is made directly by the manufacturer or by
some other person, whether the materials used in the
process are owned by the manufacturer or some other person,
or whether the sale or lease is made apart from or as an
incident to the seller's engaging in the service occupation
of producing machines, tools, dies, jigs, patterns,
gauges, or other similar items of no commercial value on
special order for a particular purchaser. The exemption
provided by this paragraph (14) does not include machinery
and equipment used in (i) the generation of electricity for
wholesale or retail sale; (ii) the generation or treatment
of natural or artificial gas for wholesale or retail sale
that is delivered to customers through pipes, pipelines, or
mains; or (iii) the treatment of water for wholesale or
retail sale that is delivered to customers through pipes,
pipelines, or mains. The provisions of Public Act 98-583
are declaratory of existing law as to the meaning and scope
of this exemption. Beginning on July 1, 2017, the exemption
provided by this paragraph (14) includes, but is not
limited to, graphic arts machinery and equipment, as
defined in paragraph (4) of this Section.
(15) Proceeds of mandatory service charges separately
stated on customers' bills for purchase and consumption of
food and beverages, to the extent that the proceeds of the
service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate
directly in preparing, serving, hosting or cleaning up the
food or beverage function with respect to which the service
charge is imposed.
(16) Tangible personal property sold to a purchaser if
the purchaser is exempt from use tax by operation of
federal law. This paragraph is exempt from the provisions
of Section 2-70.
(17) Tangible personal property sold to a common
carrier by rail or motor that receives the physical
possession of the property in Illinois and that transports
the property, or shares with another common carrier in the
transportation of the property, out of Illinois on a
standard uniform bill of lading showing the seller of the
property as the shipper or consignor of the property to a
destination outside Illinois, for use outside Illinois.
(18) Legal tender, currency, medallions, or gold or
silver coinage issued by the State of Illinois, the
government of the United States of America, or the
government of any foreign country, and bullion.
(19) Until July 1, 2003, oil field exploration,
drilling, and production equipment, including (i) rigs and
parts of rigs, rotary rigs, cable tool rigs, and workover
rigs, (ii) pipe and tubular goods, including casing and
drill strings, (iii) pumps and pump-jack units, (iv)
storage tanks and flow lines, (v) any individual
replacement part for oil field exploration, drilling, and
production equipment, and (vi) machinery and equipment
purchased for lease; but excluding motor vehicles required
to be registered under the Illinois Vehicle Code.
(20) Photoprocessing machinery and equipment,
including repair and replacement parts, both new and used,
including that manufactured on special order, certified by
the purchaser to be used primarily for photoprocessing, and
including photoprocessing machinery and equipment
purchased for lease.
(21) Until July 1, 2023, coal and aggregate
exploration, mining, off-highway hauling, processing,
maintenance, and reclamation equipment, including
replacement parts and equipment, and including equipment
purchased for lease, but excluding motor vehicles required
to be registered under the Illinois Vehicle Code. The
changes made to this Section by Public Act 97-767 apply on
and after July 1, 2003, but no claim for credit or refund
is allowed on or after August 16, 2013 (the effective date
of Public Act 98-456) for such taxes paid during the period
beginning July 1, 2003 and ending on August 16, 2013 (the
effective date of Public Act 98-456).
(22) Until June 30, 2013, fuel and petroleum products
sold to or used by an air carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a
flight destined for or returning from a location or
locations outside the United States without regard to
previous or subsequent domestic stopovers.
Beginning July 1, 2013, fuel and petroleum products
sold to or used by an air carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a
flight that (i) is engaged in foreign trade or is engaged
in trade between the United States and any of its
possessions and (ii) transports at least one individual or
package for hire from the city of origination to the city
of final destination on the same aircraft, without regard
to a change in the flight number of that aircraft.
(23) A transaction in which the purchase order is
received by a florist who is located outside Illinois, but
who has a florist located in Illinois deliver the property
to the purchaser or the purchaser's donee in Illinois.
(24) Fuel consumed or used in the operation of ships,
barges, or vessels that are used primarily in or for the
transportation of property or the conveyance of persons for
hire on rivers bordering on this State if the fuel is
delivered by the seller to the purchaser's barge, ship, or
vessel while it is afloat upon that bordering river.
(25) Except as provided in item (25-5) of this Section,
a motor vehicle sold in this State to a nonresident even
though the motor vehicle is delivered to the nonresident in
this State, if the motor vehicle is not to be titled in
this State, and if a drive-away permit is issued to the
motor vehicle as provided in Section 3-603 of the Illinois
Vehicle Code or if the nonresident purchaser has vehicle
registration plates to transfer to the motor vehicle upon
returning to his or her home state. The issuance of the
drive-away permit or having the out-of-state registration
plates to be transferred is prima facie evidence that the
motor vehicle will not be titled in this State.
(25-5) The exemption under item (25) does not apply if
the state in which the motor vehicle will be titled does
not allow a reciprocal exemption for a motor vehicle sold
and delivered in that state to an Illinois resident but
titled in Illinois. The tax collected under this Act on the
sale of a motor vehicle in this State to a resident of
another state that does not allow a reciprocal exemption
shall be imposed at a rate equal to the state's rate of tax
on taxable property in the state in which the purchaser is
a resident, except that the tax shall not exceed the tax
that would otherwise be imposed under this Act. At the time
of the sale, the purchaser shall execute a statement,
signed under penalty of perjury, of his or her intent to
title the vehicle in the state in which the purchaser is a
resident within 30 days after the sale and of the fact of
the payment to the State of Illinois of tax in an amount
equivalent to the state's rate of tax on taxable property
in his or her state of residence and shall submit the
statement to the appropriate tax collection agency in his
or her state of residence. In addition, the retailer must
retain a signed copy of the statement in his or her
records. Nothing in this item shall be construed to require
the removal of the vehicle from this state following the
filing of an intent to title the vehicle in the purchaser's
state of residence if the purchaser titles the vehicle in
his or her state of residence within 30 days after the date
of sale. The tax collected under this Act in accordance
with this item (25-5) shall be proportionately distributed
as if the tax were collected at the 6.25% general rate
imposed under this Act.
(25-7) Beginning on July 1, 2007, no tax is imposed
under this Act on the sale of an aircraft, as defined in
Section 3 of the Illinois Aeronautics Act, if all of the
following conditions are met:
(1) the aircraft leaves this State within 15 days
after the later of either the issuance of the final
billing for the sale of the aircraft, or the authorized
approval for return to service, completion of the
maintenance record entry, and completion of the test
flight and ground test for inspection, as required by
14 C.F.R. 91.407;
(2) the aircraft is not based or registered in this
State after the sale of the aircraft; and
(3) the seller retains in his or her books and
records and provides to the Department a signed and
dated certification from the purchaser, on a form
prescribed by the Department, certifying that the
requirements of this item (25-7) are met. The
certificate must also include the name and address of
the purchaser, the address of the location where the
aircraft is to be titled or registered, the address of
the primary physical location of the aircraft, and
other information that the Department may reasonably
require.
For purposes of this item (25-7):
"Based in this State" means hangared, stored, or
otherwise used, excluding post-sale customizations as
defined in this Section, for 10 or more days in each
12-month period immediately following the date of the sale
of the aircraft.
"Registered in this State" means an aircraft
registered with the Department of Transportation,
Aeronautics Division, or titled or registered with the
Federal Aviation Administration to an address located in
this State.
This paragraph (25-7) is exempt from the provisions of
Section 2-70.
(26) Semen used for artificial insemination of
livestock for direct agricultural production.
(27) Horses, or interests in horses, registered with
and meeting the requirements of any of the Arabian Horse
Club Registry of America, Appaloosa Horse Club, American
Quarter Horse Association, United States Trotting
Association, or Jockey Club, as appropriate, used for
purposes of breeding or racing for prizes. This item (27)
is exempt from the provisions of Section 2-70, and the
exemption provided for under this item (27) applies for all
periods beginning May 30, 1995, but no claim for credit or
refund is allowed on or after January 1, 2008 (the
effective date of Public Act 95-88) for such taxes paid
during the period beginning May 30, 2000 and ending on
January 1, 2008 (the effective date of Public Act 95-88).
(28) Computers and communications equipment utilized
for any hospital purpose and equipment used in the
diagnosis, analysis, or treatment of hospital patients
sold to a lessor who leases the equipment, under a lease of
one year or longer executed or in effect at the time of the
purchase, to a hospital that has been issued an active tax
exemption identification number by the Department under
Section 1g of this Act.
(29) Personal property sold to a lessor who leases the
property, under a lease of one year or longer executed or
in effect at the time of the purchase, to a governmental
body that has been issued an active tax exemption
identification number by the Department under Section 1g of
this Act.
(30) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on
or before December 31, 2004, personal property that is
donated for disaster relief to be used in a State or
federally declared disaster area in Illinois or bordering
Illinois by a manufacturer or retailer that is registered
in this State to a corporation, society, association,
foundation, or institution that has been issued a sales tax
exemption identification number by the Department that
assists victims of the disaster who reside within the
declared disaster area.
(31) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on
or before December 31, 2004, personal property that is used
in the performance of infrastructure repairs in this State,
including but not limited to municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and
retention facilities, and sewage treatment facilities,
resulting from a State or federally declared disaster in
Illinois or bordering Illinois when such repairs are
initiated on facilities located in the declared disaster
area within 6 months after the disaster.
(32) Beginning July 1, 1999, game or game birds sold at
a "game breeding and hunting preserve area" as that term is
used in the Wildlife Code. This paragraph is exempt from
the provisions of Section 2-70.
(33) A motor vehicle, as that term is defined in
Section 1-146 of the Illinois Vehicle Code, that is donated
to a corporation, limited liability company, society,
association, foundation, or institution that is determined
by the Department to be organized and operated exclusively
for educational purposes. For purposes of this exemption,
"a corporation, limited liability company, society,
association, foundation, or institution organized and
operated exclusively for educational purposes" means all
tax-supported public schools, private schools that offer
systematic instruction in useful branches of learning by
methods common to public schools and that compare favorably
in their scope and intensity with the course of study
presented in tax-supported schools, and vocational or
technical schools or institutes organized and operated
exclusively to provide a course of study of not less than 6
weeks duration and designed to prepare individuals to
follow a trade or to pursue a manual, technical,
mechanical, industrial, business, or commercial
occupation.
(34) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for
the benefit of a public or private elementary or secondary
school, a group of those schools, or one or more school
districts if the events are sponsored by an entity
recognized by the school district that consists primarily
of volunteers and includes parents and teachers of the
school children. This paragraph does not apply to
fundraising events (i) for the benefit of private home
instruction or (ii) for which the fundraising entity
purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that
profits from the sale to the fundraising entity. This
paragraph is exempt from the provisions of Section 2-70.
(35) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare
and serve hot food and beverages, including coffee, soup,
and other items, and replacement parts for these machines.
Beginning January 1, 2002 and through June 30, 2003,
machines and parts for machines used in commercial,
coin-operated amusement and vending business if a use or
occupation tax is paid on the gross receipts derived from
the use of the commercial, coin-operated amusement and
vending machines. This paragraph is exempt from the
provisions of Section 2-70.
(35-5) Beginning August 23, 2001 and through June 30,
2016, food for human consumption that is to be consumed off
the premises where it is sold (other than alcoholic
beverages, soft drinks, and food that has been prepared for
immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, and
insulin, urine testing materials, syringes, and needles
used by diabetics, for human use, when purchased for use by
a person receiving medical assistance under Article V of
the Illinois Public Aid Code who resides in a licensed
long-term care facility, as defined in the Nursing Home
Care Act, or a licensed facility as defined in the ID/DD
Community Care Act, the MC/DD Act, or the Specialized
Mental Health Rehabilitation Act of 2013.
(36) Beginning August 2, 2001, computers and
communications equipment utilized for any hospital purpose
and equipment used in the diagnosis, analysis, or treatment
of hospital patients sold to a lessor who leases the
equipment, under a lease of one year or longer executed or
in effect at the time of the purchase, to a hospital that
has been issued an active tax exemption identification
number by the Department under Section 1g of this Act. This
paragraph is exempt from the provisions of Section 2-70.
(37) Beginning August 2, 2001, personal property sold
to a lessor who leases the property, under a lease of one
year or longer executed or in effect at the time of the
purchase, to a governmental body that has been issued an
active tax exemption identification number by the
Department under Section 1g of this Act. This paragraph is
exempt from the provisions of Section 2-70.
(38) Beginning on January 1, 2002 and through June 30,
2016, tangible personal property purchased from an
Illinois retailer by a taxpayer engaged in centralized
purchasing activities in Illinois who will, upon receipt of
the property in Illinois, temporarily store the property in
Illinois (i) for the purpose of subsequently transporting
it outside this State for use or consumption thereafter
solely outside this State or (ii) for the purpose of being
processed, fabricated, or manufactured into, attached to,
or incorporated into other tangible personal property to be
transported outside this State and thereafter used or
consumed solely outside this State. The Director of Revenue
shall, pursuant to rules adopted in accordance with the
Illinois Administrative Procedure Act, issue a permit to
any taxpayer in good standing with the Department who is
eligible for the exemption under this paragraph (38). The
permit issued under this paragraph (38) shall authorize the
holder, to the extent and in the manner specified in the
rules adopted under this Act, to purchase tangible personal
property from a retailer exempt from the taxes imposed by
this Act. Taxpayers shall maintain all necessary books and
records to substantiate the use and consumption of all such
tangible personal property outside of the State of
Illinois.
(39) Beginning January 1, 2008, tangible personal
property used in the construction or maintenance of a
community water supply, as defined under Section 3.145 of
the Environmental Protection Act, that is operated by a
not-for-profit corporation that holds a valid water supply
permit issued under Title IV of the Environmental
Protection Act. This paragraph is exempt from the
provisions of Section 2-70.
(40) Beginning January 1, 2010, materials, parts,
equipment, components, and furnishings incorporated into
or upon an aircraft as part of the modification,
refurbishment, completion, replacement, repair, or
maintenance of the aircraft. This exemption includes
consumable supplies used in the modification,
refurbishment, completion, replacement, repair, and
maintenance of aircraft, but excludes any materials,
parts, equipment, components, and consumable supplies used
in the modification, replacement, repair, and maintenance
of aircraft engines or power plants, whether such engines
or power plants are installed or uninstalled upon any such
aircraft. "Consumable supplies" include, but are not
limited to, adhesive, tape, sandpaper, general purpose
lubricants, cleaning solution, latex gloves, and
protective films. This exemption applies only to the sale
of qualifying tangible personal property to persons who
modify, refurbish, complete, replace, or maintain an
aircraft and who (i) hold an Air Agency Certificate and are
empowered to operate an approved repair station by the
Federal Aviation Administration, (ii) have a Class IV
Rating, and (iii) conduct operations in accordance with
Part 145 of the Federal Aviation Regulations. The exemption
does not include aircraft operated by a commercial air
carrier providing scheduled passenger air service pursuant
to authority issued under Part 121 or Part 129 of the
Federal Aviation Regulations. The changes made to this
paragraph (40) by Public Act 98-534 are declarative of
existing law.
(41) Tangible personal property sold to a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall,
but only if the legal title to the municipal convention
hall is transferred to the municipality without any further
consideration by or on behalf of the municipality at the
time of the completion of the municipal convention hall or
upon the retirement or redemption of any bonds or other
debt instruments issued by the public-facilities
corporation in connection with the development of the
municipal convention hall. This exemption includes
existing public-facilities corporations as provided in
Section 11-65-25 of the Illinois Municipal Code. This
paragraph is exempt from the provisions of Section 2-70.
(42) Beginning January 1, 2017, menstrual pads,
tampons, and menstrual cups.
(43) Merchandise that is subject to the Rental Purchase
Agreement Occupation and Use Tax. The purchaser must
certify that the item is purchased to be rented subject to
a rental purchase agreement, as defined in the Rental
Purchase Agreement Act, and provide proof of registration
under the Rental Purchase Agreement Occupation and Use Tax
Act. This paragraph is exempt from the provisions of
Section 2-70.
(44) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or
subcontractor of the owner, operator, or tenant. Data
centers that would have qualified for a certificate of
exemption prior to January 1, 2020 had this amendatory Act
of the 101st General Assembly been in effect, may apply for
and obtain an exemption for subsequent purchases of
computer equipment or enabling software purchased or
leased to upgrade, supplement, or replace computer
equipment or enabling software purchased or leased in the
original investment that would have qualified.
The Department of Commerce and Economic Opportunity
shall grant a certificate of exemption under this item (44)
to qualified data centers as defined by Section 605-1025 of
the Department of Commerce and Economic Opportunity Law of
the Civil Administrative Code of Illinois.
For the purposes of this item (44):
"Data center" means a building or a series of
buildings rehabilitated or constructed to house
working servers in one physical location or multiple
sites within the State of Illinois.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks;
cabinets; telecommunications cabling infrastructure;
raised floor systems; peripheral components or
systems; software; mechanical, electrical, or plumbing
systems; battery systems; cooling systems and towers;
temperature control systems; other cabling; and other
data center infrastructure equipment and systems
necessary to operate qualified tangible personal
property, including fixtures; and component parts of
any of the foregoing, including installation,
maintenance, repair, refurbishment, and replacement of
qualified tangible personal property to generate,
transform, transmit, distribute, or manage electricity
necessary to operate qualified tangible personal
property; and all other tangible personal property
that is essential to the operations of a computer data
center. The term "qualified tangible personal
property" also includes building materials physically
incorporated in to the qualifying data center. To
document the exemption allowed under this Section, the
retailer must obtain from the purchaser a copy of the
certificate of eligibility issued by the Department of
Commerce and Economic Opportunity.
This item (44) is exempt from the provisions of Section
2-70.
(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff.
1-1-18; 100-594, eff. 6-29-18; 100-863, eff. 8-14-18;
100-1171, eff. 1-4-19; revised 1-8-19.)
(35 ILCS 120/2-12)
Sec. 2-12. Location where retailer is deemed to be engaged
in the business of selling. The purpose of this Section is to
specify where a retailer is deemed to be engaged in the
business of selling tangible personal property for the purposes
of this Act, the Use Tax Act, the Service Use Tax Act, and the
Service Occupation Tax Act, and for the purpose of collecting
any other local retailers' occupation tax administered by the
Department. This Section applies only with respect to the
particular selling activities described in the following
paragraphs. The provisions of this Section are not intended to,
and shall not be interpreted to, affect where a retailer is
deemed to be engaged in the business of selling with respect to
any activity that is not specifically described in the
following paragraphs.
(1) If a purchaser who is present at the retailer's
place of business, having no prior commitment to the
retailer, agrees to purchase and makes payment for tangible
personal property at the retailer's place of business, then
the transaction shall be deemed an over-the-counter sale
occurring at the retailer's same place of business where
the purchaser was present and made payment for that
tangible personal property if the retailer regularly
stocks the purchased tangible personal property or similar
tangible personal property in the quantity, or similar
quantity, for sale at the retailer's same place of business
and then either (i) the purchaser takes possession of the
tangible personal property at the same place of business or
(ii) the retailer delivers or arranges for the tangible
personal property to be delivered to the purchaser.
(2) If a purchaser, having no prior commitment to the
retailer, agrees to purchase tangible personal property
and makes payment over the phone, in writing, or via the
Internet and takes possession of the tangible personal
property at the retailer's place of business, then the sale
shall be deemed to have occurred at the retailer's place of
business where the purchaser takes possession of the
property if the retailer regularly stocks the item or
similar items in the quantity, or similar quantities,
purchased by the purchaser.
(3) A retailer is deemed to be engaged in the business
of selling food, beverages, or other tangible personal
property through a vending machine at the location where
the vending machine is located at the time the sale is made
if (i) the vending machine is a device operated by coin,
currency, credit card, token, coupon or similar device; (2)
the food, beverage or other tangible personal property is
contained within the vending machine and dispensed from the
vending machine; and (3) the purchaser takes possession of
the purchased food, beverage or other tangible personal
property immediately.
(4) Minerals. A producer of coal or other mineral mined
in Illinois is deemed to be engaged in the business of
selling at the place where the coal or other mineral mined
in Illinois is extracted from the earth. With respect to
minerals (i) the term "extracted from the earth" means the
location at which the coal or other mineral is extracted
from the mouth of the mine, and (ii) a "mineral" includes
not only coal, but also oil, sand, stone taken from a
quarry, gravel and any other thing commonly regarded as a
mineral and extracted from the earth. This paragraph does
not apply to coal or another mineral when it is delivered
or shipped by the seller to the purchaser at a point
outside Illinois so that the sale is exempt under the
United States Constitution as a sale in interstate or
foreign commerce.
(5) A retailer selling tangible personal property to a
nominal lessee or bailee pursuant to a lease with a dollar
or other nominal option to purchase is engaged in the
business of selling at the location where the property is
first delivered to the lessee or bailee for its intended
use.
(6) Beginning on July 1, 2020, for the purposes of
determining the correct local retailers' occupation tax
rate, retail sales made by a remote retailer that meet or
exceed the thresholds established in paragraph (1) or (2)
of subsection (b) of Section 2 of this Act shall be deemed
to be made at the Illinois location to which the tangible
personal property is shipped or delivered or at which
possession is taken by the purchaser.
(Source: P.A. 98-1098, eff. 8-26-14; 99-126, eff. 7-23-15.)
(35 ILCS 120/2a) (from Ch. 120, par. 441a)
Sec. 2a. It is unlawful for any person to engage in the
business of selling tangible personal property at retail in
this State without a certificate of registration from the
Department. Application for a certificate of registration
shall be made to the Department upon forms furnished by it.
Each such application shall be signed and verified and shall
state: (1) the name and social security number of the
applicant; (2) the address of his principal place of business;
(3) the address of the principal place of business from which
he engages in the business of selling tangible personal
property at retail in this State and the addresses of all other
places of business, if any (enumerating such addresses, if any,
in a separate list attached to and made a part of the
application), from which he engages in the business of selling
tangible personal property at retail in this State; (4) the
name and address of the person or persons who will be
responsible for filing returns and payment of taxes due under
this Act; (5) in the case of a publicly traded corporation, the
name and title of the Chief Financial Officer, Chief Operating
Officer, and any other officer or employee with responsibility
for preparing tax returns under this Act, and, in the case of
all other corporations, the name, title, and social security
number of each corporate officer; (6) in the case of a limited
liability company, the name, social security number, and FEIN
number of each manager and member; and (7) such other
information as the Department may reasonably require. The
application shall contain an acceptance of responsibility
signed by the person or persons who will be responsible for
filing returns and payment of the taxes due under this Act. If
the applicant will sell tangible personal property at retail
through vending machines, his application to register shall
indicate the number of vending machines to be so operated. If
requested by the Department at any time, that person shall
verify the total number of vending machines he or she uses in
his or her business of selling tangible personal property at
retail.
The Department shall provide by rule for an expedited
business registration process for remote retailers required to
register and file under subsection (b) of Section 2 who use a
certified service provider to file their returns under this
Act. Such expedited registration process shall allow the
Department to register a taxpayer based upon the same
registration information required by the Streamlined Sales Tax
Governing Board for states participating in the Streamlined
Sales Tax Project.
The Department may deny a certificate of registration to
any applicant if a person who is named as the owner, a partner,
a manager or member of a limited liability company, or a
corporate officer of the applicant on the application for the
certificate of registration is or has been named as the owner,
a partner, a manager or member of a limited liability company,
or a corporate officer on the application for the certificate
of registration of another retailer that is in default for
moneys due under this Act or any other tax or fee Act
administered by the Department. For purposes of this paragraph
only, in determining whether a person is in default for moneys
due, the Department shall include only amounts established as a
final liability within the 20 years prior to the date of the
Department's notice of denial of a certificate of registration.
The Department may require an applicant for a certificate
of registration hereunder to, at the time of filing such
application, furnish a bond from a surety company authorized to
do business in the State of Illinois, or an irrevocable bank
letter of credit or a bond signed by 2 personal sureties who
have filed, with the Department, sworn statements disclosing
net assets equal to at least 3 times the amount of the bond to
be required of such applicant, or a bond secured by an
assignment of a bank account or certificate of deposit, stocks
or bonds, conditioned upon the applicant paying to the State of
Illinois all moneys becoming due under this Act and under any
other State tax law or municipal or county tax ordinance or
resolution under which the certificate of registration that is
issued to the applicant under this Act will permit the
applicant to engage in business without registering separately
under such other law, ordinance or resolution. In making a
determination as to whether to require a bond or other
security, the Department shall take into consideration whether
the owner, any partner, any manager or member of a limited
liability company, or a corporate officer of the applicant is
or has been the owner, a partner, a manager or member of a
limited liability company, or a corporate officer of another
retailer that is in default for moneys due under this Act or
any other tax or fee Act administered by the Department; and
whether the owner, any partner, any manager or member of a
limited liability company, or a corporate officer of the
applicant is or has been the owner, a partner, a manager or
member of a limited liability company, or a corporate officer
of another retailer whose certificate of registration has been
revoked within the previous 5 years under this Act or any other
tax or fee Act administered by the Department. If a bond or
other security is required, the Department shall fix the amount
of the bond or other security, taking into consideration the
amount of money expected to become due from the applicant under
this Act and under any other State tax law or municipal or
county tax ordinance or resolution under which the certificate
of registration that is issued to the applicant under this Act
will permit the applicant to engage in business without
registering separately under such other law, ordinance, or
resolution. The amount of security required by the Department
shall be such as, in its opinion, will protect the State of
Illinois against failure to pay the amount which may become due
from the applicant under this Act and under any other State tax
law or municipal or county tax ordinance or resolution under
which the certificate of registration that is issued to the
applicant under this Act will permit the applicant to engage in
business without registering separately under such other law,
ordinance or resolution, but the amount of the security
required by the Department shall not exceed three times the
amount of the applicant's average monthly tax liability, or
$50,000.00, whichever amount is lower.
No certificate of registration under this Act shall be
issued by the Department until the applicant provides the
Department with satisfactory security, if required, as herein
provided for.
Upon receipt of the application for certificate of
registration in proper form, and upon approval by the
Department of the security furnished by the applicant, if
required, the Department shall issue to such applicant a
certificate of registration which shall permit the person to
whom it is issued to engage in the business of selling tangible
personal property at retail in this State. The certificate of
registration shall be conspicuously displayed at the place of
business which the person so registered states in his
application to be the principal place of business from which he
engages in the business of selling tangible personal property
at retail in this State.
No certificate of registration issued prior to July 1, 2017
to a taxpayer who files returns required by this Act on a
monthly basis or renewed prior to July 1, 2017 by a taxpayer
who files returns required by this Act on a monthly basis shall
be valid after the expiration of 5 years from the date of its
issuance or last renewal. No certificate of registration issued
on or after July 1, 2017 to a taxpayer who files returns
required by this Act on a monthly basis or renewed on or after
July 1, 2017 by a taxpayer who files returns required by this
Act on a monthly basis shall be valid after the expiration of
one year from the date of its issuance or last renewal. The
expiration date of a sub-certificate of registration shall be
that of the certificate of registration to which the
sub-certificate relates. Prior to July 1, 2017, a certificate
of registration shall automatically be renewed, subject to
revocation as provided by this Act, for an additional 5 years
from the date of its expiration unless otherwise notified by
the Department as provided by this paragraph. On and after July
1, 2017, a certificate of registration shall automatically be
renewed, subject to revocation as provided by this Act, for an
additional one year from the date of its expiration unless
otherwise notified by the Department as provided by this
paragraph.
Where a taxpayer to whom a certificate of registration is
issued under this Act is in default to the State of Illinois
for delinquent returns or for moneys due under this Act or any
other State tax law or municipal or county ordinance
administered or enforced by the Department, the Department
shall, not less than 60 days before the expiration date of such
certificate of registration, give notice to the taxpayer to
whom the certificate was issued of the account period of the
delinquent returns, the amount of tax, penalty and interest due
and owing from the taxpayer, and that the certificate of
registration shall not be automatically renewed upon its
expiration date unless the taxpayer, on or before the date of
expiration, has filed and paid the delinquent returns or paid
the defaulted amount in full. A taxpayer to whom such a notice
is issued shall be deemed an applicant for renewal. The
Department shall promulgate regulations establishing
procedures for taxpayers who file returns on a monthly basis
but desire and qualify to change to a quarterly or yearly
filing basis and will no longer be subject to renewal under
this Section, and for taxpayers who file returns on a yearly or
quarterly basis but who desire or are required to change to a
monthly filing basis and will be subject to renewal under this
Section.
The Department may in its discretion approve renewal by an
applicant who is in default if, at the time of application for
renewal, the applicant files all of the delinquent returns or
pays to the Department such percentage of the defaulted amount
as may be determined by the Department and agrees in writing to
waive all limitations upon the Department for collection of the
remaining defaulted amount to the Department over a period not
to exceed 5 years from the date of renewal of the certificate;
however, no renewal application submitted by an applicant who
is in default shall be approved if the immediately preceding
renewal by the applicant was conditioned upon the installment
payment agreement described in this Section. The payment
agreement herein provided for shall be in addition to and not
in lieu of the security that may be required by this Section of
a taxpayer who is no longer considered a prior continuous
compliance taxpayer. The execution of the payment agreement as
provided in this Act shall not toll the accrual of interest at
the statutory rate.
The Department may suspend a certificate of registration if
the Department finds that the person to whom the certificate of
registration has been issued knowingly sold contraband
cigarettes.
A certificate of registration issued under this Act more
than 5 years before January 1, 1990 (the effective date of
Public Act 86-383) shall expire and be subject to the renewal
provisions of this Section on the next anniversary of the date
of issuance of such certificate which occurs more than 6 months
after January 1, 1990 (the effective date of Public Act
86-383). A certificate of registration issued less than 5 years
before January 1, 1990 (the effective date of Public Act
86-383) shall expire and be subject to the renewal provisions
of this Section on the 5th anniversary of the issuance of the
certificate.
If the person so registered states that he operates other
places of business from which he engages in the business of
selling tangible personal property at retail in this State, the
Department shall furnish him with a sub-certificate of
registration for each such place of business, and the applicant
shall display the appropriate sub-certificate of registration
at each such place of business. All sub-certificates of
registration shall bear the same registration number as that
appearing upon the certificate of registration to which such
sub-certificates relate.
If the applicant will sell tangible personal property at
retail through vending machines, the Department shall furnish
him with a sub-certificate of registration for each such
vending machine, and the applicant shall display the
appropriate sub-certificate of registration on each such
vending machine by attaching the sub-certificate of
registration to a conspicuous part of such vending machine. If
a person who is registered to sell tangible personal property
at retail through vending machines adds an additional vending
machine or additional vending machines to the number of vending
machines he or she uses in his or her business of selling
tangible personal property at retail, he or she shall notify
the Department, on a form prescribed by the Department, to
request an additional sub-certificate or additional
sub-certificates of registration, as applicable. With each
such request, the applicant shall report the number of
sub-certificates of registration he or she is requesting as
well as the total number of vending machines from which he or
she makes retail sales.
Where the same person engages in 2 or more businesses of
selling tangible personal property at retail in this State,
which businesses are substantially different in character or
engaged in under different trade names or engaged in under
other substantially dissimilar circumstances (so that it is
more practicable, from an accounting, auditing or bookkeeping
standpoint, for such businesses to be separately registered),
the Department may require or permit such person (subject to
the same requirements concerning the furnishing of security as
those that are provided for hereinbefore in this Section as to
each application for a certificate of registration) to apply
for and obtain a separate certificate of registration for each
such business or for any of such businesses, under a single
certificate of registration supplemented by related
sub-certificates of registration.
