101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB0321

Introduced , by Rep. David McSweeney

SYNOPSIS AS INTRODUCED:

See Index

Repeals the State Tax Lien Registration Act and the Revised Uniform Unclaimed Property Act. Reenacts the Uniform Disposition of Unclaimed Property Act. Changes various Acts by restoring language deleted by Public Act 100-22 and deleting language added by Public Act 100-22. Effective immediately.

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FISCAL NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning revenue.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 2. The Uniform Disposition of Unclaimed Property

5 Act is reenacted as follows:

6 (765 ILCS 1025/Act title)

7 An Act relating to the disposition of unclaimed property,

8 to make uniform the law with reference thereto, to provide

9 penalties for the violation thereof and to make an

10 appropriation with relation thereto.

11 (765 ILCS 1025/0.05)

12 Sec. 0.05. Transfer of powers. The rights, powers, duties,

13 and functions vested in the Department of Financial

14 Institutions to administer this Act are transferred to the

15 State Treasurer on July 1, 1999 in accordance with Sections

16 0.02 through 0.06 of the State Treasurer Act; provided,

17 however, that the rights, powers, duties, and functions

18 involving the examination of the records of any person that the

19 State Treasurer has reason to believe has failed to report

20 properly under this Act shall be transferred to the Office of

21 Banks and Real Estate if the person is regulated by the Office

22 of Banks and Real Estate under the Illinois Banking Act, the

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1 Corporate Fiduciary Act, the Foreign Banking Office Act, the

2 Illinois Savings and Loan Act of 1985, or the Savings Bank Act

3 and shall be retained by the Department of Financial

4 Institutions if the person is doing business in the State under

5 the supervision of the Department of Financial Institutions,

6 the National Credit Union Administration, the Office of Thrift

7 Supervision, or the Comptroller of the Currency.

8 (Source: P.A. 91-16, eff. 6-4-99.)

9 (765 ILCS 1025/1) (from Ch. 141, par. 101)

10 Sec. 1. As used in this Act, unless the context otherwise

11 requires:

12 (a) "Banking organization" means any bank, trust company,

13 savings bank, industrial bank, land bank, safe deposit company,

14 or a private banker.

15 (b) "Business association" means any corporation, joint

16 stock company, business trust, partnership, or any

17 association, limited liability company, or other business

18 entity consisting of one or more persons, whether or not for

19 profit.

20 (c) "Financial organization" means any savings and loan

21 association, building and loan association, credit union,

22 currency exchange, co-operative bank, mutual funds, or

23 investment company.

24 (d) "Holder" means any person in possession of property

25 subject to this Act belonging to another, or who is trustee in

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1 case of a trust, or is indebted to another on an obligation

2 subject to this Act.

3 (e) "Life insurance corporation" means any association or

4 corporation transacting the business of insurance on the lives

5 of persons or insurance appertaining thereto, including, but

6 not by way of limitation, endowments and annuities.

7 (f) "Owner" means a depositor in case of a deposit, a

8 beneficiary in case of a trust, a creditor, claimant, or payee

9 in case of other property, or any person having a legal or

10 equitable interest in property subject to this Act, or his

11 legal representative.

12 (g) "Person" means any individual, business association,

13 financial organization, government or political subdivision or

14 agency, public authority, estate, trust, or any other legal or

15 commercial entity.

16 (h) "Utility" means any person who owns or operates, for

17 public use, any plant, equipment, property, franchise, or

18 license for the transmission of communications or the

19 production, storage, transmission, sale, delivery, or

20 furnishing of electricity, water, steam, oil or gas.

21 (i) (Blank).

22 (j) "Insurance company" means any person transacting the

23 kinds of business enumerated in Section 4 of the Illinois

24 Insurance Code other than life insurance.

25 (k) "Economic loss", as used in Sections 2a and 9 of this

26 Act includes, but is not limited to, delivery charges,

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1 mark-downs and write-offs, carrying costs, restocking charges,

2 lay-aways, special orders, issuance of credit memos, and the

3 costs of special services or goods provided that reduce the

4 property value or that result in lost sales opportunity.

5 (l) "Reportable property" means property, tangible or

6 intangible, presumed abandoned under this Act that must be

7 appropriately and timely reported and remitted to the Office of

8 the State Treasurer under this Act. Interest, dividends, stock

9 splits, warrants, or other rights that become reportable

10 property under this Act include the underlying security or

11 commodity giving rise to the interest, dividend, split,

12 warrant, or other right to which the owner would be entitled.

13 (m) "Firearm" has the meaning ascribed to that term in the

14 Firearm Owners Identification Card Act.

15 (Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99; 91-748,

16 eff. 6-2-00.)

17 (765 ILCS 1025/1.5)

18 Sec. 1.5. Application of the Act. This Act applies to all

19 money returned to the Treasurer by the paying agent for any

20 State bonds or interest coupons by reason of the failure of the

21 holder to present such bonds or coupons for payment within 2

22 years after maturity.

23 (Source: P.A. 97-935, eff. 8-10-12.)

24 (765 ILCS 1025/2) (from Ch. 141, par. 102)

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1 Sec. 2. Property held by financial organizations;

2 presumption of abandonment.The following property held or

3 owing by a banking or financial organization is presumed

4 abandoned:

5 (a) Any demand, savings, or matured time deposit with a

6 banking organization, together with any interest or dividend

7 thereon, excluding any charges that may lawfully be withheld,

8 unless the owner has, within 5 years:

9 (1) Increased or decreased the amount of the deposit,

10 or presented the passbook or other similar evidence of the

11 deposit for the crediting of interest; or

12 (2) Corresponded in writing with the banking

13 organization concerning the deposit;

14 (3) Otherwise indicated an interest in the deposit as

15 evidenced by a memorandum on file with the banking

16 organization; or

17 (4) Engaged in the following activity regarding other

18 funds or loan accounts with the banking organization:

19 (i) undertook one or more the above actions

20 described in subsection (a) of this Section regarding

21 any account that appears on a consolidated statement

22 with the inactive account;

23 (ii) increased or decreased the amount of funds in

24 any other account the owner has with the banking

25 organization; or

26 (iii) engaged in any other relationship with the

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1 banking organization, including payment of any amounts

2 due on a loan.

3 The foregoing apply so long as the mailing address for the

4 owner in the banking organization's books and records is the

5 same for both the inactive account and for the active account.

6 (b) Any funds paid toward the purchase of withdrawable

7 shares or other interest in a financial organization, or any

8 deposit made, and any interest or dividends thereon, excluding

9 any charges that may be lawfully withheld, unless the owner has

10 within 5 years:

11 (1) Increased or decreased the amount of the funds, or

12 deposit, or presented an appropriate record for the

13 crediting of interest or dividends; or

14 (2) Corresponded in writing with the financial

15 organization concerning the funds or deposit;

16 (3) Otherwise indicated an interest in the funds or

17 deposit as evidenced by a memorandum on file with the

18 financial organization; or

19 (4) Engaged in the following activity regarding other

20 funds or loan accounts with the financial organization:

21 (i) undertook one or more the above actions

22 described in subsection (b) of this Section regarding

23 any account that appears on a consolidated statement

24 with the inactive account;

25 (ii) increased or decreased the amount of funds in

26 any other account the owner has with the financial

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1 organization; or

2 (iii) engaged in any other relationship with the

3 financial organization, including payment of any

4 amounts due on a loan.

5 The foregoing apply so long as the mailing address for the

6 owner in the financial organization's books and records is the

7 same for both the inactive account and for the active account.

8 (c) Any sum payable on checks or on written instruments on

9 which a banking or financial organization or business

10 association is directly liable including, by way of

11 illustration but not of limitation, certificates of deposit,

12 drafts, money orders and travelers checks, that with the

13 exception of travelers checks and unclaimed wages, payroll, and

14 salary has been outstanding for more than 5 years from the date

15 it was payable, or from the date of its issuance if payable on

16 demand, or, in the case of travelers checks, that has been

17 outstanding for more than 15 years from the date of its

18 issuance, or, in the case of unclaimed wages, payroll, or

19 salary, that has been outstanding for more than one year from

20 the date of its issuance, excluding any charges that may be

21 lawfully withheld relating to money orders issued by currency

22 exchanges, unless the owner has within 5 years (or within 15

23 years in the case of travelers checks or one year in the case

24 of unclaimed wages, payroll, or salary) corresponded in writing

25 with the banking or financial organization or business

26 association concerning it, or otherwise indicated an interest

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1 as evidenced by a memorandum on file with the banking or

2 financial organization or business association.

3 (d) Any funds or other personal property, tangible or

4 intangible, removed from a safe deposit box or any other

5 safekeeping repository or agency or collateral deposit box on

6 which the lease or rental period has expired due to nonpayment

7 of rental charges or other reason, or any surplus amounts

8 arising from the sale thereof pursuant to law, that have been

9 unclaimed by the owner for more than 5 years from the date on

10 which the lease or rental period expired, subject to lien of

11 the holder for reimbursement of costs incurred in the opening

12 of a safe deposit box as determined by the holder's regular

13 schedule of charges.

14 (e) Notwithstanding any other provision of this Section, no

15 deposit except passbook, checking, NOW accounts, super NOW

16 accounts, money market accounts, or such similar accounts as

17 established by Rule of the State Treasurer, held by a banking

18 or financial organization shall be presumed abandoned if with

19 respect to such a deposit which specifies a definite maturity

20 date, such organization was authorized in writing to extend or

21 rollover the account for an additional like period and such

22 organization does so extend. Such deposits are not presumed

23 abandoned less than 5 years from that final maturity date.

24 Property of any kind held in an individual retirement account

25 (IRA) is not presumed abandoned earlier than 5 years after the

26 owner attains the age at which distributions from the account

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1 become mandatory under law.

2 (f) Notwithstanding any other provision of this Section,

3 money of a minor deposited pursuant to Section 24-21 of the

4 Probate Act of 1975 shall not be presumed abandoned earlier

5 than 5 years after the minor attains legal age. Such money

6 shall be deposited in an account which shall indicate the birth

7 date of the minor.

8 (Source: P.A. 97-270, eff. 8-8-11.)

9 (765 ILCS 1025/2a) (from Ch. 141, par. 102a)

10 Sec. 2a. (a) Business associations shall report, pursuant

11 to Section 11 of this Act, all property and any earnings

12 thereon to which the owner would be entitled that have remained

13 unclaimed for 5 years and are therefore presumed abandoned.

14 Before reporting and delivering property as required under this

15 Act, a business association may deduct from the amount of

16 otherwise reportable intangible personal property the economic

17 loss suffered by it in connection with that intangible personal

18 property arising from transactions involving the sale of

19 tangible personal property at retail. This property shall

20 consist of, but is not limited to:

21 (1) (blank);

22 (2) deposits or payment for repair or purchase of goods

23 or services;

24 (3) credit checks or memos, or customer overpayments;

25 (4) stocks, bonds, or any other type of securities or

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1 debt instruments, and interest and dividends therefrom;

2 (5) unidentified remittances, unrefunded overcharges;

3 (6) unpaid claims, unpaid accounts payable or unpaid

4 commissions; and

5 (7) credit balances - accounts receivable, checks

6 written off, employee bond buying and profit-sharing.

7 (b) Notwithstanding the provisions of subsection (a), any

8 property due or owed by a business association to or for the

9 benefit of another business association resulting from a

10 transaction occurring in the normal and ordinary course of

11 business shall be exempt from the provisions of this Act.

12 (c) Notwithstanding the provisions of subsection (a),

13 unclaimed wages, payroll, and salary, in any form, shall be

14 reported after remaining unclaimed for one year, pursuant to

15 Section 2.

16 (Source: P.A. 97-270, eff. 8-8-11.)

17 (765 ILCS 1025/3) (from Ch. 141, par. 103)

18 Sec. 3. (a) Unclaimed funds, as defined in this Section,

19 held and owing by a life insurance corporation shall be

20 presumed abandoned if the last known address, according to the

21 records of the corporation, of the person entitled to the funds

22 is within this State. If a person other than the insured or

23 annuitant is entitled to the funds and no address of such

24 person is known to the corporation or if it is not definite and

25 certain from the records of the corporation what person is

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1 entitled to the funds, it is presumed that the last known

2 address of the person entitled to the funds is the same as the

3 last known address of the insured or annuitant according to the

4 records of the corporation.

5 (b) "Unclaimed funds", as used in this Section, means all

6 moneys held and owing by any life insurance corporation

7 unclaimed and unpaid for more than 5 years after the moneys

8 became due and payable as established from the records of the

9 corporation under any life or endowment insurance policy or

10 annuity contract which has matured or terminated. A life

11 insurance policy not matured by actual proof of the death of

12 the insured is deemed to be matured and the proceeds thereof

13 are deemed to be due and payable if such policy was in force

14 when the insured attained the limiting age under the mortality

15 table on which the reserve is based, unless the person

16 appearing entitled thereto has within the preceding 5 years,

17 (1) assigned, readjusted, or paid premiums on the policy, or

18 subjected the policy to loan, or (2) corresponded in writing

19 with the life insurance corporation concerning the policy.

20 Moneys otherwise payable according to the records of the

21 corporation are deemed due and payable although the policy or

22 contract has not been surrendered as required.

23 (Source: P.A. 87-925.)

24 (765 ILCS 1025/3a)

25 Sec. 3a. Demutualization; insurance company.

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1 (a) Property distributable in the course of a

2 demutualization, rehabilitation, or related reorganization of

3 an insurance company shall be deemed abandoned as follows:

4 (1) any funds, 2 years after the date of the

5 demutualization, rehabilitation, or reorganization, if the

6 funds remain unclaimed, and the owner has not otherwise

7 communicated with the holder or its agent regarding the

8 property as evidenced by a memorandum or other record on

9 file with the holder or its agent;

10 (2) any stock, 2 years after the date of the

11 demutualization, rehabilitation, or reorganization if

12 instruments or statements reflecting the distribution are

13 either mailed to the owner and returned by the post office

14 as undeliverable, or not mailed to the owner because of an

15 address on the books and records of the holder that is

16 known to be incorrect, and the owner has not otherwise

17 communicated with the holder or its agent regarding the

18 property as evidenced by a memorandum or other record on

19 file with the holder or its agent; and

20 (b) Property subject to items (1) and (2) of subsection (a)

21 of this Section shall be set apart and held in the

22 Demutualization Trust Fund, a special non-appropriated fund

23 hereby created in the State treasury, for the payment of claims

24 and expenses associated with the processing of the claims by

25 the State Treasurer and shall not be transferred to any other

26 fund until such time as the property would be reportable under

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1 other Sections of this Act. The Demutualization Trust Fund

2 shall not be subject to Section 8h or 8j of the State Finance

3 Act.

4 (c) Property not subject to the provisions of subsection

5 (a), within 2 years of distribution shall remain reportable

6 under other Sections of this Act.

7 (Source: P.A. 94-686, eff. 11-2-05.)

8 (765 ILCS 1025/4) (from Ch. 141, par. 104)

9 Sec. 4. The following funds held or owing by any utility

10 are presumed abandoned:

11 (a) Any deposit made by a subscriber with a utility to

12 secure payment for, or any sum paid in advance for, utility

13 services to be furnished, less any lawful deduction, that

14 has remained unclaimed by the person appearing on the

15 records of the utility entitled thereto for more than 5

16 years after the termination of the services for which the

17 deposit or advance payment was made.

18 (b) Any sum which a utility has been ordered to refund

19 and which was received for utility services rendered in

20 this State, together with any interest thereon, less any

21 lawful deductions, that has remained unclaimed by the

22 person appearing on the records of the utility entitled

23 thereto for more than 5 years after the date it became

24 payable in accordance with the final determination or order

25 providing for the refund.

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1 (c) Any capital credits or patronage capital retired,

2 returned, refunded or tendered to a member of an electric

3 cooperative as defined in Section 3.4 of the Electric

4 Supplier Act or a telephone or telecommunications

5 cooperative as defined in Section 13-212 of the Public

6 Utilities Act that have remained unclaimed by the person

7 appearing on the records of the cooperative entitled

8 thereto for more than 2 years. Such unclaimed capital

9 credits or patronage capital shall not be subject to, or

10 governed by, any other provisions of this Act, but rather

11 shall be used by the cooperative for the benefit of the

12 general membership of the cooperative.

13 (Source: P.A. 90-167, eff. 7-23-97.)

14 (765 ILCS 1025/5) (from Ch. 141, par. 105)

15 Sec. 5. The provisions of this Act shall not apply to any

16 amount held or owing by a banking organization as agent, or as

17 trustee of an express trust, for the purpose of making payment

18 to holders of, or in respect of stocks, bonds, or other

19 securities of a governmental or other public issuer, or of a

20 business association other than a business association which

21 shall have discontinued the conduct of its business, or the

22 corporate existence of which shall have terminated, without the

23 right to receive such amount having passed to a successor or

24 successors.