Any person who is registered under the Retailers'
Occupation Tax Act as of March 8, 1963, and who, during the
3-year period immediately prior to March 8, 1963, or during a
continuous 3-year period part of which passed immediately
before and the remainder of which passes immediately after
March 8, 1963, has been so registered continuously and who is
determined by the Department not to have been either delinquent
or deficient in the payment of tax liability during that period
under this Act or under any other State tax law or municipal or
county tax ordinance or resolution under which the certificate
of registration that is issued to the registrant under this Act
will permit the registrant to engage in business without
registering separately under such other law, ordinance or
resolution, shall be considered to be a Prior Continuous
Compliance taxpayer. Also any taxpayer who has, as verified by
the Department, faithfully and continuously complied with the
condition of his bond or other security under the provisions of
this Act for a period of 3 consecutive years shall be
considered to be a Prior Continuous Compliance taxpayer.
Every Prior Continuous Compliance taxpayer shall be exempt
from all requirements under this Act concerning the furnishing
of a bond or other security as a condition precedent to his
being authorized to engage in the business of selling tangible
personal property at retail in this State. This exemption shall
continue for each such taxpayer until such time as he may be
determined by the Department to be delinquent in the filing of
any returns, or is determined by the Department (either through
the Department's issuance of a final assessment which has
become final under the Act, or by the taxpayer's filing of a
return which admits tax that is not paid to be due) to be
delinquent or deficient in the paying of any tax under this Act
or under any other State tax law or municipal or county tax
ordinance or resolution under which the certificate of
registration that is issued to the registrant under this Act
will permit the registrant to engage in business without
registering separately under such other law, ordinance or
resolution, at which time that taxpayer shall become subject to
all the financial responsibility requirements of this Act and,
as a condition of being allowed to continue to engage in the
business of selling tangible personal property at retail, may
be required to post bond or other acceptable security with the
Department covering liability which such taxpayer may
thereafter incur. Any taxpayer who fails to pay an admitted or
established liability under this Act may also be required to
post bond or other acceptable security with this Department
guaranteeing the payment of such admitted or established
liability.
No certificate of registration shall be issued to any
person who is in default to the State of Illinois for moneys
due under this Act or under any other State tax law or
municipal or county tax ordinance or resolution under which the
certificate of registration that is issued to the applicant
under this Act will permit the applicant to engage in business
without registering separately under such other law, ordinance
or resolution.
Any person aggrieved by any decision of the Department
under this Section may, within 20 days after notice of such
decision, protest and request a hearing, whereupon the
Department shall give notice to such person of the time and
place fixed for such hearing and shall hold a hearing in
conformity with the provisions of this Act and then issue its
final administrative decision in the matter to such person. In
the absence of such a protest within 20 days, the Department's
decision shall become final without any further determination
being made or notice given.
With respect to security other than bonds (upon which the
Department may sue in the event of a forfeiture), if the
taxpayer fails to pay, when due, any amount whose payment such
security guarantees, the Department shall, after such
liability is admitted by the taxpayer or established by the
Department through the issuance of a final assessment that has
become final under the law, convert the security which that
taxpayer has furnished into money for the State, after first
giving the taxpayer at least 10 days' written notice, by
registered or certified mail, to pay the liability or forfeit
such security to the Department. If the security consists of
stocks or bonds or other securities which are listed on a
public exchange, the Department shall sell such securities
through such public exchange. If the security consists of an
irrevocable bank letter of credit, the Department shall convert
the security in the manner provided for in the Uniform
Commercial Code. If the security consists of a bank certificate
of deposit, the Department shall convert the security into
money by demanding and collecting the amount of such bank
certificate of deposit from the bank which issued such
certificate. If the security consists of a type of stocks or
other securities which are not listed on a public exchange, the
Department shall sell such security to the highest and best
bidder after giving at least 10 days' notice of the date, time
and place of the intended sale by publication in the "State
Official Newspaper". If the Department realizes more than the
amount of such liability from the security, plus the expenses
incurred by the Department in converting the security into
money, the Department shall pay such excess to the taxpayer who
furnished such security, and the balance shall be paid into the
State Treasury.
The Department shall discharge any surety and shall release
and return any security deposited, assigned, pledged or
otherwise provided to it by a taxpayer under this Section
within 30 days after:
(1) such taxpayer becomes a Prior Continuous
Compliance taxpayer; or
(2) such taxpayer has ceased to collect receipts on
which he is required to remit tax to the Department, has
filed a final tax return, and has paid to the Department an
amount sufficient to discharge his remaining tax
liability, as determined by the Department, under this Act
and under every other State tax law or municipal or county
tax ordinance or resolution under which the certificate of
registration issued under this Act permits the registrant
to engage in business without registering separately under
such other law, ordinance or resolution. The Department
shall make a final determination of the taxpayer's
outstanding tax liability as expeditiously as possible
after his final tax return has been filed; if the
Department cannot make such final determination within 45
days after receiving the final tax return, within such
period it shall so notify the taxpayer, stating its reasons
therefor.
(Source: P.A. 100-302, eff. 8-24-17; 100-303, eff. 8-24-17;
100-863, eff. 8-14-18.)
Section 15-50. The Cigarette Tax Act is amended by changing
Section 2 as follows:
(35 ILCS 130/2) (from Ch. 120, par. 453.2)
Sec. 2. Tax imposed; rate; collection, payment, and
distribution; discount.
(a) Beginning on July 1, 2019, in place of the aggregate
tax rate of 99 mills previously imposed by this Act, a tax is
imposed upon any person engaged in business as a retailer of
cigarettes at the rate of 149 mills per cigarette sold or
otherwise disposed of in the course of such business in this
State. A tax is imposed upon any person engaged in business as
a retailer of cigarettes in this State at the rate of 5 1/2
mills per cigarette sold, or otherwise disposed of in the
course of such business in this State. In addition to any other
tax imposed by this Act, a tax is imposed upon any person
engaged in business as a retailer of cigarettes in this State
at a rate of 1/2 mill per cigarette sold or otherwise disposed
of in the course of such business in this State on and after
January 1, 1947, and shall be paid into the Metropolitan Fair
and Exposition Authority Reconstruction Fund or as otherwise
provided in Section 29. On and after December 1, 1985, in
addition to any other tax imposed by this Act, a tax is imposed
upon any person engaged in business as a retailer of cigarettes
in this State at a rate of 4 mills per cigarette sold or
otherwise disposed of in the course of such business in this
State. Of the additional tax imposed by this amendatory Act of
1985, $9,000,000 of the moneys received by the Department of
Revenue pursuant to this Act shall be paid each month into the
Common School Fund. On and after the effective date of this
amendatory Act of 1989, in addition to any other tax imposed by
this Act, a tax is imposed upon any person engaged in business
as a retailer of cigarettes at the rate of 5 mills per
cigarette sold or otherwise disposed of in the course of such
business in this State. On and after the effective date of this
amendatory Act of 1993, in addition to any other tax imposed by
this Act, a tax is imposed upon any person engaged in business
as a retailer of cigarettes at the rate of 7 mills per
cigarette sold or otherwise disposed of in the course of such
business in this State. On and after December 15, 1997, in
addition to any other tax imposed by this Act, a tax is imposed
upon any person engaged in business as a retailer of cigarettes
at the rate of 7 mills per cigarette sold or otherwise disposed
of in the course of such business of this State. All of the
moneys received by the Department of Revenue pursuant to this
Act and the Cigarette Use Tax Act from the additional taxes
imposed by this amendatory Act of 1997, shall be paid each
month into the Common School Fund. On and after July 1, 2002,
in addition to any other tax imposed by this Act, a tax is
imposed upon any person engaged in business as a retailer of
cigarettes at the rate of 20.0 mills per cigarette sold or
otherwise disposed of in the course of such business in this
State. Beginning on June 24, 2012, in addition to any other tax
imposed by this Act, a tax is imposed upon any person engaged
in business as a retailer of cigarettes at the rate of 50 mills
per cigarette sold or otherwise disposed of in the course of
such business in this State. All moneys received by the
Department of Revenue under this Act and the Cigarette Use Tax
Act from the additional taxes imposed by this amendatory Act of
the 97th General Assembly shall be paid each month into the
Healthcare Provider Relief Fund.
(b) The payment of such taxes shall be evidenced by a stamp
affixed to each original package of cigarettes, or an
authorized substitute for such stamp imprinted on each original
package of such cigarettes underneath the sealed transparent
outside wrapper of such original package, as hereinafter
provided. However, such taxes are not imposed upon any activity
in such business in interstate commerce or otherwise, which
activity may not under the Constitution and statutes of the
United States be made the subject of taxation by this State.
Beginning on the effective date of this amendatory Act of
the 92nd General Assembly and through June 30, 2006, all of the
moneys received by the Department of Revenue pursuant to this
Act and the Cigarette Use Tax Act, other than the moneys that
are dedicated to the Common School Fund, shall be distributed
each month as follows: first, there shall be paid into the
General Revenue Fund an amount which, when added to the amount
paid into the Common School Fund for that month, equals
$33,300,000, except that in the month of August of 2004, this
amount shall equal $83,300,000; then, from the moneys
remaining, if any amounts required to be paid into the General
Revenue Fund in previous months remain unpaid, those amounts
shall be paid into the General Revenue Fund; then, beginning on
April 1, 2003, from the moneys remaining, $5,000,000 per month
shall be paid into the School Infrastructure Fund; then, if any
amounts required to be paid into the School Infrastructure Fund
in previous months remain unpaid, those amounts shall be paid
into the School Infrastructure Fund; then the moneys remaining,
if any, shall be paid into the Long-Term Care Provider Fund. To
the extent that more than $25,000,000 has been paid into the
General Revenue Fund and Common School Fund per month for the
period of July 1, 1993 through the effective date of this
amendatory Act of 1994 from combined receipts of the Cigarette
Tax Act and the Cigarette Use Tax Act, notwithstanding the
distribution provided in this Section, the Department of
Revenue is hereby directed to adjust the distribution provided
in this Section to increase the next monthly payments to the
Long Term Care Provider Fund by the amount paid to the General
Revenue Fund and Common School Fund in excess of $25,000,000
per month and to decrease the next monthly payments to the
General Revenue Fund and Common School Fund by that same excess
amount.
Beginning on July 1, 2006, all of the moneys received by
the Department of Revenue pursuant to this Act and the
Cigarette Use Tax Act, other than the moneys that are dedicated
to the Common School Fund and, beginning on the effective date
of this amendatory Act of the 97th General Assembly, other than
the moneys from the additional taxes imposed by this amendatory
Act of the 97th General Assembly that must be paid each month
into the Healthcare Provider Relief Fund, and other than the
moneys from the additional taxes imposed by this amendatory Act
of the 101st General Assembly that must be paid each month
under subsection (c), shall be distributed each month as
follows: first, there shall be paid into the General Revenue
Fund an amount that, when added to the amount paid into the
Common School Fund for that month, equals $29,200,000; then,
from the moneys remaining, if any amounts required to be paid
into the General Revenue Fund in previous months remain unpaid,
those amounts shall be paid into the General Revenue Fund; then
from the moneys remaining, $5,000,000 per month shall be paid
into the School Infrastructure Fund; then, if any amounts
required to be paid into the School Infrastructure Fund in
previous months remain unpaid, those amounts shall be paid into
the School Infrastructure Fund; then the moneys remaining, if
any, shall be paid into the Long-Term Care Provider Fund.
(c) Beginning on July 1, 2019, all of the moneys from the
additional taxes imposed by this amendatory Act of the 101st
General Assembly received by the Department of Revenue pursuant
to this Act and the Cigarette Use Tax Act shall be distributed
each month into the Capital Projects Fund.
(d) Moneys collected from the tax imposed on little cigars
under Section 10-10 of the Tobacco Products Tax Act of 1995
shall be included with the moneys collected under the Cigarette
Tax Act and the Cigarette Use Tax Act when making distributions
to the Common School Fund, the Healthcare Provider Relief Fund,
the General Revenue Fund, the School Infrastructure Fund, and
the Long-Term Care Provider Fund under this Section.
(e) If the When any tax imposed herein terminates or has
terminated, distributors who have bought stamps while such tax
was in effect and who therefore paid such tax, but who can
show, to the Department's satisfaction, that they sold the
cigarettes to which they affixed such stamps after such tax had
terminated and did not recover the tax or its equivalent from
purchasers, shall be allowed by the Department to take credit
for such absorbed tax against subsequent tax stamp purchases
from the Department by such distributor.
(f) The impact of the tax levied by this Act is imposed
upon the retailer and shall be prepaid or pre-collected by the
distributor for the purpose of convenience and facility only,
and the amount of the tax shall be added to the price of the
cigarettes sold by such distributor. Collection of the tax
shall be evidenced by a stamp or stamps affixed to each
original package of cigarettes, as hereinafter provided. Any
distributor who purchases stamps may credit any excess payments
verified by the Department against amounts subsequently due for
the purchase of additional stamps, until such time as no excess
payment remains.
(g) Each distributor shall collect the tax from the
retailer at or before the time of the sale, shall affix the
stamps as hereinafter required, and shall remit the tax
collected from retailers to the Department, as hereinafter
provided. Any distributor who fails to properly collect and pay
the tax imposed by this Act shall be liable for the tax. Any
distributor having cigarettes to which stamps have been affixed
in his possession for sale on the effective date of this
amendatory Act of 1989 shall not be required to pay the
additional tax imposed by this amendatory Act of 1989 on such
stamped cigarettes. Any distributor having cigarettes to which
stamps have been affixed in his or her possession for sale at
12:01 a.m. on the effective date of this amendatory Act of
1993, is required to pay the additional tax imposed by this
amendatory Act of 1993 on such stamped cigarettes. This
payment, less the discount provided in subsection (b), shall be
due when the distributor first makes a purchase of cigarette
tax stamps after the effective date of this amendatory Act of
1993, or on the first due date of a return under this Act after
the effective date of this amendatory Act of 1993, whichever
occurs first. Any distributor having cigarettes to which stamps
have been affixed in his possession for sale on December 15,
1997 shall not be required to pay the additional tax imposed by
this amendatory Act of 1997 on such stamped cigarettes.
Any distributor having cigarettes to which stamps have been
affixed in his or her possession for sale on July 1, 2002 shall
not be required to pay the additional tax imposed by this
amendatory Act of the 92nd General Assembly on those stamped
cigarettes.
(h) Any distributor having cigarettes in his or her
possession on July 1, 2019 to which tax stamps have been
affixed, and any distributor having stamps in his or her
possession on July 1, 2019 that have not been affixed to
packages of cigarettes before July 1, 2019, is required to pay
the additional tax that begins on July 1, 2019 imposed by this
amendatory Act of the 101st General Assembly to the extent that
the volume of affixed and unaffixed stamps in the distributor's
possession on July 1, 2019 exceeds the average monthly volume
of cigarette stamps purchased by the distributor in calendar
year 2018. This payment, less the discount provided in
subsection (l), is due when the distributor first makes a
purchase of cigarette stamps on or after July 1, 2019 or on the
first due date of a return under this Act occurring on or after
July 1, 2019, whichever occurs first. Those distributors may
elect to pay the additional tax on packages of cigarettes to
which stamps have been affixed and on any stamps in the
distributor's possession that have not been affixed to packages
of cigarettes in their possession on July 1, 2019 over a period
not to exceed 12 months from the due date of the additional tax
by notifying the Department in writing. The first payment for
distributors making such election is due when the distributor
first makes a purchase of cigarette tax stamps on or after July
1, 2019 or on the first due date of a return under this Act
occurring on or after July 1, 2019, whichever occurs first.
Distributors making such an election are not entitled to take
the discount provided in subsection (l) on such payments.
(i) Any retailer having cigarettes in its his or her
possession on July 1, 2019 June 24, 2012 to which tax stamps
have been affixed is not required to pay the additional tax
that begins on July 1, 2019 June 24, 2012 imposed by this
amendatory Act of the 101st General Assembly this amendatory
Act of the 97th General Assembly on those stamped cigarettes.
Any distributor having cigarettes in his or her possession on
June 24, 2012 to which tax stamps have been affixed, and any
distributor having stamps in his or her possession on June 24,
2012 that have not been affixed to packages of cigarettes
before June 24, 2012, is required to pay the additional tax
that begins on June 24, 2012 imposed by this amendatory Act of
the 97th General Assembly to the extent the calendar year 2012
average monthly volume of cigarette stamps in the distributor's
possession exceeds the average monthly volume of cigarette
stamps purchased by the distributor in calendar year 2011. This
payment, less the discount provided in subsection (b), is due
when the distributor first makes a purchase of cigarette stamps
on or after June 24, 2012 or on the first due date of a return
under this Act occurring on or after June 24, 2012, whichever
occurs first. Those distributors may elect to pay the
additional tax on packages of cigarettes to which stamps have
been affixed and on any stamps in the distributor's possession
that have not been affixed to packages of cigarettes over a
period not to exceed 12 months from the due date of the
additional tax by notifying the Department in writing. The
first payment for distributors making such election is due when
the distributor first makes a purchase of cigarette tax stamps
on or after June 24, 2012 or on the first due date of a return
under this Act occurring on or after June 24, 2012, whichever
occurs first. Distributors making such an election are not
entitled to take the discount provided in subsection (b) on
such payments.
(j) Distributors making sales of cigarettes to secondary
distributors shall add the amount of the tax to the price of
the cigarettes sold by the distributors. Secondary
distributors making sales of cigarettes to retailers shall
include the amount of the tax in the price of the cigarettes
sold to retailers. The amount of tax shall not be less than the
amount of taxes imposed by the State and all local
jurisdictions. The amount of local taxes shall be calculated
based on the location of the retailer's place of business shown
on the retailer's certificate of registration or
sub-registration issued to the retailer pursuant to Section 2a
of the Retailers' Occupation Tax Act. The original packages of
cigarettes sold to the retailer shall bear all the required
stamps, or other indicia, for the taxes included in the price
of cigarettes.
(k) The amount of the Cigarette Tax imposed by this Act
shall be separately stated, apart from the price of the goods,
by distributors, manufacturer representatives, secondary
distributors, and retailers, in all bills and sales invoices.
(l) (b) The distributor shall be required to collect the
tax taxes provided under paragraph (a) hereof, and, to cover
the costs of such collection, shall be allowed a discount
during any year commencing July 1st and ending the following
June 30th in accordance with the schedule set out hereinbelow,
which discount shall be allowed at the time of purchase of the
stamps when purchase is required by this Act, or at the time
when the tax is remitted to the Department without the purchase
of stamps from the Department when that method of paying the
tax is required or authorized by this Act. Prior to December 1,
1985, a discount equal to 1 2/3% of the amount of the tax up to
and including the first $700,000 paid hereunder by such
distributor to the Department during any such year; 1 1/3% of
the next $700,000 of tax or any part thereof, paid hereunder by
such distributor to the Department during any such year; 1% of
the next $700,000 of tax, or any part thereof, paid hereunder
by such distributor to the Department during any such year, and
2/3 of 1% of the amount of any additional tax paid hereunder by
such distributor to the Department during any such year shall
apply.
On and after December 1, 1985, a discount equal to 1.75% of
the amount of the tax payable under this Act up to and
including the first $3,000,000 paid hereunder by such
distributor to the Department during any such year and 1.5% of
the amount of any additional tax paid hereunder by such
distributor to the Department during any such year shall apply.
Two or more distributors that use a common means of
affixing revenue tax stamps or that are owned or controlled by
the same interests shall be treated as a single distributor for
the purpose of computing the discount.
(m) (c) The taxes herein imposed are in addition to all
other occupation or privilege taxes imposed by the State of
Illinois, or by any political subdivision thereof, or by any
municipal corporation.
(Source: P.A. 100-1171, eff. 1-4-19.)
(35 ILCS 130/29 rep.)
Section 15-55. The Cigarette Tax Act is amended by
repealing Section 29.
Section 15-60. The Cigarette Use Tax Act is amended by
changing Sections 2 and 35 as follows:
(35 ILCS 135/2) (from Ch. 120, par. 453.32)
Sec. 2. Beginning on July 1, 2019, in place of the
aggregate tax rate of 99 mills previously imposed by this Act,
a tax is imposed upon the privilege of using cigarettes in this
State at the rate of 149 mills per cigarette so used. A tax is
imposed upon the privilege of using cigarettes in this State,
at the rate of 6 mills per cigarette so used. On and after
December 1, 1985, in addition to any other tax imposed by this
Act, a tax is imposed upon the privilege of using cigarettes in
this State at a rate of 4 mills per cigarette so used. On and
after the effective date of this amendatory Act of 1989, in
addition to any other tax imposed by this Act, a tax is imposed
upon the privilege of using cigarettes in this State at the
rate of 5 mills per cigarette so used. On and after the
effective date of this amendatory Act of 1993, in addition to
any other tax imposed by this Act, a tax is imposed upon the
privilege of using cigarettes in this State at a rate of 7
mills per cigarette so used. On and after December 15, 1997, in
addition to any other tax imposed by this Act, a tax is imposed
upon the privilege of using cigarettes in this State at a rate
of 7 mills per cigarette so used. On and after July 1, 2002, in
addition to any other tax imposed by this Act, a tax is imposed
upon the privilege of using cigarettes in this State at a rate
of 20.0 mills per cigarette so used. Beginning on June 24,
2012, in addition to any other tax imposed by this Act, a tax
is imposed upon the privilege of using cigarettes in this State
at a rate of 50 mills per cigarette so used. The tax taxes
herein imposed shall be in addition to all other occupation or
privilege taxes imposed by the State of Illinois or by any
political subdivision thereof or by any municipal corporation.
If the When any tax imposed herein terminates or has
terminated, distributors who have bought stamps while such tax
was in effect and who therefore paid such tax, but who can
show, to the Department's satisfaction, that they sold the
cigarettes to which they affixed such stamps after such tax had
terminated and did not recover the tax or its equivalent from
purchasers, shall be allowed by the Department to take credit
for such absorbed tax against subsequent tax stamp purchases
from the Department by such distributors.
When the word "tax" is used in this Act, it shall include
any tax or tax rate imposed by this Act and shall mean the
singular of "tax" or the plural "taxes" as the context may
require.
Any retailer having cigarettes in its possession on July 1,
2019 to which tax stamps have been affixed is not required to
pay the additional tax that begins on July 1, 2019 imposed by
this amendatory Act of the 101st General Assembly on those
stamped cigarettes. Any distributor having cigarettes in his or
her possession on July 1, 2019 to which tax stamps have been
affixed, and any distributor having stamps in his or her
possession on July 1, 2019 that have not been affixed to
packages of cigarettes before July 1, 2019, is required to pay
the additional tax that begins on July 1, 2019 imposed by this
amendatory Act of the 101st General Assembly to the extent that
the volume of affixed and unaffixed stamps in the distributor's
possession on July 1, 2019 exceeds the average monthly volume
of cigarette stamps purchased by the distributor in calendar
year 2018. This payment, less the discount provided in Section
3, is due when the distributor first makes a purchase of
cigarette stamps on or after July 1, 2019 or on the first due
date of a return under this Act occurring on or after July 1,
2019, whichever occurs first. Those distributors may elect to
pay the additional tax on packages of cigarettes to which
stamps have been affixed and on any stamps in the distributor's
possession that have not been affixed to packages of cigarettes
in their possession on July 1, 2019 over a period not to exceed
12 months from the due date of the additional tax by notifying
the Department in writing. The first payment for distributors
making such election is due when the distributor first makes a
purchase of cigarette tax stamps on or after July 1, 2019 or on
the first due date of a return under this Act occurring on or
after July 1, 2019, whichever occurs first. Distributors making
such an election are not entitled to take the discount provided
in Section 3 on such payments.
Any distributor having cigarettes to which stamps have been
affixed in his possession for sale on the effective date of
this amendatory Act of 1989 shall not be required to pay the
additional tax imposed by this amendatory Act of 1989 on such
stamped cigarettes. Any distributor having cigarettes to which
stamps have been affixed in his or her possession for sale at
12:01 a.m. on the effective date of this amendatory Act of
1993, is required to pay the additional tax imposed by this
amendatory Act of 1993 on such stamped cigarettes. This payment
shall be due when the distributor first makes a purchase of
cigarette tax stamps after the effective date of this
amendatory Act of 1993, or on the first due date of a return
under this Act after the effective date of this amendatory Act
of 1993, whichever occurs first. Once a distributor tenders
payment of the additional tax to the Department, the
distributor may purchase stamps from the Department. Any
distributor having cigarettes to which stamps have been affixed
in his possession for sale on December 15, 1997 shall not be
required to pay the additional tax imposed by this amendatory
Act of 1997 on such stamped cigarettes.
Any distributor having cigarettes to which stamps have been
affixed in his or her possession for sale on July 1, 2002 shall
not be required to pay the additional tax imposed by this
amendatory Act of the 92nd General Assembly on those stamped
cigarettes.
Any retailer having cigarettes in his or her possession on
June 24, 2012 to which tax stamps have been affixed is not
required to pay the additional tax that begins on June 24, 2012
imposed by this amendatory Act of the 97th General Assembly on
those stamped cigarettes. Any distributor having cigarettes in
his or her possession on June 24, 2012 to which tax stamps have
been affixed, and any distributor having stamps in his or her
possession on June 24, 2012 that have not been affixed to
packages of cigarettes before June 24, 2012, is required to pay
the additional tax that begins on June 24, 2012 imposed by this
amendatory Act of the 97th General Assembly to the extent the
calendar year 2012 average monthly volume of cigarette stamps
in the distributor's possession exceeds the average monthly
volume of cigarette stamps purchased by the distributor in
calendar year 2011. This payment, less the discount provided in
Section 3, is due when the distributor first makes a purchase
of cigarette stamps on or after June 24, 2012 or on the first
due date of a return under this Act occurring on or after June
24, 2012, whichever occurs first. Those distributors may elect
to pay the additional tax on packages of cigarettes to which
stamps have been affixed and on any stamps in the distributor's
possession that have not been affixed to packages of cigarettes
over a period not to exceed 12 months from the due date of the
additional tax by notifying the Department in writing. The
first payment for distributors making such election is due when
the distributor first makes a purchase of cigarette tax stamps
on or after June 24, 2012 or on the first due date of a return
under this Act occurring on or after June 24, 2012, whichever
occurs first. Distributors making such an election are not
entitled to take the discount provided in Section 3 on such
payments.
(Source: P.A. 97-688, eff. 6-14-12.)
(35 ILCS 135/35) (from Ch. 120, par. 453.65)
Sec. 35. Distribution of receipts. All moneys received by
the Department under this Act shall be distributed as provided
in subsection (a) of Section 2 of the Cigarette Tax Act.
(Source: P.A. 88-535.)
Section 15-65. The Tobacco Products Tax Act of 1995 is
amended by changing Sections 10-5 and 10-10 as follows:
(35 ILCS 143/10-5)
Sec. 10-5. Definitions. For purposes of this Act:
"Business" means any trade, occupation, activity, or
enterprise engaged in, at any location whatsoever, for the
purpose of selling tobacco products.
"Cigarette" has the meaning ascribed to the term in Section
1 of the Cigarette Tax Act.
"Contraband little cigar" means:
(1) packages of little cigars containing 20 or 25
little cigars that do not bear a required tax stamp under
this Act;
(2) packages of little cigars containing 20 or 25
little cigars that bear a fraudulent, imitation, or
counterfeit tax stamp;
(3) packages of little cigars containing 20 or 25
little cigars that are improperly tax stamped, including
packages of little cigars that bear only a tax stamp of
another state or taxing jurisdiction; or
(4) packages of little cigars containing other than 20
or 25 little cigars in the possession of a distributor,
retailer or wholesaler, unless the distributor, retailer,
or wholesaler possesses, or produces within the time frame
provided in Section 10-27 or 10-28 of this Act, an invoice
from a stamping distributor, distributor, or wholesaler
showing that the tax on the packages has been or will be
paid.
"Correctional Industries program" means a program run by a
State penal institution in which residents of the penal
institution produce tobacco products for sale to persons
incarcerated in penal institutions or resident patients of a
State operated mental health facility.
"Department" means the Illinois Department of Revenue.
"Distributor" means any of the following:
(1) Any manufacturer or wholesaler in this State
engaged in the business of selling tobacco products who
sells, exchanges, or distributes tobacco products to
retailers or consumers in this State.
(2) Any manufacturer or wholesaler engaged in the
business of selling tobacco products from without this
State who sells, exchanges, distributes, ships, or
transports tobacco products to retailers or consumers
located in this State, so long as that manufacturer or
wholesaler has or maintains within this State, directly or
by subsidiary, an office, sales house, or other place of
business, or any agent or other representative operating
within this State under the authority of the person or
subsidiary, irrespective of whether the place of business
or agent or other representative is located here
permanently or temporarily.
(3) Any retailer who receives tobacco products on which
the tax has not been or will not be paid by another
distributor.
"Distributor" does not include any person, wherever
resident or located, who makes, manufactures, or fabricates
tobacco products as part of a Correctional Industries program
for sale to residents incarcerated in penal institutions or
resident patients of a State operated mental health facility.
"Electronic cigarette" means:
(1) any device that employs a battery or other
mechanism to heat a solution or substance to produce a
vapor or aerosol intended for inhalation;
(2) any cartridge or container of a solution or
substance intended to be used with or in the device or to
refill the device; or
(3) any solution or substance, whether or not it
contains nicotine, intended for use in the device.
"Electronic cigarette" includes, but is not limited to, any
electronic nicotine delivery system, electronic cigar,
electronic cigarillo, electronic pipe, electronic hookah, vape
pen, or similar product or device, and any component or part
that can be used to build the product or device. "Electronic
cigarette" does not include: cigarettes, as defined in Section
1 of the Cigarette Tax Act; any product approved by the United
States Food and Drug Administration for sale as a tobacco
cessation product, a tobacco dependence product, or for other
medical purposes that is marketed and sold solely for that
approved purpose; any asthma inhaler prescribed by a physician
for that condition that is marketed and sold solely for that
approved purpose; or any therapeutic product approved for use
under the Compassionate Use of Medical Cannabis Pilot Program
Act.
"Little cigar" means and includes any roll, made wholly or
in part of tobacco, where such roll has an integrated cellulose
acetate filter and weighs less than 4 pounds per thousand and
the wrapper or cover of which is made in whole or in part of
tobacco.
"Manufacturer" means any person, wherever resident or
located, who manufactures and sells tobacco products, except a
person who makes, manufactures, or fabricates tobacco products
as a part of a Correctional Industries program for sale to
persons incarcerated in penal institutions or resident
patients of a State operated mental health facility.
Beginning on January 1, 2013, "moist snuff" means any
finely cut, ground, or powdered tobacco that is not intended to
be smoked, but shall not include any finely cut, ground, or
powdered tobacco that is intended to be placed in the nasal
cavity.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint venture, limited
liability company, or public or private corporation, however
formed, or a receiver, executor, administrator, trustee,
conservator, or other representative appointed by order of any
court.
"Place of business" means and includes any place where
tobacco products are sold or where tobacco products are
manufactured, stored, or kept for the purpose of sale or
consumption, including any vessel, vehicle, airplane, train,
or vending machine.
"Retailer" means any person in this State engaged in the
business of selling tobacco products to consumers in this
State, regardless of quantity or number of sales.
"Sale" means any transfer, exchange, or barter in any
manner or by any means whatsoever for a consideration and
includes all sales made by persons.
"Stamp" or "stamps" mean the indicia required to be affixed
on a package of little cigars that evidence payment of the tax
on packages of little cigars containing 20 or 25 little cigars
under Section 10-10 of this Act. These stamps shall be the same
stamps used for cigarettes under the Cigarette Tax Act.
"Stamping distributor" means a distributor licensed under
this Act and also licensed as a distributor under the Cigarette
Tax Act or Cigarette Use Tax Act.
"Tobacco products" means any cigars, including little
cigars; cheroots; stogies; periques; granulated, plug cut,
crimp cut, ready rubbed, and other smoking tobacco; snuff
(including moist snuff) or snuff flour; cavendish; plug and
twist tobacco; fine-cut and other chewing tobaccos; shorts;
refuse scraps, clippings, cuttings, and sweeping of tobacco;
and other kinds and forms of tobacco, prepared in such manner
as to be suitable for chewing or smoking in a pipe or
otherwise, or both for chewing and smoking; but does not
include cigarettes as defined in Section 1 of the Cigarette Tax
Act or tobacco purchased for the manufacture of cigarettes by
cigarette distributors and manufacturers defined in the
Cigarette Tax Act and persons who make, manufacture, or
fabricate cigarettes as a part of a Correctional Industries
program for sale to residents incarcerated in penal
institutions or resident patients of a State operated mental
health facility.