25 As of January 1, 1998, this Section shall not be applicable

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1 unless the Department has commenced, but not finalized, an

2 examination of the holder as of that date and the property is

3 included in a final examination report for the period covered

4 by the examination.

5 (Source: P.A. 90-167, eff. 7-23-97.)

6 (765 ILCS 1025/6) (from Ch. 141, par. 106)

7 Sec. 6. All intangible personal property distributable in

8 the course of a voluntary dissolution of a business

9 association, banking organization, or financial organization

10 that is unclaimed by the owner within 2 years after the date

11 for final distribution, is presumed abandoned.

12 (Source: P.A. 90-167, eff. 7-23-97.)

13 (765 ILCS 1025/7) (from Ch. 141, par. 107)

14 Sec. 7. All intangible personal property and any income or

15 increment thereon, held in a fiduciary capacity for the benefit

16 of another person is presumed abandoned unless the owner has,

17 within 5 years after it becomes payable or distributable,

18 increased or decreased the principal, accepted payment of

19 principal or income, corresponded in writing concerning the

20 property, or otherwise indicated an interest as evidenced by a

21 memorandum on file with the fiduciary.

22 A fiduciary may deduct any actual cost incurred in

23 connection with the administration of suspense, abeyant, and

24 similar accounts arising out of its fiduciary, stock transfer,

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1 corporation trust, and securities processing activities but

2 not to exceed 8% of the property remitted.

3 (Source: P.A. 90-167, eff. 7-23-97.)

4 (765 ILCS 1025/7a) (from Ch. 141, par. 107a)

5 Sec. 7a. The provisions of this Act shall not apply to an

6 active express trust.

7 As of January 1, 1998, this Section shall not be applicable

8 unless the Department has commenced, but not finalized, an

9 examination of the holder as of that date and the property is

10 included in a final examination report for the period covered

11 by the examination.

12 (Source: P.A. 90-167, eff. 7-23-97.)

13 (765 ILCS 1025/8) (from Ch. 141, par. 108)

14 Sec. 8. All funds and intangible personal property held for

15 the owner by any court, public authority, or public officer of

16 this State, or a political subdivision thereof, that has

17 remained unclaimed by the owner for more than 5 years is

18 presumed abandoned. This Section does not apply to deposits

19 made to municipalities as a condition for the issuance of a

20 building permit.

21 (Source: P.A. 99-577, eff. 1-1-17.)

22 (765 ILCS 1025/8.1) (from Ch. 141, par. 108.1)

23 Sec. 8.1. Property held by governments.

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1 (a) All tangible personal property or intangible personal

2 property and all debts owed or entrusted funds or other

3 property held by any federal, state or local government or

4 governmental subdivision, agency, entity, officer or appointee

5 thereof shall be presumed abandoned if the property has

6 remained unclaimed for 5 years, except as provided in

7 subsection (c).

8 (b) This Section applies to all abandoned property held by

9 any federal, state or local government or governmental

10 subdivision, agency, entity, officer or appointee thereof on

11 September 3, 1991 (the effective date of Public Act 87-206) or

12 at any time thereafter, regardless of when the property became

13 or becomes presumptively abandoned.

14 (c) United States savings bonds.

15 (1) As used in this subsection, "United States savings

16 bond" means property, tangible or intangible, in the form

17 of a savings bond issued by the United States Treasury,

18 whether in paper, electronic, or paperless form, along with

19 all proceeds thereof in the possession of the State

20 Treasurer.

21 (2) Notwithstanding any provision of this Act to the

22 contrary, a United States savings bond subject to this

23 Section or held or owing in this State by any person shall

24 be presumed abandoned when such bond has remained unclaimed

25 and unredeemed for 5 years after its date of final extended

26 maturity.

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1 (3) United States savings bonds that are presumed

2 abandoned and unclaimed under paragraph (2) shall escheat

3 to the State of Illinois and all property rights and legal

4 title to and ownership of the United States savings bonds,

5 or proceeds from the bonds, including all rights, powers,

6 and privileges of survivorship of any owner, co-owner, or

7 beneficiary, shall vest solely in the State according to

8 the procedure set forth in paragraphs (4) through (6).

9 (4) Within 180 days after a United States savings bond

10 has been presumed abandoned, in the absence of a claim

11 having been filed with the State Treasurer for the savings

12 bond, the State Treasurer shall commence a civil action in

13 the Circuit Court of Sangamon County for a determination

14 that the United States savings bond has escheated to the

15 State. The State Treasurer may postpone the bringing of the

16 action until sufficient United States savings bonds have

17 accumulated in the State Treasurer's custody to justify the

18 expense of the proceedings.

19 (5) The State Treasurer shall make service by

20 publication in the civil action in accordance with Sections

21 2-206 and 2-207 of the Code of Civil Procedure, which shall

22 include the filing with the Circuit Court of Sangamon

23 County of the affidavit required in Section 2-206 of that

24 Code by an employee of the State Treasurer with personal

25 knowledge of the efforts made to contact the owners of

26 United States savings bonds presumed abandoned under this

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1 Section. In addition to the diligent inquiries made

2 pursuant to Section 2-206 of the Code of Civil Procedure,

3 the State Treasurer may also utilize additional

4 discretionary means to attempt to provide notice to persons

5 who may own a United States savings bond registered to a

6 person with a last known address in the State of Illinois

7 subject to a civil action pursuant to paragraph (4).

8 (6) The owner of a United States savings bond

9 registered to a person with a last known address in the

10 State of Illinois subject to a civil action pursuant to

11 paragraph (4) may file a claim for such United States

12 savings bond with either the State Treasurer or by filing a

13 claim in the civil action in the Circuit Court of Sangamon

14 County in which the savings bond registered to that person

15 is at issue prior to the entry of a final judgment by the

16 Circuit Court pursuant to this subsection, and unless the

17 Circuit Court determines that such United States savings

18 bond is not owned by the claimant, then such United States

19 savings bond shall no longer be presumed abandoned. If no

20 person files a claim or appears at the hearing to

21 substantiate a disputed claim or if the court determines

22 that a claimant is not entitled to the property claimed by

23 the claimant, then the court, if satisfied by evidence that

24 the State Treasurer has substantially complied with the

25 laws of this State, shall enter a judgment that the United

26 States savings bonds have escheated to this State, and all

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1 property rights and legal title to and ownership of such

2 United States savings bonds or proceeds from such bonds,

3 including all rights, powers, and privileges of

4 survivorship of any owner, co-owner, or beneficiary, shall

5 vest in this State.

6 (7) The State Treasurer shall redeem from the Bureau of

7 the Fiscal Service of the United States Treasury the United

8 States savings bonds escheated to the State and deposit the

9 proceeds from the redemption of United States savings bonds

10 into the Unclaimed Property Trust Fund.

11 (8) Any person making a claim for the United States

12 savings bonds escheated to the State under this subsection,

13 or for the proceeds from such bonds, may file a claim with

14 the State Treasurer. Upon providing sufficient proof of the

15 validity of such person's claim, the State Treasurer may,

16 in his or her sole discretion, pay such claim. If payment

17 has been made to any claimant, no action thereafter shall

18 be maintained by any other claimant against the State or

19 any officer thereof for or on account of such funds.

20 (Source: P.A. 99-556, eff. 1-1-17; 99-577, eff. 1-1-17;

21 100-201, eff. 8-18-17.)

22 (765 ILCS 1025/8.2) (from Ch. 141, par. 108.2)

23 Sec. 8.2. (Repealed).

24 (Source: P.A. 87-1135. Repealed by P.A. 89-567, eff. 7-26-96.)

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1 (765 ILCS 1025/9) (from Ch. 141, par. 109)

2 Sec. 9. All personal property, not otherwise covered by

3 this Act, including any income or increment thereon that the

4 owner would be entitled to and deducting any lawful charges,

5 that has remained unclaimed by the owner for more than 5 years

6 is presumed abandoned. Before reporting and delivering

7 property as required under this Act, a business association may

8 deduct from the amount of otherwise reportable intangible

9 personal property the economic loss suffered by it in

10 connection with that intangible personal property arising from

11 transactions involving the sale of tangible personal property

12 at retail. Except as provided in Section 10.5, this provision

13 shall not apply to personal property held prior to October 1,

14 1968 by business associations. Property remitted to the State

15 pursuant to this Act, prior to the effective date of this

16 amendatory Act of 1982, shall not be affected by this

17 amendatory Act of 1982.

18 (Source: P.A. 90-167, eff. 7-23-97.)

19 (765 ILCS 1025/10) (from Ch. 141, par. 110)

20 Sec. 10. If specific property which is subject to the

21 provisions of Sections 2, 5, 6, 7 and 9 is held for or owed or

22 distributable to an owner whose last known address is in

23 another state by a holder who is subject to the jurisdiction of

24 that state, the specific property is not presumed abandoned in

25 this State and subject to this Act if:

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1 (a) It may be claimed as abandoned or escheated under

2 the laws of such other state; and

3 (b) The laws of such other state make reciprocal

4 provision that similar specific property is not presumed

5 abandoned or escheatable by such other state when held for

6 or owed or distributable to an owner whose last known

7 address is within this State by a holder who is subject to

8 the jurisdiction of this State.

9 (Source: Laws 1963, p. 1805.)

10 (765 ILCS 1025/10.5)

11 Sec. 10.5. Nonapplicability of Act.

12 (a) Unless the personal property was identified in a final

13 examination report by the Director of Financial Institutions

14 issued pursuant to a duly authorized examination and the final

15 examination report was received by the holder on or before May

16 1, 1993, this Act does not apply to (i) travelers checks

17 reportable as unclaimed property before July 1, 1973, (ii)

18 funds held by any federal, state, or local government or

19 governmental subdivision, agency, entity, officer, or

20 appointee thereof reportable as unclaimed property before July

21 1, 1981, or (iii) any other personal property reportable as

22 unclaimed property before July 1, 1985, based upon the

23 presumptive abandonment period in effect on that date.

24 (b) For reports required to be filed after December 31,

25 1993, this Act does not apply to any reportable personal

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1 property held prior to the period required for presumptive

2 abandonment of the property plus the 9 years immediately

3 preceding the beginning of that period.

4 (c) Subsections (a) and (b) do not apply to property held

5 by a trust division or trust department or by a trust company,

6 or affiliate of any of the foregoing that provides nondealer

7 corporate custodial services for securities or securities

8 transactions, organized under the laws of this or another state

9 or the United States.

10 As of January 1, 1998, this subsection shall not be

11 applicable unless the Department of Financial Institutions has

12 commenced, but not finalized, an examination of the holder as

13 of that date and the property is included in a final

14 examination report for the period covered by the examination.

15 (d) Subsections (a) and (b) do not apply to property held

16 by a holder who files a fraudulent report or fails to file a

17 report.

18 (e) Subsections (a) and (b) do not apply if, as a result of

19 their application, another state would have a legal right to

20 delivery of the property and such other state has commenced

21 proceedings with respect to the property.

22 (Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)

23 (765 ILCS 1025/10.6)

24 Sec. 10.6. Gift certificates and gift cards.

25 (a) This Act applies to a gift certificate or gift card

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1 only if:

2 (i) the gift certificate or gift card contains or has

3 language indicating there is an expiration date,

4 expiration period or language indicating that there is any

5 type of post-sale charge or fee including but not limited

6 to service charges, dormancy fees, account maintenance

7 fees, cash-out fees, replacement card fees, and activation

8 or reactivation charges; and

9 (ii) none of the exceptions in this Section apply.

10 (b) This Act does not apply to a gift certificate or gift

11 card that contains or has language indicating that there is an

12 expiration date or expiration period, or any type of post-sale

13 charge or fee including but not limited to service charges,

14 dormancy fees, account maintenance fees, cash-out fees,

15 replacement card fees, and activation or reactivation charges

16 if:

17 (i) the gift certificate or gift card was issued before

18 the effective date of this amendatory Act of the 93rd

19 General Assembly; and

20 (ii) it is the policy and practice of the issuer of the

21 gift certificate or gift card to honor the gift certificate

22 or gift card after its expiration date or the end of its

23 expiration period and it is the policy and practice of the

24 issuer of the gift certificate or gift card to eliminate

25 all post-sale charges and fees, and the issuer posts

26 written notice of the policy and practice at locations at

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1 which the issuer sells gift certificates or gift cards. The

2 written notice shall be an original or a copy of a notice

3 that the State Treasurer shall produce and provide to

4 issuers free of charge.

5 (c) Nothing in this Section applies to a gift certificate

6 or gift card if the value of the gift certificate or gift card

7 was reported and remitted under this Act before the effective

8 date of this amendatory Act of the 93rd General Assembly.

9 (Source: P.A. 92-487, eff. 8-23-01; 93-945, eff. 1-1-05.)

10 (765 ILCS 1025/11) (from Ch. 141, par. 111)

11 Sec. 11. Report of holder.

12 (a) Except as otherwise provided in subsection (c) of

13 Section 4, every person holding funds or other property,

14 tangible or intangible, presumed abandoned under this Act shall

15 report and remit all abandoned property specified in the report

16 to the State Treasurer with respect to the property as

17 hereinafter provided. The State Treasurer may exempt any

18 businesses from the reporting requirement if he deems such

19 businesses unlikely to be holding unclaimed property.

20 (b) The information shall be obtained in one or more

21 reports as required by the State Treasurer. The information

22 shall be verified and shall include:

23 (1) the name, social security or federal tax

24 identification number, if known, and last known address,

25 including zip code, of each person appearing from the

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1 records of the holder to be the owner of any property of

2 the value of $5 or more presumed abandoned under this Act;

3 (2) in case of unclaimed funds of life insurance

4 corporations the full name of the insured and any

5 beneficiary or annuitant and the last known address

6 according to the life insurance corporation's records;

7 (3) the date when the property became payable,

8 demandable, or returnable, and the date of the last

9 transaction with the owner with respect to the property;

10 and

11 (4) other information which the State Treasurer

12 prescribes by rule as necessary for the administration of

13 this Act.

14 (c) If the person holding property presumed abandoned is a

15 successor to other persons who previously held the property for

16 the owner, or if the holder has changed his name while holding

17 the property, he shall file with his report all prior known

18 names and addresses of each holder of the property.

19 (d) The report and remittance of the property specified in

20 the report shall be filed by banking organizations, financial

21 organizations, insurance companies other than life insurance

22 corporations, and governmental entities before November 1 of

23 each year as of June 30 next preceding. The report and

24 remittance of the property specified in the report shall be

25 filed by business associations, utilities, and life insurance

26 corporations before May 1 of each year as of December 31 next

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1 preceding. The Director may postpone the reporting date upon

2 written request by any person required to file a report. The

3 report and remittance of the property specified in the report

4 for property subject to subsection (a) of Section 3a of this

5 Act shall be filed before a date established by the State

6 Treasurer that is on or after the later of: (i) 30 days after

7 the effective date of this amendatory Act of the 94th General

8 Assembly; or (ii) November 1, 2005.

9 (d-5) Notwithstanding the foregoing, currency exchanges

10 shall be required to report and remit property specified in the

11 report within 30 days after the conclusion of its annual

12 examination by the Department of Financial Institutions. As

13 part of the examination of a currency exchange, the Department

14 of Financial Institutions shall instruct the currency exchange

15 to submit a complete unclaimed property report using the State

16 Treasurer's formatted diskette reporting program or an

17 alternative reporting format approved by the State Treasurer.

18 The Department of Financial Institutions shall provide the

19 State Treasurer with an accounting of the money orders located

20 in the course of the annual examination including, where

21 available, the amount of service fees deducted and the date of

22 the conclusion of the examination.

23 (e) Before filing the annual report, the holder of property

24 presumed abandoned under this Act shall communicate with the

25 owner at his last known address if any address is known to the

26 holder, setting forth the provisions hereof necessary to occur

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1 in order to prevent abandonment from being presumed. If the

2 holder has not communicated with the owner at his last known

3 address at least 120 days before the deadline for filing the

4 annual report, the holder shall mail, at least 60 days before

5 that deadline, a letter by first class mail to the owner at his

6 last known address unless any address is shown to be

7 inaccurate, setting forth the provisions hereof necessary to

8 prevent abandonment from being presumed.

9 (f) Verification, if made by a partnership, shall be

10 executed by a partner; if made by an unincorporated association

11 or private corporation, by an officer; and if made by a public

12 corporation, by its chief fiscal officer.

13 (g) Any person who has possession of property which he has

14 reason to believe will be reportable in the future as unclaimed

15 property, may report and deliver it prior to the date required

16 for such reporting in accordance with this Section and is then

17 relieved of responsibility as provided in Section 14.