Beginning on July 1, 2019, "tobacco products" also includes
electronic cigarettes.
"Wholesale price" means the established list price for
which a manufacturer sells tobacco products to a distributor,
before the allowance of any discount, trade allowance, rebate,
or other reduction. In the absence of such an established list
price, the manufacturer's invoice price at which the
manufacturer sells the tobacco product to unaffiliated
distributors, before any discounts, trade allowances, rebates,
or other reductions, shall be presumed to be the wholesale
price.
"Wholesaler" means any person, wherever resident or
located, engaged in the business of selling tobacco products to
others for the purpose of resale. "Wholesaler", when used in
this Act, does not include a person licensed as a distributor
under Section 10-20 of this Act unless expressly stated in this
Act.
(Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13;
98-1055, eff. 1-1-16.)
(35 ILCS 143/10-10)
Sec. 10-10. Tax imposed.
(a) Except as otherwise provided in this Section with
respect to little cigars, on the first day of the third month
after the month in which this Act becomes law, a tax is imposed
on any person engaged in business as a distributor of tobacco
products, as defined in Section 10-5, at the rate of (i) 18% of
the wholesale price of tobacco products sold or otherwise
disposed of to retailers or consumers located in this State
prior to July 1, 2012 and (ii) 36% of the wholesale price of
tobacco products sold or otherwise disposed of to retailers or
consumers located in this State beginning on July 1, 2012;
except that, beginning on January 1, 2013, the tax on moist
snuff shall be imposed at a rate of $0.30 per ounce, and a
proportionate tax at the like rate on all fractional parts of
an ounce, sold or otherwise disposed of to retailers or
consumers located in this State; and except that, beginning
July 1, 2019, the tax on electronic cigarettes shall be imposed
at the rate of 15% of the wholesale price of electronic
cigarettes sold or otherwise disposed of to retailers or
consumers located in this State. The tax is in addition to all
other occupation or privilege taxes imposed by the State of
Illinois, by any political subdivision thereof, or by any
municipal corporation. However, the tax is not imposed upon any
activity in that business in interstate commerce or otherwise,
to the extent to which that activity may not, under the
Constitution and Statutes of the United States, be made the
subject of taxation by this State, and except that, beginning
July 1, 2013, the tax on little cigars shall be imposed at the
same rate, and the proceeds shall be distributed in the same
manner, as the tax imposed on cigarettes under the Cigarette
Tax Act. The tax is also not imposed on sales made to the
United States or any entity thereof.
(b) Notwithstanding subsection (a) of this Section,
stamping distributors of packages of little cigars containing
20 or 25 little cigars sold or otherwise disposed of in this
State shall remit the tax by purchasing tax stamps from the
Department and affixing them to packages of little cigars in
the same manner as stamps are purchased and affixed to
cigarettes under the Cigarette Tax Act, unless the stamping
distributor sells or otherwise disposes of those packages of
little cigars to another stamping distributor. Only persons
meeting the definition of "stamping distributor" contained in
Section 10-5 of this Act may affix stamps to packages of little
cigars containing 20 or 25 little cigars. Stamping distributors
may not sell or dispose of little cigars at retail to consumers
or users at locations where stamping distributors affix stamps
to packages of little cigars containing 20 or 25 little cigars.
(c) The impact of the tax levied by this Act is imposed
upon distributors engaged in the business of selling tobacco
products to retailers or consumers in this State. Whenever a
stamping distributor brings or causes to be brought into this
State from without this State, or purchases from without or
within this State, any packages of little cigars containing 20
or 25 little cigars upon which there are no tax stamps affixed
as required by this Act, for purposes of resale or disposal in
this State to a person not a stamping distributor, then such
stamping distributor shall pay the tax to the Department and
add the amount of the tax to the price of such packages sold by
such stamping distributor. Payment of the tax shall be
evidenced by a stamp or stamps affixed to each package of
little cigars containing 20 or 25 little cigars.
Stamping distributors paying the tax to the Department on
packages of little cigars containing 20 or 25 little cigars
sold to other distributors, wholesalers or retailers shall add
the amount of the tax to the price of the packages of little
cigars containing 20 or 25 little cigars sold by such stamping
distributors.
(d) Beginning on January 1, 2013, the tax rate imposed per
ounce of moist snuff may not exceed 15% of the tax imposed upon
a package of 20 cigarettes pursuant to the Cigarette Tax Act.
(e) All moneys received by the Department under this Act
from sales occurring prior to July 1, 2012 shall be paid into
the Long-Term Care Provider Fund of the State Treasury. Of the
moneys received by the Department from sales occurring on or
after July 1, 2012, except for moneys received from the tax
imposed on the sale of little cigars, 50% shall be paid into
the Long-Term Care Provider Fund and 50% shall be paid into the
Healthcare Provider Relief Fund. Beginning July 1, 2013, all
moneys received by the Department under this Act from the tax
imposed on little cigars shall be distributed as provided in
subsection (a) of Section 2 of the Cigarette Tax Act.
(Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13.)
Section 15-75. The Motor Vehicle Retail Installment Sales
Act is amended by changing Section 11.1 as follows:
(815 ILCS 375/11.1) (from Ch. 121 1/2, par. 571.1)
Sec. 11.1.
(a) A seller in a retail installment contract may add a
"documentary fee" for processing documents and performing
services related to closing of a sale. The maximum amount that
may be charged by a seller for a documentary fee is the base
documentary fee beginning January 1, 2008 until January 1,
2020, of $150, which shall be subject to an annual rate
adjustment equal to the percentage of change in the Bureau of
Labor Statistics Consumer Price Index. Every retail
installment contract under this Act shall contain or be
accompanied by a notice containing the following information:
"DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE.
A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO
BUYERS FOR HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED
TO CLOSING OF A SALE. THE BASE DOCUMENTARY FEE BEGINNING
JANUARY 1, 2008, WAS $150. THE MAXIMUM AMOUNT THAT MAY BE
CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE OF
$150, WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL
TO THE PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS
CONSUMER PRICE INDEX. THIS NOTICE IS REQUIRED BY LAW."
(b) A seller in a retail installment contract may add a
"documentary fee" for processing documents and performing
services related to closing of a sale. The maximum amount that
may be charged by a seller for a documentary fee is the base
documentary fee beginning January 1, 2020, of $300, which shall
be subject to an annual rate adjustment equal to the percentage
of change in the Bureau of Labor Statistics Consumer Price
Index. Every retail installment contract under this Act shall
contain or be accompanied by a notice containing the following
information:
"DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE.
A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO
BUYERS FOR HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED
TO CLOSING OF A SALE. THE BASE DOCUMENTARY FEE BEGINNING
JANUARY 1, 2020, WAS $300. THE MAXIMUM AMOUNT THAT MAY BE
CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE OF
$300, WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL
TO THE PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS
CONSUMER PRICE INDEX. THIS NOTICE IS REQUIRED BY LAW."
(Source: P.A. 95-280, eff. 1-1-08.)
Article 20. Illinois Works Jobs Program Act
Section 20-1. Short title. This Article may be cited as the
Illinois Works Jobs Program Act. References in this Article to
"this Act" mean this Article.
Section 20-5. Findings. It is in the public policy interest
of the State to ensure that all Illinois residents have access
to State capital projects and careers in the construction
industry and building trades, including those who have been
historically underrepresented in those trades. To ensure that
those interests are met, the General Assembly hereby creates
the Illinois Works Preapprenticeship Program and the Illinois
Works Apprenticeship Initiative.
Section 20-10. Definitions.
"Apprentice" means a participant in an apprenticeship
program approved by and registered with the United States
Department of Labor's Bureau of Apprenticeship and Training.
"Apprenticeship program" means an apprenticeship and
training program approved by and registered with the United
States Department of Labor's Bureau of Apprenticeship and
Training.
"Bid credit" means a virtual dollar for a contractor or
subcontractor to use toward future bids for public works
contracts.
"Community-based organization" means a nonprofit
organization selected by the Department to participate in the
Illinois Works Preapprenticeship Program. To qualify as a
"community-based organization", the organization must
demonstrate the following:
(1) the ability to effectively serve diverse and
underrepresented populations, including by providing
employment services to such populations;
(2) knowledge of the construction and building trades;
(3) the ability to recruit, prescreen, and provide
preapprenticeship training to prepare workers for
employment in the construction and building trades; and
(4) a plan to provide the following:
(A) preparatory classes;
(B) workplace readiness skills, such as resume
preparation and interviewing techniques;
(C) strategies for overcoming barriers to entry
and completion of an apprenticeship program; and
(D) any prerequisites for acceptance into an
apprenticeship program.
"Contractor" means a person, corporation, partnership,
limited liability company, or joint venture entering into a
contract with the State or any State agency to construct a
public work.
"Department" means the Department of Commerce and Economic
Opportunity.
"Labor hours" means the total hours for workers who are
receiving an hourly wage and who are directly employed for the
public works project. "Labor hours" includes hours performed by
workers employed by the contractor and subcontractors on the
public works project. "Labor hours" does not include hours
worked by the forepersons, superintendents, owners, and
workers who are not subject to prevailing wage requirements.
"Minorities" means minority persons as defined in the
Business Enterprise for Minorities, Women, and Persons with
Disabilities Act.
"Public works" means all projects that constitute public
works under the Prevailing Wage Act.
"Subcontractor" means a person, corporation, partnership,
limited liability company, or joint venture that has contracted
with the contractor to perform all or part of the work to
construct a public work by a contractor.
"Underrepresented populations" means populations
identified by the Department that historically have had
barriers to entry or advancement in the workforce.
"Underrepresented populations" includes, but is not limited
to, minorities, women, and veterans.
Section 20-15. Illinois Works Preapprenticeship Program;
Illinois Works Bid Credit Program.
(a) The Illinois Works Preapprenticeship Program is
established and shall be administered by the Department. The
goal of the Illinois Works Preapprenticeship Program is to
create a network of community-based organizations throughout
the State that will recruit, prescreen, and provide
preapprenticeship skills training to create a qualified,
diverse pipeline of workers who are prepared for careers in the
construction and building trades. Upon completion of the
Illinois Works Preapprenticeship Program, the candidates will
be skilled and work-ready.
(b) There is created the Illinois Works Fund, a special
fund in the State treasury. The Illinois Works Fund shall be
administered by the Department. The Illinois Works Fund shall
be used to provide funding for community-based organizations
throughout the State. In addition to any other transfers that
may be provided for by law, on and after July 1, 2019 and until
June 30, 2020, at the direction of the Director of the
Governor's Office of Management and Budget, the State
Comptroller shall direct and the State Treasurer shall transfer
amounts not exceeding a total of $25,000,000 from the Rebuild
Illinois Projects Fund to the Illinois Works Fund.
(c) Each community-based organization that receives
funding from the Illinois Works Fund shall provide an annual
report to the Illinois Works Review Panel by April 1 of each
calendar year. The annual report shall include the following
information:
(1) a description of the community-based
organization's recruitment, screening, and training
efforts;
(2) the number of individuals who apply to, participate
in, and complete the community-based organization's
program, broken down by race, gender, age, and veteran
status; and
(3) the number of the individuals referenced in item
(2) of this subsection who are initially accepted and
placed into apprenticeship programs in the construction
and building trades.
(d) The Department shall create and administer the Illinois
Works Bid Credit Program that shall provide economic
incentives, through bid credits, to encourage contractors and
subcontractors to provide contracting and employment
opportunities to historically underrepresented populations in
the construction industry.
The Illinois Works Bid Credit Program shall allow
contractors and subcontractors to earn bid credits for use
toward future bids for public works projects in order to
increase the chances that the contractor and the subcontractors
will be selected.
Contractors or subcontractors may be eligible for bid
credits for employing apprentices who have completed the
Illinois Works Preapprenticeship Program. Contractors or
subcontractors shall earn bid credits at a rate established by
the Department and published on the Department's website,
including any appropriate caps.
The Illinois Works Credit Bank is hereby created and shall
be administered by the Department. The Illinois Works Credit
Bank shall track the bid credits.
A contractor or subcontractor who has been awarded bid
credits under any other State program for employing apprentices
who have completed the Illinois Works Preapprenticeship
Program is not eligible to receive bid credits under the
Illinois Works Bid Credit Program relating to the same
contract.
The Department shall report to the Illinois Works Review
Panel the following: (i) the number of bid credits awarded by
the Department; (ii) the number of bid credits submitted by the
contractor or subcontractor to the agency administering the
public works contract; and (iii) the number of bid credits
accepted by the agency for such contract. Any agency that
awards bid credits pursuant to the Illinois Works Credit Bank
Program shall report to the Department the number of bid
credits it accepted for the public works contract.
Upon a finding that a contractor or subcontractor has
reported falsified records to the Department in order to
fraudulently obtain bid credits, the Department shall
permanently bar the contractor or subcontractor from
participating in the Illinois Works Bid Credit Program and may
suspend the contractor or subcontractor from bidding on or
participating in any public works project. False or fraudulent
claims for payment relating to false bid credits may be subject
to damages and penalties under applicable law.
(e) The Department shall adopt any rules deemed necessary
to implement this Section.
Section 20-20. Illinois Works Apprenticeship Initiative.
(a) The Illinois Works Apprenticeship Initiative is
established and shall be administered by the Department.
(1) Subject to the exceptions set forth in subsection
(b) of this Section, apprentices shall be utilized on all
public works projects in accordance with this subsection
(a).
(2) For public works projects, the goal of the Illinois
Works Apprenticeship Initiative is that apprentices will
perform either 10% of the total labor hours actually worked
in each prevailing wage classification or 10% of the
estimated labor hours in each prevailing wage
classification, whichever is less.
(b) Before or during the term of a contract subject to this
Section, the Department may reduce or waive the goals set forth
in paragraph (2) of subsection (a). Prior to the Department
granting a request for a reduction or waiver, the Department
shall hold a public hearing and shall consult with the Business
Enterprise Council under the Business Enterprise for
Minorities, Women, and Persons with Disabilities Act and the
Chief Procurement Officer of the agency administering the
public works contract. The Department may grant a reduction or
waiver upon a determination that:
(1) the contractor or subcontractor has demonstrated
that insufficient apprentices are available;
(2) the reasonable and necessary requirements of the
contract do not allow the goal to be met;
(3) there is a disproportionately high ratio of
material costs to labor hours that makes meeting the goal
infeasible; or
(4) apprentice labor hour goals conflict with existing
requirements, including federal requirements, in
connection with the public work.
(c) Contractors and subcontractors must submit a
certification to the Department and the agency that is
administering the contract demonstrating that the contractor
or subcontractor has either:
(1) met the apprentice labor hour goals set forth in
paragraph (2) of subsection (a); or
(2) received a reduction or waiver pursuant to
subsection (b).
It shall be deemed to be a material breach of the contract
and entitle the State to declare a default, terminate the
contract, and exercise those remedies provided for in the
contract, at law, or in equity if the contractor or
subcontractor fails to submit the certification required in
this subsection or submits false or misleading information.
(d) No later than one year after the effective date of this
Act, and by April 1 of every calendar year thereafter, the
Department of Labor shall submit a report to the Illinois Works
Review Panel regarding the use of apprentices under the
Illinois Works Apprenticeship Initiative for public works
projects. To the extent it is available, the report shall
include the following information:
(1) the total number of labor hours on each project and
the percentage of labor hours actually worked by
apprentices on each public works project;
(2) the number of apprentices used in each public works
project, broken down by trade; and
(3) the number and percentage of minorities, women, and
veterans utilized as apprentices on each public works
project.
(e) The Department shall adopt any rules deemed necessary
to implement the Illinois Works Apprenticeship Initiative.
(f) The Illinois Works Apprenticeship Initiative shall not
interfere with any contracts or program in existence on the
effective date of this Act.
Section 20-25. The Illinois Works Review Panel.
(a) The Illinois Works Review Panel is created and shall be
comprised of 11 members, each serving 3-year terms. The Speaker
of the House of Representatives and the President of the Senate
shall each appoint 2 members. The Minority Leader of the House
of Representatives and the Minority Leader of the Senate shall
each appoint one member. The Director of Commerce and Economic
Opportunity, or his or her designee, shall serve as a member.
The Governor shall appoint the following individuals to serve
as members: a representative from a contractor organization; a
representative from a labor organization; and 2 members of the
public with workforce development expertise, one of whom shall
be a representative of a nonprofit organization that addresses
workforce development.
(b) The members of the Illinois Works Review Panel shall
make recommendations to the Department regarding
identification and evaluation of community-based
organizations.
(c) The Illinois Works Review Panel shall meet, at least
quarterly, to review and evaluate (i) the Illinois Works
Preapprenticeship Program and the Illinois Works
Apprenticeship Initiative, (ii) ideas to diversify the
workforce in the construction industry in Illinois, and (iii)
workforce demographic data collected by the Illinois
Department of Labor.
(d) All State contracts shall include a requirement that
the contractor and subcontractor shall, upon reasonable
notice, appear before and respond to requests for information
from the Illinois Works Review Panel.
(e) By August 1, 2020, and every August 1 thereafter, the
Illinois Works Review Panel shall report to the General
Assembly on its evaluation of the Illinois Works
Preapprenticeship Program and the Illinois Works
Apprenticeship initiative, including any recommended
modifications.
Section 20-900. The State Finance Act is amended by adding
Section 5.895 as follows:
(30 ILCS 105/5.895 new)
Sec. 5.895. The Illinois Works Fund.
Section 20-905. The Illinois Procurement Code is amended by
changing Section 20-10 as follows:
(30 ILCS 500/20-10)
(Text of Section from P.A. 96-159, 96-588, 97-96, 97-895,
98-1076, 99-906 and 100-43)
Sec. 20-10. Competitive sealed bidding; reverse auction.
(a) Conditions for use. All contracts shall be awarded by
competitive sealed bidding except as otherwise provided in
Section 20-5.
(b) Invitation for bids. An invitation for bids shall be
issued and shall include a purchase description and the
material contractual terms and conditions applicable to the
procurement.
(c) Public notice. Public notice of the invitation for bids
shall be published in the Illinois Procurement Bulletin at
least 14 calendar days before the date set in the invitation
for the opening of bids.
(d) Bid opening. Bids shall be opened publicly or through
an electronic procurement system in the presence of one or more
witnesses at the time and place designated in the invitation
for bids. The name of each bidder, including earned and applied
bid credit from the Illinois Works Jobs Program Act, the amount
of each bid, and other relevant information as may be specified
by rule shall be recorded. After the award of the contract, the
winning bid and the record of each unsuccessful bid shall be
open to public inspection.
(e) Bid acceptance and bid evaluation. Bids shall be
unconditionally accepted without alteration or correction,
except as authorized in this Code. Bids shall be evaluated
based on the requirements set forth in the invitation for bids,
which may include criteria to determine acceptability such as
inspection, testing, quality, workmanship, delivery, and
suitability for a particular purpose. Those criteria that will
affect the bid price and be considered in evaluation for award,
such as discounts, transportation costs, and total or life
cycle costs, shall be objectively measurable. The invitation
for bids shall set forth the evaluation criteria to be used.
(f) Correction or withdrawal of bids. Correction or
withdrawal of inadvertently erroneous bids before or after
award, or cancellation of awards of contracts based on bid
mistakes, shall be permitted in accordance with rules. After
bid opening, no changes in bid prices or other provisions of
bids prejudicial to the interest of the State or fair
competition shall be permitted. All decisions to permit the
correction or withdrawal of bids based on bid mistakes shall be
supported by written determination made by a State purchasing
officer.
(g) Award. The contract shall be awarded with reasonable
promptness by written notice to the lowest responsible and
responsive bidder whose bid meets the requirements and criteria
set forth in the invitation for bids, except when a State
purchasing officer determines it is not in the best interest of
the State and by written explanation determines another bidder
shall receive the award. The explanation shall appear in the
appropriate volume of the Illinois Procurement Bulletin. The
written explanation must include:
(1) a description of the agency's needs;
(2) a determination that the anticipated cost will be
fair and reasonable;
(3) a listing of all responsible and responsive
bidders; and
(4) the name of the bidder selected, the total contract
price, and the reasons for selecting that bidder.
Each chief procurement officer may adopt guidelines to
implement the requirements of this subsection (g).
The written explanation shall be filed with the Legislative
Audit Commission and the Procurement Policy Board, and be made
available for inspection by the public, within 30 calendar days
after the agency's decision to award the contract.
(h) Multi-step sealed bidding. When it is considered
impracticable to initially prepare a purchase description to
support an award based on price, an invitation for bids may be
issued requesting the submission of unpriced offers to be
followed by an invitation for bids limited to those bidders
whose offers have been qualified under the criteria set forth
in the first solicitation.
(i) Alternative procedures. Notwithstanding any other
provision of this Act to the contrary, the Director of the
Illinois Power Agency may create alternative bidding
procedures to be used in procuring professional services under
Section 1-56, subsections (a) and (c) of Section 1-75 and
subsection (d) of Section 1-78 of the Illinois Power Agency Act
and Section 16-111.5(c) of the Public Utilities Act and to
procure renewable energy resources under Section 1-56 of the
Illinois Power Agency Act. These alternative procedures shall
be set forth together with the other criteria contained in the
invitation for bids, and shall appear in the appropriate volume
of the Illinois Procurement Bulletin.
(j) Reverse auction. Notwithstanding any other provision
of this Section and in accordance with rules adopted by the
chief procurement officer, that chief procurement officer may
procure supplies or services through a competitive electronic
auction bidding process after the chief procurement officer
determines that the use of such a process will be in the best
interest of the State. The chief procurement officer shall
publish that determination in his or her next volume of the
Illinois Procurement Bulletin.
An invitation for bids shall be issued and shall include
(i) a procurement description, (ii) all contractual terms,
whenever practical, and (iii) conditions applicable to the
procurement, including a notice that bids will be received in
an electronic auction manner.
Public notice of the invitation for bids shall be given in
the same manner as provided in subsection (c).
Bids shall be accepted electronically at the time and in
the manner designated in the invitation for bids. During the
auction, a bidder's price shall be disclosed to other bidders.
Bidders shall have the opportunity to reduce their bid prices
during the auction. At the conclusion of the auction, the
record of the bid prices received and the name of each bidder
shall be open to public inspection.
After the auction period has terminated, withdrawal of bids
shall be permitted as provided in subsection (f).
The contract shall be awarded within 60 calendar days after
the auction by written notice to the lowest responsible bidder,
or all bids shall be rejected except as otherwise provided in
this Code. Extensions of the date for the award may be made by
mutual written consent of the State purchasing officer and the
lowest responsible bidder.
This subsection does not apply to (i) procurements of
professional and artistic services, (ii) telecommunications
services, communication services, and information services,
and (iii) contracts for construction projects, including
design professional services.
(Source: P.A. 99-906, eff. 6-1-17; 100-43, eff. 8-9-17.)
(Text of Section from P.A. 96-159, 96-795, 97-96, 97-895,
98-1076, 99-906, and 100-43)
Sec. 20-10. Competitive sealed bidding; reverse auction.
(a) Conditions for use. All contracts shall be awarded by
competitive sealed bidding except as otherwise provided in
Section 20-5.
(b) Invitation for bids. An invitation for bids shall be
issued and shall include a purchase description and the
material contractual terms and conditions applicable to the
procurement.
(c) Public notice. Public notice of the invitation for bids
shall be published in the Illinois Procurement Bulletin at
least 14 calendar days before the date set in the invitation
for the opening of bids.
(d) Bid opening. Bids shall be opened publicly or through
an electronic procurement system in the presence of one or more
witnesses at the time and place designated in the invitation
for bids. The name of each bidder, including earned and applied
bid credit from the Illinois Works Jobs Program Act, the amount
of each bid, and other relevant information as may be specified
by rule shall be recorded. After the award of the contract, the
winning bid and the record of each unsuccessful bid shall be
open to public inspection.
(e) Bid acceptance and bid evaluation. Bids shall be
unconditionally accepted without alteration or correction,
except as authorized in this Code. Bids shall be evaluated
based on the requirements set forth in the invitation for bids,
which may include criteria to determine acceptability such as
inspection, testing, quality, workmanship, delivery, and
suitability for a particular purpose. Those criteria that will
affect the bid price and be considered in evaluation for award,
such as discounts, transportation costs, and total or life
cycle costs, shall be objectively measurable. The invitation
for bids shall set forth the evaluation criteria to be used.
(f) Correction or withdrawal of bids. Correction or
withdrawal of inadvertently erroneous bids before or after
award, or cancellation of awards of contracts based on bid
mistakes, shall be permitted in accordance with rules. After
bid opening, no changes in bid prices or other provisions of
bids prejudicial to the interest of the State or fair
competition shall be permitted. All decisions to permit the
correction or withdrawal of bids based on bid mistakes shall be
supported by written determination made by a State purchasing
officer.
(g) Award. The contract shall be awarded with reasonable
promptness by written notice to the lowest responsible and
responsive bidder whose bid meets the requirements and criteria
set forth in the invitation for bids, except when a State
purchasing officer determines it is not in the best interest of
the State and by written explanation determines another bidder
shall receive the award. The explanation shall appear in the
appropriate volume of the Illinois Procurement Bulletin. The
written explanation must include:
(1) a description of the agency's needs;
(2) a determination that the anticipated cost will be
fair and reasonable;
(3) a listing of all responsible and responsive
bidders; and
(4) the name of the bidder selected, the total contract
price, and the reasons for selecting that bidder.
Each chief procurement officer may adopt guidelines to
implement the requirements of this subsection (g).
The written explanation shall be filed with the Legislative
Audit Commission and the Procurement Policy Board, and be made
available for inspection by the public, within 30 days after
the agency's decision to award the contract.
(h) Multi-step sealed bidding. When it is considered
impracticable to initially prepare a purchase description to
support an award based on price, an invitation for bids may be
issued requesting the submission of unpriced offers to be
followed by an invitation for bids limited to those bidders
whose offers have been qualified under the criteria set forth
in the first solicitation.
(i) Alternative procedures. Notwithstanding any other
provision of this Act to the contrary, the Director of the
Illinois Power Agency may create alternative bidding
procedures to be used in procuring professional services under
subsections (a) and (c) of Section 1-75 and subsection (d) of
Section 1-78 of the Illinois Power Agency Act and Section
16-111.5(c) of the Public Utilities Act and to procure
renewable energy resources under Section 1-56 of the Illinois
Power Agency Act. These alternative procedures shall be set
forth together with the other criteria contained in the
invitation for bids, and shall appear in the appropriate volume
of the Illinois Procurement Bulletin.
(j) Reverse auction. Notwithstanding any other provision
of this Section and in accordance with rules adopted by the
chief procurement officer, that chief procurement officer may
procure supplies or services through a competitive electronic
auction bidding process after the chief procurement officer
determines that the use of such a process will be in the best
interest of the State. The chief procurement officer shall
publish that determination in his or her next volume of the
Illinois Procurement Bulletin.
An invitation for bids shall be issued and shall include
(i) a procurement description, (ii) all contractual terms,
whenever practical, and (iii) conditions applicable to the
procurement, including a notice that bids will be received in
an electronic auction manner.
Public notice of the invitation for bids shall be given in
the same manner as provided in subsection (c).
Bids shall be accepted electronically at the time and in
the manner designated in the invitation for bids. During the
auction, a bidder's price shall be disclosed to other bidders.
Bidders shall have the opportunity to reduce their bid prices
during the auction. At the conclusion of the auction, the
record of the bid prices received and the name of each bidder
shall be open to public inspection.
After the auction period has terminated, withdrawal of bids
shall be permitted as provided in subsection (f).
The contract shall be awarded within 60 calendar days after
the auction by written notice to the lowest responsible bidder,
or all bids shall be rejected except as otherwise provided in
this Code. Extensions of the date for the award may be made by
mutual written consent of the State purchasing officer and the
lowest responsible bidder.
This subsection does not apply to (i) procurements of
professional and artistic services, (ii) telecommunications
services, communication services, and information services,
and (iii) contracts for construction projects, including
design professional services.
(Source: P.A. 99-906, eff. 6-1-17; 100-43, eff. 8-9-17.)
Section 20-910. The Prevailing Wage Act is amended by
changing Section 5 as follows:
(820 ILCS 130/5) (from Ch. 48, par. 39s-5)
(Text of Section before amendment by P.A. 100-1177)
Sec. 5. Certified payroll.
(a) Any contractor and each subcontractor who participates
in public works shall:
(1) make and keep, for a period of not less than 3
years from the date of the last payment made before January
1, 2014 (the effective date of Public Act 98-328) and for a
period of 5 years from the date of the last payment made on
or after January 1, 2014 (the effective date of Public Act
98-328) on a contract or subcontract for public works,
records of all laborers, mechanics, and other workers
employed by them on the project; the records shall include
(i) the worker's name, (ii) the worker's address, (iii) the
worker's telephone number when available, (iv) the
worker's social security number, (v) the worker's
classification or classifications, (vi) the worker's skill
level, such as apprentice or journeyman, (vii) (vi) the
worker's gross and net wages paid in each pay period,
(viii) (vii) the worker's number of hours worked each day,
(ix) (viii) the worker's starting and ending times of work
each day, (x) (ix) the worker's hourly wage rate, (xi) (x)
the worker's hourly overtime wage rate, (xii) (xi) the
worker's hourly fringe benefit rates, (xiii) (xii) the name
and address of each fringe benefit fund, (xiv) (xiii) the
plan sponsor of each fringe benefit, if applicable, and
(xv) (xiv) the plan administrator of each fringe benefit,
if applicable; and
(2) no later than the 15th day of each calendar month
file a certified payroll for the immediately preceding
month with the public body in charge of the project. A
certified payroll must be filed for only those calendar
months during which construction on a public works project
has occurred. The certified payroll shall consist of a
complete copy of the records identified in paragraph (1) of
this subsection (a), but may exclude the starting and
ending times of work each day. The certified payroll shall
be accompanied by a statement signed by the contractor or
subcontractor or an officer, employee, or agent of the
contractor or subcontractor which avers that: (i) he or she
has examined the certified payroll records required to be
submitted by the Act and such records are true and
accurate; (ii) the hourly rate paid to each worker is not
less than the general prevailing rate of hourly wages
required by this Act; and (iii) the contractor or
subcontractor is aware that filing a certified payroll that
he or she knows to be false is a Class A misdemeanor. A
general contractor is not prohibited from relying on the
certification of a lower tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification. Any contractor or
subcontractor subject to this Act and any officer,
employee, or agent of such contractor or subcontractor
whose duty as such officer, employee, or agent it is to
file such certified payroll who willfully fails to file
such a certified payroll on or before the date such
certified payroll is required by this paragraph to be filed
and any person who willfully files a false certified
payroll that is false as to any material fact is in
violation of this Act and guilty of a Class A misdemeanor.
The public body in charge of the project shall keep the
records submitted in accordance with this paragraph (2) of
subsection (a) before January 1, 2014 (the effective date
of Public Act 98-328) for a period of not less than 3
years, and the records submitted in accordance with this
paragraph (2) of subsection (a) on or after January 1, 2014
(the effective date of Public Act 98-328) for a period of 5
years, from the date of the last payment for work on a
contract or subcontract for public works. The records
submitted in accordance with this paragraph (2) of
subsection (a) shall be considered public records, except
an employee's address, telephone number, and social
security number, and made available in accordance with the
Freedom of Information Act. The public body shall accept
any reasonable submissions by the contractor that meet the
requirements of this Section.
A contractor, subcontractor, or public body may retain
records required under this Section in paper or electronic
format.
(b) Upon 7 business days' notice, the contractor and each
subcontractor shall make available for inspection and copying
at a location within this State during reasonable hours, the
records identified in paragraph (1) of subsection (a) of this
Section to the public body in charge of the project, its
officers and agents, the Director of Labor and his deputies and
agents, and to federal, State, or local law enforcement
agencies and prosecutors.
(c) A contractor or subcontractor who remits contributions
to fringe benefit funds that are jointly maintained and jointly
governed by one or more employers and one or more labor
organizations in accordance with the federal Labor Management
Relations Act shall make and keep certified payroll records
that include the information required under items (i) through
(ix) (viii) of paragraph (1) of subsection (a) only. However,
the information required under items (x) (ix) through (xv)
(xiv) of paragraph (1) of subsection (a) shall be required for
any contractor or subcontractor who remits contributions to a
fringe benefit fund that is not jointly maintained and jointly
governed by one or more employers and one or more labor
organizations in accordance with the federal Labor Management
Relations Act.
(Source: P.A. 97-571, eff. 1-1-12; 98-328, eff. 1-1-14; 98-482,
eff. 1-1-14; 98-756, eff. 7-16-14.)
(Text of Section after amendment by P.A. 100-1177)
Sec. 5. Certified payroll.
(a) Any contractor and each subcontractor who participates
in public works shall:
(1) make and keep, for a period of not less than 3
years from the date of the last payment made before January
1, 2014 (the effective date of Public Act 98-328) and for a
period of 5 years from the date of the last payment made on
or after January 1, 2014 (the effective date of Public Act
98-328) on a contract or subcontract for public works,
records of all laborers, mechanics, and other workers
employed by them on the project; the records shall include
(i) the worker's name, (ii) the worker's address, (iii) the
worker's telephone number when available, (iv) the last 4
digits of the worker's social security number, (v) the
worker's gender, (vi) the worker's race, (vii) the worker's
ethnicity, (viii) veteran status, (ix) the worker's
classification or classifications, (x) the worker's skill
level, such as apprentice or journeyman, (xi) (x) the
worker's gross and net wages paid in each pay period, (xii)
(xi) the worker's number of hours worked each day, (xiii)
(xii) the worker's starting and ending times of work each
day, (xiv) (xiii) the worker's hourly wage rate, (xv) (xiv)
the worker's hourly overtime wage rate, (xvi) (xv) the
worker's hourly fringe benefit rates, (xvii) (xvi) the name
and address of each fringe benefit fund, (xviii) (xvii) the
plan sponsor of each fringe benefit, if applicable, and
(xix) (xviii) the plan administrator of each fringe
benefit, if applicable; and
(2) no later than the 15th day of each calendar month
file a certified payroll for the immediately preceding
month with the public body in charge of the project until
the Department of Labor activates the database created
under Section 5.1 at which time certified payroll shall
only be submitted to that database, except for projects
done by State agencies that opt to have contractors submit
certified payrolls directly to that State agency. A State
agency that opts to directly receive certified payrolls
must submit the required information in a specified
electronic format to the Department of Labor no later than
10 days after the certified payroll was filed with the
State agency. A certified payroll must be filed for only
those calendar months during which construction on a public
works project has occurred. The certified payroll shall
consist of a complete copy of the records identified in
paragraph (1) of this subsection (a), but may exclude the
starting and ending times of work each day. The certified
payroll shall be accompanied by a statement signed by the
contractor or subcontractor or an officer, employee, or
agent of the contractor or subcontractor which avers that:
(i) he or she has examined the certified payroll records
required to be submitted by the Act and such records are
true and accurate; (ii) the hourly rate paid to each worker
is not less than the general prevailing rate of hourly
wages required by this Act; and (iii) the contractor or
subcontractor is aware that filing a certified payroll that
he or she knows to be false is a Class A misdemeanor. A
general contractor is not prohibited from relying on the
certification of a lower tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification. Any contractor or
subcontractor subject to this Act and any officer,
employee, or agent of such contractor or subcontractor
whose duty as such officer, employee, or agent it is to
file such certified payroll who willfully fails to file
such a certified payroll on or before the date such
certified payroll is required by this paragraph to be filed
and any person who willfully files a false certified
payroll that is false as to any material fact is in
violation of this Act and guilty of a Class A misdemeanor.
The public body in charge of the project shall keep the
records submitted in accordance with this paragraph (2) of
subsection (a) before January 1, 2014 (the effective date
of Public Act 98-328) for a period of not less than 3
years, and the records submitted in accordance with this
paragraph (2) of subsection (a) on or after January 1, 2014
(the effective date of Public Act 98-328) for a period of 5
years, from the date of the last payment for work on a
contract or subcontract for public works or until the
Department of Labor activates the database created under
Section 5.1, whichever is less. After the activation of the
database created under Section 5.1, the Department of Labor
rather than the public body in charge of the project shall
keep the records and maintain the database. The records
submitted in accordance with this paragraph (2) of
subsection (a) shall be considered public records, except
an employee's address, telephone number, social security
number, race, ethnicity, and gender, and made available in
accordance with the Freedom of Information Act. The public
body shall accept any reasonable submissions by the
contractor that meet the requirements of this Section.
A contractor, subcontractor, or public body may retain
records required under this Section in paper or electronic
format.
(b) Upon 7 business days' notice, the contractor and each
subcontractor shall make available for inspection and copying
at a location within this State during reasonable hours, the
records identified in paragraph (1) of subsection (a) of this
Section to the public body in charge of the project, its
officers and agents, the Director of Labor and his deputies and
agents, and to federal, State, or local law enforcement
agencies and prosecutors.
(c) A contractor or subcontractor who remits contributions
to fringe benefit funds that are jointly maintained and jointly
governed by one or more employers and one or more labor
organizations in accordance with the federal Labor Management
Relations Act shall make and keep certified payroll records
that include the information required under items (i) through
(viii) of paragraph (1) of subsection (a) only. However, the
information required under items (ix) through (xv) (xiv) of
paragraph (1) of subsection (a) shall be required for any
contractor or subcontractor who remits contributions to a
fringe benefit fund that is not jointly maintained and jointly
governed by one or more employers and one or more labor
organizations in accordance with the federal Labor Management
Relations Act.
(Source: P.A. 100-1177, eff. 6-1-19.)
Article 25. Sports Wagering Act
Section 25-1. Short title. This Article may be cited as the
Sports Wagering Act. References in this Article to "this Act"
mean this Article.
Section 25-5. Legislative findings. The General Assembly
recognizes the promotion of public safety is an important
consideration for sports leagues, teams, players, and fans at
large. All persons who present sporting contests are encouraged
to take reasonable measures to ensure the safety and security
of all involved or attending sporting contests. Persons who
present sporting contests are encouraged to establish codes of
conduct that forbid all persons associated with the sporting
contest from engaging in violent behavior and to hire, train,
and equip safety and security personnel to enforce those codes
of conduct. Persons who present sporting contests are further
encouraged to provide public notice of those codes of conduct.
Section 25-10. Definitions. As used in this Act:
"Adjusted gross sports wagering receipts" means a master
sports wagering licensee's gross sports wagering receipts,
less winnings paid to wagerers in such games.
"Athlete" means any current or former professional athlete
or collegiate athlete.
"Board" means the Illinois Gaming Board.
"Covered persons" includes athletes; umpires, referees,
and officials; personnel associated with clubs, teams,
leagues, and athletic associations; medical professionals
(including athletic trainers) who provide services to athletes
and players; and the family members and associates of these
persons where required to serve the purposes of this Act.
"Department" means the Department of the Lottery.
"Gaming facility" means a facility at which gambling
operations are conducted under the Illinois Gambling Act,
pari-mutuel wagering is conducted under the Illinois Horse
Racing Act of 1975, or sports wagering is conducted under this
Act.
"Official league data" means statistics, results,
outcomes, and other data related to a sports event obtained
pursuant to an agreement with the relevant sports governing
body, or an entity expressly authorized by the sports governing
body to provide such information to licensees, that authorizes
the use of such data for determining the outcome of tier 2
sports wagers on such sports events.
"Organization licensee" has the meaning given to that term
in the Illinois Horse Racing Act of 1975.
"Owners licensee" means the holder of an owners license
under the Illinois Gambling Act.
"Person" means an individual, partnership, committee,
association, corporation, or any other organization or group of
persons.
"Personal biometric data" means an athlete's information
derived from DNA, heart rate, blood pressure, perspiration
rate, internal or external body temperature, hormone levels,
glucose levels, hydration levels, vitamin levels, bone
density, muscle density, and sleep patterns.
"Prohibited conduct" includes any statement, action, and
other communication intended to influence, manipulate, or
control a betting outcome of a sporting contest or of any
individual occurrence or performance in a sporting contest in
exchange for financial gain or to avoid financial or physical
harm. "Prohibited conduct" includes statements, actions, and
communications made to a covered person by a third party, such
as a family member or through social media. "Prohibited
conduct" does not include statements, actions, or
communications made or sanctioned by a team or sports governing
body.
"Qualified applicant" means an applicant for a license
under this Act whose application meets the mandatory minimum
qualification criteria as required by the Board.
"Sporting contest" means a sports event or game on which
the State allows sports wagering to occur under this Act.
"Sports event" means a professional sport or athletic
event, a collegiate sport or athletic event, a motor race
event, or any other event or competition of relative skill
authorized by the Board under this Act.
"Sports facility" means a facility that hosts sports events
and holds a seating capacity greater than 17,000 persons.
"Sports governing body" means the organization that
prescribes final rules and enforces codes of conduct with
respect to a sports event and participants therein.
"Sports wagering" means accepting wagers on sports events
or portions of sports events, or on the individual performance
statistics of athletes in a sports event or combination of
sports events, by any system or method of wagering, including,
but not limited to, in person or over the Internet through
websites and on mobile devices. "Sports wagering" includes, but
is not limited to, single-game bets, teaser bets, parlays,
over-under, moneyline, pools, exchange wagering, in-game
wagering, in-play bets, proposition bets, and straight bets.
"Sports wagering account" means a financial record
established by a master sports wagering licensee for an
individual patron in which the patron may deposit and withdraw
funds for sports wagering and other authorized purchases and to
which the master sports wagering licensee may credit winnings
or other amounts due to that patron or authorized by that
patron.
"Tier 1 sports wager" means a sports wager that is
determined solely by the final score or final outcome of the
sports event and is placed before the sports event has begun.
"Tier 2 sports wager" means a sports wager that is not a
tier 1 sports wager.
"Wager" means a sum of money or thing of value risked on an
uncertain occurrence.
"Winning bidder" means a qualified applicant for a master
sports wagering license chosen through the competitive
selection process under Section 25-45.
Section 25-15. Board duties and powers.
(a) Except for sports wagering conducted under Section
25-70, the Board shall have the authority to regulate the
conduct of sports wagering under this Act.
(b) The Board may adopt any rules the Board considers
necessary for the successful implementation, administration,
and enforcement of this Act, except for Section 25-70. Rules
proposed by the Board may be adopted as emergency rules
pursuant to Section 5-45 of the Illinois Administrative
Procedure Act.
(c) The Board shall levy and collect all fees, surcharges,
civil penalties, and monthly taxes on adjusted gross sports
wagering receipts imposed by this Act and deposit all moneys
into the Sports Wagering Fund, except as otherwise provided
under this Act.
(d) The Board may exercise any other powers necessary to
enforce the provisions of this Act that it regulates and the
rules of the Board.
(e) The Board shall adopt rules for a license to be
employed by a master sports wagering licensee when the employee
works in a designated gaming area that has sports wagering or
performs duties in furtherance of or associated with the
operation of sports wagering by the master sports wagering
licensee (occupational license), which shall require an annual
license fee of $250. License fees shall be deposited into the
State Gaming Fund and used for the administration of this Act.
(f) The Board may require that licensees share, in real
time and at the sports wagering account level, information
regarding a wagerer, amount and type of wager, the time the
wager was placed, the location of the wager, including the
Internet protocol address, if applicable, the outcome of the
wager, and records of abnormal wagering activity. Information
shared under this subsection (f) must be submitted in the form
and manner as required by rule. If a sports governing body has
notified the Board that real-time information sharing for
wagers placed on its sports events is necessary and desirable,
licensees may share the same information in the form and manner
required by the Board by rule with the sports governing body or
its designee with respect to wagers on its sports events
subject to applicable federal, State, or local laws or
regulations, including, without limitation, privacy laws and
regulations. Such information may be provided in anonymized
form and may be used by a sports governing body solely for
integrity purposes. For purposes of this subsection (f),
"real-time" means a commercially reasonable periodic interval.
(g) A master sports wagering licensee, professional sports
team, league, or association, sports governing body, or
institution of higher education may submit to the Board in
writing a request to prohibit a type or form of wagering if the
master sports wagering licensee, professional sports team,
league, or association, sports governing body, or institution
of higher education believes that such wagering by type or form
is contrary to public policy, unfair to consumers, or affects
the integrity of a particular sport or the sports betting
industry. The Board shall grant the request upon a
demonstration of good cause from the requester and consultation
with licensees. The Board shall respond to a request pursuant
to this subsection (g) concerning a particular event before the
start of the event or, if it is not feasible to respond before
the start of the event, as soon as practicable.
(h) The Board and master sports wagering licensees may
cooperate with investigations conducted by sports governing
bodies or law enforcement agencies, including, but not limited
to, providing and facilitating the provision of account-level
betting information and audio or video files relating to
persons placing wagers.
(i) A master sports wagering licensee shall make
commercially reasonable efforts to promptly notify the Board
any information relating to:
(1) criminal or disciplinary proceedings commenced
against the master sports wagering licensee in connection
with its operations;
(2) abnormal wagering activity or patterns that may
indicate a concern with the integrity of a sports event or
sports events;
(3) any potential breach of the relevant sports
governing body's internal rules and codes of conduct
pertaining to sports wagering that a licensee has knowledge
of;
(4) any other conduct that corrupts a wagering outcome
of a sports event or sports events for purposes of
financial gain, including match fixing; and
(5) suspicious or illegal wagering activities,
including use of funds derived from illegal activity,
wagers to conceal or launder funds derived from illegal
activity, using agents to place wagers, and using false
identification.
A master sports wagering licensee shall also make
commercially reasonable efforts to promptly report information
relating to conduct described in paragraphs (2), (3), and (4)
of this subsection (i) to the relevant sports governing body.
Section 25-20. Licenses required.
(a) No person may engage in any activity in connection with
sports wagering in this State unless all necessary licenses
have been obtained in accordance with this Act and the rules of
the Board and the Department. The following licenses shall be
issued under this Act:
(1) master sports wagering license;
(2) occupational license;
(3) supplier license;
(4) management services provider license
(5) tier 2 official league data provider license; and
(6) central system provider license.
No person or entity may engage in a sports wagering
operation or activity without first obtaining the appropriate
license.
(b) An applicant for a license issued under this Act shall
submit an application to the Board in the form the Board
requires. The applicant shall submit fingerprints for a
national criminal records check by the Department of State
Police and the Federal Bureau of Investigation. The
fingerprints shall be furnished by the applicant's officers and
directors (if a corporation), members (if a limited liability
company), and partners (if a partnership). The fingerprints
shall be accompanied by a signed authorization for the release
of information by the Federal Bureau of Investigation. The
Board may require additional background checks on licensees
when they apply for license renewal, and an applicant convicted
of a disqualifying offense shall not be licensed.
(c) Each master sports wagering licensee shall display the
license conspicuously in the licensee's place of business or
have the license available for inspection by an agent of the
Board or a law enforcement agency.
(d) Each holder of an occupational license shall carry the
license and have some indicia of licensure prominently
displayed on his or her person when present in a gaming
facility licensed under this Act at all times, in accordance
with the rules of the Board.
(e) Each person licensed under this Act shall give the
Board written notice within 30 days after a material change to
information provided in the licensee's application for a
license or renewal.
Section 25-25. Sports wagering authorized.
(a) Notwithstanding any provision of law to the contrary,
the operation of sports wagering is only lawful when conducted
in accordance with the provisions of this Act and the rules of
the Illinois Gaming Board and the Department of the Lottery.
(b) A person placing a wager under this Act shall be at
least 21 years of age.
(c) A licensee under this Act may not accept a wager on a
minor league sports event.
(d) A licensee under this Act may not accept a wager for a
sports event involving an Illinois collegiate team.
(e) A licensee under this Act may only accept a wager from
a person physically located in the State.
(f) Master sports wagering licensees may use any data
source for determining the results of all tier 1 sports wagers.
(g) A sports governing body headquartered in the United
States may notify the Board that it desires to supply official
league data to master sports wagering licensees for determining
the results of tier 2 sports wagers. Such notification shall be
made in the form and manner as the Board may require. If a
sports governing body does not notify the Board of its desire
to supply official league data, a master sports wagering
licensee may use any data source for determining the results of
any and all tier 2 sports wagers on sports contests for that
sports governing body.
Within 30 days of a sports governing body notifying the
Board, master sports wagering licensees shall use only official
league data to determine the results of tier 2 sports wagers on
sports events sanctioned by that sports governing body, unless:
(1) the sports governing body or designee cannot provide a feed
of official league data to determine the results of a
particular type of tier 2 sports wager, in which case master
sports wagering licensees may use any data source for
determining the results of the applicable tier 2 sports wager
until such time as such data feed becomes available on
commercially reasonable terms; or (2) a master sports wagering
licensee can demonstrate to the Board that the sports governing
body or its designee cannot provide a feed of official league
data to the master sports wagering licensee on commercially
reasonable terms. During the pendency of the Board's
determination, such master sports wagering licensee may use any
data source for determining the results of any and all tier 2
sports wagers.
(h) A licensee under this Act may not accept wagers on a
kindergarten through 12th grade sports event.
Section 25-30. Master sports wagering license issued to an
organization licensee.
(a) An organization licensee may apply to the Board for a
master sports wagering license. To the extent permitted by
federal and State law, the Board shall actively seek to achieve
racial, ethnic, and geographic diversity when issuing master
sports wagering licenses to organization licensees and
encourage minority-owned businesses, women-owned businesses,
veteran-owned businesses, and businesses owned by persons with
disabilities to apply for licensure. Additionally, the report
published under subsection (m) of Section 25-45 shall impact
the issuance of the master sports wagering license to the
extent permitted by federal and State law.
For the purposes of this subsection (a), "minority-owned
business", "women-owned business", and "business owned by
persons with disabilities" have the meanings given to those
terms in Section 2 of the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
(b) Except as otherwise provided in this subsection (b),
the initial license fee for a master sports wagering license
for an organization licensee is 5% of its handle from the
preceding calendar year or the lowest amount that is required
to be paid as an initial license fee by an owners licensee
under subsection (b) of Section 25-35, whichever is greater. No
initial license fee shall exceed $10,000,000. An organization
licensee licensed on the effective date of this Act shall pay
the initial master sports wagering license fee by July 1, 2020.
For an organization licensee licensed after the effective date
of this Act, the master sports wagering license fee shall be
$5,000,000, but the amount shall be adjusted 12 months after
the organization licensee begins racing operations based on 5%
of its handle from the first 12 months of racing operations.
The master sports wagering license is valid for 4 years.
(c) The organization licensee may renew the master sports
wagering license for a period of 4 years by paying a $1,000,000
renewal fee to the Board.
(d) An organization licensee issued a master sports
wagering license may conduct sports wagering:
(1) at its facility at which inter-track wagering is
conducted pursuant to an inter-track wagering license
under the Illinois Horse Racing Act of 1975;
(2) at 3 inter-track wagering locations if the
inter-track wagering location licensee from which it
derives its license is an organization licensee that is
issued a master sports wagering license; and
(3) over the Internet or through a mobile application.
(e) The sports wagering offered over the Internet or
through a mobile application shall only be offered under either
the same brand as the organization licensee is operating under
or a brand owned by a direct or indirect holding company that
owns at least an 80% interest in that organization licensee on
the effective date of this Act.
(f) Until issuance of the first license under Section
25-45, an individual must create a sports wagering account in
person at a facility under paragraph (1) or (2) of subsection
(d) to participate in sports wagering offered over the Internet
or through a mobile application.
Section 25-35. Master sports wagering license issued to an
owners licensee.
(a) An owners licensee may apply to the Board for a master
sports wagering license. To the extent permitted by federal and
State law, the Board shall actively seek to achieve racial,
ethnic, and geographic diversity when issuing master sports
wagering licenses to owners licensees and encourage
minority-owned businesses, women-owned businesses,
veteran-owned businesses, and businesses owned by persons with
disabilities to apply for licensure. Additionally, the report
published under subsection (m) of Section 25-45 shall impact
the issuance of the master sports wagering license to the
extent permitted by federal and State law.
For the purposes of this subsection (a), "minority-owned
business", "women-owned business", and "business owned by
persons with disabilities" have the meanings given to those
terms in Section 2 of the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
(b) Except as otherwise provided in subsection (b-5), the
initial license fee for a master sports wagering license for an
owners licensee is 5% of its adjusted gross receipts from the
preceding calendar year. No initial license fee shall exceed
$10,000,000. An owners licensee licensed on the effective date
of this Act shall pay the initial master sports wagering
license fee by July 1, 2020. The master sports wagering license
is valid for 4 years.
(b-5) For an owners licensee licensed after the effective
date of this Act, the master sports wagering license fee shall
be $5,000,000, but the amount shall be adjusted 12 months after
the owners licensee begins gambling operations under the
Illinois Gambling Act based on 5% of its adjusted gross
receipts from the first 12 months of gambling operations. The
master sports wagering license is valid for 4 years.
(c) The owners licensee may renew the master sports
wagering license for a period of 4 years by paying a $1,000,000
renewal fee to the Board.
(d) An owners licensee issued a master sports wagering
license may conduct sports wagering:
(1) at its facility in this State that is authorized to
conduct gambling operations under the Illinois Gambling
Act; and
(2) over the Internet or through a mobile application.
(e) The sports wagering offered over the Internet or
through a mobile application shall only be offered under either
the same brand as the owners licensee is operating under or a
brand owned by a direct or indirect holding company that owns
at least an 80% interest in that owners licensee on the
effective date of this Act.
(f) Until issuance of the first license under Section
25-45, an individual must create a sports wagering account in
person at a facility under paragraph (1) of subsection (d) to
participate in sports wagering offered over the Internet or
through a mobile application.
Section 25-40. Master sports wagering license issued to a
sports facility.
(a) As used in this Section, "designee" means a master
sports wagering licensee under Section 25-30, 25-35, or 25-45
or a management services provider licensee.
(b) A sports facility or a designee contracted to operate
sports wagering at or within a 5-block radius of the sports
facility may apply to the Board for a master sports wagering
license. To the extent permitted by federal and State law, the
Board shall actively seek to achieve racial, ethnic, and
geographic diversity when issuing master sports wagering
licenses to sports facilities or their designees and encourage
minority-owned businesses, women-owned businesses,
veteran-owned businesses, and businesses owned by persons with
disabilities to apply for licensure. Additionally, the report
published under subsection (m) of Section 25-45 shall impact
the issuance of the master sports wagering license to the
extent permitted by federal and State law.
For the purposes of this subsection (b), "minority-owned
business", "women-owned business", and "business owned by
persons with disabilities" have the meanings given to those
terms in Section 2 of the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
(c) The Board may issue up to 7 master sports wagering
licenses to sports facilities or their designees that meet the
requirements for licensure as determined by rule by the Board.
If more than 7 qualified applicants apply for a master sports
wagering license under this Section, the licenses shall be
granted in the order in which the applications were received.
If a license is denied, revoked, or not renewed, the Board may
begin a new application process and issue a license under this
Section in the order in which the application was received.
(d) The initial license fee for a master sports wagering
license for a sports facility is $10,000,000. The master sports
wagering license is valid for 4 years.
(e) The sports facility or its designee may renew the
master sports wagering license for a period of 4 years by
paying a $1,000,000 renewal fee to the Board.
(f) A sports facility or its designee issued a master
sports wagering license may conduct sports wagering at or
within a 5-block radius of the sports facility.
(g) A sports facility or its designee issued a master
sports wagering license may conduct sports wagering over the
Internet within the sports facility or within a 5-block radius
of the sports facility.
(h) The sports wagering offered by a sports facility or its
designee over the Internet or through a mobile application
shall be offered under the same brand as the sports facility is
operating under, the brand the designee is operating under, or
a combination thereof.
(i) Until issuance of the first license under Section
25-45, an individual must register in person at a sports
facility or the designee's facility to participate in sports
wagering offered over the Internet or through a mobile
application.
Section 25-45. Master sports wagering license issued to an
online sports wagering operator.
(a) The Board shall issue 3 master sports wagering licenses
to online sports wagering operators for a nonrefundable license
fee of $20,000,000 pursuant to an open and competitive
selection process. The master sports wagering license issued
under this Section may be renewed every 4 years upon payment of
a $1,000,000 renewal fee. To the extent permitted by federal
and State law, the Board shall actively seek to achieve racial,
ethnic, and geographic diversity when issuing master sports
wagering licenses under this Section and encourage
minority-owned businesses, women-owned businesses,
veteran-owned businesses, and businesses owned by persons with
disabilities to apply for licensure.
For the purposes of this subsection (a), "minority-owned
business", "women-owned business", and "business owned by
persons with disabilities" have the meanings given to those
terms in Section 2 of the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
(b) Applications for the initial competitive selection
occurring after the effective date of this Act shall be
received by the Board within 540 days after the first license
is issued under this Act to qualify. The Board shall announce
the winning bidders for the initial competitive selection
within 630 days after the first license is issued under this
Act, and this time frame may be extended at the discretion of
the Board.
(c) The Board shall provide public notice of its intent to
solicit applications for master sports wagering licenses under
this Section by posting the notice, application instructions,
and materials on its website for at least 30 calendar days
before the applications are due. Failure by an applicant to
submit all required information may result in the application
being disqualified. The Board may notify an applicant that its
application is incomplete and provide an opportunity to cure by
rule. Application instructions shall include a brief overview
of the selection process and how applications are scored.
(d) To be eligible for a master sports wagering license
under this Section, an applicant must: (1) be at least 21 years
of age; (2) not have been convicted of a felony offense or a
violation of Article 28 of the Criminal Code of 1961 or the
Criminal Code of 2012 or a similar statute of any other
jurisdiction; (3) not have been convicted of a crime involving
dishonesty or moral turpitude; (4) have demonstrated a level of
skill or knowledge that the Board determines to be necessary in
order to operate sports wagering; and (5) have met standards
for the holding of a license as adopted by rules of the Board.
The Board may adopt rules to establish additional
qualifications and requirements to preserve the integrity and
security of sports wagering in this State and to promote and
maintain a competitive sports wagering market. After the close
of the application period, the Board shall determine whether
the applications meet the mandatory minimum qualification
criteria and conduct a comprehensive, fair, and impartial
evaluation of all qualified applications.
(e) The Board shall open all qualified applications in a
public forum and disclose the applicants' names. The Board
shall summarize the terms of the proposals and make the
summaries available to the public on its website.
(f) Not more than 90 days after the publication of the
qualified applications, the Board shall identify the winning
bidders. In granting the licenses, the Board may give favorable
consideration to qualified applicants presenting plans that
provide for economic development and community engagement. To
the extent permitted by federal and State law, the Board may
give favorable consideration to qualified applicants
demonstrating commitment to diversity in the workplace.
(g) Upon selection of the winning bidders, the Board shall
have a reasonable period of time to ensure compliance with all
applicable statutory and regulatory criteria before issuing
the licenses. If the Board determines a winning bidder does not
satisfy all applicable statutory and regulatory criteria, the
Board shall select another bidder from the remaining qualified
applicants.
(h) Nothing in this Section is intended to confer a
property or other right, duty, privilege, or interest entitling
an applicant to an administrative hearing upon denial of an
application.
(i) Upon issuance of a master sports wagering license to a
winning bidder, the information and plans provided in the
application become a condition of the license. A master sports
wagering licensee under this Section has a duty to disclose any
material changes to the application. Failure to comply with the
conditions or requirements in the application may subject the
master sports wagering licensee under this Section to
discipline, including, but not limited to, fines, suspension,
and revocation of its license, pursuant to rules adopted by the
Board.
(j) The Board shall disseminate information about the
licensing process through media demonstrated to reach large
numbers of business owners and entrepreneurs who are
minorities, women, veterans, and persons with disabilities.
(k) The Department of Commerce and Economic Opportunity, in
conjunction with the Board, shall conduct ongoing, thorough,
and comprehensive outreach to businesses owned by minorities,
women, veterans, and persons with disabilities about
contracting and entrepreneurial opportunities in sports
wagering. This outreach shall include, but not be limited to:
(1) cooperating and collaborating with other State
boards, commissions, and agencies; public and private
universities and community colleges; and local governments
to target outreach efforts; and
(2) working with organizations serving minorities,
women, and persons with disabilities to establish and
conduct training for employment in sports wagering.
(l) The Board shall partner with the Department of Labor,
the Department of Financial and Professional Regulation, and
the Department of Commerce and Economic Opportunity to identify
employment opportunities within the sports wagering industry
for job seekers and dislocated workers.
(m) By March 1, 2020, the Board shall prepare a request for
proposals to conduct a study of the online sports wagering
industry and market to determine whether there is a compelling
interest in implementing remedial measures, including the
application of the Business Enterprise Program under the
Business Enterprise for Minorities, Women, and Persons with
Disabilities Act or a similar program to assist minorities,
women, and persons with disabilities in the sports wagering
industry.
As a part of the study, the Board shall evaluate race and
gender-neutral programs or other methods that may be used to
address the needs of minority and women applicants and
minority-owned and women-owned businesses seeking to
participate in the sports wagering industry. The Board shall
submit to the General Assembly and publish on its website the
results of this study by August 1, 2020.
If, as a result of the study conducted under this
subsection (m), the Board finds that there is a compelling
interest in implementing remedial measures, the Board may adopt
rules, including emergency rules, to implement remedial
measures, if necessary and to the extent permitted by State and
federal law, based on the findings of the study conducted under
this subsection (m).
Section 25-50. Supplier license.
(a) The Board may issue a supplier license to a person to
sell or lease sports wagering equipment, systems, or other
gaming items to conduct sports wagering and offer services
related to the equipment or other gaming items and data to a
master sports wagering licensee while the license is active.
(b) The Board may adopt rules establishing additional
requirements for a supplier and any system or other equipment
utilized for sports wagering. The Board may accept licensing by
another jurisdiction that it specifically determines to have
similar licensing requirements as evidence the applicant meets
supplier licensing requirements.
(c) An applicant for a supplier license shall demonstrate
that the equipment, system, or services that the applicant
plans to offer to the master sports wagering licensee conforms
to standards established by the Board and applicable State law.
The Board may accept approval by another jurisdiction that it
specifically determines have similar equipment standards as
evidence the applicant meets the standards established by the
Board and applicable State law.
(d) Applicants shall pay to the Board a nonrefundable
license and application fee in the amount of $150,000. After
the initial 4-year term, the Board shall renew supplier
licenses annually thereafter. Renewal of a supplier license
shall be granted to a renewal applicant who has continued to
comply with all applicable statutory and regulatory
requirements, upon submission of the Board-issued renewal form
and payment of a $150,000 renewal fee.
(e) A supplier shall submit to the Board a list of all
sports wagering equipment and services sold, delivered, or
offered to a master sports wagering licensee in this State, as
required by the Board, all of which must be tested and approved
by an independent testing laboratory approved by the Board. A
master sports wagering licensee may continue to use supplies
acquired from a licensed supplier, even if a supplier's license
expires or is otherwise canceled, unless the Board finds a
defect in the supplies.
Section 25-55. Management services provider license.
(a) A master sports wagering licensee may contract with an
entity to conduct that operation in accordance with the rules
of the Board and the provisions of this Act. That entity shall
obtain a license as a management services provider before the
execution of any such contract, and the management services
provider license shall be issued pursuant to the provisions of
this Act and any rules adopted by the Board.
(b) Each applicant for a management services provider
license shall meet all requirements for licensure and pay a
nonrefundable license and application fee of $1,000,000. The
Board may adopt rules establishing additional requirements for
an authorized management services provider. The Board may
accept licensing by another jurisdiction that it specifically
determines to have similar licensing requirements as evidence
the applicant meets authorized management services provider
licensing requirements.