18 (h) (1) Records pertaining to presumptively abandoned

19 property held by a trust division or trust department or by a

20 trust company, or affiliate of any of the foregoing that

21 provides nondealer corporate custodial services for securities

22 or securities transactions, organized under the laws of this or

23 another state or the United States shall be retained until the

24 property is delivered to the State Treasurer.

25 As of January 1, 1998, this subdivision (h)(1) shall not be

26 applicable unless the Department of Financial Institutions has

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1 commenced, but not finalized, an examination of the holder as

2 of that date and the property is included in a final

3 examination report for the period covered by the examination.

4 (2) In the case of all other holders commencing on the

5 effective date of this amendatory Act of 1993, property records

6 for the period required for presumptive abandonment plus the 9

7 years immediately preceding the beginning of that period shall

8 be retained for 5 years after the property was reportable.

9 (i) The State Treasurer may promulgate rules establishing

10 the format and media to be used by a holder in submitting

11 reports required under this Act.

12 (j) Other than the Notice to Owners required by Section 12

13 and other discretionary means employed by the State Treasurer

14 for notifying owners of the existence of abandoned property,

15 the State Treasurer shall not disclose any information provided

16 in reports filed with the State Treasurer or any information

17 obtained in the course of an examination by the State Treasurer

18 to any person other than governmental agencies for the purposes

19 of returning abandoned property to its owners or to those

20 individuals who appear to be the owner of the property or

21 otherwise have a valid claim to the property, unless written

22 consent from the person entitled to the property is obtained by

23 the State Treasurer.

24 (Source: P.A. 98-495, eff. 8-16-13.)

25 (765 ILCS 1025/11.5)

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1 Sec. 11.5. Estimation techniques and record retention.

2 (a) If a holder has failed to retain records as required by

3 this Act or if the records retained are shown to be

4 insufficient to conduct and conclude an examination, the Office

5 of the State Treasurer may use estimation techniques that

6 conform to either Generally Accepted Auditing Standards or

7 Generally Accepted Accounting Principles to determine the

8 amount of unclaimed property. In the conduct of an examination,

9 the State shall not request of a holder any records that relate

10 only to property that under subsection (a) or (b) of Section

11 10.5 is not subject to this Act.

12 (b) Within 15 business days of the receipt of a final

13 examination report, a holder may request a hearing to contest

14 the use or validity of estimation techniques. The examination

15 shall become final upon the failure of the holder to request a

16 hearing as provided in this Section. If a hearing is held, the

17 State Treasurer shall issue an order approving or disapproving

18 the use or validity of the estimation techniques. The order

19 shall be a final order under the Administrative Review Law.

20 (Source: P.A. 91-16, eff. 7-1-99.)

21 (765 ILCS 1025/12) (from Ch. 141, par. 112)

22 Sec. 12. Notice to owners.

23 (a) For property reportable by May 1, as identified by

24 Section 11, the State Treasurer shall cause notice to be

25 published once in an English language newspaper of general

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1 circulation in the county in this State in which is located the

2 last known address of any person to be named in the notice on

3 or before November 1 of the same year. For property reportable

4 by November 1, as identified by Section 11, the State Treasurer

5 shall cause notice to be published once in an English language

6 newspaper of general circulation in the county in this State in

7 which is located the last known address of any person named in

8 the notice on or before May 1 of the next year. If no address is

9 listed or if the address is outside this State, the notice

10 shall be published in the county in which the holder of the

11 abandoned property has his principal place of business within

12 this State. However, if an out-of-state address is in a state

13 that is not a party to a reciprocal agreement with this State

14 concerning abandoned property, the notice may be published in

15 the Illinois Register. The names of owners that are identified

16 and contacted directly by the State Treasurer do not have to be

17 published as described in this Section.

18 (b) The published notice shall be entitled "Notice of Names

19 of Persons Appearing to be Owners of Abandoned Property", and

20 shall contain:

21 (1) The names in alphabetical order and last known

22 addresses, if any, of persons listed in the report and

23 entitled to notice within the county as hereinbefore

24 specified.

25 (2) A statement that information concerning the amount

26 or description of the property and the name and address of

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1 the holder may be obtained by any persons possessing an

2 interest in the property by addressing an inquiry to the

3 State Treasurer.

4 (3) A statement that the abandoned property has been

5 placed in the custody of the State Treasurer to whom all

6 further claims must thereafter be directed.

7 (c) The State Treasurer is not required to publish in such

8 notice any item of less than $100 or any item for which the

9 address of the last known owner is in a state that has a

10 reciprocal agreement with this State concerning abandoned

11 property unless he deems such publication to be in the public

12 interest.

13 (Source: P.A. 93-531, eff. 8-14-03; 94-686, eff. 11-2-05.)

14 (765 ILCS 1025/13) (from Ch. 141, par. 113)

15 Sec. 13. Every person who has filed a report as provided by

16 Section 11 shall deliver to the State Treasurer all abandoned

17 property specified in the annual report on the same date that

18 the annual report is filed. Costs for communicating with owners

19 by mail as required by subsection (e) of Section 11 may be

20 deducted from the property specified in the report. Any such

21 person, who pursuant to a statutory requirement, filed a bond

22 or bonds pertaining to such abandoned property with the State

23 Treasurer or his predecessor, may also deduct an amount

24 equivalent to that part of the bond premium attributable to

25 such abandoned property.

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1 (Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)

2 (765 ILCS 1025/14) (from Ch. 141, par. 114)

3 Sec. 14. Upon the payment or delivery of abandoned property

4 to the State Treasurer, the state shall assume custody and

5 shall be responsible for the safekeeping thereof. Any person

6 who pays or delivers abandoned property to the State Treasurer

7 under this Act is relieved of all liability to the extent of

8 the value of the property so paid or delivered for any claim

9 which then exists or which thereafter may arise or be made in

10 respect to the property.

11 In the event legal proceedings are instituted by any other

12 state or states in any state or federal court with respect to

13 unclaimed funds or abandoned property previously paid or

14 delivered to the State Treasurer, the holder shall give written

15 notification to the State Treasurer and the Attorney General of

16 this state of such proceedings within 10 days after service of

17 process, or in the alternative at least 10 days before the

18 return date or date on which an answer or similar pleading is

19 due (or any extension thereof secured by the holder). The

20 Attorney General may take such action as he deems necessary or

21 expedient to protect the interests of the State of Illinois.

22 The Attorney General by written notice prior to the return date

23 or date on which an answer or similar pleading is due (or any

24 extension thereof secured by the holder), but in any event in

25 reasonably sufficient time for the holder to comply with the

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1 directions received, shall either direct the holder actively to

2 defend in such proceedings or that no defense need be entered

3 in such proceedings. If a direction is received from the

4 Attorney General that the holder need not make a defense, such

5 shall not preclude the holder from entering a defense in its

6 own name if it should so choose. However, any defense made by

7 the holder on its own initiative shall not entitle the holder

8 to reimbursement for legal fees, costs and other expenses as is

9 hereinafter provided in respect to defenses made pursuant to

10 the directions of the Attorney General. If, after the holder

11 has actively defended in such proceedings pursuant to a

12 direction of the Attorney General, or has been notified in

13 writing by the Attorney General that no defense need be made

14 with respect to such funds, a judgment is entered against the

15 holder for any amount paid to the State Treasurer under this

16 Act, the State Treasurer shall, upon being furnished with proof

17 of payment in satisfaction of such judgment, reimburse the

18 holder the amount so paid. The State Treasurer shall also

19 reimburse the holder for any legal fees, costs and other

20 directly related expenses incurred in legal proceedings

21 undertaken pursuant to the direction of the Attorney General.

22 (Source: P.A. 91-16, eff. 7-1-99.)

23 (765 ILCS 1025/15) (from Ch. 141, par. 115)

24 Sec. 15. When property is paid or delivered to the State

25 Treasurer under this Act, the owner is not entitled to receive

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1 income or other increments accruing thereafter, except that

2 income accruing on unliquidated stock and mutual funds after

3 July 1, 1993, may be paid to the owner.

4 (Source: P.A. 91-16, eff. 7-1-99.)

5 (765 ILCS 1025/16) (from Ch. 141, par. 116)

6 Sec. 16. The expiration of any period of time specified by

7 statute or court order, during which an action or proceeding

8 may be commenced or enforced to obtain payment of a claim for

9 money or recovery of property, shall not prevent the money or

10 property from being presumed abandoned property, nor affect any

11 duty to file a report required by this Act or to pay or deliver

12 abandoned property to the State Treasurer.

13 (Source: P.A. 91-16, eff. 7-1-99.)

14 (765 ILCS 1025/17) (from Ch. 141, par. 117)

15 Sec. 17. (a) All abandoned property, other than money and

16 that property exempted by paragraphs (1), (2), (3), (4), (5),

17 and (6) of this subsection, delivered to the State Treasurer

18 under this Act shall be sold within a reasonable time to the

19 highest bidder at public sale in whatever city in the State

20 affords in his or her judgment the most favorable market for

21 the property involved. The State Treasurer may decline the

22 highest bid and reoffer the property for sale if he or she

23 considers the price bid insufficient. The State Treasurer may

24 group items for auction as "box lots" if the value of the

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1 individual items makes it impracticable to sell the items

2 individually. He or she need not offer any property for sale,

3 and may destroy or otherwise dispose of the property, if, in

4 his or her opinion, the probable cost of sale exceeds the value

5 of the property. Securities or commodities received by the

6 Office of the State Treasurer may be sold by the State

7 Treasurer through a broker or sales agent suitable for the sale

8 of the type of securities or commodities being sold.

9 (1) Property which the State Treasurer determines may

10 have historical value may be, at his or her discretion,

11 loaned to a recognized exhibitor in the United States where

12 it will be kept until such time as the State Treasurer

13 orders it to be returned to his or her possession.

14 (2) Property returned to the State Treasurer shall be

15 released to the rightful owner or otherwise disposed of in

16 accordance with this Act. The State Treasurer shall keep

17 identifying records of the property so loaned, the name of

18 rightful owner and the owner's last known address, if

19 available.

20 (3) The Treasurer, in cooperation with the Department

21 of State Police, shall develop a procedure to determine

22 whether a firearm delivered to the Treasurer under this Act

23 has been stolen or used in the commission of a crime. The

24 Department of State Police shall determine the appropriate

25 disposition of a firearm that has been stolen or used in

26 the commission of a crime. The Treasurer shall attempt to

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1 return a firearm that has not been stolen or used in the

2 commission of a crime to the rightful owner, provided that

3 the owner may lawfully possess the firearm as determined by

4 the Department of State Police.

5 If the Treasurer is unable to return a firearm to its

6 owner, the Treasurer shall transfer custody of the firearm

7 to the Department of State Police. Legal title to a firearm

8 transferred to the Department of State Police under this

9 paragraph (3) is vested in the Department of State Police

10 by operation of law:

11 (A) if the Treasurer cannot locate the owner of the

12 firearm;

13 (B) if the owner of the firearm may not lawfully

14 possess the firearm;

15 (C) if the owner does not respond to notice

16 published under Section 12 of this Act; or

17 (D) if the owner responds to notice published under

18 Section 12 and states that he or she no longer claims

19 an interest in the firearm.

20 With respect to a firearm whose title is transferred to

21 the Department of State Police under this paragraph (3),

22 that Department may:

23 (i) retain the firearm for use by the crime

24 laboratory system, for training purposes, or for any

25 other application as deemed appropriate by the

26 Department;

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1 (ii) transfer the firearm to the Illinois State

2 Museum if the firearm has historical value; or

3 (iii) destroy the firearm if it is not retained

4 pursuant to subparagraph (i) or transferred pursuant

5 to subparagraph (ii).

6 (4) If human remains are delivered to the Treasurer

7 under this Act, the Treasurer shall deliver those human

8 remains to the coroner of the county in which the human

9 remains were abandoned for disposition under Section

10 3-3034 of the Counties Code. The only human remains that

11 may be delivered to the Treasurer under this Act and that

12 the Treasurer may receive are those that are reported and

13 delivered as contents of a safe deposit box.

14 (5) If medals awarded to U.S. military personnel are

15 delivered to the Treasurer under this Act, the Treasurer

16 shall not offer those medals for sale or at public auction.

17 The only medals that may be delivered to the Treasurer

18 under this Act and that the Treasurer may receive are those

19 that are reported and delivered as contents of a safe

20 deposit box. Medals shall only be returned to the owner of

21 the safe deposit box containing the medals or the heirs of

22 that owner. This paragraph (5) may be referred to as

23 Operation Search and Restore.

24 (6) Property that may have been used in the commission

25 of a crime or that may assist in the investigation of a

26 crime, as determined after consulting standards developed

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1 by the Department of State Police, shall be delivered to

2 the Department of State Police or other appropriate law

3 enforcement authority to allow law enforcement to

4 determine whether a criminal investigation should take

5 place. Any such property delivered to a law enforcement

6 authority shall be held in accordance with existing

7 statutes and rules related to the gathering, retention, and

8 release of evidence.

9 (b) Any sale held under this Section, except a sale of

10 securities or commodities, shall be preceded by a single

11 publication of notice thereof, at least 3 weeks in advance of

12 sale in an English language newspaper of general circulation in

13 the county where the property is to be sold. When property

14 fails to sell and is offered again at a subsequent sale, no

15 additional notice is required for the subsequent sale.

16 (c) The purchaser at any sale conducted by the State

17 Treasurer pursuant to this Act shall receive title to the

18 property purchased, free from all claims of the owner or prior

19 holder thereof and of all persons claiming through or under

20 them. The State Treasurer shall execute all documents necessary

21 to complete the transfer of title.

22 (d) The Office of the State Treasurer is not liable for any

23 reduction in the value of property caused by changing market

24 conditions.

25 (Source: P.A. 95-829, eff. 8-14-08; 96-440, eff. 1-1-10.)

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1 (765 ILCS 1025/18) (from Ch. 141, par. 118)

2 Sec. 18. Deposit of funds received under the Act.

3 (a) The State Treasurer shall retain all funds received

4 under this Act, including the proceeds from the sale of

5 abandoned property under Section 17, in a trust fund known as

6 the Unclaimed Property Trust Fund. The State Treasurer may

7 deposit any amount in the Unclaimed Property Trust Fund into

8 the State Pensions Fund during the fiscal year at his or her

9 discretion; however, he or she shall, on April 15 and October

10 15 of each year, deposit any amount in the Unclaimed Property

11 Trust Fund exceeding $2,500,000 into the State Pensions Fund.

12 If on either April 15 or October 15, the State Treasurer

13 determines that a balance of $2,500,000 is insufficient for the

14 prompt payment of unclaimed property claims authorized under

15 this Act, the Treasurer may retain more than $2,500,000 in the

16 Unclaimed Property Trust Fund in order to ensure the prompt

17 payment of claims. Beginning in State fiscal year 2019, all

18 amounts that are deposited into the State Pensions Fund from

19 the Unclaimed Property Trust Fund shall be apportioned to the

20 designated retirement systems as provided in subsection (c-6)

21 of Section 8.12 of the State Finance Act to reduce their

22 actuarial reserve deficiencies. He or she shall make prompt

23 payment of claims he or she duly allows as provided for in this

24 Act for the Unclaimed Property Trust Fund. Before making the

25 deposit the State Treasurer shall record the name and last

26 known address of each person appearing from the holders'

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1 reports to be entitled to the abandoned property. The record

2 shall be available for public inspection during reasonable

3 business hours.

4 (b) Before making any deposit to the credit of the State

5 Pensions Fund, the State Treasurer may deduct: (1) any costs in

6 connection with sale of abandoned property, (2) any costs of

7 mailing and publication in connection with any abandoned

8 property, and (3) any costs in connection with the maintenance

9 of records or disposition of claims made pursuant to this Act.

10 The State Treasurer shall semiannually file an itemized report

11 of all such expenses with the Legislative Audit Commission.

12 (Source: P.A. 99-8, eff. 7-9-15; 99-523, eff. 6-30-16; 100-23,

13 eff. 7-6-17.)

14 (765 ILCS 1025/19) (from Ch. 141, par. 119)

15 Sec. 19. Any person claiming an interest in any property

16 delivered to the State under this Act may file a claim thereto

17 or to the proceeds from the sale thereof on the form prescribed

18 by the State Treasurer.

19 (Source: P.A. 91-16, eff. 7-1-99.)

20 (765 ILCS 1025/19.5)

21 Sec. 19.5. Tax return identification of apparent owners of

22 abandoned property.

23 (a) At least annually the State Treasurer shall notify the

24 Department of Revenue of the names of persons appearing to be

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1 owners of abandoned property held by the State Treasurer. The

2 State Treasurer shall also provide to the Department of Revenue

3 the social security numbers of such persons, if available.

4 (b) The Department of Revenue shall notify the State

5 Treasurer if any person under subsection (a) has filed an

6 Illinois income tax return and shall provide the State

7 Treasurer with the last known address of the person as it

8 appears in Department of Revenue records, except as prohibited

9 by federal law. The Department shall also provide any

10 additional addresses for the same taxpayer from the records of

11 the Department, except as prohibited by federal law.