(c) Management services provider licenses shall be renewed
every 4 years to licensees who continue to be in compliance
with all requirements and who pay the renewal fee of $500,000.
(d) A person who shares in revenue shall be licensed under
this Section.
Section 25-60. Tier 2 official league data provider
license.
(a) A sports governing body or a sports league,
organization, or association or a vendor authorized by such
sports governing body or sports league, organization, or
association to distribute tier 2 official league data may apply
to the Board for a tier 2 official league data provider
license.
(b) A tier 2 official league data provider licensee may
provide a master sports wagering licensee with official league
data for tier 2 sports wagers. No sports governing body or
sports league, organization, or association or a vendor
authorized by such sports governing body or sports league,
organization, or association may provide tier 2 official league
data to a master sports wagering licensee without a tier 2
official league data provider license.
Notwithstanding the provisions of this Section, the
licensing and fee requirements of this Section shall not apply
if, under subsection (g) of Section 25-25, master sports
wagering licensees are not required to use official league data
to determine the results of tier 2 sports wagers.
(c) The initial license fee for a tier 2 official league
data provider license is payable to the Board at the end of the
first year of licensure based on the amount of data sold to
master sports wagering licensees as official league data as
follows:
(1) for data sales up to and including $500,000, the
fee is $30,000;
(2) for data sales in excess of $500,000 and up to and
including $750,000, the fee is $60,000;
(3) for data sales in excess of $750,000 and up to and
including $1,000,000, the fee is $125,000;
(4) for data sales in excess of $1,000,000 and up to
and including $1,500,000, the fee is $250,000;
(5) for data sales in excess of $1,500,000 and up to
and including $2,000,000, the fee is $375,000; and
(6) for data sales in excess of $2,000,000, the fee is
$500,000.
The license is valid for 3 years.
(d) The tier 2 official league data provider licensee may
renew the license for 3 years by paying a renewal fee to the
Board based on the amount of data sold to master sports
wagering licensees as official league data in the immediately
preceding year as provided in paragraphs (1) through (6) of
subsection (c).
Section 25-65. Sports wagering at a sports facility. Sports
wagering may be offered in person at or within a 5-block radius
of a sports facility if sports wagering is offered by a
designee, as defined in Section 25-40, and that designee has
received written authorization from the relevant sports team
that plays its home contests at the sports facility. If more
than one professional sports team plays its home contests at
the same sports facility, written authorization is required
from all sports teams that play home contests at the sports
facility.
Section 25-70. Lottery sports wagering pilot program.
(a) As used in this Section:
"Central system" means the hardware, software,
peripherals, and network components provided by the
Department's central system provider that link and support all
required sports lottery terminals and the central site and that
are unique and separate from the lottery central system for
draw and instant games.
"Central system provider" means an individual,
partnership, corporation, or limited liability company that
has been licensed for the purpose of providing and maintaining
a central system and the related management facilities
specifically for the management of sports lottery terminals.
"Electronic card" means a card purchased from a lottery
retailer.
"Lottery retailer" means a location licensed by the
Department to sell lottery tickets or shares.
"Sports lottery systems" means systems provided by the
central system provider consisting of sports wagering
products, risk management, operations, and support services.
"Sports lottery terminal" means a terminal linked to the
central system in which bills or coins are deposited or an
electronic card is inserted in order to place wagers on a
sports event and lottery offerings.
(b) The Department shall issue one central system provider
license pursuant to an open and competitive bidding process
that uses the following procedures:
(1) The Department shall make applications for the
central system provider license available to the public and
allow a reasonable time for applicants to submit
applications to the Department.
(2) During the filing period for central system
provider license applications, the Department may retain
professional services to assist the Department in
conducting the open and competitive bidding process.
(3) After receiving all of the bid proposals, the
Department shall open all of the proposals in a public
forum and disclose the prospective central system provider
names and venture partners, if any.
(4) The Department shall summarize the terms of the bid
proposals and may make this summary available to the
public.
(5) The Department shall evaluate the bid proposals
within a reasonable time and select no more than 3 final
applicants to make presentations of their bid proposals to
the Department.
(6) The final applicants shall make their
presentations to the Department on the same day during an
open session of the Department.
(7) As soon as practicable after the public
presentations by the final applicants, the Department, in
its discretion, may conduct further negotiations among the
3 final applicants. At the conclusion of such negotiations,
the Department shall select the winning bid.
(8) Upon selection of the winning bid, the Department
shall evaluate the winning bid within a reasonable period
of time for licensee suitability in accordance with all
applicable statutory and regulatory criteria.
(9) If the winning bidder is unable or otherwise fails
to consummate the transaction, (including if the
Department determines that the winning bidder does not
satisfy the suitability requirements), the Department may,
on the same criteria, select from the remaining bidders.
(10) The winning bidder shall pay $20,000,000 to the
Department upon being issued the central system provider
license.
(c) Every sports lottery terminal offered in this State for
play shall first be tested and approved pursuant to the rules
of the Department, and each sports lottery terminal offered in
this State for play shall conform to an approved model. For the
examination of sports lottery terminals and associated
equipment as required by this Section, the central system
provider may utilize the services of one or more independent
outside testing laboratories that have been accredited by a
national accreditation body and that, in the judgment of the
Department, are qualified to perform such examinations. Every
sports lottery terminal offered in this State for play must
meet minimum standards set by an independent outside testing
laboratory approved by the Department.
(d) During the first 360 days after the effective date of
this Act, sport lottery terminals may be placed in no more than
2,500 Lottery retail locations in the State. Sports lottery
terminals may be placed in an additional 2,500 Lottery retail
locations during the second year after the effective date of
this Act.
(e) A sports lottery terminal may not directly dispense
coins, cash, tokens, or any other article of exchange or value
except for receipt tickets. Tickets shall be dispensed by
pressing the ticket dispensing button on the sports lottery
terminal at the end of the placement of one's wager or wagers.
The ticket shall indicate the total amount wagered, odds for
each wager placed, and the cash award for each bet placed, the
time of day in a 24-hour format showing hours and minutes, the
date, the terminal serial number, the sequential number of the
ticket, and an encrypted validation number from which the
validity of the prize may be determined. The player shall turn
in this ticket to the appropriate person at a lottery retailer
to receive the cash award.
(f) No lottery retailer may cause or permit any person
under the age of 21 years to use a sports lottery terminal or
sports wagering application. A lottery retailer who knowingly
causes or permits a person under the age of 21 years to use a
sports lottery terminal or sports wagering application is
guilty of a business offense and shall be fined an amount not
to exceed $5,000.
(g) A sports lottery terminal shall only accept parlay
wagers and fixed odds parlay wagers. The Department shall, by
rule, establish the total amount, as a percentage, of all
wagers placed that a lottery retailer may retain.
(h) The Department shall have jurisdiction over and shall
supervise all lottery sports wagering operations governed by
this Section. The Department shall have all powers necessary
and proper to fully and effectively execute the provisions of
this Section, including, but not limited to, the following:
(1) To investigate applicants and determine the
eligibility of applicants for licenses and to select among
competing applicants the applicants which best serve the
interests of the citizens of Illinois.
(2) To have jurisdiction and supervision over all
lottery sports wagering operations in this State.
(3) To adopt rules for the purpose of administering the
provisions of this Section and to adopt rules and
conditions under which all lottery sports wagering in the
State shall be conducted. Such rules are to provide for the
prevention of practices detrimental to the public interest
and for the best interests of lottery sports wagering,
including rules (i) regarding the inspection of such
licensees necessary to operate a lottery retailer under any
laws or rules applicable to licensees, (ii) to impose
penalties for violations of the Act and its rules, and
(iii) establishing standards for advertising lottery
sports wagering.
(i) The Department shall adopt emergency rules to
administer this Section in accordance with Section 5-45 of the
Illinois Administrative Procedure Act. For the purposes of the
Illinois Administrative Procedure Act, the General Assembly
finds that the adoption of rules to implement this Section is
deemed an emergency and necessary to the public interest,
safety, and welfare.
(j) For the privilege of operating lottery sports wagering
under this Section, all proceeds minus net of proceeds returned
to players shall be electronically transferred daily or weekly,
at the discretion of the Director of the Lottery, into the
State Lottery Fund. After amounts owed to the central system
provider and licensed agents, as determined by the Department,
are paid from the moneys deposited into the State Lottery Fund
under this subsection, the remainder shall be transferred on
the 15th of each month to the Capital Projects Fund.
(k) This Section is repealed on January 1, 2024.
Section 25-75. Reporting prohibited conduct;
investigations of prohibited conduct.
(a) The Board shall establish a hotline or other method of
communication that allows any person to confidentially report
information about prohibited conduct to the Board.
(b) The Board shall investigate all reasonable allegations
of prohibited conduct and refer any allegations it deems
credible to the appropriate law enforcement entity.
(c) The identity of any reporting person shall remain
confidential unless that person authorizes disclosure of his or
her identity or until such time as the allegation of prohibited
conduct is referred to law enforcement.
(d) If the Board receives a complaint of prohibited conduct
by an athlete, the Board shall notify the appropriate sports
governing body of the athlete to review the complaint as
provided by rule.
(e) The Board shall adopt emergency rules to administer
this Section in accordance with Section 5-45 of the Illinois
Administrative Procedure Act.
(f) The Board shall adopt rules governing investigations of
prohibited conduct and referrals to law enforcement entities.
Section 25-80. Personal biometric data. A master sports
wagering licensee shall not purchase or use any personal
biometric data of an athlete unless the master sports wagering
licensee has received written permission from the athlete's
exclusive bargaining representative.
Section 25-85. Supplier diversity goals for sports
wagering.
(a) As used in this Section only, "licensee" means a
licensee under this Act other than an occupational licensee.
(b) The public policy of this State is to collaboratively
work with companies that serve Illinois residents to improve
their supplier diversity in a non-antagonistic manner.
(c) The Board and the Department shall require all
licensees under this Act to submit an annual report by April
15, 2020 and every April 15 thereafter, in a searchable Adobe
PDF format, on all procurement goals and actual spending for
businesses owned by women, minorities, veterans, and persons
with disabilities and small business enterprises in the
previous calendar year. These goals shall be expressed as a
percentage of the total work performed by the entity submitting
the report, and the actual spending for all businesses owned by
women, minorities, veterans, and persons with disabilities and
small business enterprises shall also be expressed as a
percentage of the total work performed by the entity submitting
the report.
(d) Each licensee in its annual report shall include the
following information:
(1) an explanation of the plan for the next year to
increase participation;
(2) an explanation of the plan to increase the goals;
(3) the areas of procurement each licensee shall be
actively seeking more participation in the next year;
(4) an outline of the plan to alert and encourage
potential vendors in that area to seek business from the
licensee;
(5) an explanation of the challenges faced in finding
quality vendors and offer any suggestions for what the
Board could do to be helpful to identify those vendors;
(6) a list of the certifications the licensee
recognizes;
(7) the point of contact for any potential vendor who
wishes to do business with the licensee and explain the
process for a vendor to enroll with the licensee as a
businesses owned by women, minorities, veterans, or
persons with disabilities; and
(8) any particular success stories to encourage other
licensee to emulate best practices.
(e) Each annual report shall include as much State-specific
data as possible. If the submitting entity does not submit
State-specific data, then the licensee shall include any
national data it does have and explain why it could not submit
State-specific data and how it intends to do so in future
reports, if possible.
(f) Each annual report shall include the rules,
regulations, and definitions used for the procurement goals in
the licensee's annual report.
(g) The Board, Department, and all licensees shall hold an
annual workshop and job fair open to the public in 2020 and
every year thereafter on the state of supplier diversity to
collaboratively seek solutions to structural impediments to
achieving stated goals, including testimony from each licensee
as well as subject matter experts and advocates. The Board and
Department shall publish a database on their websites of the
point of contact for licensees they regulate under this Act for
supplier diversity, along with a list of certifications each
licensee recognizes from the information submitted in each
annual report. The Board and Department shall publish each
annual report on their websites and shall maintain each annual
report for at least 5 years.
Section 25-90. Tax; Sports Wagering Fund.
(a) For the privilege of holding a license to operate
sports wagering under this Act, this State shall impose and
collect 15% of a master sports wagering licensee's adjusted
gross sports wagering receipts from sports wagering. The
accrual method of accounting shall be used for purposes of
calculating the amount of the tax owed by the licensee.
The taxes levied and collected pursuant to this subsection
(a) are due and payable to the Board no later than the last day
of the month following the calendar month in which the adjusted
gross sports wagering receipts were received and the tax
obligation was accrued.
(a-5) In addition to the tax imposed under subsection (a)
of this Section, for the privilege of holding a license to
operate sports wagering under this Act, the State shall impose
and collect 2% of the adjusted gross receipts from sports
wagers that are placed within a home rule county with a
population of over 3,000,000 inhabitants, which shall be paid,
subject to appropriation from the General Assembly, from the
Sports Wagering Fund to that home rule county for the purpose
of enhancing the county's criminal justice system.
(b) The Sports Wagering Fund is hereby created as special
fund in the State treasury. Except as otherwise provided in
this Act, all moneys collected under this Act by the Board
shall be deposited into the Sports Wagering Fund. On the 25th
of each month, any moneys remaining in the Sports Wagering Fund
shall be transferred to the Capital Projects Fund.
Section 25-95. Compulsive gambling. Each master sports
wagering licensee shall include a statement regarding
obtaining assistance with gambling problems, the text of which
shall be determined by rule by the Department of Human
Services, on the master sports wagering licensee's portal,
Internet website, or computer or mobile application.
Section 25-100. Voluntary self-exclusion program for
sports wagering. Any resident, or non-resident if allowed to
participate in sports wagering, may voluntarily prohibit
himself or herself from establishing a sports wagering account
with a licensee under this Act. The Board and Department shall
incorporate the voluntary self-exclusion program for sports
wagering into any existing self-exclusion program that it
operates on the effective date of this Act.
Section 25-105. Report to General Assembly. On or before
January 15, 2021 and every January 15 thereafter, the Board
shall provide a report to the General Assembly on sports
wagering conducted under this Act.
Section 25-110. Preemption. Nothing in this Act shall be
deemed to diminish the rights, privileges, or remedies of a
person under any other federal or State law, rule, or
regulation.
Section 25-900. The Illinois Administrative Procedure Act
is amended by changing Section 5-45 as follows:
(5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
Sec. 5-45. Emergency rulemaking.
(a) "Emergency" means the existence of any situation that
any agency finds reasonably constitutes a threat to the public
interest, safety, or welfare.
(b) If any agency finds that an emergency exists that
requires adoption of a rule upon fewer days than is required by
Section 5-40 and states in writing its reasons for that
finding, the agency may adopt an emergency rule without prior
notice or hearing upon filing a notice of emergency rulemaking
with the Secretary of State under Section 5-70. The notice
shall include the text of the emergency rule and shall be
published in the Illinois Register. Consent orders or other
court orders adopting settlements negotiated by an agency may
be adopted under this Section. Subject to applicable
constitutional or statutory provisions, an emergency rule
becomes effective immediately upon filing under Section 5-65 or
at a stated date less than 10 days thereafter. The agency's
finding and a statement of the specific reasons for the finding
shall be filed with the rule. The agency shall take reasonable
and appropriate measures to make emergency rules known to the
persons who may be affected by them.
(c) An emergency rule may be effective for a period of not
longer than 150 days, but the agency's authority to adopt an
identical rule under Section 5-40 is not precluded. No
emergency rule may be adopted more than once in any 24-month
period, except that this limitation on the number of emergency
rules that may be adopted in a 24-month period does not apply
to (i) emergency rules that make additions to and deletions
from the Drug Manual under Section 5-5.16 of the Illinois
Public Aid Code or the generic drug formulary under Section
3.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
emergency rules adopted by the Pollution Control Board before
July 1, 1997 to implement portions of the Livestock Management
Facilities Act, (iii) emergency rules adopted by the Illinois
Department of Public Health under subsections (a) through (i)
of Section 2 of the Department of Public Health Act when
necessary to protect the public's health, (iv) emergency rules
adopted pursuant to subsection (n) of this Section, (v)
emergency rules adopted pursuant to subsection (o) of this
Section, or (vi) emergency rules adopted pursuant to subsection
(c-5) of this Section. Two or more emergency rules having
substantially the same purpose and effect shall be deemed to be
a single rule for purposes of this Section.
(c-5) To facilitate the maintenance of the program of group
health benefits provided to annuitants, survivors, and retired
employees under the State Employees Group Insurance Act of
1971, rules to alter the contributions to be paid by the State,
annuitants, survivors, retired employees, or any combination
of those entities, for that program of group health benefits,
shall be adopted as emergency rules. The adoption of those
rules shall be considered an emergency and necessary for the
public interest, safety, and welfare.
(d) In order to provide for the expeditious and timely
implementation of the State's fiscal year 1999 budget,
emergency rules to implement any provision of Public Act 90-587
or 90-588 or any other budget initiative for fiscal year 1999
may be adopted in accordance with this Section by the agency
charged with administering that provision or initiative,
except that the 24-month limitation on the adoption of
emergency rules and the provisions of Sections 5-115 and 5-125
do not apply to rules adopted under this subsection (d). The
adoption of emergency rules authorized by this subsection (d)
shall be deemed to be necessary for the public interest,
safety, and welfare.
(e) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2000 budget,
emergency rules to implement any provision of Public Act 91-24
or any other budget initiative for fiscal year 2000 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (e). The adoption of
emergency rules authorized by this subsection (e) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(f) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2001 budget,
emergency rules to implement any provision of Public Act 91-712
or any other budget initiative for fiscal year 2001 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (f). The adoption of
emergency rules authorized by this subsection (f) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(g) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2002 budget,
emergency rules to implement any provision of Public Act 92-10
or any other budget initiative for fiscal year 2002 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (g). The adoption of
emergency rules authorized by this subsection (g) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(h) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2003 budget,
emergency rules to implement any provision of Public Act 92-597
or any other budget initiative for fiscal year 2003 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (h). The adoption of
emergency rules authorized by this subsection (h) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(i) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2004 budget,
emergency rules to implement any provision of Public Act 93-20
or any other budget initiative for fiscal year 2004 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (i). The adoption of
emergency rules authorized by this subsection (i) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(j) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2005 budget as provided under the Fiscal Year 2005 Budget
Implementation (Human Services) Act, emergency rules to
implement any provision of the Fiscal Year 2005 Budget
Implementation (Human Services) Act may be adopted in
accordance with this Section by the agency charged with
administering that provision, except that the 24-month
limitation on the adoption of emergency rules and the
provisions of Sections 5-115 and 5-125 do not apply to rules
adopted under this subsection (j). The Department of Public Aid
may also adopt rules under this subsection (j) necessary to
administer the Illinois Public Aid Code and the Children's
Health Insurance Program Act. The adoption of emergency rules
authorized by this subsection (j) shall be deemed to be
necessary for the public interest, safety, and welfare.
(k) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2006 budget, emergency rules to implement any provision of
Public Act 94-48 or any other budget initiative for fiscal year
2006 may be adopted in accordance with this Section by the
agency charged with administering that provision or
initiative, except that the 24-month limitation on the adoption
of emergency rules and the provisions of Sections 5-115 and
5-125 do not apply to rules adopted under this subsection (k).
The Department of Healthcare and Family Services may also adopt
rules under this subsection (k) necessary to administer the
Illinois Public Aid Code, the Senior Citizens and Persons with
Disabilities Property Tax Relief Act, the Senior Citizens and
Disabled Persons Prescription Drug Discount Program Act (now
the Illinois Prescription Drug Discount Program Act), and the
Children's Health Insurance Program Act. The adoption of
emergency rules authorized by this subsection (k) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(l) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2007 budget, the Department of Healthcare and Family Services
may adopt emergency rules during fiscal year 2007, including
rules effective July 1, 2007, in accordance with this
subsection to the extent necessary to administer the
Department's responsibilities with respect to amendments to
the State plans and Illinois waivers approved by the federal
Centers for Medicare and Medicaid Services necessitated by the
requirements of Title XIX and Title XXI of the federal Social
Security Act. The adoption of emergency rules authorized by
this subsection (l) shall be deemed to be necessary for the
public interest, safety, and welfare.
(m) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2008 budget, the Department of Healthcare and Family Services
may adopt emergency rules during fiscal year 2008, including
rules effective July 1, 2008, in accordance with this
subsection to the extent necessary to administer the
Department's responsibilities with respect to amendments to
the State plans and Illinois waivers approved by the federal
Centers for Medicare and Medicaid Services necessitated by the
requirements of Title XIX and Title XXI of the federal Social
Security Act. The adoption of emergency rules authorized by
this subsection (m) shall be deemed to be necessary for the
public interest, safety, and welfare.
(n) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2010 budget, emergency rules to implement any provision of
Public Act 96-45 or any other budget initiative authorized by
the 96th General Assembly for fiscal year 2010 may be adopted
in accordance with this Section by the agency charged with
administering that provision or initiative. The adoption of
emergency rules authorized by this subsection (n) shall be
deemed to be necessary for the public interest, safety, and
welfare. The rulemaking authority granted in this subsection
(n) shall apply only to rules promulgated during Fiscal Year
2010.
(o) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2011 budget, emergency rules to implement any provision of
Public Act 96-958 or any other budget initiative authorized by
the 96th General Assembly for fiscal year 2011 may be adopted
in accordance with this Section by the agency charged with
administering that provision or initiative. The adoption of
emergency rules authorized by this subsection (o) is deemed to
be necessary for the public interest, safety, and welfare. The
rulemaking authority granted in this subsection (o) applies
only to rules promulgated on or after July 1, 2010 (the
effective date of Public Act 96-958) through June 30, 2011.
(p) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 97-689,
emergency rules to implement any provision of Public Act 97-689
may be adopted in accordance with this subsection (p) by the
agency charged with administering that provision or
initiative. The 150-day limitation of the effective period of
emergency rules does not apply to rules adopted under this
subsection (p), and the effective period may continue through
June 30, 2013. The 24-month limitation on the adoption of
emergency rules does not apply to rules adopted under this
subsection (p). The adoption of emergency rules authorized by
this subsection (p) is deemed to be necessary for the public
interest, safety, and welfare.
(q) In order to provide for the expeditious and timely
implementation of the provisions of Articles 7, 8, 9, 11, and
12 of Public Act 98-104, emergency rules to implement any
provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
may be adopted in accordance with this subsection (q) by the
agency charged with administering that provision or
initiative. The 24-month limitation on the adoption of
emergency rules does not apply to rules adopted under this
subsection (q). The adoption of emergency rules authorized by
this subsection (q) is deemed to be necessary for the public
interest, safety, and welfare.
(r) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 98-651,
emergency rules to implement Public Act 98-651 may be adopted
in accordance with this subsection (r) by the Department of
Healthcare and Family Services. The 24-month limitation on the
adoption of emergency rules does not apply to rules adopted
under this subsection (r). The adoption of emergency rules
authorized by this subsection (r) is deemed to be necessary for
the public interest, safety, and welfare.
(s) In order to provide for the expeditious and timely
implementation of the provisions of Sections 5-5b.1 and 5A-2 of
the Illinois Public Aid Code, emergency rules to implement any
provision of Section 5-5b.1 or Section 5A-2 of the Illinois
Public Aid Code may be adopted in accordance with this
subsection (s) by the Department of Healthcare and Family
Services. The rulemaking authority granted in this subsection
(s) shall apply only to those rules adopted prior to July 1,
2015. Notwithstanding any other provision of this Section, any
emergency rule adopted under this subsection (s) shall only
apply to payments made for State fiscal year 2015. The adoption
of emergency rules authorized by this subsection (s) is deemed
to be necessary for the public interest, safety, and welfare.
(t) In order to provide for the expeditious and timely
implementation of the provisions of Article II of Public Act
99-6, emergency rules to implement the changes made by Article
II of Public Act 99-6 to the Emergency Telephone System Act may
be adopted in accordance with this subsection (t) by the
Department of State Police. The rulemaking authority granted in
this subsection (t) shall apply only to those rules adopted
prior to July 1, 2016. The 24-month limitation on the adoption
of emergency rules does not apply to rules adopted under this
subsection (t). The adoption of emergency rules authorized by
this subsection (t) is deemed to be necessary for the public
interest, safety, and welfare.
(u) In order to provide for the expeditious and timely
implementation of the provisions of the Burn Victims Relief
Act, emergency rules to implement any provision of the Act may
be adopted in accordance with this subsection (u) by the
Department of Insurance. The rulemaking authority granted in
this subsection (u) shall apply only to those rules adopted
prior to December 31, 2015. The adoption of emergency rules
authorized by this subsection (u) is deemed to be necessary for
the public interest, safety, and welfare.
(v) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 99-516,
emergency rules to implement Public Act 99-516 may be adopted
in accordance with this subsection (v) by the Department of
Healthcare and Family Services. The 24-month limitation on the
adoption of emergency rules does not apply to rules adopted
under this subsection (v). The adoption of emergency rules
authorized by this subsection (v) is deemed to be necessary for
the public interest, safety, and welfare.
(w) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 99-796,
emergency rules to implement the changes made by Public Act
99-796 may be adopted in accordance with this subsection (w) by
the Adjutant General. The adoption of emergency rules
authorized by this subsection (w) is deemed to be necessary for
the public interest, safety, and welfare.
(x) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 99-906,
emergency rules to implement subsection (i) of Section 16-115D,
subsection (g) of Section 16-128A, and subsection (a) of
Section 16-128B of the Public Utilities Act may be adopted in
accordance with this subsection (x) by the Illinois Commerce
Commission. The rulemaking authority granted in this
subsection (x) shall apply only to those rules adopted within
180 days after June 1, 2017 (the effective date of Public Act
99-906). The adoption of emergency rules authorized by this
subsection (x) is deemed to be necessary for the public
interest, safety, and welfare.
(y) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-23,
emergency rules to implement the changes made by Public Act
100-23 to Section 4.02 of the Illinois Act on the Aging,
Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
Section 55-30 of the Alcoholism and Other Drug Abuse and
Dependency Act, and Sections 74 and 75 of the Mental Health and
Developmental Disabilities Administrative Act may be adopted
in accordance with this subsection (y) by the respective
Department. The adoption of emergency rules authorized by this
subsection (y) is deemed to be necessary for the public
interest, safety, and welfare.
(z) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-554,
emergency rules to implement the changes made by Public Act
100-554 to Section 4.7 of the Lobbyist Registration Act may be
adopted in accordance with this subsection (z) by the Secretary
of State. The adoption of emergency rules authorized by this
subsection (z) is deemed to be necessary for the public
interest, safety, and welfare.
(aa) In order to provide for the expeditious and timely
initial implementation of the changes made to Articles 5, 5A,
12, and 14 of the Illinois Public Aid Code under the provisions
of Public Act 100-581, the Department of Healthcare and Family
Services may adopt emergency rules in accordance with this
subsection (aa). The 24-month limitation on the adoption of
emergency rules does not apply to rules to initially implement
the changes made to Articles 5, 5A, 12, and 14 of the Illinois
Public Aid Code adopted under this subsection (aa). The
adoption of emergency rules authorized by this subsection (aa)
is deemed to be necessary for the public interest, safety, and
welfare.
(bb) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-587,
emergency rules to implement the changes made by Public Act
100-587 to Section 4.02 of the Illinois Act on the Aging,
Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
subsection (b) of Section 55-30 of the Alcoholism and Other
Drug Abuse and Dependency Act, Section 5-104 of the Specialized
Mental Health Rehabilitation Act of 2013, and Section 75 and
subsection (b) of Section 74 of the Mental Health and
Developmental Disabilities Administrative Act may be adopted
in accordance with this subsection (bb) by the respective
Department. The adoption of emergency rules authorized by this
subsection (bb) is deemed to be necessary for the public
interest, safety, and welfare.
(cc) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-587,
emergency rules may be adopted in accordance with this
subsection (cc) to implement the changes made by Public Act
100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois
Pension Code by the Board created under Article 14 of the Code;
Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by
the Board created under Article 15 of the Code; and Sections
16-190.5 and 16-190.6 of the Illinois Pension Code by the Board
created under Article 16 of the Code. The adoption of emergency
rules authorized by this subsection (cc) is deemed to be
necessary for the public interest, safety, and welfare.
(dd) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-864,
emergency rules to implement the changes made by Public Act
100-864 to Section 3.35 of the Newborn Metabolic Screening Act
may be adopted in accordance with this subsection (dd) by the
Secretary of State. The adoption of emergency rules authorized
by this subsection (dd) is deemed to be necessary for the
public interest, safety, and welfare.
(ee) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-1172 this
amendatory Act of the 100th General Assembly, emergency rules
implementing the Illinois Underground Natural Gas Storage
Safety Act may be adopted in accordance with this subsection by
the Department of Natural Resources. The adoption of emergency
rules authorized by this subsection is deemed to be necessary
for the public interest, safety, and welfare.
(ff) (ee) In order to provide for the expeditious and
timely initial implementation of the changes made to Articles
5A and 14 of the Illinois Public Aid Code under the provisions
of Public Act 100-1181 this amendatory Act of the 100th General
Assembly, the Department of Healthcare and Family Services may
on a one-time-only basis adopt emergency rules in accordance
with this subsection (ff) (ee). The 24-month limitation on the
adoption of emergency rules does not apply to rules to
initially implement the changes made to Articles 5A and 14 of
the Illinois Public Aid Code adopted under this subsection (ff)
(ee). The adoption of emergency rules authorized by this
subsection (ff) (ee) is deemed to be necessary for the public
interest, safety, and welfare.
(gg) (ff) In order to provide for the expeditious and
timely implementation of the provisions of Public Act 101-1
this amendatory Act of the 101st General Assembly, emergency
rules may be adopted by the Department of Labor in accordance
with this subsection (gg) (ff) to implement the changes made by
Public Act 101-1 this amendatory Act of the 101st General
Assembly to the Minimum Wage Law. The adoption of emergency
rules authorized by this subsection (gg) (ff) is deemed to be
necessary for the public interest, safety, and welfare.
(ii) In order to provide for the expeditious and timely
implementation of the provisions of Section 25-70 of the Sports
Wagering Act, emergency rules to implement Section 25-70 of the
Sports Wagering Act may be adopted in accordance with this
subsection (ii) by the Department of the Lottery as provided in
the Sports Wagering Act. The adoption of emergency rules
authorized by this subsection (ii) is deemed to be necessary
for the public interest, safety, and welfare.
(jj) In order to provide for the expeditious and timely
implementation of the Sports Wagering Act, emergency rules to
implement the Sports Wagering Act may be adopted in accordance
with this subsection (jj) by the Illinois Gaming Board. The
adoption of emergency rules authorized by this subsection (jj)
is deemed to be necessary for the public interest, safety, and
welfare.
(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;
100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.
6-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;
100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff.
3-8-19; 101-1, eff. 2-19-19; revised 4-2-19.)
Section 25-905. The State Finance Act is amended by adding
Section 5.896 as follows:
(30 ILCS 105/5.896 new)
Sec. 5.896. The Sports Wagering Fund.
Section 25-910. The Riverboat Gambling Act is amended by
changing Section 13 as follows:
(230 ILCS 10/13) (from Ch. 120, par. 2413)
Sec. 13. Wagering tax; rate; distribution.
(a) Until January 1, 1998, a tax is imposed on the adjusted
gross receipts received from gambling games authorized under
this Act at the rate of 20%.
(a-1) From January 1, 1998 until July 1, 2002, a privilege
tax is imposed on persons engaged in the business of conducting
riverboat gambling operations, based on the adjusted gross
receipts received by a licensed owner from gambling games
authorized under this Act at the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
20% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
25% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
30% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
35% of annual adjusted gross receipts in excess of
$100,000,000.
(a-2) From July 1, 2002 until July 1, 2003, a privilege tax
is imposed on persons engaged in the business of conducting
riverboat gambling operations, other than licensed managers
conducting riverboat gambling operations on behalf of the
State, based on the adjusted gross receipts received by a
licensed owner from gambling games authorized under this Act at
the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
22.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
27.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
32.5% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
37.5% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000;
45% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $200,000,000;
50% of annual adjusted gross receipts in excess of
$200,000,000.