12 (c) In order to facilitate the return of property under

13 this Section, the State Treasurer and the Department of Revenue

14 may enter into an interagency agreement concerning protection

15 of confidential information, data match rules, and other

16 issues.

17 (d) The State Treasurer may deliver, as provided under

18 Section 20 of this Act, property or pay the amount owing to a

19 person matched under this Section without the person filing a

20 claim under Section 19 of this Act if the following conditions

21 are met:

22 (1) the value of the property that is owed the person

23 is $2,000 or less;

24 (2) the property is not either tangible property or

25 securities;

26 (3) the last known address for the person according to

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1 the Department of Revenue records is less than 12 months

2 old; and

3 (4) the State Treasurer has evidence sufficient to

4 establish that the person who appears in Department of

5 Revenue records is the owner of the property and the owner

6 currently resides at the last known address from the

7 Department of Revenue.

8 The State Treasurer may use additional databases to verify

9 the identity of the person and that the person currently

10 resides at the last known address.

11 (e) If the property owed to a person matched under this

12 Section has a value of greater than $2,000 or is tangible

13 property or securities, then the State Treasurer shall provide

14 notice to the person informing the person that he or she is the

15 owner of abandoned or unclaimed property held by the State and

16 may file a claim with the State Treasurer for return of the

17 property.

18 (Source: P.A. 100-47, eff. 8-11-17.)

19 (765 ILCS 1025/20) (from Ch. 141, par. 120)

20 (Text of Section before amendment by P.A. 100-543)

21 Sec. 20. Determination of claims.

22 (a) The State Treasurer shall consider any claim filed

23 under this Act and may, in his discretion, hold a hearing and

24 receive evidence concerning it. Such hearing shall be conducted

25 by the State Treasurer or by a hearing officer designated by

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1 him. No hearings shall be held if the payment of the claim is

2 ordered by a court, if the claimant is under court

3 jurisdiction, or if the claim is paid under Article XXV of the

4 Probate Act of 1975. The State Treasurer or hearing officer

5 shall prepare a finding and a decision in writing on each

6 hearing, stating the substance of any evidence heard by him,

7 his findings of fact in respect thereto, and the reasons for

8 his decision. The State Treasurer shall review the findings and

9 decision of each hearing conducted by a hearing officer and

10 issue a final written decision. The final decision shall be a

11 public record. Any claim of an interest in property that is

12 filed pursuant to this Act shall be considered and a finding

13 and decision shall be issued by the Office of the State

14 Treasurer in a timely and expeditious manner.

15 (b) If the claim is allowed, and after deducting an amount

16 not to exceed $20 to cover the cost of notice publication and

17 related clerical expenses, the State Treasurer shall make

18 payment forthwith.

19 (c) In order to carry out the purpose of this Act, no

20 person or company shall be entitled to a fee for discovering

21 presumptively abandoned property until it has been in the

22 custody of the Unclaimed Property Division of the Office of the

23 State Treasurer for at least 24 months. Fees for discovering

24 property that has been in the custody of that division for more

25 than 24 months shall be limited to not more than 10% of the

26 amount collected.

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1 (d) A person or company attempting to collect a contingent

2 fee for discovering, on behalf of an owner, presumptively

3 abandoned property must be licensed as a private detective

4 pursuant to the Private Detective, Private Alarm, Private

5 Security, Fingerprint Vendor, and Locksmith Act of 2004.

6 (e) This Section shall not apply to the fees of an attorney

7 at law duly appointed to practice in a state of the United

8 States who is employed by a claimant with regard to probate

9 matters on a contractual basis.

10 (f) Any person or company offering to identify, discover,

11 or collect presumptively abandoned property or property which

12 may become presumptively abandoned on behalf of the putative

13 owner of such property in exchange for a fee, must provide the

14 owner with a written disclosure. The disclosure shall be set

15 forth in a clear and conspicuous manner and at a minimum shall

16 state the following:

17 Each state maintains an office of unclaimed property.

18 Generally, if for a number of years an owner of property

19 has not communicated directly with the holder of the

20 property, and has not otherwise indicated an interest in or

21 claimed the property, the property will be delivered to a

22 state administered unclaimed property program. Upon such

23 delivery, the owner will be able to recover the property

24 from the state administered program without charge by the

25 state. The unclaimed asset referred to in this Agreement

26 has not yet been reported or remitted to any state

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1 unclaimed property office. Since you reside (or resided) in

2 Illinois, you may obtain information about the Illinois

3 unclaimed property program by logging onto its website at

4 www.treasurer.il.gov.

5 A person or company may not charge a fee greater than

6 25% of the property's value for the recovery of that

7 property where the property is not yet reportable under

8 this Act and the designated owner of that property, as

9 reflected within the books and records of the holder, is

10 living.

11 A person or company may not charge a fee greater than

12 33% of the property's value for the recovery of that

13 property where the property is not yet reportable under

14 this Act and the recovery of that property involves

15 documentation of the owner's death or any elements of

16 estate or trust administration.

17 (Source: P.A. 95-613, eff. 9-11-07; 95-1003, eff. 6-1-09.)

18 (Text of Section after amendment by P.A. 100-543)

19 Sec. 20. Determination of claims.

20 (a) The State Treasurer shall consider any claim filed

21 under this Act and may, in his discretion, hold a hearing and

22 receive evidence concerning it. Such hearing shall be conducted

23 by the State Treasurer or by a hearing officer designated by

24 him. No hearings shall be held if the payment of the claim is

25 ordered by a court, if the claimant is under court

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1 jurisdiction, or if the claim is paid under Article XXV of the

2 Probate Act of 1975. The State Treasurer or hearing officer

3 shall prepare a finding and a decision in writing on each

4 hearing, stating the substance of any evidence heard by him,

5 his findings of fact in respect thereto, and the reasons for

6 his decision. The State Treasurer shall review the findings and

7 decision of each hearing conducted by a hearing officer and

8 issue a final written decision. The final decision shall be a

9 public record. Any claim of an interest in property that is

10 filed pursuant to this Act shall be considered and a finding

11 and decision shall be issued by the Office of the State

12 Treasurer in a timely and expeditious manner.

13 (b) If the claim is allowed, the State Treasurer shall make

14 payment forthwith.

15 (c) In order to carry out the purpose of this Act, no

16 person or company shall be entitled to a fee for discovering

17 presumptively abandoned property during the period beginning

18 on the date the property was presumed abandoned under this Act

19 and ending 24 months after the payment or delivery of the

20 property to the Unclaimed Property Division of the Office of

21 the State Treasurer. Fees for discovering property that has

22 been in the custody of that division for more than 24 months

23 shall be limited to not more than 10% of the amount collected.

24 (d) A person or company attempting to collect a contingent

25 fee for discovering, on behalf of an owner, presumptively

26 abandoned property must be licensed as a private detective

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1 pursuant to the Private Detective, Private Alarm, Private

2 Security, Fingerprint Vendor, and Locksmith Act of 2004.

3 (e) This Section shall not apply to the fees of an attorney

4 at law duly appointed to practice in a state of the United

5 States who is employed by a claimant with regard to probate

6 matters on a contractual basis or to contest a denial of a

7 claim for recovery of the property.

8 (f) Any person or company offering to identify, discover,

9 or collect property which may become presumptively abandoned on

10 behalf of the putative owner of such property in exchange for a

11 fee, must provide the owner with a written disclosure. The

12 disclosure shall be set forth in a clear and conspicuous manner

13 and at a minimum shall state the following:

14 Each state maintains an office of unclaimed property.

15 Generally, if for a number of years an owner of property

16 has not communicated directly with the holder of the

17 property, and has not otherwise indicated an interest in or

18 claimed the property, the property will be delivered to a

19 state administered unclaimed property program. Upon such

20 delivery, the owner will be able to recover the property

21 from the state administered program without charge by the

22 state. The unclaimed asset referred to in this Agreement

23 has not yet been reported or remitted to any state

24 unclaimed property office. Since you reside (or resided) in

25 Illinois, you may obtain information about the Illinois

26 unclaimed property program by logging onto its website at

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1 www.illinoistreasurer.gov.

2 (Source: P.A. 100-543, eff. 1-1-18.)

3 (765 ILCS 1025/21) (from Ch. 141, par. 121)

4 Sec. 21. A final administrative decision of the State

5 Treasurer in respect to a claim filed hereunder shall be

6 subject to judicial review pursuant to the provisions of the

7 Administrative Review Law and the rules adopted pursuant

8 thereto. The review action may be instituted by any person

9 adversely affected or aggrieved by the decision.

10 The Office of the State Treasurer shall furnish a certified

11 transcript of the record to any party of record upon the

12 payment of the actual page charge of the record to a commercial

13 reporting service for the preparation of the transcript. If no

14 hearing was held, the State Treasurer shall deliver a copy of

15 his decision stating the reasons upon which the claim was

16 denied and deliver it to any party of record within 20 days of

17 demand.

18 (Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)

19 (765 ILCS 1025/22) (from Ch. 141, par. 122)

20 Sec. 22. The State Treasurer, after receiving reports of

21 property deemed abandoned pursuant to this Act, may decline to

22 receive any property reported which he deems to have a value

23 less than the cost of giving notice and holding sale, or he

24 may, if he deems it desirable because of the small sum

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1 involved, postpone taking possession until a sufficient sum has

2 accumulated. Unless the holder of the property is notified to

3 the contrary within 120 days after filing the report required

4 under Section 11, the State Treasurer shall be deemed to have

5 elected to receive the custody of the property.

6 (Source: P.A. 91-16, eff. 7-1-99.)

7 (765 ILCS 1025/23) (from Ch. 141, par. 123)

8 Sec. 23. (a) If the State Treasurer has reason to believe

9 that any person has failed to report property in accordance

10 with this Act, he may make a demand by certified mail, return

11 receipt requested, that such report be made and filed with the

12 State Treasurer. The report of abandoned property or any other

13 report required shall be made and filed with the State

14 Treasurer within 30 days after receipt of the demand.

15 (b) The State may at reasonable times and upon reasonable

16 notice examine the records of any person if the State Treasurer

17 has reason to believe that such person has failed to report

18 property that should have been reported pursuant to this Act.

19 Upon the direction of the State Treasurer to do so, the Office

20 of Banks and Real Estate shall, on behalf of the State, conduct

21 the examination of the records of any person who is regulated

22 by the Office of Banks and Real Estate under the Illinois

23 Banking Act, the Corporate Fiduciary Act, the Foreign Banking

24 Office Act, the Illinois Savings and Loan Act of 1985, or the

25 Savings Bank Act. Upon direction of the State Treasurer to do

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1 so, the Department of Financial Institutions shall, on behalf

2 of the State, conduct the examination of the records of any

3 person doing business in the State under the supervision of the

4 Department of Financial Institutions, the National Credit

5 Union Administration, the Office of Thrift Supervision, or the

6 Comptroller of the Currency. The Office of Banks and Real

7 Estate and the Department of Financial Institutions shall

8 conduct all examinations during the next regular examination of

9 the person, unless the State Treasurer has reason to believe

10 that an accelerated examination schedule is required to protect

11 the State's interest, in which case the examination must be

12 conducted within 90 days of the State Treasurer's direction to

13 do so. The Office of Banks and Real Estate and the Department

14 of Financial Institutions may contract with third parties to

15 ensure that the examinations are commenced in a timely manner.

16 The Department of Financial Institutions and the Office of

17 Banks and Real Estate shall report the results of all

18 examinations that are undertaken at the direction of the State

19 Treasurer under this Act, which may include confidential

20 information, to the State Treasurer in a timely manner and,

21 upon the request of the Treasurer, shall assist in the

22 evaluation of the examinations. All examinations that are not

23 performed by the Office of Banks and Real Estate or the

24 Department of Financial Institutions shall be performed by the

25 State Treasurer.

26 (c) The actual cost of any examination or investigation

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1 incurred by the State in administering any provision of this

2 Act shall be borne by the holder examined or investigated if:

3 (1) a written demand for a report has been made and the

4 report has not been properly filed within the time period

5 specified in this Section, or

6 (2) a report has been received and additional property

7 reportable under the Act is discovered by such examination

8 or investigation.

9 No holder shall be liable to pay more than an amount equal

10 to the amount of reportable property discovered by such

11 investigation as a cost of examination or investigation.

12 (d) For all holders other than a trust division, a trust

13 department, a trust company, or an affiliate of any of them,

14 subsection (c) does not apply to any examination commenced

15 after the effective date of this amendatory Act of 1993. As of

16 January 1, 1998, subsection (c) does not apply to an

17 examination of a trust division or trust department or a trust

18 company, or affiliate of any of the foregoing that provides

19 nondealer corporate custodial services for securities or

20 securities transactions, organized under the laws of this or

21 another state or the United States unless the Department of

22 Financial Institutions has commenced, but not finalized, an

23 examination of the holder as of that date and the property is

24 included in a final examination report for the period covered

25 by the examination.

26 (Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)

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1 (765 ILCS 1025/23.5)

2 Sec. 23.5. Notice of deficiency; time; effect.

3 (a) The State Treasurer shall issue a Notice of Deficiency

4 to a holder or direct the commencement of an examination of a

5 holder with respect to a report required under this Act within

6 5 years after the report is filed. A Notice of Deficiency shall

7 specify the additional amounts, if known, purportedly

8 reportable under this Act or state that those amounts are

9 unknown. If the State Treasurer fails to issue a Notice of

10 Deficiency or direct the commencement of an examination within

11 the time required by this Section, the Office of the State

12 Treasurer may not thereafter issue a Notice of Deficiency,

13 otherwise assert a deficiency, or seek any other charge or

14 remedy under this Act with respect to that report.

15 (b) This Section does not apply to a holder that is a trust

16 division or trust department or a trust company, or affiliate

17 of any of the foregoing that provides nondealer corporate

18 custodial services for securities or securities transactions,

19 organized under the laws of this or another state or the United

20 States.

21 As of January 1, 1998, this subsection shall not be

22 applicable unless the Department of Financial Institutions has

23 commenced, but not finalized, an examination of the holder as

24 of that date and the property is included in a final

25 examination report for the period covered by the examination.

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1 (Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)

2 (765 ILCS 1025/24) (from Ch. 141, par. 124)

3 Sec. 24. Enforcement of delivery. If any person refuses to

4 deliver property to the State Treasurer as required under this

5 Act, the State Treasurer may bring an action in the name of the

6 State in the circuit court or any federal court to enforce

7 delivery.

8 (Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)

9 (765 ILCS 1025/24.5)

10 Sec. 24.5. Contingency fees. The State may not enter into a

11 contract with a person to conduct an examination of a holder

12 located within the State of Illinois under which the State

13 agrees to pay such person a fee based upon a percentage of the

14 property recovered for the State of Illinois. Nothing in this

15 Section prohibits the Office of the State Treasurer from

16 entering into contracts with persons to examine holders located

17 outside the State of Illinois under which the Office of the

18 State Treasurer agrees to pay such persons based upon a

19 percentage of the property recovered for the State of Illinois.

20 (Source: P.A. 91-16, eff. 7-1-99.)

21 (765 ILCS 1025/25) (from Ch. 141, par. 125)

22 Sec. 25. (a) Any person who fails to render any report or

23 perform other duties required under this Act, is guilty of a

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1 business offense and fined not more than $500. Each day such

2 report is withheld or the duties are not performed constitutes

3 a separate offense.

4 (b) Any person who wilfully refuses to pay or deliver

5 abandoned property to the State Treasurer as required under

6 this Act shall be guilty of a Class B misdemeanor. Each day the

7 violation continues is a separate offense.

8 (Source: P.A. 91-16, eff. 7-1-99.)

9 (765 ILCS 1025/25.5)

10 Sec. 25.5. Administrative charges, fees, and interest

11 charges.

12 (a) The State Treasurer may charge a holder that files an

13 unclaimed property report after the due date, as determined by

14 the State Treasurer, the lesser of $100 or $1 for each day the

15 report remains overdue.

16 (b) The State Treasurer may charge a holder that fails to

17 timely perform due diligence, as required by this Act, $5 for

18 each name and address account reported if 35% or more of the

19 accounts are claimed within the 24 months immediately following

20 the filing of the holder's annual report.

21 (c) A holder who remits unclaimed property that is past due

22 or fails to remit unclaimed property pursuant to an examination

23 by the State, may be charged based on the value of the property

24 the greater of 1% per month or an annualized rate that is 3

25 percentage points above the prime rate as published in the Wall

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1 Street Journal on the first business day of the month in which

2 the property was remitted. If the property remains past due for

3 more than 12 months, the interest rate for each succeeding year

4 shall be calculated at the greater of an annual rate of 12% or

5 3 percentage points above the prime rate. The prime rate

6 applied shall be as published on the first business day of

7 January of that successive year.

8 (d) The State Treasurer may grant an extension of time to

9 any holder to report or remit when the holder submits a written

10 request for an extension before the date a report or remittance

11 is due.

12 (e) Whenever the State Treasurer charges a holder or

13 assesses a fee provided for in this Section, he shall serve

14 notice upon the holder by personal service or by delivering the

15 notice by certified mail, return receipt required, through the

16 United States Postal Service to the holder.

17 (f) A holder may contest a charge or other fee issued by

18 the State Treasurer by requesting in writing an administrative

19 hearing within 15 business days of the receipt of the State

20 Treasurer's notice of the charge or fee. The hearing shall be

21 held at a time and place designated by the State Treasurer.

22 (g) The State Treasurer's finding subjecting a holder to a

23 charge or other fee shall become a final order under the

24 Administrative Review Law upon the failure of the holder to

25 demand a hearing within 15 business days.

26 (h) If a hearing is held, the State Treasurer shall issue

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1 an order affirming, modifying, or overruling the charge or

2 other fee. The order shall be a final order under the

3 Administrative Review Law.

4 (i) A holder shall not be charged for failing to remit past

5 due unclaimed property pursuant to the State's examination and

6 demand for remittance when the holder, in good faith, contests

7 all or part of the finding, until a final order reviewing the

8 remittance is entered by a hearing officer or the circuit

9 court. With regard to contested examinations, the charges,

10 fees, or interest shall not accrue during the period from the

11 holder's filing of the request for a hearing until the date of

12 the final order. However, a holder may be charged for failing

13 to remit any undisputed amounts of unclaimed property that are

14 not being contested in an administrative hearing or court

15 action.

16 (j) The administrative charges, fees, and interest charges

17 provided for in this Section shall not apply to property held

18 by a trust division or trust department or by a trust company,

19 or affiliate of any of the foregoing that provides nondealer

20 corporate custodial services for securities or securities

21 transactions, organized under the laws of this or another state

22 or the United States.

23 As of January 1, 1998, this subsection shall not be

24 applicable unless the Department of Financial Institutions has

25 commenced, but not finalized, an examination of the holder as

26 of that date and the property is included in a final

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1 examination report for the period covered by the examination.

2 (k) In the conduct of a hearing initiated by a holder under

3 this Act, the State Treasurer has the power to administer

4 oaths, subpoena witnesses, and compel the production of books,

5 papers, documents, or records relevant to the hearing under

6 this Act.

7 (l) The provisions of this Section apply only to reports

8 due and examinations commenced after the effective date of this

9 amendatory Act of 1993.

10 (Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)

11 (765 ILCS 1025/26) (from Ch. 141, par. 126)

12 Sec. 26. The State Treasurer, Director of Financial

13 Institutions, and the Commissioner of Banks and Real Estate are

14 hereby authorized to make necessary rules and regulations to

15 carry out the provisions of this Act.

16 (Source: P.A. 91-16, eff. 7-1-99.)

17 (765 ILCS 1025/27) (from Ch. 141, par. 127)

18 Sec. 27. This Act shall not apply to any property, other

19 than property covered by Sections 6 and 8 of this Act, as to

20 which the presumption of abandonment prescribed by this Act

21 occurred prior to August 17, 1946, to any property that has

22 been presumed abandoned or escheated under the laws of another

23 state prior to August 17, 1961, or to any funds held by any

24 annuity, pension or benefit funds created pursuant to the laws

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1 of this State and supported by public revenues.

2 (Source: Laws 1963, p. 1805.)

3 (765 ILCS 1025/28) (from Ch. 141, par. 128)

4 Sec. 28. If any provision of this Act or the application

5 thereof to any person or circumstances is held invalid, the

6 invalidity shall not affect other provisions or applications of

7 the Act which can be given effect without the invalid

8 provisions or application, and to this end the provisions of

9 this Act are severable.

10 (Source: Laws 1961, p. 3426.)

11 (765 ILCS 1025/29) (from Ch. 141, par. 129)

12 Sec. 29. This Act shall be so construed as to effectuate

13 its general purpose to make uniform the law of those states

14 which enact it.

15 (Source: Laws 1961, p. 3426.)

16 (765 ILCS 1025/29.5)

17 Sec. 29.5. The provisions of this Act do not apply to

18 property and proceedings under the Labor and Storage Lien

19 (Small Amount) Act.

20 (Source: P.A. 88-435.)

21 (765 ILCS 1025/30) (from Ch. 141, par. 130)

22 Sec. 30. This Act may be cited as the Uniform Disposition

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1 of Unclaimed Property Act.

2 (Source: Laws 1961, p. 3426.)

3 (35 ILCS 750/Act rep.)

4 Section 3. The State Tax Lien Registration Act is repealed.

5 (765 ILCS 1026/Act rep.)

6 Section 4. The Revised Uniform Unclaimed Property Act is

7 repealed.

8 Section 5. The Illinois Administrative Procedure Act is

9 amended by changing Section 1-5 as follows:

10 (5 ILCS 100/1-5) (from Ch. 127, par. 1001-5)

11 Sec. 1-5. Applicability.

12 (a) This Act applies to every agency as defined in this

13 Act. Beginning January 1, 1978, in case of conflict between the

14 provisions of this Act and the Act creating or conferring power

15 on an agency, this Act shall control. If, however, an agency

16 (or its predecessor in the case of an agency that has been

17 consolidated or reorganized) has existing procedures on July 1,

18 1977, specifically for contested cases or licensing, those

19 existing provisions control, except that this exception

20 respecting contested cases and licensing does not apply if the

21 Act creating or conferring power on the agency adopts by

22 express reference the provisions of this Act. Where the Act

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1 creating or conferring power on an agency establishes

2 administrative procedures not covered by this Act, those

3 procedures shall remain in effect.

4 (b) The provisions of this Act do not apply to (i)

5 preliminary hearings, investigations, or practices where no

6 final determinations affecting State funding are made by the

7 State Board of Education, (ii) legal opinions issued under

8 Section 2-3.7 of the School Code, (iii) as to State colleges

9 and universities, their disciplinary and grievance

10 proceedings, academic irregularity and capricious grading

11 proceedings, and admission standards and procedures, and (iv)

12 the class specifications for positions and individual position

13 descriptions prepared and maintained under the Personnel Code.

14 Those class specifications shall, however, be made reasonably

15 available to the public for inspection and copying. The

16 provisions of this Act do not apply to hearings under Section

17 20 of the Uniform Disposition of Unclaimed Property Act.

18 (c) Section 5-35 of this Act relating to procedures for

19 rulemaking does not apply to the following:

20 (1) Rules adopted by the Pollution Control Board that,

21 in accordance with Section 7.2 of the Environmental

22 Protection Act, are identical in substance to federal

23 regulations or amendments to those regulations

24 implementing the following: Sections 3001, 3002, 3003,

25 3004, 3005, and 9003 of the Solid Waste Disposal Act;

26 Section 105 of the Comprehensive Environmental Response,

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1 Compensation, and Liability Act of 1980; Sections 307(b),

2 307(c), 307(d), 402(b)(8), and 402(b)(9) of the Federal

3 Water Pollution Control Act; Sections 1412(b), 1414(c),

4 1417(a), 1421, and 1445(a) of the Safe Drinking Water Act;

5 and Section 109 of the Clean Air Act.

6 (2) Rules adopted by the Pollution Control Board that

7 establish or amend standards for the emission of

8 hydrocarbons and carbon monoxide from gasoline powered

9 motor vehicles subject to inspection under the Vehicle

10 Emissions Inspection Law of 2005 or its predecessor laws.

11 (3) Procedural rules adopted by the Pollution Control

12 Board governing requests for exceptions under Section 14.2

13 of the Environmental Protection Act.

14 (4) The Pollution Control Board's grant, pursuant to an

15 adjudicatory determination, of an adjusted standard for

16 persons who can justify an adjustment consistent with

17 subsection (a) of Section 27 of the Environmental

18 Protection Act.

19 (4.5) The Pollution Control Board's adoption of

20 time-limited water quality standards under Section 38.5 of

21 the Environmental Protection Act.

22 (5) Rules adopted by the Pollution Control Board that

23 are identical in substance to the regulations adopted by

24 the Office of the State Fire Marshal under clause (ii) of

25 paragraph (b) of subsection (3) of Section 2 of the

26 Gasoline Storage Act.

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1 (d) Pay rates established under Section 8a of the Personnel

2 Code shall be amended or repealed pursuant to the process set

3 forth in Section 5-50 within 30 days after it becomes necessary

4 to do so due to a conflict between the rates and the terms of a

5 collective bargaining agreement covering the compensation of

6 an employee subject to that Code.

7 (e) Section 10-45 of this Act shall not apply to any

8 hearing, proceeding, or investigation conducted under Section

9 13-515 of the Public Utilities Act.

10 (f) Article 10 of this Act does not apply to any hearing,

11 proceeding, or investigation conducted by the State Council for

12 the State of Illinois created under Section 3-3-11.05 of the

13 Unified Code of Corrections or by the Interstate Commission for

14 Adult Offender Supervision created under the Interstate

15 Compact for Adult Offender Supervision or by the Interstate

16 Commission for Juveniles created under the Interstate Compact

17 for Juveniles.

18 (g) This Act is subject to the provisions of Article XXI of

19 the Public Utilities Act. To the extent that any provision of

20 this Act conflicts with the provisions of that Article XXI, the

21 provisions of that Article XXI control.

22 (Source: P.A. 99-937, eff. 2-24-17; 100-22, eff. 1-1-18.)

23 Section 10. The Freedom of Information Act is amended by

24 changing Section 7.5 as follows:

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1 (5 ILCS 140/7.5)

2 Sec. 7.5. Statutory exemptions. To the extent provided for

3 by the statutes referenced below, the following shall be exempt

4 from inspection and copying:

5 (a) All information determined to be confidential

6 under Section 4002 of the Technology Advancement and

7 Development Act.

8 (b) Library circulation and order records identifying

9 library users with specific materials under the Library

10 Records Confidentiality Act.

11 (c) Applications, related documents, and medical

12 records received by the Experimental Organ Transplantation

13 Procedures Board and any and all documents or other records

14 prepared by the Experimental Organ Transplantation

15 Procedures Board or its staff relating to applications it

16 has received.

17 (d) Information and records held by the Department of

18 Public Health and its authorized representatives relating

19 to known or suspected cases of sexually transmissible

20 disease or any information the disclosure of which is

21 restricted under the Illinois Sexually Transmissible

22 Disease Control Act.

23 (e) Information the disclosure of which is exempted

24 under Section 30 of the Radon Industry Licensing Act.

25 (f) Firm performance evaluations under Section 55 of

26 the Architectural, Engineering, and Land Surveying

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1 Qualifications Based Selection Act.

2 (g) Information the disclosure of which is restricted

3 and exempted under Section 50 of the Illinois Prepaid

4 Tuition Act.

5 (h) Information the disclosure of which is exempted

6 under the State Officials and Employees Ethics Act, and

7 records of any lawfully created State or local inspector

8 general's office that would be exempt if created or

9 obtained by an Executive Inspector General's office under

10 that Act.

11 (i) Information contained in a local emergency energy

12 plan submitted to a municipality in accordance with a local

13 emergency energy plan ordinance that is adopted under

14 Section 11-21.5-5 of the Illinois Municipal Code.

15 (j) Information and data concerning the distribution

16 of surcharge moneys collected and remitted by carriers

17 under the Emergency Telephone System Act.

18 (k) Law enforcement officer identification information

19 or driver identification information compiled by a law

20 enforcement agency or the Department of Transportation

21 under Section 11-212 of the Illinois Vehicle Code.

22 (l) Records and information provided to a residential

23 health care facility resident sexual assault and death

24 review team or the Executive Council under the Abuse

25 Prevention Review Team Act.

26 (m) Information provided to the predatory lending

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1 database created pursuant to Article 3 of the Residential

2 Real Property Disclosure Act, except to the extent

3 authorized under that Article.

4 (n) Defense budgets and petitions for certification of

5 compensation and expenses for court appointed trial

6 counsel as provided under Sections 10 and 15 of the Capital

7 Crimes Litigation Act. This subsection (n) shall apply

8 until the conclusion of the trial of the case, even if the

9 prosecution chooses not to pursue the death penalty prior

10 to trial or sentencing.

11 (o) Information that is prohibited from being

12 disclosed under Section 4 of the Illinois Health and

13 Hazardous Substances Registry Act.

14 (p) Security portions of system safety program plans,

15 investigation reports, surveys, schedules, lists, data, or

16 information compiled, collected, or prepared by or for the

17 Regional Transportation Authority under Section 2.11 of

18 the Regional Transportation Authority Act or the St. Clair

19 County Transit District under the Bi-State Transit Safety

20 Act.

21 (q) Information prohibited from being disclosed by the

22 Personnel Record ~~Records~~ Review Act.

23 (r) Information prohibited from being disclosed by the

24 Illinois School Student Records Act.

25 (s) Information the disclosure of which is restricted

26 under Section 5-108 of the Public Utilities Act.

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1 (t) All identified or deidentified health information

2 in the form of health data or medical records contained in,

3 stored in, submitted to, transferred by, or released from

4 the Illinois Health Information Exchange, and identified

5 or deidentified health information in the form of health

6 data and medical records of the Illinois Health Information

7 Exchange in the possession of the Illinois Health

8 Information Exchange Authority due to its administration

9 of the Illinois Health Information Exchange. The terms

10 "identified" and "deidentified" shall be given the same

11 meaning as in the Health Insurance Portability and

12 Accountability Act of 1996, Public Law 104-191, or any

13 subsequent amendments thereto, and any regulations

14 promulgated thereunder.

15 (u) Records and information provided to an independent

16 team of experts under the Developmental Disability and

17 Mental Health Safety Act (also known as Brian's Law).

18 (v) Names and information of people who have applied

19 for or received Firearm Owner's Identification Cards under

20 the Firearm Owners Identification Card Act or applied for

21 or received a concealed carry license under the Firearm

22 Concealed Carry Act, unless otherwise authorized by the

23 Firearm Concealed Carry Act; and databases under the

24 Firearm Concealed Carry Act, records of the Concealed Carry

25 Licensing Review Board under the Firearm Concealed Carry

26 Act, and law enforcement agency objections under the

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1 Firearm Concealed Carry Act.

2 (w) Personally identifiable information which is

3 exempted from disclosure under subsection (g) of Section

4 19.1 of the Toll Highway Act.

5 (x) Information which is exempted from disclosure

6 under Section 5-1014.3 of the Counties Code or Section

7 8-11-21 of the Illinois Municipal Code.

8 (y) Confidential information under the Adult

9 Protective Services Act and its predecessor enabling

10 statute, the Elder Abuse and Neglect Act, including

11 information about the identity and administrative finding

12 against any caregiver of a verified and substantiated

13 decision of abuse, neglect, or financial exploitation of an

14 eligible adult maintained in the Registry established

15 under Section 7.5 of the Adult Protective Services Act.

16 (z) Records and information provided to a fatality

17 review team or the Illinois Fatality Review Team Advisory

18 Council under Section 15 of the Adult Protective Services

19 Act.

20 (aa) Information which is exempted from disclosure

21 under Section 2.37 of the Wildlife Code.

22 (bb) Information which is or was prohibited from

23 disclosure by the Juvenile Court Act of 1987.

24 (cc) Recordings made under the Law Enforcement

25 Officer-Worn Body Camera Act, except to the extent

26 authorized under that Act.

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1 (dd) Information that is prohibited from being

2 disclosed under Section 45 of the Condominium and Common

3 Interest Community Ombudsperson Act.

4 (ee) Information that is exempted from disclosure

5 under Section 30.1 of the Pharmacy Practice Act.

6 (ff) (Blank). ~~Information that is exempted from~~

7 ~~disclosure under the Revised Uniform Unclaimed Property~~

8 ~~Act.~~

9 (gg) Information that is prohibited from being

10 disclosed under Section 7-603.5 of the Illinois Vehicle

11 Code.

12 (hh) Records that are exempt from disclosure under

13 Section 1A-16.7 of the Election Code.

14 (ii) Information which is exempted from disclosure

15 under Section 2505-800 of the Department of Revenue Law of

16 the Civil Administrative Code of Illinois.

17 (jj) Information and reports that are required to be

18 submitted to the Department of Labor by registering day and

19 temporary labor service agencies but are exempt from

20 disclosure under subsection (a-1) of Section 45 of the Day

21 and Temporary Labor Services Act.