(a-3) Beginning July 1, 2003, a privilege tax is imposed on
persons engaged in the business of conducting riverboat
gambling operations, other than licensed managers conducting
riverboat gambling operations on behalf of the State, based on
the adjusted gross receipts received by a licensed owner from
gambling games authorized under this Act at the following
rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
27.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $37,500,000;
32.5% of annual adjusted gross receipts in excess of
$37,500,000 but not exceeding $50,000,000;
37.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
45% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
50% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $250,000,000;
70% of annual adjusted gross receipts in excess of
$250,000,000.
An amount equal to the amount of wagering taxes collected
under this subsection (a-3) that are in addition to the amount
of wagering taxes that would have been collected if the
wagering tax rates under subsection (a-2) were in effect shall
be paid into the Common School Fund.
The privilege tax imposed under this subsection (a-3) shall
no longer be imposed beginning on the earlier of (i) July 1,
2005; (ii) the first date after June 20, 2003 that riverboat
gambling operations are conducted pursuant to a dormant
license; or (iii) the first day that riverboat gambling
operations are conducted under the authority of an owners
license that is in addition to the 10 owners licenses initially
authorized under this Act. For the purposes of this subsection
(a-3), the term "dormant license" means an owners license that
is authorized by this Act under which no riverboat gambling
operations are being conducted on June 20, 2003.
(a-4) Beginning on the first day on which the tax imposed
under subsection (a-3) is no longer imposed, a privilege tax is
imposed on persons engaged in the business of conducting
riverboat gambling operations, other than licensed managers
conducting riverboat gambling operations on behalf of the
State, based on the adjusted gross receipts received by a
licensed owner from gambling games authorized under this Act at
the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
22.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
27.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
32.5% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
37.5% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000;
45% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $200,000,000;
50% of annual adjusted gross receipts in excess of
$200,000,000.
(a-8) Riverboat gambling operations conducted by a
licensed manager on behalf of the State are not subject to the
tax imposed under this Section.
(a-10) The taxes imposed by this Section shall be paid by
the licensed owner to the Board not later than 5:00 o'clock
p.m. of the day after the day when the wagers were made.
(a-15) If the privilege tax imposed under subsection (a-3)
is no longer imposed pursuant to item (i) of the last paragraph
of subsection (a-3), then by June 15 of each year, each owners
licensee, other than an owners licensee that admitted 1,000,000
persons or fewer in calendar year 2004, must, in addition to
the payment of all amounts otherwise due under this Section,
pay to the Board a reconciliation payment in the amount, if
any, by which the licensed owner's base amount exceeds the
amount of net privilege tax paid by the licensed owner to the
Board in the then current State fiscal year. A licensed owner's
net privilege tax obligation due for the balance of the State
fiscal year shall be reduced up to the total of the amount paid
by the licensed owner in its June 15 reconciliation payment.
The obligation imposed by this subsection (a-15) is binding on
any person, firm, corporation, or other entity that acquires an
ownership interest in any such owners license. The obligation
imposed under this subsection (a-15) terminates on the earliest
of: (i) July 1, 2007, (ii) the first day after the effective
date of this amendatory Act of the 94th General Assembly that
riverboat gambling operations are conducted pursuant to a
dormant license, (iii) the first day that riverboat gambling
operations are conducted under the authority of an owners
license that is in addition to the 10 owners licenses initially
authorized under this Act, or (iv) the first day that a
licensee under the Illinois Horse Racing Act of 1975 conducts
gaming operations with slot machines or other electronic gaming
devices. The Board must reduce the obligation imposed under
this subsection (a-15) by an amount the Board deems reasonable
for any of the following reasons: (A) an act or acts of God,
(B) an act of bioterrorism or terrorism or a bioterrorism or
terrorism threat that was investigated by a law enforcement
agency, or (C) a condition beyond the control of the owners
licensee that does not result from any act or omission by the
owners licensee or any of its agents and that poses a hazardous
threat to the health and safety of patrons. If an owners
licensee pays an amount in excess of its liability under this
Section, the Board shall apply the overpayment to future
payments required under this Section.
For purposes of this subsection (a-15):
"Act of God" means an incident caused by the operation of
an extraordinary force that cannot be foreseen, that cannot be
avoided by the exercise of due care, and for which no person
can be held liable.
"Base amount" means the following:
For a riverboat in Alton, $31,000,000.
For a riverboat in East Peoria, $43,000,000.
For the Empress riverboat in Joliet, $86,000,000.
For a riverboat in Metropolis, $45,000,000.
For the Harrah's riverboat in Joliet, $114,000,000.
For a riverboat in Aurora, $86,000,000.
For a riverboat in East St. Louis, $48,500,000.
For a riverboat in Elgin, $198,000,000.
"Dormant license" has the meaning ascribed to it in
subsection (a-3).
"Net privilege tax" means all privilege taxes paid by a
licensed owner to the Board under this Section, less all
payments made from the State Gaming Fund pursuant to subsection
(b) of this Section.
The changes made to this subsection (a-15) by Public Act
94-839 are intended to restate and clarify the intent of Public
Act 94-673 with respect to the amount of the payments required
to be made under this subsection by an owners licensee to the
Board.
(b) Until January 1, 1998, 25% of the tax revenue deposited
in the State Gaming Fund under this Section shall be paid,
subject to appropriation by the General Assembly, to the unit
of local government which is designated as the home dock of the
riverboat. Beginning January 1, 1998, from the tax revenue
deposited in the State Gaming Fund under this Section, an
amount equal to 5% of adjusted gross receipts generated by a
riverboat shall be paid monthly, subject to appropriation by
the General Assembly, to the unit of local government that is
designated as the home dock of the riverboat. From the tax
revenue deposited in the State Gaming Fund pursuant to
riverboat gambling operations conducted by a licensed manager
on behalf of the State, an amount equal to 5% of adjusted gross
receipts generated pursuant to those riverboat gambling
operations shall be paid monthly, subject to appropriation by
the General Assembly, to the unit of local government that is
designated as the home dock of the riverboat upon which those
riverboat gambling operations are conducted.
(c) Appropriations, as approved by the General Assembly,
may be made from the State Gaming Fund to the Board (i) for the
administration and enforcement of this Act and the Video Gaming
Act, (ii) for distribution to the Department of State Police
and to the Department of Revenue for the enforcement of this
Act, and (iii) to the Department of Human Services for the
administration of programs to treat problem gambling,
including problem gambling from sports wagering.
(c-5) Before May 26, 2006 (the effective date of Public Act
94-804) and beginning on the effective date of this amendatory
Act of the 95th General Assembly, unless any organization
licensee under the Illinois Horse Racing Act of 1975 begins to
operate a slot machine or video game of chance under the
Illinois Horse Racing Act of 1975 or this Act, after the
payments required under subsections (b) and (c) have been made,
an amount equal to 15% of the adjusted gross receipts of (1) an
owners licensee that relocates pursuant to Section 11.2, (2) an
owners licensee conducting riverboat gambling operations
pursuant to an owners license that is initially issued after
June 25, 1999, or (3) the first riverboat gambling operations
conducted by a licensed manager on behalf of the State under
Section 7.3, whichever comes first, shall be paid from the
State Gaming Fund into the Horse Racing Equity Fund.
(c-10) Each year the General Assembly shall appropriate
from the General Revenue Fund to the Education Assistance Fund
an amount equal to the amount paid into the Horse Racing Equity
Fund pursuant to subsection (c-5) in the prior calendar year.
(c-15) After the payments required under subsections (b),
(c), and (c-5) have been made, an amount equal to 2% of the
adjusted gross receipts of (1) an owners licensee that
relocates pursuant to Section 11.2, (2) an owners licensee
conducting riverboat gambling operations pursuant to an owners
license that is initially issued after June 25, 1999, or (3)
the first riverboat gambling operations conducted by a licensed
manager on behalf of the State under Section 7.3, whichever
comes first, shall be paid, subject to appropriation from the
General Assembly, from the State Gaming Fund to each home rule
county with a population of over 3,000,000 inhabitants for the
purpose of enhancing the county's criminal justice system.
(c-20) Each year the General Assembly shall appropriate
from the General Revenue Fund to the Education Assistance Fund
an amount equal to the amount paid to each home rule county
with a population of over 3,000,000 inhabitants pursuant to
subsection (c-15) in the prior calendar year.
(c-25) On July 1, 2013 and each July 1 thereafter,
$1,600,000 shall be transferred from the State Gaming Fund to
the Chicago State University Education Improvement Fund.
(c-30) On July 1, 2013 or as soon as possible thereafter,
$92,000,000 shall be transferred from the State Gaming Fund to
the School Infrastructure Fund and $23,000,000 shall be
transferred from the State Gaming Fund to the Horse Racing
Equity Fund.
(c-35) Beginning on July 1, 2013, in addition to any amount
transferred under subsection (c-30) of this Section,
$5,530,000 shall be transferred monthly from the State Gaming
Fund to the School Infrastructure Fund.
(d) From time to time, the Board shall transfer the
remainder of the funds generated by this Act into the Education
Assistance Fund, created by Public Act 86-0018, of the State of
Illinois.
(e) Nothing in this Act shall prohibit the unit of local
government designated as the home dock of the riverboat from
entering into agreements with other units of local government
in this State or in other states to share its portion of the
tax revenue.
(f) To the extent practicable, the Board shall administer
and collect the wagering taxes imposed by this Section in a
manner consistent with the provisions of Sections 4, 5, 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act.
(Source: P.A. 98-18, eff. 6-7-13.)
Section 25-915. The Criminal Code of 2012 is amended by
changing Sections 28-1, 28-3, and 28-5 as follows:
(720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
Sec. 28-1. Gambling.
(a) A person commits gambling when he or she:
(1) knowingly plays a game of chance or skill for money
or other thing of value, unless excepted in subsection (b)
of this Section;
(2) knowingly makes a wager upon the result of any
game, contest, or any political nomination, appointment or
election;
(3) knowingly operates, keeps, owns, uses, purchases,
exhibits, rents, sells, bargains for the sale or lease of,
manufactures or distributes any gambling device;
(4) contracts to have or give himself or herself or
another the option to buy or sell, or contracts to buy or
sell, at a future time, any grain or other commodity
whatsoever, or any stock or security of any company, where
it is at the time of making such contract intended by both
parties thereto that the contract to buy or sell, or the
option, whenever exercised, or the contract resulting
therefrom, shall be settled, not by the receipt or delivery
of such property, but by the payment only of differences in
prices thereof; however, the issuance, purchase, sale,
exercise, endorsement or guarantee, by or through a person
registered with the Secretary of State pursuant to Section
8 of the Illinois Securities Law of 1953, or by or through
a person exempt from such registration under said Section
8, of a put, call, or other option to buy or sell
securities which have been registered with the Secretary of
State or which are exempt from such registration under
Section 3 of the Illinois Securities Law of 1953 is not
gambling within the meaning of this paragraph (4);
(5) knowingly owns or possesses any book, instrument or
apparatus by means of which bets or wagers have been, or
are, recorded or registered, or knowingly possesses any
money which he has received in the course of a bet or
wager;
(6) knowingly sells pools upon the result of any game
or contest of skill or chance, political nomination,
appointment or election;
(7) knowingly sets up or promotes any lottery or sells,
offers to sell or transfers any ticket or share for any
lottery;
(8) knowingly sets up or promotes any policy game or
sells, offers to sell or knowingly possesses or transfers
any policy ticket, slip, record, document or other similar
device;
(9) knowingly drafts, prints or publishes any lottery
ticket or share, or any policy ticket, slip, record,
document or similar device, except for such activity
related to lotteries, bingo games and raffles authorized by
and conducted in accordance with the laws of Illinois or
any other state or foreign government;
(10) knowingly advertises any lottery or policy game,
except for such activity related to lotteries, bingo games
and raffles authorized by and conducted in accordance with
the laws of Illinois or any other state;
(11) knowingly transmits information as to wagers,
betting odds, or changes in betting odds by telephone,
telegraph, radio, semaphore or similar means; or knowingly
installs or maintains equipment for the transmission or
receipt of such information; except that nothing in this
subdivision (11) prohibits transmission or receipt of such
information for use in news reporting of sporting events or
contests; or
(12) knowingly establishes, maintains, or operates an
Internet site that permits a person to play a game of
chance or skill for money or other thing of value by means
of the Internet or to make a wager upon the result of any
game, contest, political nomination, appointment, or
election by means of the Internet. This item (12) does not
apply to activities referenced in items (6), and (6.1), and
(15) of subsection (b) of this Section.
(b) Participants in any of the following activities shall
not be convicted of gambling:
(1) Agreements to compensate for loss caused by the
happening of chance including without limitation contracts
of indemnity or guaranty and life or health or accident
insurance.
(2) Offers of prizes, award or compensation to the
actual contestants in any bona fide contest for the
determination of skill, speed, strength or endurance or to
the owners of animals or vehicles entered in such contest.
(3) Pari-mutuel betting as authorized by the law of
this State.
(4) Manufacture of gambling devices, including the
acquisition of essential parts therefor and the assembly
thereof, for transportation in interstate or foreign
commerce to any place outside this State when such
transportation is not prohibited by any applicable Federal
law; or the manufacture, distribution, or possession of
video gaming terminals, as defined in the Video Gaming Act,
by manufacturers, distributors, and terminal operators
licensed to do so under the Video Gaming Act.
(5) The game commonly known as "bingo", when conducted
in accordance with the Bingo License and Tax Act.
(6) Lotteries when conducted by the State of Illinois
in accordance with the Illinois Lottery Law. This exemption
includes any activity conducted by the Department of
Revenue to sell lottery tickets pursuant to the provisions
of the Illinois Lottery Law and its rules.
(6.1) The purchase of lottery tickets through the
Internet for a lottery conducted by the State of Illinois
under the program established in Section 7.12 of the
Illinois Lottery Law.
(7) Possession of an antique slot machine that is
neither used nor intended to be used in the operation or
promotion of any unlawful gambling activity or enterprise.
For the purpose of this subparagraph (b)(7), an antique
slot machine is one manufactured 25 years ago or earlier.
(8) Raffles and poker runs when conducted in accordance
with the Raffles and Poker Runs Act.
(9) Charitable games when conducted in accordance with
the Charitable Games Act.
(10) Pull tabs and jar games when conducted under the
Illinois Pull Tabs and Jar Games Act.
(11) Gambling games conducted on riverboats when
authorized by the Riverboat Gambling Act.
(12) Video gaming terminal games at a licensed
establishment, licensed truck stop establishment, licensed
fraternal establishment, or licensed veterans
establishment when conducted in accordance with the Video
Gaming Act.
(13) Games of skill or chance where money or other
things of value can be won but no payment or purchase is
required to participate.
(14) Savings promotion raffles authorized under
Section 5g of the Illinois Banking Act, Section 7008 of the
Savings Bank Act, Section 42.7 of the Illinois Credit Union
Act, Section 5136B of the National Bank Act (12 U.S.C.
25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.
1463).
(15) Sports wagering when conducted in accordance with
the Sports Wagering Act.
(c) Sentence.
Gambling is a Class A misdemeanor. A second or subsequent
conviction under subsections (a)(3) through (a)(12), is a Class
4 felony.
(d) Circumstantial evidence.
In prosecutions under this Section circumstantial evidence
shall have the same validity and weight as in any criminal
prosecution.
(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
(720 ILCS 5/28-3) (from Ch. 38, par. 28-3)
Sec. 28-3. Keeping a Gambling Place. A "gambling place" is
any real estate, vehicle, boat or any other property whatsoever
used for the purposes of gambling other than gambling conducted
in the manner authorized by the Riverboat Gambling Act, the
Sports Wagering Act, or the Video Gaming Act. Any person who
knowingly permits any premises or property owned or occupied by
him or under his control to be used as a gambling place commits
a Class A misdemeanor. Each subsequent offense is a Class 4
felony. When any premises is determined by the circuit court to
be a gambling place:
(a) Such premises is a public nuisance and may be proceeded
against as such, and
(b) All licenses, permits or certificates issued by the
State of Illinois or any subdivision or public agency thereof
authorizing the serving of food or liquor on such premises
shall be void; and no license, permit or certificate so
cancelled shall be reissued for such premises for a period of
60 days thereafter; nor shall any person convicted of keeping a
gambling place be reissued such license for one year from his
conviction and, after a second conviction of keeping a gambling
place, any such person shall not be reissued such license, and
(c) Such premises of any person who knowingly permits
thereon a violation of any Section of this Article shall be
held liable for, and may be sold to pay any unsatisfied
judgment that may be recovered and any unsatisfied fine that
may be levied under any Section of this Article.
(Source: P.A. 96-34, eff. 7-13-09.)
(720 ILCS 5/28-5) (from Ch. 38, par. 28-5)
Sec. 28-5. Seizure of gambling devices and gambling funds.
(a) Every device designed for gambling which is incapable
of lawful use or every device used unlawfully for gambling
shall be considered a "gambling device", and shall be subject
to seizure, confiscation and destruction by the Department of
State Police or by any municipal, or other local authority,
within whose jurisdiction the same may be found. As used in
this Section, a "gambling device" includes any slot machine,
and includes any machine or device constructed for the
reception of money or other thing of value and so constructed
as to return, or to cause someone to return, on chance to the
player thereof money, property or a right to receive money or
property. With the exception of any device designed for
gambling which is incapable of lawful use, no gambling device
shall be forfeited or destroyed unless an individual with a
property interest in said device knows of the unlawful use of
the device.
(b) Every gambling device shall be seized and forfeited to
the county wherein such seizure occurs. Any money or other
thing of value integrally related to acts of gambling shall be
seized and forfeited to the county wherein such seizure occurs.
(c) If, within 60 days after any seizure pursuant to
subparagraph (b) of this Section, a person having any property
interest in the seized property is charged with an offense, the
court which renders judgment upon such charge shall, within 30
days after such judgment, conduct a forfeiture hearing to
determine whether such property was a gambling device at the
time of seizure. Such hearing shall be commenced by a written
petition by the State, including material allegations of fact,
the name and address of every person determined by the State to
have any property interest in the seized property, a
representation that written notice of the date, time and place
of such hearing has been mailed to every such person by
certified mail at least 10 days before such date, and a request
for forfeiture. Every such person may appear as a party and
present evidence at such hearing. The quantum of proof required
shall be a preponderance of the evidence, and the burden of
proof shall be on the State. If the court determines that the
seized property was a gambling device at the time of seizure,
an order of forfeiture and disposition of the seized property
shall be entered: a gambling device shall be received by the
State's Attorney, who shall effect its destruction, except that
valuable parts thereof may be liquidated and the resultant
money shall be deposited in the general fund of the county
wherein such seizure occurred; money and other things of value
shall be received by the State's Attorney and, upon
liquidation, shall be deposited in the general fund of the
county wherein such seizure occurred. However, in the event
that a defendant raises the defense that the seized slot
machine is an antique slot machine described in subparagraph
(b) (7) of Section 28-1 of this Code and therefore he is exempt
from the charge of a gambling activity participant, the seized
antique slot machine shall not be destroyed or otherwise
altered until a final determination is made by the Court as to
whether it is such an antique slot machine. Upon a final
determination by the Court of this question in favor of the
defendant, such slot machine shall be immediately returned to
the defendant. Such order of forfeiture and disposition shall,
for the purposes of appeal, be a final order and judgment in a
civil proceeding.
(d) If a seizure pursuant to subparagraph (b) of this
Section is not followed by a charge pursuant to subparagraph
(c) of this Section, or if the prosecution of such charge is
permanently terminated or indefinitely discontinued without
any judgment of conviction or acquittal (1) the State's
Attorney shall commence an in rem proceeding for the forfeiture
and destruction of a gambling device, or for the forfeiture and
deposit in the general fund of the county of any seized money
or other things of value, or both, in the circuit court and (2)
any person having any property interest in such seized gambling
device, money or other thing of value may commence separate
civil proceedings in the manner provided by law.
(e) Any gambling device displayed for sale to a riverboat
gambling operation or used to train occupational licensees of a
riverboat gambling operation as authorized under the Riverboat
Gambling Act is exempt from seizure under this Section.
(f) Any gambling equipment, devices and supplies provided
by a licensed supplier in accordance with the Riverboat
Gambling Act which are removed from the riverboat for repair
are exempt from seizure under this Section.
(g) The following video gaming terminals are exempt from
seizure under this Section:
(1) Video gaming terminals for sale to a licensed
distributor or operator under the Video Gaming Act.
(2) Video gaming terminals used to train licensed
technicians or licensed terminal handlers.
(3) Video gaming terminals that are removed from a
licensed establishment, licensed truck stop establishment,
licensed fraternal establishment, or licensed veterans
establishment for repair.
(h) Property seized or forfeited under this Section is
subject to reporting under the Seizure and Forfeiture Reporting
Act.
(i) Any sports lottery terminals provided by a central
system provider that are removed from a lottery retailer for
repair under the Sports Wagering Act are exempt from seizure
under this Section.
(Source: P.A. 100-512, eff. 7-1-18.)
Article 30. State Fair Gaming Act
Section 30-1. Short title. This Article may be cited as the
State Fair Gaming Act. References in this Article to "this Act"
mean this Article.
Section 30-5. Definitions. As used in this Act:
"Board" means the Illinois Gaming Board.
"State Fair" has the meaning given to that term in the
State Fair Act.
Section 30-10. Gambling at the State Fair.
(a) The Board shall issue a licensed establishment license
as provided under Section 25 of the Video Gaming Act to a
concessioner who will operate at the Illinois State Fairgrounds
and at the DuQuoin State Fairgrounds. The concessioner shall be
chosen under the Illinois Procurement Code for an operational
period not to exceed 3 years. At the conclusion of each 3-year
cycle, the Illinois Procurement Code shall be used to determine
the new concessioner.
(b) Moneys bid by the concessioner shall be deposited into
the State Fairgrounds Capital Improvements and Harness Racing
Fund.
Section 30-15. Video gaming at the State Fair.
(a) The concessioner issued a licensed establishment
license under Section 30-10 may operate: (1) up to 50 video
gaming terminals as provided in the Video Gaming Act during the
scheduled dates of the Illinois State Fair; and (2) up to 30
video gaming terminals as provided in the Video Gaming Act
during the scheduled dates of the DuQuoin State Fair.
(b) No more than 10 video gaming terminals may be placed in
any temporary pavilion where alcoholic beverages are served at
either State Fair.
Section 30-20. Revenue.
(a) Notwithstanding any other law to the contrary, a tax is
imposed at the rate of 35% of net terminal income received from
video gaming under this Act, which shall be remitted to the
Board and deposited into the State Fairgrounds Capital
Improvements and Harness Racing Fund.
(b) There is created within the State treasury the State
Fairgrounds Capital Improvements and Harness Racing Fund. The
Department of Agriculture shall use moneys in the State
Fairgrounds Capital Improvements and Harness Racing Fund as
follows and in the order of priority:
(1) to provide support for a harness race meeting
produced by an organization licensee under the Illinois
Horse Racing Act of 1975 and which shall consist of up to
30 days of live racing per year at the Illinois State
Fairgrounds in Springfield;
(2) to repair and rehabilitate fairgrounds'
backstretch facilities to such a level as determined by the
Department of Agriculture to be required to carry out a
program of live harness racing; and
(3) for the overall repair and rehabilitation of the
capital infrastructure of: (i) the Illinois State
Fairgrounds in Springfield, and (ii) the DuQuoin State
Fairgrounds in DuQuoin, and for no other purpose.
Notwithstanding any other law to the contrary, the entire
State share of tax revenues from the race meetings under
paragraph (1) of this subsection (c) shall be reinvested into
the State Fairgrounds Capital Improvements and Harness Racing
Fund.
Section 30-25. Rules. The Board and the Department of
Agriculture may adopt rules for the implementation of this Act.
Section 30-900. The State Finance Act is amended by adding
Section 5.897 as follows:
(30 ILCS 105/5.897 new)
Sec. 5.897. The State Fairgrounds Capital Improvements and
Harness Racing Fund.
Article 35. Amendatory Provisions
Section 35-3. The Illinois Administrative Procedure Act is
amended by changing Section 5-45 as follows:
(5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
Sec. 5-45. Emergency rulemaking.
(a) "Emergency" means the existence of any situation that
any agency finds reasonably constitutes a threat to the public
interest, safety, or welfare.
(b) If any agency finds that an emergency exists that
requires adoption of a rule upon fewer days than is required by
Section 5-40 and states in writing its reasons for that
finding, the agency may adopt an emergency rule without prior
notice or hearing upon filing a notice of emergency rulemaking
with the Secretary of State under Section 5-70. The notice
shall include the text of the emergency rule and shall be
published in the Illinois Register. Consent orders or other
court orders adopting settlements negotiated by an agency may
be adopted under this Section. Subject to applicable
constitutional or statutory provisions, an emergency rule
becomes effective immediately upon filing under Section 5-65 or
at a stated date less than 10 days thereafter. The agency's
finding and a statement of the specific reasons for the finding
shall be filed with the rule. The agency shall take reasonable
and appropriate measures to make emergency rules known to the
persons who may be affected by them.
(c) An emergency rule may be effective for a period of not
longer than 150 days, but the agency's authority to adopt an
identical rule under Section 5-40 is not precluded. No
emergency rule may be adopted more than once in any 24-month
period, except that this limitation on the number of emergency
rules that may be adopted in a 24-month period does not apply
to (i) emergency rules that make additions to and deletions
from the Drug Manual under Section 5-5.16 of the Illinois
Public Aid Code or the generic drug formulary under Section
3.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
emergency rules adopted by the Pollution Control Board before
July 1, 1997 to implement portions of the Livestock Management
Facilities Act, (iii) emergency rules adopted by the Illinois
Department of Public Health under subsections (a) through (i)
of Section 2 of the Department of Public Health Act when
necessary to protect the public's health, (iv) emergency rules
adopted pursuant to subsection (n) of this Section, (v)
emergency rules adopted pursuant to subsection (o) of this
Section, or (vi) emergency rules adopted pursuant to subsection
(c-5) of this Section. Two or more emergency rules having
substantially the same purpose and effect shall be deemed to be
a single rule for purposes of this Section.
(c-5) To facilitate the maintenance of the program of group
health benefits provided to annuitants, survivors, and retired
employees under the State Employees Group Insurance Act of
1971, rules to alter the contributions to be paid by the State,
annuitants, survivors, retired employees, or any combination
of those entities, for that program of group health benefits,
shall be adopted as emergency rules. The adoption of those
rules shall be considered an emergency and necessary for the
public interest, safety, and welfare.
(d) In order to provide for the expeditious and timely
implementation of the State's fiscal year 1999 budget,
emergency rules to implement any provision of Public Act 90-587
or 90-588 or any other budget initiative for fiscal year 1999
may be adopted in accordance with this Section by the agency
charged with administering that provision or initiative,
except that the 24-month limitation on the adoption of
emergency rules and the provisions of Sections 5-115 and 5-125
do not apply to rules adopted under this subsection (d). The
adoption of emergency rules authorized by this subsection (d)
shall be deemed to be necessary for the public interest,
safety, and welfare.
(e) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2000 budget,
emergency rules to implement any provision of Public Act 91-24
or any other budget initiative for fiscal year 2000 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (e). The adoption of
emergency rules authorized by this subsection (e) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(f) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2001 budget,
emergency rules to implement any provision of Public Act 91-712
or any other budget initiative for fiscal year 2001 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (f). The adoption of
emergency rules authorized by this subsection (f) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(g) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2002 budget,
emergency rules to implement any provision of Public Act 92-10
or any other budget initiative for fiscal year 2002 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (g). The adoption of
emergency rules authorized by this subsection (g) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(h) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2003 budget,
emergency rules to implement any provision of Public Act 92-597
or any other budget initiative for fiscal year 2003 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (h). The adoption of
emergency rules authorized by this subsection (h) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(i) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2004 budget,
emergency rules to implement any provision of Public Act 93-20
or any other budget initiative for fiscal year 2004 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (i). The adoption of
emergency rules authorized by this subsection (i) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(j) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2005 budget as provided under the Fiscal Year 2005 Budget
Implementation (Human Services) Act, emergency rules to
implement any provision of the Fiscal Year 2005 Budget
Implementation (Human Services) Act may be adopted in
accordance with this Section by the agency charged with
administering that provision, except that the 24-month
limitation on the adoption of emergency rules and the
provisions of Sections 5-115 and 5-125 do not apply to rules
adopted under this subsection (j). The Department of Public Aid
may also adopt rules under this subsection (j) necessary to
administer the Illinois Public Aid Code and the Children's
Health Insurance Program Act. The adoption of emergency rules
authorized by this subsection (j) shall be deemed to be
necessary for the public interest, safety, and welfare.
(k) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2006 budget, emergency rules to implement any provision of
Public Act 94-48 or any other budget initiative for fiscal year
2006 may be adopted in accordance with this Section by the
agency charged with administering that provision or
initiative, except that the 24-month limitation on the adoption
of emergency rules and the provisions of Sections 5-115 and
5-125 do not apply to rules adopted under this subsection (k).
The Department of Healthcare and Family Services may also adopt
rules under this subsection (k) necessary to administer the
Illinois Public Aid Code, the Senior Citizens and Persons with
Disabilities Property Tax Relief Act, the Senior Citizens and
Disabled Persons Prescription Drug Discount Program Act (now
the Illinois Prescription Drug Discount Program Act), and the
Children's Health Insurance Program Act. The adoption of
emergency rules authorized by this subsection (k) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(l) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2007 budget, the Department of Healthcare and Family Services
may adopt emergency rules during fiscal year 2007, including
rules effective July 1, 2007, in accordance with this
subsection to the extent necessary to administer the
Department's responsibilities with respect to amendments to
the State plans and Illinois waivers approved by the federal
Centers for Medicare and Medicaid Services necessitated by the
requirements of Title XIX and Title XXI of the federal Social
Security Act. The adoption of emergency rules authorized by
this subsection (l) shall be deemed to be necessary for the
public interest, safety, and welfare.
(m) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2008 budget, the Department of Healthcare and Family Services
may adopt emergency rules during fiscal year 2008, including
rules effective July 1, 2008, in accordance with this
subsection to the extent necessary to administer the
Department's responsibilities with respect to amendments to
the State plans and Illinois waivers approved by the federal
Centers for Medicare and Medicaid Services necessitated by the
requirements of Title XIX and Title XXI of the federal Social
Security Act. The adoption of emergency rules authorized by
this subsection (m) shall be deemed to be necessary for the
public interest, safety, and welfare.
(n) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2010 budget, emergency rules to implement any provision of
Public Act 96-45 or any other budget initiative authorized by
the 96th General Assembly for fiscal year 2010 may be adopted
in accordance with this Section by the agency charged with
administering that provision or initiative. The adoption of
emergency rules authorized by this subsection (n) shall be
deemed to be necessary for the public interest, safety, and
welfare. The rulemaking authority granted in this subsection
(n) shall apply only to rules promulgated during Fiscal Year
2010.
(o) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2011 budget, emergency rules to implement any provision of
Public Act 96-958 or any other budget initiative authorized by
the 96th General Assembly for fiscal year 2011 may be adopted
in accordance with this Section by the agency charged with
administering that provision or initiative. The adoption of
emergency rules authorized by this subsection (o) is deemed to
be necessary for the public interest, safety, and welfare. The
rulemaking authority granted in this subsection (o) applies
only to rules promulgated on or after July 1, 2010 (the
effective date of Public Act 96-958) through June 30, 2011.
(p) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 97-689,
emergency rules to implement any provision of Public Act 97-689
may be adopted in accordance with this subsection (p) by the
agency charged with administering that provision or
initiative. The 150-day limitation of the effective period of
emergency rules does not apply to rules adopted under this
subsection (p), and the effective period may continue through
June 30, 2013. The 24-month limitation on the adoption of
emergency rules does not apply to rules adopted under this
subsection (p). The adoption of emergency rules authorized by
this subsection (p) is deemed to be necessary for the public
interest, safety, and welfare.
(q) In order to provide for the expeditious and timely
implementation of the provisions of Articles 7, 8, 9, 11, and
12 of Public Act 98-104, emergency rules to implement any
provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
may be adopted in accordance with this subsection (q) by the
agency charged with administering that provision or
initiative. The 24-month limitation on the adoption of
emergency rules does not apply to rules adopted under this
subsection (q). The adoption of emergency rules authorized by
this subsection (q) is deemed to be necessary for the public
interest, safety, and welfare.
(r) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 98-651,
emergency rules to implement Public Act 98-651 may be adopted
in accordance with this subsection (r) by the Department of
Healthcare and Family Services. The 24-month limitation on the
adoption of emergency rules does not apply to rules adopted
under this subsection (r). The adoption of emergency rules
authorized by this subsection (r) is deemed to be necessary for
the public interest, safety, and welfare.
(s) In order to provide for the expeditious and timely
implementation of the provisions of Sections 5-5b.1 and 5A-2 of
the Illinois Public Aid Code, emergency rules to implement any
provision of Section 5-5b.1 or Section 5A-2 of the Illinois
Public Aid Code may be adopted in accordance with this
subsection (s) by the Department of Healthcare and Family
Services. The rulemaking authority granted in this subsection
(s) shall apply only to those rules adopted prior to July 1,
2015. Notwithstanding any other provision of this Section, any
emergency rule adopted under this subsection (s) shall only
apply to payments made for State fiscal year 2015. The adoption
of emergency rules authorized by this subsection (s) is deemed
to be necessary for the public interest, safety, and welfare.
(t) In order to provide for the expeditious and timely
implementation of the provisions of Article II of Public Act
99-6, emergency rules to implement the changes made by Article
II of Public Act 99-6 to the Emergency Telephone System Act may
be adopted in accordance with this subsection (t) by the
Department of State Police. The rulemaking authority granted in
this subsection (t) shall apply only to those rules adopted
prior to July 1, 2016. The 24-month limitation on the adoption
of emergency rules does not apply to rules adopted under this
subsection (t). The adoption of emergency rules authorized by
this subsection (t) is deemed to be necessary for the public
interest, safety, and welfare.
(u) In order to provide for the expeditious and timely
implementation of the provisions of the Burn Victims Relief
Act, emergency rules to implement any provision of the Act may
be adopted in accordance with this subsection (u) by the
Department of Insurance. The rulemaking authority granted in
this subsection (u) shall apply only to those rules adopted
prior to December 31, 2015. The adoption of emergency rules
authorized by this subsection (u) is deemed to be necessary for
the public interest, safety, and welfare.
(v) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 99-516,
emergency rules to implement Public Act 99-516 may be adopted
in accordance with this subsection (v) by the Department of
Healthcare and Family Services. The 24-month limitation on the
adoption of emergency rules does not apply to rules adopted
under this subsection (v). The adoption of emergency rules
authorized by this subsection (v) is deemed to be necessary for
the public interest, safety, and welfare.
(w) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 99-796,
emergency rules to implement the changes made by Public Act
99-796 may be adopted in accordance with this subsection (w) by
the Adjutant General. The adoption of emergency rules
authorized by this subsection (w) is deemed to be necessary for
the public interest, safety, and welfare.
(x) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 99-906,
emergency rules to implement subsection (i) of Section 16-115D,
subsection (g) of Section 16-128A, and subsection (a) of
Section 16-128B of the Public Utilities Act may be adopted in
accordance with this subsection (x) by the Illinois Commerce
Commission. The rulemaking authority granted in this
subsection (x) shall apply only to those rules adopted within
180 days after June 1, 2017 (the effective date of Public Act
99-906). The adoption of emergency rules authorized by this
subsection (x) is deemed to be necessary for the public
interest, safety, and welfare.
(y) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-23,
emergency rules to implement the changes made by Public Act
100-23 to Section 4.02 of the Illinois Act on the Aging,
Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
Section 55-30 of the Alcoholism and Other Drug Abuse and
Dependency Act, and Sections 74 and 75 of the Mental Health and
Developmental Disabilities Administrative Act may be adopted
in accordance with this subsection (y) by the respective
Department. The adoption of emergency rules authorized by this
subsection (y) is deemed to be necessary for the public
interest, safety, and welfare.
(z) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-554,
emergency rules to implement the changes made by Public Act
100-554 to Section 4.7 of the Lobbyist Registration Act may be
adopted in accordance with this subsection (z) by the Secretary
of State. The adoption of emergency rules authorized by this
subsection (z) is deemed to be necessary for the public
interest, safety, and welfare.
(aa) In order to provide for the expeditious and timely
initial implementation of the changes made to Articles 5, 5A,
12, and 14 of the Illinois Public Aid Code under the provisions
of Public Act 100-581, the Department of Healthcare and Family
Services may adopt emergency rules in accordance with this
subsection (aa). The 24-month limitation on the adoption of
emergency rules does not apply to rules to initially implement
the changes made to Articles 5, 5A, 12, and 14 of the Illinois
Public Aid Code adopted under this subsection (aa). The
adoption of emergency rules authorized by this subsection (aa)
is deemed to be necessary for the public interest, safety, and
welfare.
(bb) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-587,
emergency rules to implement the changes made by Public Act
100-587 to Section 4.02 of the Illinois Act on the Aging,
Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
subsection (b) of Section 55-30 of the Alcoholism and Other
Drug Abuse and Dependency Act, Section 5-104 of the Specialized
Mental Health Rehabilitation Act of 2013, and Section 75 and
subsection (b) of Section 74 of the Mental Health and
Developmental Disabilities Administrative Act may be adopted
in accordance with this subsection (bb) by the respective
Department. The adoption of emergency rules authorized by this
subsection (bb) is deemed to be necessary for the public
interest, safety, and welfare.
(cc) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-587,
emergency rules may be adopted in accordance with this
subsection (cc) to implement the changes made by Public Act
100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois
Pension Code by the Board created under Article 14 of the Code;
Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by
the Board created under Article 15 of the Code; and Sections
16-190.5 and 16-190.6 of the Illinois Pension Code by the Board
created under Article 16 of the Code. The adoption of emergency
rules authorized by this subsection (cc) is deemed to be
necessary for the public interest, safety, and welfare.
(dd) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-864,
emergency rules to implement the changes made by Public Act
100-864 to Section 3.35 of the Newborn Metabolic Screening Act
may be adopted in accordance with this subsection (dd) by the
Secretary of State. The adoption of emergency rules authorized
by this subsection (dd) is deemed to be necessary for the
public interest, safety, and welfare.
(ee) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-1172 this
amendatory Act of the 100th General Assembly, emergency rules
implementing the Illinois Underground Natural Gas Storage
Safety Act may be adopted in accordance with this subsection by
the Department of Natural Resources. The adoption of emergency
rules authorized by this subsection is deemed to be necessary
for the public interest, safety, and welfare.
(ff) (ee) In order to provide for the expeditious and
timely initial implementation of the changes made to Articles
5A and 14 of the Illinois Public Aid Code under the provisions
of Public Act 100-1181 this amendatory Act of the 100th General
Assembly, the Department of Healthcare and Family Services may
on a one-time-only basis adopt emergency rules in accordance
with this subsection (ff) (ee). The 24-month limitation on the
adoption of emergency rules does not apply to rules to
initially implement the changes made to Articles 5A and 14 of
the Illinois Public Aid Code adopted under this subsection (ff)
(ee). The adoption of emergency rules authorized by this
subsection (ff) (ee) is deemed to be necessary for the public
interest, safety, and welfare.
(gg) (ff) In order to provide for the expeditious and
timely implementation of the provisions of Public Act 101-1
this amendatory Act of the 101st General Assembly, emergency
rules may be adopted by the Department of Labor in accordance
with this subsection (gg) (ff) to implement the changes made by
Public Act 101-1 this amendatory Act of the 101st General
Assembly to the Minimum Wage Law. The adoption of emergency
rules authorized by this subsection (gg) (ff) is deemed to be
necessary for the public interest, safety, and welfare.
(kk) In order to provide for the expeditious and timely
implementation of the provisions of subsection (c) of Section
20 of the Video Gaming Act, emergency rules to implement the
provisions of subsection (c) of Section 20 of the Video Gaming
Act may be adopted in accordance with this subsection (kk) by
the Illinois Gaming Board. The adoption of emergency rules
authorized by this subsection (kk) is deemed to be necessary
for the public interest, safety, and welfare.
(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;
100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.
6-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;
100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff.
3-8-19; 101-1, eff. 2-19-19; revised 4-2-19.)
Section 35-5. The Open Meetings Act is amended by changing
Section 2 as follows:
(5 ILCS 120/2) (from Ch. 102, par. 42)
Sec. 2. Open meetings.
(a) Openness required. All meetings of public bodies shall
be open to the public unless excepted in subsection (c) and
closed in accordance with Section 2a.
(b) Construction of exceptions. The exceptions contained
in subsection (c) are in derogation of the requirement that
public bodies meet in the open, and therefore, the exceptions
are to be strictly construed, extending only to subjects
clearly within their scope. The exceptions authorize but do not
require the holding of a closed meeting to discuss a subject
included within an enumerated exception.
(c) Exceptions. A public body may hold closed meetings to
consider the following subjects:
(1) The appointment, employment, compensation,
discipline, performance, or dismissal of specific
employees of the public body or legal counsel for the
public body, including hearing testimony on a complaint
lodged against an employee of the public body or against
legal counsel for the public body to determine its
validity. However, a meeting to consider an increase in
compensation to a specific employee of a public body that
is subject to the Local Government Wage Increase
Transparency Act may not be closed and shall be open to the
public and posted and held in accordance with this Act.
(2) Collective negotiating matters between the public
body and its employees or their representatives, or
deliberations concerning salary schedules for one or more
classes of employees.
(3) The selection of a person to fill a public office,
as defined in this Act, including a vacancy in a public
office, when the public body is given power to appoint
under law or ordinance, or the discipline, performance or
removal of the occupant of a public office, when the public
body is given power to remove the occupant under law or
ordinance.
(4) Evidence or testimony presented in open hearing, or
in closed hearing where specifically authorized by law, to
a quasi-adjudicative body, as defined in this Act, provided
that the body prepares and makes available for public
inspection a written decision setting forth its
determinative reasoning.
(5) The purchase or lease of real property for the use
of the public body, including meetings held for the purpose
of discussing whether a particular parcel should be
acquired.
(6) The setting of a price for sale or lease of
property owned by the public body.
(7) The sale or purchase of securities, investments, or
investment contracts. This exception shall not apply to the
investment of assets or income of funds deposited into the
Illinois Prepaid Tuition Trust Fund.
(8) Security procedures, school building safety and
security, and the use of personnel and equipment to respond
to an actual, a threatened, or a reasonably potential
danger to the safety of employees, students, staff, the
public, or public property.
(9) Student disciplinary cases.
(10) The placement of individual students in special
education programs and other matters relating to
individual students.
(11) Litigation, when an action against, affecting or
on behalf of the particular public body has been filed and
is pending before a court or administrative tribunal, or
when the public body finds that an action is probable or
imminent, in which case the basis for the finding shall be
recorded and entered into the minutes of the closed
meeting.
(12) The establishment of reserves or settlement of
claims as provided in the Local Governmental and
Governmental Employees Tort Immunity Act, if otherwise the
disposition of a claim or potential claim might be
prejudiced, or the review or discussion of claims, loss or
risk management information, records, data, advice or
communications from or with respect to any insurer of the
public body or any intergovernmental risk management
association or self insurance pool of which the public body
is a member.
(13) Conciliation of complaints of discrimination in
the sale or rental of housing, when closed meetings are
authorized by the law or ordinance prescribing fair housing
practices and creating a commission or administrative
agency for their enforcement.
(14) Informant sources, the hiring or assignment of
undercover personnel or equipment, or ongoing, prior or
future criminal investigations, when discussed by a public
body with criminal investigatory responsibilities.
(15) Professional ethics or performance when
considered by an advisory body appointed to advise a
licensing or regulatory agency on matters germane to the
advisory body's field of competence.
(16) Self evaluation, practices and procedures or
professional ethics, when meeting with a representative of
a statewide association of which the public body is a
member.
(17) The recruitment, credentialing, discipline or
formal peer review of physicians or other health care
professionals, or for the discussion of matters protected
under the federal Patient Safety and Quality Improvement
Act of 2005, and the regulations promulgated thereunder,
including 42 C.F.R. Part 3 (73 FR 70732), or the federal
Health Insurance Portability and Accountability Act of
1996, and the regulations promulgated thereunder,
including 45 C.F.R. Parts 160, 162, and 164, by a hospital,
or other institution providing medical care, that is
operated by the public body.
(18) Deliberations for decisions of the Prisoner
Review Board.
(19) Review or discussion of applications received
under the Experimental Organ Transplantation Procedures
Act.
(20) The classification and discussion of matters
classified as confidential or continued confidential by
the State Government Suggestion Award Board.
(21) Discussion of minutes of meetings lawfully closed
under this Act, whether for purposes of approval by the
body of the minutes or semi-annual review of the minutes as
mandated by Section 2.06.
(22) Deliberations for decisions of the State
Emergency Medical Services Disciplinary Review Board.
(23) The operation by a municipality of a municipal
utility or the operation of a municipal power agency or
municipal natural gas agency when the discussion involves
(i) contracts relating to the purchase, sale, or delivery
of electricity or natural gas or (ii) the results or
conclusions of load forecast studies.
(24) Meetings of a residential health care facility
resident sexual assault and death review team or the
Executive Council under the Abuse Prevention Review Team
Act.
(25) Meetings of an independent team of experts under
Brian's Law.
(26) Meetings of a mortality review team appointed
under the Department of Juvenile Justice Mortality Review
Team Act.
(27) (Blank).
(28) Correspondence and records (i) that may not be
disclosed under Section 11-9 of the Illinois Public Aid
Code or (ii) that pertain to appeals under Section 11-8 of
the Illinois Public Aid Code.
(29) Meetings between internal or external auditors
and governmental audit committees, finance committees, and
their equivalents, when the discussion involves internal
control weaknesses, identification of potential fraud risk
areas, known or suspected frauds, and fraud interviews
conducted in accordance with generally accepted auditing
standards of the United States of America.
(30) Those meetings or portions of meetings of a
fatality review team or the Illinois Fatality Review Team
Advisory Council during which a review of the death of an
eligible adult in which abuse or neglect is suspected,
alleged, or substantiated is conducted pursuant to Section
15 of the Adult Protective Services Act.
(31) Meetings and deliberations for decisions of the
Concealed Carry Licensing Review Board under the Firearm
Concealed Carry Act.
(32) Meetings between the Regional Transportation
Authority Board and its Service Boards when the discussion
involves review by the Regional Transportation Authority
Board of employment contracts under Section 28d of the
Metropolitan Transit Authority Act and Sections 3A.18 and
3B.26 of the Regional Transportation Authority Act.
(33) Those meetings or portions of meetings of the
advisory committee and peer review subcommittee created
under Section 320 of the Illinois Controlled Substances Act
during which specific controlled substance prescriber,
dispenser, or patient information is discussed.
(34) Meetings of the Tax Increment Financing Reform
Task Force under Section 2505-800 of the Department of
Revenue Law of the Civil Administrative Code of Illinois.
(35) Meetings of the group established to discuss
Medicaid capitation rates under Section 5-30.8 of the
Illinois Public Aid Code.
(36) Those deliberations or portions of deliberations
for decisions of the Illinois Gaming Board in which there
is discussed any of the following: (i) personal,
commercial, financial, or other information obtained from
any source that is privileged, proprietary, confidential,
or a trade secret; or (ii) information specifically
exempted from the disclosure by federal or State law.
(d) Definitions. For purposes of this Section:
"Employee" means a person employed by a public body whose
relationship with the public body constitutes an
employer-employee relationship under the usual common law
rules, and who is not an independent contractor.
"Public office" means a position created by or under the
Constitution or laws of this State, the occupant of which is
charged with the exercise of some portion of the sovereign
power of this State. The term "public office" shall include
members of the public body, but it shall not include
organizational positions filled by members thereof, whether
established by law or by a public body itself, that exist to
assist the body in the conduct of its business.
"Quasi-adjudicative body" means an administrative body
charged by law or ordinance with the responsibility to conduct
hearings, receive evidence or testimony and make
determinations based thereon, but does not include local
electoral boards when such bodies are considering petition
challenges.
(e) Final action. No final action may be taken at a closed
meeting. Final action shall be preceded by a public recital of
the nature of the matter being considered and other information
that will inform the public of the business being conducted.
(Source: P.A. 99-78, eff. 7-20-15; 99-235, eff. 1-1-16; 99-480,
eff. 9-9-15; 99-642, eff. 7-28-16; 99-646, eff. 7-28-16;
99-687, eff. 1-1-17; 100-201, eff. 8-18-17; 100-465, eff.
8-31-17; 100-646, eff. 7-27-18.)
Section 35-10. The State Officials and Employees Ethics Act
is amended by changing Section 5-45 as follows:
(5 ILCS 430/5-45)
Sec. 5-45. Procurement; revolving door prohibition.
(a) No former officer, member, or State employee, or spouse
or immediate family member living with such person, shall,
within a period of one year immediately after termination of
State employment, knowingly accept employment or receive
compensation or fees for services from a person or entity if
the officer, member, or State employee, during the year
immediately preceding termination of State employment,
participated personally and substantially in the award of State
contracts, or the issuance of State contract change orders,
with a cumulative value of $25,000 or more to the person or
entity, or its parent or subsidiary.
(a-5) No officer, member, or spouse or immediate family
member living with such person shall, during the officer or
member's term in office or within a period of 2 years
immediately leaving office, hold an ownership interest, other
than a passive interest in a publicly traded company, in any
gaming license under the Illinois Gambling Act, the Video
Gaming Act, the Illinois Horse Racing Act of 1975, or the
Sports Wagering Act. Any member of the General Assembly or
spouse or immediate family member living with such person who
has an ownership interest, other than a passive interest in a
publicly traded company, in any gaming license under the
Illinois Gambling Act, the Illinois Horse Racing Act of 1975,
the Video Gaming Act, or the Sports Wagering Act at the time of
the effective date of this amendatory Act of the 101st General
Assembly shall divest himself or herself of such ownership
within one year after the effective date of this amendatory Act
of the 101st General Assembly. No State employee who works for
the Illinois Gaming Board or Illinois Racing Board or spouse or
immediate family member living with such person shall, during
State employment or within a period of 2 years immediately
after termination of State employment, hold an ownership
interest, other than a passive interest in a publicly traded
company, in any gaming license under the Illinois Gambling Act,
the Video Gaming Act, the Illinois Horse Racing Act of 1975, or
the Sports Wagering Act.
(b) No former officer of the executive branch or State
employee of the executive branch with regulatory or licensing
authority, or spouse or immediate family member living with
such person, shall, within a period of one year immediately
after termination of State employment, knowingly accept
employment or receive compensation or fees for services from a
person or entity if the officer or State employee, during the
year immediately preceding termination of State employment,
participated personally and substantially in making a
regulatory or licensing decision that directly applied to the
person or entity, or its parent or subsidiary.
(c) Within 6 months after the effective date of this
amendatory Act of the 96th General Assembly, each executive
branch constitutional officer and legislative leader, the
Auditor General, and the Joint Committee on Legislative Support
Services shall adopt a policy delineating which State positions
under his or her jurisdiction and control, by the nature of
their duties, may have the authority to participate personally
and substantially in the award of State contracts or in
regulatory or licensing decisions. The Governor shall adopt
such a policy for all State employees of the executive branch
not under the jurisdiction and control of any other executive
branch constitutional officer.
The policies required under subsection (c) of this Section
shall be filed with the appropriate ethics commission
established under this Act or, for the Auditor General, with
the Office of the Auditor General.
(d) Each Inspector General shall have the authority to
determine that additional State positions under his or her
jurisdiction, not otherwise subject to the policies required by
subsection (c) of this Section, are nonetheless subject to the
notification requirement of subsection (f) below due to their
involvement in the award of State contracts or in regulatory or
licensing decisions.
(e) The Joint Committee on Legislative Support Services,
the Auditor General, and each of the executive branch
constitutional officers and legislative leaders subject to
subsection (c) of this Section shall provide written
notification to all employees in positions subject to the
policies required by subsection (c) or a determination made
under subsection (d): (1) upon hiring, promotion, or transfer
into the relevant position; and (2) at the time the employee's
duties are changed in such a way as to qualify that employee.
An employee receiving notification must certify in writing that
the person was advised of the prohibition and the requirement
to notify the appropriate Inspector General in subsection (f).
(f) Any State employee in a position subject to the
policies required by subsection (c) or to a determination under
subsection (d), but who does not fall within the prohibition of
subsection (h) below, who is offered non-State employment
during State employment or within a period of one year
immediately after termination of State employment shall, prior
to accepting such non-State employment, notify the appropriate
Inspector General. Within 10 calendar days after receiving
notification from an employee in a position subject to the
policies required by subsection (c), such Inspector General
shall make a determination as to whether the State employee is
restricted from accepting such employment by subsection (a) or
(b). In making a determination, in addition to any other
relevant information, an Inspector General shall assess the
effect of the prospective employment or relationship upon
decisions referred to in subsections (a) and (b), based on the
totality of the participation by the former officer, member, or
State employee in those decisions. A determination by an
Inspector General must be in writing, signed and dated by the
Inspector General, and delivered to the subject of the
determination within 10 calendar days or the person is deemed
eligible for the employment opportunity. For purposes of this
subsection, "appropriate Inspector General" means (i) for
members and employees of the legislative branch, the
Legislative Inspector General; (ii) for the Auditor General and
employees of the Office of the Auditor General, the Inspector
General provided for in Section 30-5 of this Act; and (iii) for
executive branch officers and employees, the Inspector General
having jurisdiction over the officer or employee. Notice of any
determination of an Inspector General and of any such appeal
shall be given to the ultimate jurisdictional authority, the
Attorney General, and the Executive Ethics Commission.
(g) An Inspector General's determination regarding
restrictions under subsection (a) or (b) may be appealed to the
appropriate Ethics Commission by the person subject to the
decision or the Attorney General no later than the 10th
calendar day after the date of the determination.
On appeal, the Ethics Commission or Auditor General shall
seek, accept, and consider written public comments regarding a
determination. In deciding whether to uphold an Inspector
General's determination, the appropriate Ethics Commission or
Auditor General shall assess, in addition to any other relevant
information, the effect of the prospective employment or
relationship upon the decisions referred to in subsections (a)
and (b), based on the totality of the participation by the
former officer, member, or State employee in those decisions.
The Ethics Commission shall decide whether to uphold an
Inspector General's determination within 10 calendar days or
the person is deemed eligible for the employment opportunity.
(h) The following officers, members, or State employees
shall not, within a period of one year immediately after
termination of office or State employment, knowingly accept
employment or receive compensation or fees for services from a
person or entity if the person or entity or its parent or
subsidiary, during the year immediately preceding termination
of State employment, was a party to a State contract or
contracts with a cumulative value of $25,000 or more involving
the officer, member, or State employee's State agency, or was
the subject of a regulatory or licensing decision involving the
officer, member, or State employee's State agency, regardless
of whether he or she participated personally and substantially
in the award of the State contract or contracts or the making
of the regulatory or licensing decision in question:
(1) members or officers;
(2) members of a commission or board created by the
Illinois Constitution;
(3) persons whose appointment to office is subject to
the advice and consent of the Senate;
(4) the head of a department, commission, board,
division, bureau, authority, or other administrative unit
within the government of this State;
(5) chief procurement officers, State purchasing
officers, and their designees whose duties are directly
related to State procurement; and
(6) chiefs of staff, deputy chiefs of staff, associate
chiefs of staff, assistant chiefs of staff, and deputy
governors; .
(7) employees of the Illinois Racing Board; and
(8) employees of the Illinois Gaming Board.
(i) For the purposes of this Section, with respect to
officers or employees of a regional transit board, as defined
in this Act, the phrase "person or entity" does not include:
(i) the United States government, (ii) the State, (iii)
municipalities, as defined under Article VII, Section 1 of the
Illinois Constitution, (iv) units of local government, as
defined under Article VII, Section 1 of the Illinois
Constitution, or (v) school districts.
(Source: P.A. 96-555, eff. 8-18-09; 97-653, eff. 1-13-12.)
Section 35-15. The Alcoholism and Other Drug Abuse and
Dependency Act is amended by changing Section 5-20 as follows:
(20 ILCS 301/5-20)
Sec. 5-20. Gambling disorders.
(a) Subject to appropriation, the Department shall
establish a program for public education, research, and
training regarding gambling disorders and the treatment and
prevention of gambling disorders. Subject to specific
appropriation for these stated purposes, the program must
include all of the following:
(1) Establishment and maintenance of a toll-free "800"
telephone number to provide crisis counseling and referral
services to families experiencing difficulty as a result of
gambling disorders.
(2) Promotion of public awareness regarding the
recognition and prevention of gambling disorders.
(3) Facilitation, through in-service training and
other means, of the availability of effective assistance
programs for gambling disorders.
(4) Conducting studies to identify adults and
juveniles in this State who have, or who are at risk of
developing, gambling disorders.
(b) Subject to appropriation, the Department shall either
establish and maintain the program or contract with a private
or public entity for the establishment and maintenance of the
program. Subject to appropriation, either the Department or the
private or public entity shall implement the toll-free
telephone number, promote public awareness, and conduct
in-service training concerning gambling disorders.
(c) Subject to appropriation, the Department shall produce
and supply the signs specified in Section 10.7 of the Illinois
Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
1975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
of the Charitable Games Act, and Section 13.1 of the Illinois
Riverboat Gambling Act.
(Source: P.A. 100-759, eff. 1-1-19.)
Section 35-20. The Illinois Lottery Law is amended by
changing Section 9.1 as follows:
(20 ILCS 1605/9.1)
Sec. 9.1. Private manager and management agreement.
(a) As used in this Section:
"Offeror" means a person or group of persons that responds
to a request for qualifications under this Section.
"Request for qualifications" means all materials and
documents prepared by the Department to solicit the following
from offerors:
(1) Statements of qualifications.
(2) Proposals to enter into a management agreement,
including the identity of any prospective vendor or vendors
that the offeror intends to initially engage to assist the
offeror in performing its obligations under the management
agreement.
"Final offer" means the last proposal submitted by an
offeror in response to the request for qualifications,
including the identity of any prospective vendor or vendors
that the offeror intends to initially engage to assist the
offeror in performing its obligations under the management
agreement.
"Final offeror" means the offeror ultimately selected by
the Governor to be the private manager for the Lottery under
subsection (h) of this Section.
(b) By September 15, 2010, the Governor shall select a
private manager for the total management of the Lottery with
integrated functions, such as lottery game design, supply of
goods and services, and advertising and as specified in this
Section.
(c) Pursuant to the terms of this subsection, the
Department shall endeavor to expeditiously terminate the
existing contracts in support of the Lottery in effect on the
effective date of this amendatory Act of the 96th General
Assembly in connection with the selection of the private
manager. As part of its obligation to terminate these contracts
and select the private manager, the Department shall establish
a mutually agreeable timetable to transfer the functions of
existing contractors to the private manager so that existing
Lottery operations are not materially diminished or impaired
during the transition. To that end, the Department shall do the
following:
(1) where such contracts contain a provision
authorizing termination upon notice, the Department shall
provide notice of termination to occur upon the mutually
agreed timetable for transfer of functions;
(2) upon the expiration of any initial term or renewal
term of the current Lottery contracts, the Department shall
not renew such contract for a term extending beyond the
mutually agreed timetable for transfer of functions; or
(3) in the event any current contract provides for
termination of that contract upon the implementation of a
contract with the private manager, the Department shall
perform all necessary actions to terminate the contract on
the date that coincides with the mutually agreed timetable
for transfer of functions.
If the contracts to support the current operation of the
Lottery in effect on the effective date of this amendatory Act
of the 96th General Assembly are not subject to termination as
provided for in this subsection (c), then the Department may
include a provision in the contract with the private manager
specifying a mutually agreeable methodology for incorporation.
(c-5) The Department shall include provisions in the
management agreement whereby the private manager shall, for a
fee, and pursuant to a contract negotiated with the Department
(the "Employee Use Contract"), utilize the services of current
Department employees to assist in the administration and
operation of the Lottery. The Department shall be the employer
of all such bargaining unit employees assigned to perform such
work for the private manager, and such employees shall be State
employees, as defined by the Personnel Code. Department
employees shall operate under the same employment policies,
rules, regulations, and procedures, as other employees of the
Department. In addition, neither historical representation
rights under the Illinois Public Labor Relations Act, nor
existing collective bargaining agreements, shall be disturbed
by the management agreement with the private manager for the
management of the Lottery.
(d) The management agreement with the private manager shall
include all of the following:
(1) A term not to exceed 10 years, including any
renewals.
(2) A provision specifying that the Department:
(A) shall exercise actual control over all
significant business decisions;
(A-5) has the authority to direct or countermand
operating decisions by the private manager at any time;
(B) has ready access at any time to information
regarding Lottery operations;
(C) has the right to demand and receive information
from the private manager concerning any aspect of the
Lottery operations at any time; and
(D) retains ownership of all trade names,
trademarks, and intellectual property associated with
the Lottery.
(3) A provision imposing an affirmative duty on the
private manager to provide the Department with material
information and with any information the private manager
reasonably believes the Department would want to know to
enable the Department to conduct the Lottery.
(4) A provision requiring the private manager to
provide the Department with advance notice of any operating
decision that bears significantly on the public interest,
including, but not limited to, decisions on the kinds of
games to be offered to the public and decisions affecting
the relative risk and reward of the games being offered, so
the Department has a reasonable opportunity to evaluate and
countermand that decision.
(5) A provision providing for compensation of the
private manager that may consist of, among other things, a
fee for services and a performance based bonus as
consideration for managing the Lottery, including terms
that may provide the private manager with an increase in
compensation if Lottery revenues grow by a specified
percentage in a given year.
(6) (Blank).
(7) A provision requiring the deposit of all Lottery
proceeds to be deposited into the State Lottery Fund except
as otherwise provided in Section 20 of this Act.
(8) A provision requiring the private manager to locate
its principal office within the State.
(8-5) A provision encouraging that at least 20% of the
cost of contracts entered into for goods and services by
the private manager in connection with its management of
the Lottery, other than contracts with sales agents or
technical advisors, be awarded to businesses that are a
minority-owned business, a women-owned business, or a
business owned by a person with disability, as those terms
are defined in the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
(9) A requirement that so long as the private manager
complies with all the conditions of the agreement under the
oversight of the Department, the private manager shall have
the following duties and obligations with respect to the
management of the Lottery:
(A) The right to use equipment and other assets
used in the operation of the Lottery.
(B) The rights and obligations under contracts
with retailers and vendors.
(C) The implementation of a comprehensive security
program by the private manager.
(D) The implementation of a comprehensive system
of internal audits.
(E) The implementation of a program by the private
manager to curb compulsive gambling by persons playing
the Lottery.
(F) A system for determining (i) the type of
Lottery games, (ii) the method of selecting winning
tickets, (iii) the manner of payment of prizes to
holders of winning tickets, (iv) the frequency of
drawings of winning tickets, (v) the method to be used
in selling tickets, (vi) a system for verifying the
validity of tickets claimed to be winning tickets,
(vii) the basis upon which retailer commissions are
established by the manager, and (viii) minimum
payouts.
(10) A requirement that advertising and promotion must
be consistent with Section 7.8a of this Act.
(11) A requirement that the private manager market the
Lottery to those residents who are new, infrequent, or
lapsed players of the Lottery, especially those who are
most likely to make regular purchases on the Internet as
permitted by law.
(12) A code of ethics for the private manager's
officers and employees.
(13) A requirement that the Department monitor and
oversee the private manager's practices and take action
that the Department considers appropriate to ensure that
the private manager is in compliance with the terms of the
management agreement, while allowing the manager, unless
specifically prohibited by law or the management
agreement, to negotiate and sign its own contracts with
vendors.