22 (kk) Information prohibited from disclosure under the

23 Seizure and Forfeiture Reporting Act.

24 (ll) Information the disclosure of which is restricted

25 and exempted under Section 5-30.8 of the Illinois Public

26 Aid Code.

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1 (mm) ~~(ll)~~ Records that are exempt from disclosure under

2 Section 4.2 of the Crime Victims Compensation Act.

3 (nn) ~~(ll)~~ Information that is exempt from disclosure

4 under Section 70 of the Higher Education Student Assistance

5 Act.

6 (Source: P.A. 99-78, eff. 7-20-15; 99-298, eff. 8-6-15; 99-352,

7 eff. 1-1-16; 99-642, eff. 7-28-16; 99-776, eff. 8-12-16;

8 99-863, eff. 8-19-16; 100-20, eff. 7-1-17; 100-22, eff. 1-1-18;

9 100-201, eff. 8-18-17; 100-373, eff. 1-1-18; 100-464, eff.

10 8-28-17; 100-465, eff. 8-31-17; 100-512, eff. 7-1-18; 100-517,

11 eff. 6-1-18; 100-646, eff. 7-27-18; 100-690, eff. 1-1-19;

12 100-863, eff. 8-14-18; 100-887, eff. 8-14-18; revised

13 10-12-18.)

14 Section 15. The State Comptroller Act is amended by

15 changing Section 9 as follows:

16 (15 ILCS 405/9) (from Ch. 15, par. 209)

17 Sec. 9. Warrants; vouchers; preaudit.

18 (a) No payment may be made from public funds held by the

19 State Treasurer in or outside of the State treasury, except by

20 warrant drawn by the Comptroller and presented by him to the

21 treasurer to be countersigned except for payments made pursuant

22 to Section 9.03 or 9.05 of this Act.

23 (b) No warrant for the payment of money by the State

24 Treasurer may be drawn by the Comptroller without the

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1 presentation of itemized vouchers indicating that the

2 obligation or expenditure is pursuant to law and authorized,

3 and authorizing the Comptroller to order payment.

4 (b-1) An itemized voucher for under $5 that is presented to

5 the Comptroller for payment shall not be paid except through

6 electronic funds transfer. This subsection (b-1) does not apply

7 to (i) vouchers presented by the legislative branch of State

8 government, (ii) vouchers presented by the State Treasurer's

9 Office for the payment of unclaimed property claims authorized

10 under the ~~Revised~~ Uniform Disposition of Unclaimed Property

11 Act, or (iii) vouchers presented by the Department of Revenue

12 for the payment of refunds of taxes administered by the

13 Department.

14 (c) The Comptroller shall examine each voucher required by

15 law to be filed with him and determine whether unencumbered

16 appropriations or unencumbered obligational or expenditure

17 authority other than by appropriation are legally available to

18 incur the obligation or to make the expenditure of public

19 funds. If he determines that unencumbered appropriations or

20 other obligational or expenditure authority are not available

21 from which to incur the obligation or make the expenditure, the

22 Comptroller shall refuse to draw a warrant.

23 (d) The Comptroller shall examine each voucher and all

24 other documentation required to accompany the voucher, and

25 shall ascertain whether the voucher and documentation meet all

26 requirements established by or pursuant to law. If the

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1 Comptroller determines that the voucher and documentation do

2 not meet applicable requirements established by or pursuant to

3 law, he shall refuse to draw a warrant. As used in this

4 Section, "requirements established by or pursuant to law"

5 includes statutory enactments and requirements established by

6 rules and regulations adopted pursuant to this Act.

7 (e) Prior to drawing a warrant, the Comptroller may review

8 the voucher, any documentation accompanying the voucher, and

9 any other documentation related to the transaction on file with

10 him, and determine if the transaction is in accordance with the

11 law. If based on his review the Comptroller has reason to

12 believe that such transaction is not in accordance with the

13 law, he shall refuse to draw a warrant.

14 (f) Where the Comptroller refuses to draw a warrant

15 pursuant to this Section, he shall maintain separate records of

16 such transactions.

17 (g) State agencies shall have the principal responsibility

18 for the preaudit of their encumbrances, expenditures, and other

19 transactions as otherwise required by law.

20 (Source: P.A. 100-22, eff. 1-1-18.)

21 Section 20. The State Treasurer Act is amended by changing

22 Sections 0.02, 0.03, 0.04, 0.05, and 0.06 as follows:

23 (15 ILCS 505/0.02)

24 Sec. 0.02. Transfer of powers. The rights, powers, duties,

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1 and functions vested in the Department of Financial

2 Institutions to administer the Uniform Disposition of

3 Unclaimed Property Act~~(superseded by the Revised Uniform~~

4 ~~Unclaimed Property Act)~~ are transferred to the State Treasurer

5 on July 1, 1999; provided, however, that the rights, powers,

6 duties, and functions involving the examination of the records

7 of any person that the State Treasurer has reason to believe

8 has failed to report properly under this Act shall be

9 transferred to the Office of Banks and Real Estate if the

10 person is regulated by the Office of Banks and Real Estate

11 under the Illinois Banking Act, the Corporate Fiduciary Act,

12 the Foreign Banking Office Act, the Illinois Savings and Loan

13 Act of 1985, or the Savings Bank Act and shall be retained by

14 the Department of Financial Institutions if the person is doing

15 business in the State under the supervision of the Department

16 of Financial Institutions, the National Credit Union

17 Administration, the Office of Thrift Supervision, or the

18 Comptroller of the Currency.

19 (Source: P.A. 100-22, eff. 1-1-18.)

20 (15 ILCS 505/0.03)

21 Sec. 0.03. Transfer of personnel.

22 (a) Except as provided in subsection (b), personnel

23 employed by the Department of Financial Institutions on June

24 30, 1999 to perform duties pertaining to the administration of

25 the Uniform Disposition of Unclaimed Property Act~~(superseded~~

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1 ~~by the Revised Uniform Unclaimed Property Act)~~ are transferred

2 to the State Treasurer on July 1, 1999.

3 (b) In the case of a person employed by the Department of

4 Financial Institutions to perform both duties pertaining to the

5 administration of the Uniform Disposition of Unclaimed

6 Property Act ~~(superseded by the Revised Uniform Unclaimed~~

7 ~~Property Act)~~and duties pertaining to a function retained by

8 the Department of Financial Institutions, the State Treasurer,

9 in consultation with the Director of Financial Institutions,

10 shall determine whether to transfer the employee to the Office

11 of the State Treasurer; until this determination has been made,

12 the transfer shall not take effect.

13 (c) The rights of State employees, the State, and its

14 agencies under the Personnel Code and applicable collective

15 bargaining agreements and retirement plans are not affected by

16 this amendatory Act of 1999, except that all positions

17 transferred to the State Treasurer shall be subject to the

18 State Treasurer Employment Code effective July 1, 2000.

19 All transferred employees who are members of collective

20 bargaining units shall retain their seniority, continuous

21 service, salary, and accrued benefits. During the pendency of

22 the existing collective bargaining agreement, the rights

23 provided for under that agreement and memoranda and supplements

24 to that agreement, including but not limited to, the rights of

25 employees performing duties pertaining to the administration

26 of the Uniform Disposition of Unclaimed Property Act

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1 ~~(superseded by the Revised Uniform Unclaimed Property Act)~~ to

2 positions in other State agencies and the right of employees in

3 other State agencies covered by the agreement to positions

4 performing duties pertaining to the administration of the

5 Uniform Disposition of Unclaimed Property Act ~~(superseded by~~

6 ~~the Revised Uniform Unclaimed Property Act)~~, shall not be

7 abridged.

8 The State Treasurer shall continue to honor during their

9 pendency all bargaining agreements in effect at the time of the

10 transfer and to recognize all collective bargaining

11 representatives for the employees who perform or will perform

12 functions transferred by this amendatory Act of 1999. For all

13 purposes with respect to the management of the existing

14 agreement and the negotiation and management of any successor

15 agreements, the State Treasurer shall be deemed to be the

16 employer of employees who perform or will perform functions

17 transferred to the Office of the State Treasurer by this

18 amendatory Act of 1999; provided that the Illinois Department

19 of Central Management Services shall be a party to any

20 grievance or arbitration proceeding held pursuant to the

21 provisions of the collective bargaining agreement which

22 involves the movement of employees from the Office of the State

23 Treasurer to an agency under the jurisdiction of the Governor

24 covered by the agreement.

25 (Source: P.A. 100-22, eff. 1-1-18.)

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1 (15 ILCS 505/0.04)

2 Sec. 0.04. Transfer of property.

3 (a) Except as provided in subsection (b), all real and

4 personal property, including but not limited to all books,

5 records, and documents, and all unexpended appropriations and

6 pending business pertaining to the administration of the

7 Uniform Disposition of Unclaimed Property Act~~(superseded by~~

8 ~~the Revised Uniform Unclaimed Property Act)~~ shall be

9 transferred and delivered to the State Treasurer effective July

10 1, 1999.

11 (b) In the case of books, records, or documents that

12 pertain both to the administration of the Uniform Disposition

13 of Unclaimed Property Act ~~(superseded by the Revised Uniform~~

14 ~~Unclaimed Property Act)~~and to a function retained by the

15 Department of Financial Institutions, the State Treasurer, in

16 consultation with the Director of Financial Institutions,

17 shall determine whether the books, records, or documents shall

18 be transferred, copied, or left with the Department of

19 Financial Institutions; until this determination has been

20 made, the transfer shall not take effect.

21 In the case of property or an unexpended appropriation that

22 pertains both to the administration of the Uniform Disposition

23 of Unclaimed Property Act ~~(superseded by the Revised Uniform~~

24 ~~Unclaimed Property Act)~~and to a function retained by the

25 Department of Financial Institutions, the State Treasurer, in

26 consultation with the Director of Financial Institutions,

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1 shall determine whether the property or unexpended

2 appropriation shall be transferred, divided, or left with the

3 Department of Financial Institutions; until this determination

4 has been made (and, in the case of an unexpended appropriation,

5 notice of the determination has been filed with the State

6 Comptroller), the transfer shall not take effect.

7 (Source: P.A. 100-22, eff. 1-1-18.)

8 (15 ILCS 505/0.05)

9 Sec. 0.05. Rules and standards.

10 (a) The rules and standards of the Department of Financial

11 Institutions that are in effect on June 30, 1999 and pertain to

12 the administration of the Uniform Disposition of Unclaimed

13 Property Act ~~(superseded by the Revised Uniform Unclaimed~~

14 ~~Property Act)~~shall become the rules and standards of the State

15 Treasurer on July 1, 1999 and shall continue in effect until

16 amended or repealed by the State Treasurer.

17 (b) Any rules pertaining to the administration of the

18 Uniform Disposition of Unclaimed Property Act~~(superseded by~~

19 ~~the Revised Uniform Unclaimed Property Act)~~ that have been

20 proposed by the Department of Financial Institutions but have

21 not taken effect or been finally adopted by June 30, 1999 shall

22 become proposed rules of the State Treasurer on July 1, 1999,

23 and any rulemaking procedures that have already been completed

24 by the Department of Financial Institutions need not be

25 repeated.

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1 (c) As soon as practical after July 1, 1999, the State

2 Treasurer shall revise and clarify the rules transferred to it

3 under this amendatory Act of 1999 to reflect the reorganization

4 of rights, powers, duties, and functions effected by this

5 amendatory Act of 1999 using the procedures for recodification

6 of rules available under the Illinois Administrative Procedure

7 Act, except that existing title, part, and section numbering

8 for the affected rules may be retained.

9 (d) As soon as practical after July 1, 1999, the Office of

10 Banks and Real Estate and the Office of the State Treasurer

11 shall jointly promulgate rules to reflect the transfer of

12 examination functions to the Office of Banks and Real Estate

13 under this amendatory Act of 1999 using the procedures

14 available under the Illinois Administrative Procedure Act.

15 (e) As soon as practical after July 1, 1999, the Department

16 of Financial Institutions and the Office of the State Treasurer

17 shall jointly promulgate rules to reflect the retention of

18 examination functions by the Department of Financial

19 Institutions under this amendatory Act of 1999 using the

20 procedures available under the Illinois Administrative

21 Procedure Act.

22 (Source: P.A. 100-22, eff. 1-1-18.)

23 (15 ILCS 505/0.06)

24 Sec. 0.06. Savings provisions.

25 (a) The rights, powers, duties, and functions transferred

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1 to the State Treasurer or the Commissioner of Banks and Real

2 Estate by this amendatory Act of 1999 shall be vested in and

3 exercised by the State Treasurer or the Commissioner of Banks

4 and Real Estate subject to the provisions of this amendatory

5 Act of 1999. An act done by the State Treasurer or the

6 Commissioner of Banks and Real Estate or an officer, employee,

7 or agent of the State Treasurer or the Commissioner of Banks

8 and Real Estate in the exercise of the transferred rights,

9 powers, duties, or functions shall have the same legal effect

10 as if done by the Department of Financial Institutions or an

11 officer, employee, or agent of the Department of Financial

12 Institutions prior to the effective date of this amendatory Act

13 of 1999.

14 (b) The transfer of rights, powers, duties, and functions

15 to the State Treasurer or the Commissioner of Banks and Real

16 Estate under this amendatory Act of 1999 does not invalidate

17 any previous action taken by or in respect to the Department of

18 Financial Institutions or its officers, employees, or agents.

19 References to the Department of Financial Institutions or its

20 officers, employees or agents in any document, contract,

21 agreement, or law shall, in appropriate contexts, be deemed to

22 refer to the State Treasurer or the Commissioner of Banks and

23 Real Estate or the officers, employees, or agents of the State

24 Treasurer or the Commissioner of Banks and Real Estate.

25 (c) The transfer of rights, powers, duties, and functions

26 from the Department of Financial Institutions to the State

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1 Treasurer or the Commissioner of Banks and Real Estate under

2 this amendatory Act of 1999 does not affect the rights,

3 obligations, or duties of any other person or entity, including

4 any civil or criminal penalties applicable thereto, arising out

5 of those transferred rights, powers, duties, and functions.

6 (d) With respect to matters that pertain to a right, power,

7 duty, or function transferred to the State Treasurer under this

8 amendatory Act of 1999:

9 (1) Beginning July 1, 1999, any report or notice that

10 was previously required to be made or given by any person

11 to the Department of Financial Institutions or any of its

12 officers, employees, or agents under the Uniform

13 Disposition of Unclaimed Property Act ~~(superseded by the~~

14 ~~Revised Uniform Unclaimed Property Act)~~ or rules

15 promulgated pursuant to that Act shall be made or given in

16 the same manner to the State Treasurer or his or her

17 appropriate officer, employee, or agent.

18 (2) Beginning July 1, 1999, any document that was

19 previously required to be furnished or served by any person

20 to or upon the Department of Financial Institutions or any

21 of its officers, employees, or agents under the Uniform

22 Disposition of Unclaimed Property Act ~~(superseded by the~~

23 ~~Revised Uniform Unclaimed Property Act)~~ or rules

24 promulgated pursuant to that Act shall be furnished or

25 served in the same manner to or upon the State Treasurer or

26 his or her appropriate officer, employee, or agent.

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1 (e) This amendatory Act of 1999 does not affect any act

2 done, ratified, or canceled, any right occurring or

3 established, or any action or proceeding had or commenced in an

4 administrative, civil, or criminal cause before July 1, 1999.

5 Any such action or proceeding that pertains to the Uniform

6 Disposition of Unclaimed Property Act~~(superseded by the~~

7 ~~Revised Uniform Unclaimed Property Act)~~ or rules promulgated

8 pursuant to that Act and that is pending on that date may be

9 prosecuted, defended, or continued by the State Treasurer.

10 (Source: P.A. 100-22, eff. 1-1-18.)

11 Section 25. The Financial Institutions Code is amended by

12 changing Sections 7 and 18.1 as follows:

13 (20 ILCS 1205/7) (from Ch. 17, par. 108)

14 Sec. 7. The provisions of "The Illinois Administrative

15 Procedure Act", as now or hereafter amended, are hereby

16 expressly adopted and incorporated herein as though a part of

17 this Act, and shall apply to all administrative rules and

18 procedures of the Director and the Department of Financial

19 Institutions under this Act, except that the provisions of the

20 Administrative Procedure Act regarding contested cases shall

21 not apply to actions of the Director under Section 15.1 of "An

22 Act in relation to the definition, licensing and regulation of

23 community currency exchanges and ambulatory currency

24 exchanges, and the operators and employees thereof, and to make

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1 an appropriation therefor, and to provide penalties and

2 remedies for the violation thereof", approved June 30, 1943, as

3 amended, or Sections 8 and 61 of ~~"~~The Illinois Credit Union

4 Act, or to hearings under Section 20 of the Uniform Disposition

5 of Unclaimed Property Act ~~"~~.

6 (Source: P.A. 100-22, eff. 1-1-18.)