(14) A provision requiring the private manager to
periodically file, at least on an annual basis, appropriate
financial statements in a form and manner acceptable to the
Department.
(15) Cash reserves requirements.
(16) Procedural requirements for obtaining the prior
approval of the Department when a management agreement or
an interest in a management agreement is sold, assigned,
transferred, or pledged as collateral to secure financing.
(17) Grounds for the termination of the management
agreement by the Department or the private manager.
(18) Procedures for amendment of the agreement.
(19) A provision requiring the private manager to
engage in an open and competitive bidding process for any
procurement having a cost in excess of $50,000 that is not
a part of the private manager's final offer. The process
shall favor the selection of a vendor deemed to have
submitted a proposal that provides the Lottery with the
best overall value. The process shall not be subject to the
provisions of the Illinois Procurement Code, unless
specifically required by the management agreement.
(20) The transition of rights and obligations,
including any associated equipment or other assets used in
the operation of the Lottery, from the manager to any
successor manager of the lottery, including the
Department, following the termination of or foreclosure
upon the management agreement.
(21) Right of use of copyrights, trademarks, and
service marks held by the Department in the name of the
State. The agreement must provide that any use of them by
the manager shall only be for the purpose of fulfilling its
obligations under the management agreement during the term
of the agreement.
(22) The disclosure of any information requested by the
Department to enable it to comply with the reporting
requirements and information requests provided for under
subsection (p) of this Section.
(e) Notwithstanding any other law to the contrary, the
Department shall select a private manager through a competitive
request for qualifications process consistent with Section
20-35 of the Illinois Procurement Code, which shall take into
account:
(1) the offeror's ability to market the Lottery to
those residents who are new, infrequent, or lapsed players
of the Lottery, especially those who are most likely to
make regular purchases on the Internet;
(2) the offeror's ability to address the State's
concern with the social effects of gambling on those who
can least afford to do so;
(3) the offeror's ability to provide the most
successful management of the Lottery for the benefit of the
people of the State based on current and past business
practices or plans of the offeror; and
(4) the offeror's poor or inadequate past performance
in servicing, equipping, operating or managing a lottery on
behalf of Illinois, another State or foreign government and
attracting persons who are not currently regular players of
a lottery.
(f) The Department may retain the services of an advisor or
advisors with significant experience in financial services or
the management, operation, and procurement of goods, services,
and equipment for a government-run lottery to assist in the
preparation of the terms of the request for qualifications and
selection of the private manager. Any prospective advisor
seeking to provide services under this subsection (f) shall
disclose any material business or financial relationship
during the past 3 years with any potential offeror, or with a
contractor or subcontractor presently providing goods,
services, or equipment to the Department to support the
Lottery. The Department shall evaluate the material business or
financial relationship of each prospective advisor. The
Department shall not select any prospective advisor with a
substantial business or financial relationship that the
Department deems to impair the objectivity of the services to
be provided by the prospective advisor. During the course of
the advisor's engagement by the Department, and for a period of
one year thereafter, the advisor shall not enter into any
business or financial relationship with any offeror or any
vendor identified to assist an offeror in performing its
obligations under the management agreement. Any advisor
retained by the Department shall be disqualified from being an
offeror. The Department shall not include terms in the request
for qualifications that provide a material advantage whether
directly or indirectly to any potential offeror, or any
contractor or subcontractor presently providing goods,
services, or equipment to the Department to support the
Lottery, including terms contained in previous responses to
requests for proposals or qualifications submitted to
Illinois, another State or foreign government when those terms
are uniquely associated with a particular potential offeror,
contractor, or subcontractor. The request for proposals
offered by the Department on December 22, 2008 as
"LOT08GAMESYS" and reference number "22016176" is declared
void.
(g) The Department shall select at least 2 offerors as
finalists to potentially serve as the private manager no later
than August 9, 2010. Upon making preliminary selections, the
Department shall schedule a public hearing on the finalists'
proposals and provide public notice of the hearing at least 7
calendar days before the hearing. The notice must include all
of the following:
(1) The date, time, and place of the hearing.
(2) The subject matter of the hearing.
(3) A brief description of the management agreement to
be awarded.
(4) The identity of the offerors that have been
selected as finalists to serve as the private manager.
(5) The address and telephone number of the Department.
(h) At the public hearing, the Department shall (i) provide
sufficient time for each finalist to present and explain its
proposal to the Department and the Governor or the Governor's
designee, including an opportunity to respond to questions
posed by the Department, Governor, or designee and (ii) allow
the public and non-selected offerors to comment on the
presentations. The Governor or a designee shall attend the
public hearing. After the public hearing, the Department shall
have 14 calendar days to recommend to the Governor whether a
management agreement should be entered into with a particular
finalist. After reviewing the Department's recommendation, the
Governor may accept or reject the Department's recommendation,
and shall select a final offeror as the private manager by
publication of a notice in the Illinois Procurement Bulletin on
or before September 15, 2010. The Governor shall include in the
notice a detailed explanation and the reasons why the final
offeror is superior to other offerors and will provide
management services in a manner that best achieves the
objectives of this Section. The Governor shall also sign the
management agreement with the private manager.
(i) Any action to contest the private manager selected by
the Governor under this Section must be brought within 7
calendar days after the publication of the notice of the
designation of the private manager as provided in subsection
(h) of this Section.
(j) The Lottery shall remain, for so long as a private
manager manages the Lottery in accordance with provisions of
this Act, a Lottery conducted by the State, and the State shall
not be authorized to sell or transfer the Lottery to a third
party.
(k) Any tangible personal property used exclusively in
connection with the lottery that is owned by the Department and
leased to the private manager shall be owned by the Department
in the name of the State and shall be considered to be public
property devoted to an essential public and governmental
function.
(l) The Department may exercise any of its powers under
this Section or any other law as necessary or desirable for the
execution of the Department's powers under this Section.
(m) Neither this Section nor any management agreement
entered into under this Section prohibits the General Assembly
from authorizing forms of gambling that are not in direct
competition with the Lottery. The forms of gambling authorized
by this amendatory Act of the 101st General Assembly constitute
authorized forms of gambling that are not in direct competition
with the Lottery.
(n) The private manager shall be subject to a complete
investigation in the third, seventh, and tenth years of the
agreement (if the agreement is for a 10-year term) by the
Department in cooperation with the Auditor General to determine
whether the private manager has complied with this Section and
the management agreement. The private manager shall bear the
cost of an investigation or reinvestigation of the private
manager under this subsection.
(o) The powers conferred by this Section are in addition
and supplemental to the powers conferred by any other law. If
any other law or rule is inconsistent with this Section,
including, but not limited to, provisions of the Illinois
Procurement Code, then this Section controls as to any
management agreement entered into under this Section. This
Section and any rules adopted under this Section contain full
and complete authority for a management agreement between the
Department and a private manager. No law, procedure,
proceeding, publication, notice, consent, approval, order, or
act by the Department or any other officer, Department, agency,
or instrumentality of the State or any political subdivision is
required for the Department to enter into a management
agreement under this Section. This Section contains full and
complete authority for the Department to approve any contracts
entered into by a private manager with a vendor providing
goods, services, or both goods and services to the private
manager under the terms of the management agreement, including
subcontractors of such vendors.
Upon receipt of a written request from the Chief
Procurement Officer, the Department shall provide to the Chief
Procurement Officer a complete and un-redacted copy of the
management agreement or any contract that is subject to the
Department's approval authority under this subsection (o). The
Department shall provide a copy of the agreement or contract to
the Chief Procurement Officer in the time specified by the
Chief Procurement Officer in his or her written request, but no
later than 5 business days after the request is received by the
Department. The Chief Procurement Officer must retain any
portions of the management agreement or of any contract
designated by the Department as confidential, proprietary, or
trade secret information in complete confidence pursuant to
subsection (g) of Section 7 of the Freedom of Information Act.
The Department shall also provide the Chief Procurement Officer
with reasonable advance written notice of any contract that is
pending Department approval.
Notwithstanding any other provision of this Section to the
contrary, the Chief Procurement Officer shall adopt
administrative rules, including emergency rules, to establish
a procurement process to select a successor private manager if
a private management agreement has been terminated. The
selection process shall at a minimum take into account the
criteria set forth in items (1) through (4) of subsection (e)
of this Section and may include provisions consistent with
subsections (f), (g), (h), and (i) of this Section. The Chief
Procurement Officer shall also implement and administer the
adopted selection process upon the termination of a private
management agreement. The Department, after the Chief
Procurement Officer certifies that the procurement process has
been followed in accordance with the rules adopted under this
subsection (o), shall select a final offeror as the private
manager and sign the management agreement with the private
manager.
Except as provided in Sections 21.5, 21.6, 21.7, 21.8,
21.9, and 21.10, and 21.11, 21.10 the Department shall
distribute all proceeds of lottery tickets and shares sold in
the following priority and manner:
(1) The payment of prizes and retailer bonuses.
(2) The payment of costs incurred in the operation and
administration of the Lottery, including the payment of
sums due to the private manager under the management
agreement with the Department.
(3) On the last day of each month or as soon thereafter
as possible, the State Comptroller shall direct and the
State Treasurer shall transfer from the State Lottery Fund
to the Common School Fund an amount that is equal to the
proceeds transferred in the corresponding month of fiscal
year 2009, as adjusted for inflation, to the Common School
Fund.
(4) On or before September 30 of each fiscal year,
deposit any estimated remaining proceeds from the prior
fiscal year, subject to payments under items (1), (2), and
(3), into the Capital Projects Fund. Beginning in fiscal
year 2019, the amount deposited shall be increased or
decreased each year by the amount the estimated payment
differs from the amount determined from each year-end
financial audit. Only remaining net deficits from prior
fiscal years may reduce the requirement to deposit these
funds, as determined by the annual financial audit.
(p) The Department shall be subject to the following
reporting and information request requirements:
(1) the Department shall submit written quarterly
reports to the Governor and the General Assembly on the
activities and actions of the private manager selected
under this Section;
(2) upon request of the Chief Procurement Officer, the
Department shall promptly produce information related to
the procurement activities of the Department and the
private manager requested by the Chief Procurement
Officer; the Chief Procurement Officer must retain
confidential, proprietary, or trade secret information
designated by the Department in complete confidence
pursuant to subsection (g) of Section 7 of the Freedom of
Information Act; and
(3) at least 30 days prior to the beginning of the
Department's fiscal year, the Department shall prepare an
annual written report on the activities of the private
manager selected under this Section and deliver that report
to the Governor and General Assembly.
(Source: P.A. 99-933, eff. 1-27-17; 100-391, eff. 8-25-17;
100-587, eff. 6-4-18; 100-647, eff. 7-30-18; 100-1068, eff.
8-24-18; revised 9-20-18.)
Section 35-25. The Department of Revenue Law of the Civil
Administrative Code of Illinois is amended by changing Section
2505-305 as follows:
(20 ILCS 2505/2505-305) (was 20 ILCS 2505/39b15.1)
Sec. 2505-305. Investigators.
(a) The Department has the power to appoint investigators
to conduct all investigations, searches, seizures, arrests,
and other duties imposed under the provisions of any law
administered by the Department. Except as provided in
subsection (c), these investigators have and may exercise all
the powers of peace officers solely for the purpose of
enforcing taxing measures administered by the Department.
(b) The Director must authorize to each investigator
employed under this Section and to any other employee of the
Department exercising the powers of a peace officer a distinct
badge that, on its face, (i) clearly states that the badge is
authorized by the Department and (ii) contains a unique
identifying number. No other badge shall be authorized by the
Department.
(c) The Department may enter into agreements with the
Illinois Gaming Board providing that investigators appointed
under this Section shall exercise the peace officer powers set
forth in paragraph (20.6) of subsection (c) of Section 5 of the
Illinois Riverboat Gambling Act.
(Source: P.A. 96-37, eff. 7-13-09.)
Section 35-30. The State Finance Act is amended by changing
Section 6z-45 as follows:
(30 ILCS 105/6z-45)
Sec. 6z-45. The School Infrastructure Fund.
(a) The School Infrastructure Fund is created as a special
fund in the State Treasury.
In addition to any other deposits authorized by law,
beginning January 1, 2000, on the first day of each month, or
as soon thereafter as may be practical, the State Treasurer and
State Comptroller shall transfer the sum of $5,000,000 from the
General Revenue Fund to the School Infrastructure Fund, except
that, notwithstanding any other provision of law, and in
addition to any other transfers that may be provided for by
law, before June 30, 2012, the Comptroller and the Treasurer
shall transfer $45,000,000 from the General Revenue Fund into
the School Infrastructure Fund, and, for fiscal year 2013 only,
the Treasurer and the Comptroller shall transfer $1,250,000
from the General Revenue Fund to the School Infrastructure Fund
on the first day of each month; provided, however, that no such
transfers shall be made from July 1, 2001 through June 30,
2003.
(a-5) Money in the School Infrastructure Fund may be used
to pay the expenses of the State Board of Education, the
Governor's Office of Management and Budget, and the Capital
Development Board in administering programs under the School
Construction Law, the total expenses not to exceed $1,315,000
in any fiscal year.
(b) Subject to the transfer provisions set forth below,
money in the School Infrastructure Fund shall, if and when the
State of Illinois incurs any bonded indebtedness for the
construction of school improvements under subsection (e) of
Section 5 of the General Obligation Bond Act, be set aside and
used for the purpose of paying and discharging annually the
principal and interest on that bonded indebtedness then due and
payable, and for no other purpose.
In addition to other transfers to the General Obligation
Bond Retirement and Interest Fund made pursuant to Section 15
of the General Obligation Bond Act, upon each delivery of bonds
issued for construction of school improvements under the School
Construction Law, the State Comptroller shall compute and
certify to the State Treasurer the total amount of principal
of, interest on, and premium, if any, on such bonds during the
then current and each succeeding fiscal year. With respect to
the interest payable on variable rate bonds, such
certifications shall be calculated at the maximum rate of
interest that may be payable during the fiscal year, after
taking into account any credits permitted in the related
indenture or other instrument against the amount of such
interest required to be appropriated for that period.
On or before the last day of each month, the State
Treasurer and State Comptroller shall transfer from the School
Infrastructure Fund to the General Obligation Bond Retirement
and Interest Fund an amount sufficient to pay the aggregate of
the principal of, interest on, and premium, if any, on the
bonds payable on their next payment date, divided by the number
of monthly transfers occurring between the last previous
payment date (or the delivery date if no payment date has yet
occurred) and the next succeeding payment date. Interest
payable on variable rate bonds shall be calculated at the
maximum rate of interest that may be payable for the relevant
period, after taking into account any credits permitted in the
related indenture or other instrument against the amount of
such interest required to be appropriated for that period.
Interest for which moneys have already been deposited into the
capitalized interest account within the General Obligation
Bond Retirement and Interest Fund shall not be included in the
calculation of the amounts to be transferred under this
subsection.
(b-5) The money deposited into the School Infrastructure
Fund from transfers pursuant to subsections (c-30) and (c-35)
of Section 13 of the Illinois Riverboat Gambling Act shall be
applied, without further direction, as provided in subsection
(b-3) of Section 5-35 of the School Construction Law.
(c) The surplus, if any, in the School Infrastructure Fund
after payments made pursuant to subsections (a-5), (b), and
(b-5) of this Section shall, subject to appropriation, be used
as follows:
First - to make 3 payments to the School Technology
Revolving Loan Fund as follows:
Transfer of $30,000,000 in fiscal year 1999;
Transfer of $20,000,000 in fiscal year 2000; and
Transfer of $10,000,000 in fiscal year 2001.
Second - to pay any amounts due for grants for school
construction projects and debt service under the School
Construction Law.
Third - to pay any amounts due for grants for school
maintenance projects under the School Construction Law.
(Source: P.A. 100-23, eff. 7-6-17.)
Section 35-35. The Illinois Income Tax Act is amended by
changing Sections 201, 303, 304, and 710 as follows:
(35 ILCS 5/201) (from Ch. 120, par. 2-201)
Sec. 201. Tax imposed.
(a) In general. A tax measured by net income is hereby
imposed on every individual, corporation, trust and estate for
each taxable year ending after July 31, 1969 on the privilege
of earning or receiving income in or as a resident of this
State. Such tax shall be in addition to all other occupation or
privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
(b) Rates. The tax imposed by subsection (a) of this
Section shall be determined as follows, except as adjusted by
subsection (d-1):
(1) In the case of an individual, trust or estate, for
taxable years ending prior to July 1, 1989, an amount equal
to 2 1/2% of the taxpayer's net income for the taxable
year.
(2) In the case of an individual, trust or estate, for
taxable years beginning prior to July 1, 1989 and ending
after June 30, 1989, an amount equal to the sum of (i) 2
1/2% of the taxpayer's net income for the period prior to
July 1, 1989, as calculated under Section 202.3, and (ii)
3% of the taxpayer's net income for the period after June
30, 1989, as calculated under Section 202.3.
(3) In the case of an individual, trust or estate, for
taxable years beginning after June 30, 1989, and ending
prior to January 1, 2011, an amount equal to 3% of the
taxpayer's net income for the taxable year.
(4) In the case of an individual, trust, or estate, for
taxable years beginning prior to January 1, 2011, and
ending after December 31, 2010, an amount equal to the sum
of (i) 3% of the taxpayer's net income for the period prior
to January 1, 2011, as calculated under Section 202.5, and
(ii) 5% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(5) In the case of an individual, trust, or estate, for
taxable years beginning on or after January 1, 2011, and
ending prior to January 1, 2015, an amount equal to 5% of
the taxpayer's net income for the taxable year.
(5.1) In the case of an individual, trust, or estate,
for taxable years beginning prior to January 1, 2015, and
ending after December 31, 2014, an amount equal to the sum
of (i) 5% of the taxpayer's net income for the period prior
to January 1, 2015, as calculated under Section 202.5, and
(ii) 3.75% of the taxpayer's net income for the period
after December 31, 2014, as calculated under Section 202.5.
(5.2) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2015,
and ending prior to July 1, 2017, an amount equal to 3.75%
of the taxpayer's net income for the taxable year.
(5.3) In the case of an individual, trust, or estate,
for taxable years beginning prior to July 1, 2017, and
ending after June 30, 2017, an amount equal to the sum of
(i) 3.75% of the taxpayer's net income for the period prior
to July 1, 2017, as calculated under Section 202.5, and
(ii) 4.95% of the taxpayer's net income for the period
after June 30, 2017, as calculated under Section 202.5.
(5.4) In the case of an individual, trust, or estate,
for taxable years beginning on or after July 1, 2017, an
amount equal to 4.95% of the taxpayer's net income for the
taxable year.
(6) In the case of a corporation, for taxable years
ending prior to July 1, 1989, an amount equal to 4% of the
taxpayer's net income for the taxable year.
(7) In the case of a corporation, for taxable years
beginning prior to July 1, 1989 and ending after June 30,
1989, an amount equal to the sum of (i) 4% of the
taxpayer's net income for the period prior to July 1, 1989,
as calculated under Section 202.3, and (ii) 4.8% of the
taxpayer's net income for the period after June 30, 1989,
as calculated under Section 202.3.
(8) In the case of a corporation, for taxable years
beginning after June 30, 1989, and ending prior to January
1, 2011, an amount equal to 4.8% of the taxpayer's net
income for the taxable year.
(9) In the case of a corporation, for taxable years
beginning prior to January 1, 2011, and ending after
December 31, 2010, an amount equal to the sum of (i) 4.8%
of the taxpayer's net income for the period prior to
January 1, 2011, as calculated under Section 202.5, and
(ii) 7% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(10) In the case of a corporation, for taxable years
beginning on or after January 1, 2011, and ending prior to
January 1, 2015, an amount equal to 7% of the taxpayer's
net income for the taxable year.
(11) In the case of a corporation, for taxable years
beginning prior to January 1, 2015, and ending after
December 31, 2014, an amount equal to the sum of (i) 7% of
the taxpayer's net income for the period prior to January
1, 2015, as calculated under Section 202.5, and (ii) 5.25%
of the taxpayer's net income for the period after December
31, 2014, as calculated under Section 202.5.
(12) In the case of a corporation, for taxable years
beginning on or after January 1, 2015, and ending prior to
July 1, 2017, an amount equal to 5.25% of the taxpayer's
net income for the taxable year.
(13) In the case of a corporation, for taxable years
beginning prior to July 1, 2017, and ending after June 30,
2017, an amount equal to the sum of (i) 5.25% of the
taxpayer's net income for the period prior to July 1, 2017,
as calculated under Section 202.5, and (ii) 7% of the
taxpayer's net income for the period after June 30, 2017,
as calculated under Section 202.5.
(14) In the case of a corporation, for taxable years
beginning on or after July 1, 2017, an amount equal to 7%
of the taxpayer's net income for the taxable year.
The rates under this subsection (b) are subject to the
provisions of Section 201.5.
(b-5) Surcharge; sale or exchange of assets, properties,
and intangibles of organization gaming licensees. For each of
taxable years 2019 through 2027, a surcharge is imposed on all
taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles (i)
of an organization licensee under the Illinois Horse Racing Act
of 1975 and (ii) of an organization gaming licensee under the
Illinois Gambling Act. The amount of the surcharge is equal to
the amount of federal income tax liability for the taxable year
attributable to those sales and exchanges. The surcharge
imposed shall not apply if:
(1) the organization gaming license, organization
license, or racetrack property is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
licensee or the substantial owners of the initial
licensee;
(B) cancellation, revocation, or termination of
any such license by the Illinois Gaming Board or the
Illinois Racing Board;
(C) a determination by the Illinois Gaming Board
that transfer of the license is in the best interests
of Illinois gaming;
(D) the death of an owner of the equity interest in
a licensee;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the license when the license was issued; or
(2) the controlling interest in the organization
gaming license, organization license, or racetrack
property is transferred in a transaction to lineal
descendants in which no gain or loss is recognized or as a
result of a transaction in accordance with Section 351 of
the Internal Revenue Code in which no gain or loss is
recognized; or
(3) live horse racing was not conducted in 2010 at a
racetrack located within 3 miles of the Mississippi River
under a license issued pursuant to the Illinois Horse
Racing Act of 1975.
The transfer of an organization gaming license,
organization license, or racetrack property by a person other
than the initial licensee to receive the organization gaming
license is not subject to a surcharge. The Department shall
adopt rules necessary to implement and administer this
subsection.
(c) Personal Property Tax Replacement Income Tax.
Beginning on July 1, 1979 and thereafter, in addition to such
income tax, there is also hereby imposed the Personal Property
Tax Replacement Income Tax measured by net income on every
corporation (including Subchapter S corporations), partnership
and trust, for each taxable year ending after June 30, 1979.
Such taxes are imposed on the privilege of earning or receiving
income in or as a resident of this State. The Personal Property
Tax Replacement Income Tax shall be in addition to the income
tax imposed by subsections (a) and (b) of this Section and in
addition to all other occupation or privilege taxes imposed by
this State or by any municipal corporation or political
subdivision thereof.
(d) Additional Personal Property Tax Replacement Income
Tax Rates. The personal property tax replacement income tax
imposed by this subsection and subsection (c) of this Section
in the case of a corporation, other than a Subchapter S
corporation and except as adjusted by subsection (d-1), shall
be an additional amount equal to 2.85% of such taxpayer's net
income for the taxable year, except that beginning on January
1, 1981, and thereafter, the rate of 2.85% specified in this
subsection shall be reduced to 2.5%, and in the case of a
partnership, trust or a Subchapter S corporation shall be an
additional amount equal to 1.5% of such taxpayer's net income
for the taxable year.
(d-1) Rate reduction for certain foreign insurers. In the
case of a foreign insurer, as defined by Section 35A-5 of the
Illinois Insurance Code, whose state or country of domicile
imposes on insurers domiciled in Illinois a retaliatory tax
(excluding any insurer whose premiums from reinsurance assumed
are 50% or more of its total insurance premiums as determined
under paragraph (2) of subsection (b) of Section 304, except
that for purposes of this determination premiums from
reinsurance do not include premiums from inter-affiliate
reinsurance arrangements), beginning with taxable years ending
on or after December 31, 1999, the sum of the rates of tax
imposed by subsections (b) and (d) shall be reduced (but not
increased) to the rate at which the total amount of tax imposed
under this Act, net of all credits allowed under this Act,
shall equal (i) the total amount of tax that would be imposed
on the foreign insurer's net income allocable to Illinois for
the taxable year by such foreign insurer's state or country of
domicile if that net income were subject to all income taxes
and taxes measured by net income imposed by such foreign
insurer's state or country of domicile, net of all credits
allowed or (ii) a rate of zero if no such tax is imposed on such
income by the foreign insurer's state of domicile. For the
purposes of this subsection (d-1), an inter-affiliate includes
a mutual insurer under common management.
(1) For the purposes of subsection (d-1), in no event
shall the sum of the rates of tax imposed by subsections
(b) and (d) be reduced below the rate at which the sum of:
(A) the total amount of tax imposed on such foreign
insurer under this Act for a taxable year, net of all
credits allowed under this Act, plus
(B) the privilege tax imposed by Section 409 of the
Illinois Insurance Code, the fire insurance company
tax imposed by Section 12 of the Fire Investigation
Act, and the fire department taxes imposed under
Section 11-10-1 of the Illinois Municipal Code,
equals 1.25% for taxable years ending prior to December 31,
2003, or 1.75% for taxable years ending on or after
December 31, 2003, of the net taxable premiums written for
the taxable year, as described by subsection (1) of Section
409 of the Illinois Insurance Code. This paragraph will in
no event increase the rates imposed under subsections (b)
and (d).
(2) Any reduction in the rates of tax imposed by this
subsection shall be applied first against the rates imposed
by subsection (b) and only after the tax imposed by
subsection (a) net of all credits allowed under this
Section other than the credit allowed under subsection (i)
has been reduced to zero, against the rates imposed by
subsection (d).
This subsection (d-1) is exempt from the provisions of
Section 250.
(e) Investment credit. A taxpayer shall be allowed a credit
against the Personal Property Tax Replacement Income Tax for
investment in qualified property.
(1) A taxpayer shall be allowed a credit equal to .5%
of the basis of qualified property placed in service during
the taxable year, provided such property is placed in
service on or after July 1, 1984. There shall be allowed an
additional credit equal to .5% of the basis of qualified
property placed in service during the taxable year,
provided such property is placed in service on or after
July 1, 1986, and the taxpayer's base employment within
Illinois has increased by 1% or more over the preceding
year as determined by the taxpayer's employment records
filed with the Illinois Department of Employment Security.
Taxpayers who are new to Illinois shall be deemed to have
met the 1% growth in base employment for the first year in
which they file employment records with the Illinois
Department of Employment Security. The provisions added to
this Section by Public Act 85-1200 (and restored by Public
Act 87-895) shall be construed as declaratory of existing
law and not as a new enactment. If, in any year, the
increase in base employment within Illinois over the
preceding year is less than 1%, the additional credit shall
be limited to that percentage times a fraction, the
numerator of which is .5% and the denominator of which is
1%, but shall not exceed .5%. The investment credit shall
not be allowed to the extent that it would reduce a
taxpayer's liability in any tax year below zero, nor may
any credit for qualified property be allowed for any year
other than the year in which the property was placed in
service in Illinois. For tax years ending on or after
December 31, 1987, and on or before December 31, 1988, the
credit shall be allowed for the tax year in which the
property is placed in service, or, if the amount of the
credit exceeds the tax liability for that year, whether it
exceeds the original liability or the liability as later
amended, such excess may be carried forward and applied to
the tax liability of the 5 taxable years following the
excess credit years if the taxpayer (i) makes investments
which cause the creation of a minimum of 2,000 full-time
equivalent jobs in Illinois, (ii) is located in an
enterprise zone established pursuant to the Illinois
Enterprise Zone Act and (iii) is certified by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity) as
complying with the requirements specified in clause (i) and
(ii) by July 1, 1986. The Department of Commerce and
Community Affairs (now Department of Commerce and Economic
Opportunity) shall notify the Department of Revenue of all
such certifications immediately. For tax years ending
after December 31, 1988, the credit shall be allowed for
the tax year in which the property is placed in service,
or, if the amount of the credit exceeds the tax liability
for that year, whether it exceeds the original liability or
the liability as later amended, such excess may be carried
forward and applied to the tax liability of the 5 taxable
years following the excess credit years. The credit shall
be applied to the earliest year for which there is a
liability. If there is credit from more than one tax year
that is available to offset a liability, earlier credit
shall be applied first.
(2) The term "qualified property" means property
which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings and
signs that are real property, but not including land or
improvements to real property that are not a structural
component of a building such as landscaping, sewer
lines, local access roads, fencing, parking lots, and
other appurtenances;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(e);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in Illinois by a taxpayer who is
primarily engaged in manufacturing, or in mining coal
or fluorite, or in retailing, or was placed in service
on or after July 1, 2006 in a River Edge Redevelopment
Zone established pursuant to the River Edge
Redevelopment Zone Act; and
(E) has not previously been used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (e) or
subsection (f).
(3) For purposes of this subsection (e),
"manufacturing" means the material staging and production
of tangible personal property by procedures commonly
regarded as manufacturing, processing, fabrication, or
assembling which changes some existing material into new
shapes, new qualities, or new combinations. For purposes of
this subsection (e) the term "mining" shall have the same
meaning as the term "mining" in Section 613(c) of the
Internal Revenue Code. For purposes of this subsection (e),
the term "retailing" means the sale of tangible personal
property for use or consumption and not for resale, or
services rendered in conjunction with the sale of tangible
personal property for use or consumption and not for
resale. For purposes of this subsection (e), "tangible
personal property" has the same meaning as when that term
is used in the Retailers' Occupation Tax Act, and, for
taxable years ending after December 31, 2008, does not
include the generation, transmission, or distribution of
electricity.
(4) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(5) If the basis of the property for federal income tax
depreciation purposes is increased after it has been placed
in service in Illinois by the taxpayer, the amount of such
increase shall be deemed property placed in service on the
date of such increase in basis.
(6) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(7) If during any taxable year, any property ceases to
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside Illinois within 48
months after being placed in service, the Personal Property
Tax Replacement Income Tax for such taxable year shall be
increased. Such increase shall be determined by (i)
recomputing the investment credit which would have been
allowed for the year in which credit for such property was
originally allowed by eliminating such property from such
computation and, (ii) subtracting such recomputed credit
from the amount of credit previously allowed. For the
purposes of this paragraph (7), a reduction of the basis of
qualified property resulting from a redetermination of the
purchase price shall be deemed a disposition of qualified
property to the extent of such reduction.
(8) Unless the investment credit is extended by law,
the basis of qualified property shall not include costs
incurred after December 31, 2018, except for costs incurred
pursuant to a binding contract entered into on or before
December 31, 2018.
(9) Each taxable year ending before December 31, 2000,
a partnership may elect to pass through to its partners the
credits to which the partnership is entitled under this
subsection (e) for the taxable year. A partner may use the
credit allocated to him or her under this paragraph only
against the tax imposed in subsections (c) and (d) of this
Section. If the partnership makes that election, those
credits shall be allocated among the partners in the
partnership in accordance with the rules set forth in
Section 704(b) of the Internal Revenue Code, and the rules
promulgated under that Section, and the allocated amount of
the credits shall be allowed to the partners for that
taxable year. The partnership shall make this election on
its Personal Property Tax Replacement Income Tax return for
that taxable year. The election to pass through the credits
shall be irrevocable.
For taxable years ending on or after December 31, 2000,
a partner that qualifies its partnership for a subtraction
under subparagraph (I) of paragraph (2) of subsection (d)
of Section 203 or a shareholder that qualifies a Subchapter
S corporation for a subtraction under subparagraph (S) of
paragraph (2) of subsection (b) of Section 203 shall be
allowed a credit under this subsection (e) equal to its
share of the credit earned under this subsection (e) during
the taxable year by the partnership or Subchapter S
corporation, determined in accordance with the
determination of income and distributive share of income
under Sections 70