7 (20 ILCS 1205/18.1)

8 Sec. 18.1. Transfer of administration of Uniform

9 Disposition of Unclaimed Property Act to State Treasurer.The

10 rights, powers, duties, and functions vested in the Department

11 of Financial Institutions to administer the Uniform

12 Disposition of Unclaimed Property Act ~~(superseded by the~~

13 ~~Revised Uniform Unclaimed Property Act)~~ are transferred to the

14 State Treasurer on July 1, 1999 in accordance with Sections

15 0.02 through 0.06 of the State Treasurer Act; provided,

16 however, that the rights, powers, duties, and functions

17 involving the examination of the records of any person that the

18 State Treasurer has reason to believe has failed to report

19 properly under this Act shall be transferred to the Office of

20 Banks and Real Estate if the person is regulated by the Office

21 of Banks and Real Estate under the Illinois Banking Act, the

22 Corporate Fiduciary Act, the Foreign Banking Office Act, the

23 Illinois Savings and Loan Act of 1985, or the Savings Bank Act

24 and shall be retained by the Department of Financial

25 Institutions if the person is doing business in the State under

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1 the supervision of the Department of Financial Institutions,

2 the National Credit Union Administration, the Office of Thrift

3 Supervision, or the Comptroller of the Currency.

4 (Source: P.A. 100-22, eff. 1-1-18.)

5 Section 30. The State Finance Act is amended by changing

6 Sections 6b-1 and 8.12 as follows:

7 (30 ILCS 105/6b-1) (from Ch. 127, par. 142b1)

8 Sec. 6b-1. There shall be paid into the State Pensions Fund

9 the funds and proceeds from the sale of abandoned property as

10 provided inSection 18 of the Uniform Disposition of Unclaimed

11 Property Act, enacted by the Seventy-second General Assembly

12 ~~the Revised Uniform Unclaimed Property Act~~.

13 (Source: P.A. 100-22, eff. 1-1-18.)

14 (30 ILCS 105/8.12) (from Ch. 127, par. 144.12)

15 Sec. 8.12. State Pensions Fund.

16 (a) The moneys in the State Pensions Fund shall be used

17 exclusively for the administration of the~~Revised~~ Uniform

18 Disposition ofUnclaimed Property Act and for the expenses

19 incurred by the Auditor General for administering the

20 provisions of Section 2-8.1 of the Illinois State Auditing Act

21 ~~and for operational expenses of the Office of the State~~

22 ~~Treasurer~~ and for the funding of the unfunded liabilities of

23 the designated retirement systems. Beginning in State fiscal

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1 year 2020, payments to the designated retirement systems under

2 this Section shall be in addition to, and not in lieu of, any

3 State contributions required under the Illinois Pension Code.

4 "Designated retirement systems" means:

5 (1) the State Employees' Retirement System of

6 Illinois;

7 (2) the Teachers' Retirement System of the State of

8 Illinois;

9 (3) the State Universities Retirement System;

10 (4) the Judges Retirement System of Illinois; and

11 (5) the General Assembly Retirement System.

12 (b) Each year the General Assembly may make appropriations

13 from the State Pensions Fund for the administration of the

14 ~~Revised~~UniformDisposition of Unclaimed Property Act.

15 Each month, the Commissioner of the Office of Banks and

16 Real Estate shall certify to the State Treasurer the actual

17 expenditures that the Office of Banks and Real Estate incurred

18 conducting unclaimed property examinations under the Uniform

19 Disposition of Unclaimed Property Act during the immediately

20 preceding month. Within a reasonable time following the

21 acceptance of such certification by the State Treasurer, the

22 State Treasurer shall pay from its appropriation from the State

23 Pensions Fund to the Bank and Trust Company Fund, the Savings

24 Bank Regulatory Fund, and the Residential Finance Regulatory

25 Fund an amount equal to the expenditures incurred by each Fund

26 for that month.

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1 Each month, the Director of Financial Institutions shall

2 certify to the State Treasurer the actual expenditures that the

3 Department of Financial Institutions incurred conducting

4 unclaimed property examinations under the Uniform Disposition

5 of Unclaimed Property Act during the immediately preceding

6 month. Within a reasonable time following the acceptance of

7 such certification by the State Treasurer, the State Treasurer

8 shall pay from its appropriation from the State Pensions Fund

9 to the Financial Institution Fund and the Credit Union Fund an

10 amount equal to the expenditures incurred by each Fund for that

11 month.

12 (c) As soon as possible after July 30, 2004 (the effective

13 date of Public Act 93-839), the General Assembly shall

14 appropriate from the State Pensions Fund (1) to the State

15 Universities Retirement System the amount certified under

16 Section 15-165 during the prior year, (2) to the Judges

17 Retirement System of Illinois the amount certified under

18 Section 18-140 during the prior year, and (3) to the General

19 Assembly Retirement System the amount certified under Section

20 2-134 during the prior year as part of the required State

21 contributions to each of those designated retirement systems;

22 except that amounts appropriated under this subsection (c) in

23 State fiscal year 2005 shall not reduce the amount in the State

24 Pensions Fund below $5,000,000. If the amount in the State

25 Pensions Fund does not exceed the sum of the amounts certified

26 in Sections 15-165, 18-140, and 2-134 by at least $5,000,000,

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1 the amount paid to each designated retirement system under this

2 subsection shall be reduced in proportion to the amount

3 certified by each of those designated retirement systems.

4 (c-5) For fiscal years 2006 through 2019, the General

5 Assembly shall appropriate from the State Pensions Fund to the

6 State Universities Retirement System the amount estimated to be

7 available during the fiscal year in the State Pensions Fund;

8 provided, however, that the amounts appropriated under this

9 subsection (c-5) shall not reduce the amount in the State

10 Pensions Fund below $5,000,000.

11 (c-6) For fiscal year 2020 and each fiscal year thereafter,

12 as soon as may be practical after any money is deposited into

13 the State Pensions Fund from the Unclaimed Property Trust Fund,

14 the State Treasurer shall apportion the deposited amount among

15 the designated retirement systems as defined in subsection (a)

16 to reduce their actuarial reserve deficiencies. The State

17 Comptroller and State Treasurer shall pay the apportioned

18 amounts to the designated retirement systems to fund the

19 unfunded liabilities of the designated retirement systems. The

20 amount apportioned to each designated retirement system shall

21 constitute a portion of the amount estimated to be available

22 for appropriation from the State Pensions Fund that is the same

23 as that retirement system's portion of the total actual reserve

24 deficiency of the systems, as determined annually by the

25 Governor's Office of Management and Budget at the request of

26 the State Treasurer. The amounts apportioned under this

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1 subsection shall not reduce the amount in the State Pensions

2 Fund below $5,000,000.

3 (d) The Governor's Office of Management and Budget shall

4 determine the individual and total reserve deficiencies of the

5 designated retirement systems. For this purpose, the

6 Governor's Office of Management and Budget shall utilize the

7 latest available audit and actuarial reports of each of the

8 retirement systems and the relevant reports and statistics of

9 the Public Employee Pension Fund Division of the Department of

10 Insurance.

11 (d-1) As soon as practicable after March 5, 2004 (the

12 effective date of Public Act 93-665), the Comptroller shall

13 direct and the Treasurer shall transfer from the State Pensions

14 Fund to the General Revenue Fund, as funds become available, a

15 sum equal to the amounts that would have been paid from the

16 State Pensions Fund to the Teachers' Retirement System of the

17 State of Illinois, the State Universities Retirement System,

18 the Judges Retirement System of Illinois, the General Assembly

19 Retirement System, and the State Employees' Retirement System

20 of Illinois after March 5, 2004 (the effective date of Public

21 Act 93-665) during the remainder of fiscal year 2004 to the

22 designated retirement systems from the appropriations provided

23 for in this Section if the transfers provided in Section 6z-61

24 had not occurred. The transfers described in this subsection

25 (d-1) are to partially repay the General Revenue Fund for the

26 costs associated with the bonds used to fund the moneys

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1 transferred to the designated retirement systems under Section

2 6z-61.

3 (e) The changes to this Section made by Public Act 88-593

4 shall first apply to distributions from the Fund for State

5 fiscal year 1996.

6 (Source: P.A. 99-8, eff. 7-9-15; 99-78, eff. 7-20-15; 99-523,

7 eff. 6-30-16; 100-22, eff. 1-1-18; 100-23, eff. 7-6-17;

8 100-587, eff. 6-4-18; 100-863, eff. 8-14-18.)

9 Section 35. The State Officers and Employees Money

10 Disposition Act is amended by changing Section 2 as follows:

11 (30 ILCS 230/2) (from Ch. 127, par. 171)

12 Sec. 2. Accounts of money received; payment into State

13 treasury.

14 (a) Every officer, board, commission, commissioner,

15 department, institution, arm or agency brought within the

16 provisions of this Act by Section 1 shall keep in proper books

17 a detailed itemized account of all moneys received for or on

18 behalf of the State of Illinois, showing the date of receipt,

19 the payor, and purpose and amount, and the date and manner of

20 disbursement as hereinafter provided, and, unless a different

21 time of payment is expressly provided by law or by rules or

22 regulations promulgated under subsection (b) of this Section,

23 shall pay into the State treasury the gross amount of money so

24 received on the day of actual physical receipt with respect to

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1 any single item of receipt exceeding $10,000, within 24 hours

2 of actual physical receipt with respect to an accumulation of

3 receipts of $10,000 or more, or within 48 hours of actual

4 physical receipt with respect to an accumulation of receipts

5 exceeding $500 but less than $10,000, disregarding holidays,

6 Saturdays and Sundays, after the receipt of same, without any

7 deduction on account of salaries, fees, costs, charges,

8 expenses or claims of any description whatever; provided that:

9 (1) the provisions of (i) Section 2505-475 of the

10 Department of Revenue Law (20 ILCS 2505/2505-475), (ii) any

11 specific taxing statute authorizing a claim for credit

12 procedure instead of the actual making of refunds, (iii)

13 Section 505 of the Illinois Controlled Substances Act, (iv)

14 Section 85 of the Methamphetamine Control and Community

15 Protection Act, authorizing the Director of State Police to

16 dispose of forfeited property, which includes the sale and

17 disposition of the proceeds of the sale of forfeited

18 property, and the Department of Central Management

19 Services to be reimbursed for costs incurred with the sales

20 of forfeited vehicles, boats or aircraft and to pay to bona

21 fide or innocent purchasers, conditional sales vendors or

22 mortgagees of such vehicles, boats or aircraft their

23 interest in such vehicles, boats or aircraft, and (v)

24 Section 6b-2 of the State Finance Act, establishing

25 procedures for handling cash receipts from the sale of

26 pari-mutuel wagering tickets, shall not be deemed to be in

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1 conflict with the requirements of this Section;

2 (2) any fees received by the State Registrar of Vital

3 Records pursuant to the Vital Records Act which are

4 insufficient in amount may be returned by the Registrar as

5 provided in that Act;

6 (3) any fees received by the Department of Public

7 Health under the Food Handling Regulation Enforcement Act

8 that are submitted for renewal of an expired food service

9 sanitation manager certificate may be returned by the

10 Director as provided in that Act;

11 (3.5) the State Treasurer may permit the deduction of

12 fees by third-party unclaimed property examiners from the

13 property recovered by the examiners for the State of

14 Illinois during examinations of holders located outside

15 the State under which the Office of the Treasurer has

16 agreed to pay for the examinations based upon a percentage,

17 set by rule by the State Treasurerin accordance with the

18 Illinois Administrative Procedure ~~Revised Uniform~~

19 ~~Unclaimed Property~~Act, of the property recovered during

20 the examination; and

21 (4) if the amount of money received does not exceed

22 $500, such money may be retained and need not be paid into

23 the State treasury until the total amount of money so

24 received exceeds $500, or until the next succeeding 1st or

25 15th day of each month (or until the next business day if

26 these days fall on Sunday or a holiday), whichever is

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1 earlier, at which earlier time such money shall be paid

2 into the State treasury, except that if a local bank or

3 savings and loan association account has been authorized by

4 law, any balances shall be paid into the State treasury on

5 Monday of each week if more than $500 is to be deposited in

6 any fund.

7 Single items of receipt exceeding $10,000 received after 2 p.m.

8 on a working day may be deemed to have been received on the

9 next working day for purposes of fulfilling the requirement

10 that the item be deposited on the day of actual physical

11 receipt.

12 No money belonging to or left for the use of the State

13 shall be expended or applied except in consequence of an

14 appropriation made by law and upon the warrant of the State

15 Comptroller. However, payments made by the Comptroller to

16 persons by direct deposit need not be made upon the warrant of

17 the Comptroller, but if not made upon a warrant, shall be made

18 in accordance with Section 9.02 of the State Comptroller Act.

19 All moneys so paid into the State treasury shall, unless

20 required by some statute to be held in the State treasury in a

21 separate or special fund, be covered into the General Revenue

22 Fund in the State treasury. Moneys received in the form of

23 checks, drafts or similar instruments shall be properly

24 endorsed, if necessary, and delivered to the State Treasurer

25 for collection. The State Treasurer shall remit such collected

26 funds to the depositing officer, board, commission,

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1 commissioner, department, institution, arm or agency by

2 Treasurers Draft or through electronic funds transfer. The

3 draft or notification of the electronic funds transfer shall be

4 provided to the State Comptroller to allow deposit into the

5 appropriate fund.

6 (b) Different time periods for the payment of public funds

7 into the State treasury or to the State Treasurer, in excess of

8 the periods established in subsection (a) of this Section, but

9 not in excess of 30 days after receipt of such funds, may be

10 established and revised from time to time by rules or

11 regulations promulgated jointly by the State Treasurer and the

12 State Comptroller in accordance with the Illinois

13 Administrative Procedure Act. The different time periods

14 established by rule or regulation under this subsection may

15 vary according to the nature and amounts of the funds received,

16 the locations at which the funds are received, whether

17 compliance with the deposit requirements specified in

18 subsection (a) of this Section would be cost effective, and

19 such other circumstances and conditions as the promulgating

20 authorities consider to be appropriate. The Treasurer and the

21 Comptroller shall review all such different time periods

22 established pursuant to this subsection every 2 years from the

23 establishment thereof and upon such review, unless it is

24 determined that it is economically unfeasible for the agency to

25 comply with the provisions of subsection (a), shall repeal such

26 different time period.

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1 (Source: P.A. 100-22, eff. 1-1-18.)

2 (35 ILCS 5/225 rep.)

3 Section 40. The Illinois Income Tax Act is amended by

4 repealing Section 225.

5 Section 45. The Counties Code is amended by changing

6 Section 3-3034 as follows:

7 (55 ILCS 5/3-3034) (from Ch. 34, par. 3-3034)

8 Sec. 3-3034. Disposition of body. After the inquest the

9 coroner may deliver the body or human remains of the deceased

10 to the family of the deceased or, if there are no family

11 members to accept the body or the remains, then to friends of

12 the deceased, if there be any, but if not, the coroner shall

13 cause the body or the remains to be decently buried, cremated,

14 or donated for medical science purposes, the expenses to be

15 paid from the property of the deceased, if there is sufficient,

16 if not, by the county. The coroner may not approve the

17 cremation or donation of the body if it is necessary to

18 preserve the body for law enforcement purposes. If the State

19 Treasurer, pursuant to the ~~Revised~~ Uniform Disposition of

20 Unclaimed Property Act, delivers human remains to the coroner,

21 the coroner shall cause the human remains to be disposed of as

22 provided in this Section. If the police department of any

23 municipality or county investigates abandoned cremated

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1 remains, determines that they are human remains, and cannot

2 locate the owner of the remains, then the police shall deliver

3 the remains to the coroner, and the coroner shall cause the

4 remains to be disposed of as provided in this Section.

5 (Source: P.A. 100-22, eff. 1-1-18.)

6 Section 50. The Illinois Banking Act is amended by changing

7 Sections 48, 48.1, 48.3, and 65 as follows:

8 (205 ILCS 5/48)

9 Sec. 48. Secretary's powers; duties. The Secretary shall

10 have the powers and authority, and is charged with the duties

11 and responsibilities designated in this Act, and a State bank

12 shall not be subject to any other visitorial power other than

13 as authorized by this Act, except those vested in the courts,

14 or upon prior consultation with the Secretary, a foreign bank

15 regulator with an appropriate supervisory interest in the

16 parent or affiliate of a state bank. In the performance of the

17 Secretary's duties:

18 (1) The Commissioner shall call for statements from all

19 State banks as provided in Section 47 at least one time

20 during each calendar quarter.

21 (2) (a) The Commissioner, as often as the Commissioner

22 shall deem necessary or proper, and no less frequently than

23 18 months following the preceding examination, shall

24 appoint a suitable person or persons to make an examination

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1 of the affairs of every State bank, except that for every

2 eligible State bank, as defined by regulation, the

3 Commissioner in lieu of the examination may accept on an

4 alternating basis the examination made by the eligible

5 State bank's appropriate federal banking agency pursuant

6 to Section 111 of the Federal Deposit Insurance Corporation

7 Improvement Act of 1991, provided the appropriate federal

8 banking agency has made such an examination. A person so

9 appointed shall not be a stockholder or officer or employee

10 of any bank which that person may be directed to examine,

11 and shall have powers to make a thorough examination into

12 all the affairs of the bank and in so doing to examine any

13 of the officers or agents or employees thereof on oath and

14 shall make a full and detailed report of the condition of

15 the bank to the Commissioner. In making the examination the

16 examiners shall include an examination of the affairs of

17 all the affiliates of the bank, as defined in subsection

18 (b) of Section 35.2 of this Act, or subsidiaries of the

19 bank as shall be necessary to disclose fully the conditions

20 of the subsidiaries or affiliates, the relations between

21 the bank and the subsidiaries or affiliates and the effect

22 of those relations upon the affairs of the bank, and in

23 connection therewith shall have power to examine any of the

24 officers, directors, agents, or employees of the

25 subsidiaries or affiliates on oath. After May 31, 1997, the

26 Commissioner may enter into cooperative agreements with

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1 state regulatory authorities of other states to provide for

2 examination of State bank branches in those states, and the

3 Commissioner may accept reports of examinations of State

4 bank branches from those state regulatory authorities.

5 These cooperative agreements may set forth the manner in

6 which the other state regulatory authorities may be

7 compensated for examinations prepared for and submitted to

8 the Commissioner.

9 (b) After May 31, 1997, the Commissioner is authorized

10 to examine, as often as the Commissioner shall deem

11 necessary or proper, branches of out-of-state banks. The

12 Commissioner may establish and may assess fees to be paid

13 to the Commissioner for examinations under this subsection

14 (b). The fees shall be borne by the out-of-state bank,

15 unless the fees are borne by the state regulatory authority

16 that chartered the out-of-state bank, as determined by a

17 cooperative agreement between the Commissioner and the

18 state regulatory authority that chartered the out-of-state

19 bank.

20 (2.1) Pursuant to paragraph (a) of subsection (6) of

21 this Section, the Secretary shall adopt rules that ensure

22 consistency and due process in the examination process. The

23 Secretary may also establish guidelines that (i) define the

24 scope of the examination process and (ii) clarify

25 examination items to be resolved. The rules, formal

26 guidance, interpretive letters, or opinions furnished to

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1 State banks by the Secretary may be relied upon by the

2 State banks.

3 (2.5) Whenever any State bank, any subsidiary or

4 affiliate of a State bank, or after May 31, 1997, any

5 branch of an out-of-state bank causes to be performed, by

6 contract or otherwise, any bank services for itself,

7 whether on or off its premises:

8 (a) that performance shall be subject to

9 examination by the Commissioner to the same extent as

10 if services were being performed by the bank or, after

11 May 31, 1997, branch of the out-of-state bank itself on

12 its own premises; and

13 (b) the bank or, after May 31, 1997, branch of the

14 out-of-state bank shall notify the Commissioner of the

15 existence of a service relationship. The notification

16 shall be submitted with the first statement of

17 condition (as required by Section 47 of this Act) due

18 after the making of the service contract or the

19 performance of the service, whichever occurs first.

20 The Commissioner shall be notified of each subsequent

21 contract in the same manner.

22 For purposes of this subsection (2.5), the term "bank

23 services" means services such as sorting and posting of

24 checks and deposits, computation and posting of interest

25 and other credits and charges, preparation and mailing of

26 checks, statements, notices, and similar items, or any

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1 other clerical, bookkeeping, accounting, statistical, or

2 similar functions performed for a State bank, including but

3 not limited to electronic data processing related to those

4 bank services.

5 (3) The expense of administering this Act, including

6 the expense of the examinations of State banks as provided

7 in this Act, shall to the extent of the amounts resulting

8 from the fees provided for in paragraphs (a), (a-2), and

9 (b) of this subsection (3) be assessed against and borne by

10 the State banks:

11 (a) Each bank shall pay to the Secretary a Call

12 Report Fee which shall be paid in quarterly

13 installments equal to one-fourth of the sum of the

14 annual fixed fee of $800, plus a variable fee based on

15 the assets shown on the quarterly statement of

16 condition delivered to the Secretary in accordance

17 with Section 47 for the preceding quarter according to

18 the following schedule: 16� per $1,000 of the first

19 $5,000,000 of total assets, 15� per $1,000 of the next

20 $20,000,000 of total assets, 13� per $1,000 of the next

21 $75,000,000 of total assets, 9� per $1,000 of the next

22 $400,000,000 of total assets, 7� per $1,000 of the next

23 $500,000,000 of total assets, and 5� per $1,000 of all

24 assets in excess of $1,000,000,000, of the State bank.

25 The Call Report Fee shall be calculated by the

26 Secretary and billed to the banks for remittance at the

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1 time of the quarterly statements of condition provided

2 for in Section 47. The Secretary may require payment of

3 the fees provided in this Section by an electronic

4 transfer of funds or an automatic debit of an account

5 of each of the State banks. In case more than one

6 examination of any bank is deemed by the Secretary to

7 be necessary in any examination frequency cycle

8 specified in subsection 2(a) of this Section, and is

9 performed at his direction, the Secretary may assess a

10 reasonable additional fee to recover the cost of the

11 additional examination; provided, however, that an

12 examination conducted at the request of the State

13 Treasurer pursuant to the Uniform Disposition of

14 Unclaimed Property Act shall not be deemed to be an

15 additional examination under this Section. In lieu of

16 the method and amounts set forth in this paragraph (a)

17 for the calculation of the Call Report Fee, the

18 Secretary may specify by rule that the Call Report Fees

19 provided by this Section may be assessed semiannually

20 or some other period and may provide in the rule the

21 formula to be used for calculating and assessing the

22 periodic Call Report Fees to be paid by State banks.

23 (a-1) If in the opinion of the Commissioner an

24 emergency exists or appears likely, the Commissioner

25 may assign an examiner or examiners to monitor the

26 affairs of a State bank with whatever frequency he

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1 deems appropriate, including but not limited to a daily

2 basis. The reasonable and necessary expenses of the

3 Commissioner during the period of the monitoring shall

4 be borne by the subject bank. The Commissioner shall

5 furnish the State bank a statement of time and expenses

6 if requested to do so within 30 days of the conclusion

7 of the monitoring period.

8 (a-2) On and after January 1, 1990, the reasonable

9 and necessary expenses of the Commissioner during

10 examination of the performance of electronic data

11 processing services under subsection (2.5) shall be

12 borne by the banks for which the services are provided.

13 An amount, based upon a fee structure prescribed by the

14 Commissioner, shall be paid by the banks or, after May

15 31, 1997, branches of out-of-state banks receiving the

16 electronic data processing services along with the

17 Call Report Fee assessed under paragraph (a) of this

18 subsection (3).

19 (a-3) After May 31, 1997, the reasonable and

20 necessary expenses of the Commissioner during

21 examination of the performance of electronic data

22 processing services under subsection (2.5) at or on

23 behalf of branches of out-of-state banks shall be borne

24 by the out-of-state banks, unless those expenses are

25 borne by the state regulatory authorities that

26 chartered the out-of-state banks, as determined by

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1 cooperative agreements between the Commissioner and

2 the state regulatory authorities that chartered the

3 out-of-state banks.

4 (b) "Fiscal year" for purposes of this Section 48

5 is defined as a period beginning July 1 of any year and

6 ending June 30 of the next year. The Commissioner shall

7 receive for each fiscal year, commencing with the

8 fiscal year ending June 30, 1987, a contingent fee

9 equal to the lesser of the aggregate of the fees paid

10 by all State banks under paragraph (a) of subsection

11 (3) for that year, or the amount, if any, whereby the

12 aggregate of the administration expenses, as defined

13 in paragraph (c), for that fiscal year exceeds the sum

14 of the aggregate of the fees payable by all State banks

15 for that year under paragraph (a) of subsection (3),

16 plus any amounts transferred into the Bank and Trust

17 Company Fund from the State Pensions Fund for that

18 year, plus all other amounts collected by the

19 Commissioner for that year under any other provision of

20 this Act, plus the aggregate of all fees collected for

21 that year by the Commissioner under the Corporate

22 Fiduciary Act, excluding the receivership fees

23 provided for in Section 5-10 of the Corporate Fiduciary

24 Act, and the Foreign Banking Office Act. The aggregate

25 amount of the contingent fee thus arrived at for any

26 fiscal year shall be apportioned amongst, assessed

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1 upon, and paid by the State banks and foreign banking

2 corporations, respectively, in the same proportion

3 that the fee of each under paragraph (a) of subsection

4 (3), respectively, for that year bears to the aggregate

5 for that year of the fees collected under paragraph (a)

6 of subsection (3). The aggregate amount of the

7 contingent fee, and the portion thereof to be assessed

8 upon each State bank and foreign banking corporation,

9 respectively, shall be determined by the Commissioner

10 and shall be paid by each, respectively, within 120

11 days of the close of the period for which the

12 contingent fee is computed and is payable, and the

13 Commissioner shall give 20days ~~days'~~ advance notice of

14 the amount of the contingent fee payable by the State

15 bank and of the date fixed by the Commissioner for

16 payment of the fee.

17 (c) The "administration expenses" for any fiscal

18 year shall mean the ordinary and contingent expenses

19 for that year incident to making the examinations

20 provided for by, and for otherwise administering, this

21 Act, the Corporate Fiduciary Act, excluding the

22 expenses paid from the Corporate Fiduciary

23 Receivership account in the Bank and Trust Company

24 Fund, the Foreign Banking Office Act, the Electronic

25 Fund Transfer Act, and the Illinois Bank Examiners'

26 Education Foundation Act, including all salaries and

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1 other compensation paid for personal services rendered

2 for the State by officers or employees of the State,

3 including the Commissioner and the Deputy

4 Commissioners, communication equipment and services,

5 office furnishings, surety bond premiums, and travel

6 expenses of those officers and employees, employees,

7 expenditures or charges for the acquisition,

8 enlargement or improvement of, or for the use of, any

9 office space, building, or structure, or expenditures

10 for the maintenance thereof or for furnishing heat,

11 light, or power with respect thereto, all to the extent

12 that those expenditures are directly incidental to

13 such examinations or administration. The Commissioner

14 shall not be required by paragraphs (c) or (d-1) of

15 this subsection (3) to maintain in any fiscal year's

16 budget appropriated reserves for accrued vacation and

17 accrued sick leave that is required to be paid to

18 employees of the Commissioner upon termination of

19 their service with the Commissioner in an amount that

20 is more than is reasonably anticipated to be necessary

21 for any anticipated turnover in employees, whether due

22 to normal attrition or due to layoffs, terminations, or

23 resignations.

24 (d) The aggregate of all fees collected by the

25 Secretary under this Act, the Corporate Fiduciary Act,

26 or the Foreign Banking Office Act on and after July 1,

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1 1979, shall be paid promptly after receipt of the same,

2 accompanied by a detailed statement thereof, into the

3 State treasury and shall be set apart in a special fund

4 to be known as the "Bank and Trust Company Fund",

5 except as provided in paragraph (c) of subsection (11)

6 of this Section. All earnings received from

7 investments of funds in the Bank and Trust Company Fund

8 shall be deposited in the Bank and Trust Company Fund

9 and may be used for the same purposes as fees deposited

10 in that Fund. The amount from time to time deposited

11 into the Bank and Trust Company Fund shall be used: (i)

12 to offset the ordinary administrative expenses of the

13 Secretary as defined in this Section or (ii) as a

14 credit against fees under paragraph (d-1) of this

15 subsection (3). Nothing in this amendatory Act of 1979

16 shall prevent continuing the practice of paying

17 expenses involving salaries, retirement, social

18 security, and State-paid insurance premiums of State

19 officers by appropriations from the General Revenue

20 Fund. However, the General Revenue Fund shall be

21 reimbursed for those payments made on and after July 1,

22 1979, by an annual transfer of funds from the Bank and

23 Trust Company Fund. Moneys in the Bank and Trust

24 Company Fund may be transferred to the Professions

25 Indirect Cost Fund, as authorized under Section

26 2105-300 of the Department of Professional Regulation

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1 Law of the Civil Administrative Code of Illinois.

2 Notwithstanding provisions in the State Finance

3 Act, as now or hereafter amended, or any other law to

4 the contrary, the sum of $18,788,847 shall be

5 transferred from the Bank and Trust Company Fund to the

6 Financial Institutions Settlement of 2008 Fund on the

7 effective date of this amendatory Act of the 95th

8 General Assembly, or as soon thereafter as practical.

9 Notwithstanding provisions in the State Finance

10 Act, as now or hereafter amended, or any other law to

11 the contrary, the Governor may, during any fiscal year

12 through January 10, 2011, from time to time direct the

13 State Treasurer and Comptroller to transfer a

14 specified sum not exceeding 10% of the revenues to be

15 deposited into the Bank and Trust Company Fund during

16 that fiscal year from that Fund to the General Revenue

17 Fund in order to help defray the State's operating

18 costs for the fiscal year. Notwithstanding provisions

19 in the State Finance Act, as now or hereafter amended,

20 or any other law to the contrary, the total sum

21 transferred during any fiscal year through January 10,

22 2011, from the Bank and Trust Company Fund to the

23 General Revenue Fund pursuant to this provision shall

24 not exceed during any fiscal year 10% of the revenues

25 to be deposited into the Bank and Trust Company Fund

26 during that fiscal year. The State Treasurer and

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1 Comptroller shall transfer the amounts designated

2 under this Section as soon as may be practicable after

3 receiving the direction to transfer from the Governor.

4 (d-1) Adequate funds shall be available in the Bank

5 and Trust Company Fund to permit the timely payment of

6 administration expenses. In each fiscal year the total

7 administration expenses shall be deducted from the

8 total fees collected by the Commissioner and the

9 remainder transferred into the Cash Flow Reserve

10 Account, unless the balance of the Cash Flow Reserve

11 Account prior to the transfer equals or exceeds

12 one-fourth of the total initial appropriations from

13 the Bank and Trust Company Fund for the subsequent

14 year, in which case the remainder shall be credited to

15 State banks and foreign banking corporations and

16 applied against their fees for the subsequent year. The

17 amount credited to each State bank and foreign banking

18 corporation shall be in the same proportion as the Call

19 Report Fees paid by each for the year bear to the total

20 Call Report Fees collected for the year. If, after a

21 transfer to the Cash Flow Reserve Account is made or if

22 no remainder is available for transfer, the balance of

23 the Cash Flow Reserve Account is less than one-fourth

24 of the total initial appropriations for the subsequent

25 year and the amount transferred is less than 5% of the

26 total Call Report Fees for the year, additional amounts

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1 needed to make the transfer equal to 5% of the total

2 Call Report Fees for the year shall be apportioned

3 amongst, assessed upon, and paid by the State banks and

4 foreign banking corporations in the same proportion

5 that the Call Report Fees of each, respectively, for

6 the year bear to the total Call Report Fees collected

7 for the year. The additional amounts assessed shall be

8 transferred into the Cash Flow Reserve Account. For

9 purposes of this paragraph (d-1), the calculation of

10 the fees collected by the Commissioner shall exclude

11 the receivership fees provided for in Section 5-10 of

12 the Corporate Fiduciary Act.

13 (e) The Commissioner may upon request certify to

14 any public record in his keeping and shall have

15 authority to levy a reasonable charge for issuing

16 certifications of any public record in his keeping.

17 (f) In addition to fees authorized elsewhere in

18 this Act, the Commissioner may, in connection with a

19 review, approval, or provision of a service, levy a

20 reasonable charge to recover the cost of the review,

21 approval, or service.

22 (4) Nothing contained in this Act shall be construed to

23 limit the obligation relative to examinations and reports

24 of any State bank, deposits in which are to any extent

25 insured by the United States or any agency thereof, nor to

26 limit in any way the powers of the Commissioner with

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1 reference to examinations and reports of that bank.

2 (5) The nature and condition of the assets in or

3 investment of any bonus, pension, or profit sharing plan

4 for officers or employees of every State bank or, after May

5 31, 1997, branch of an out-of-state bank shall be deemed to

6 be included in the affairs of that State bank or branch of

7 an out-of-state bank subject to examination by the

8 Commissioner under the provisions of subsection (2) of this

9 Section, and if the Commissioner shall find from an

10 examination that the condition of or operation of the

11 investments or assets of the plan is unlawful, fraudulent,

12 or unsafe, or that any trustee has abused his trust, the

13 Commissioner shall, if the situation so found by the

14 Commissioner shall not be corrected to his satisfaction

15 within 60 days after the Commissioner has given notice to

16 the board of directors of the State bank or out-of-state

17 bank of his findings, report the facts to the Attorney

18 General who shall thereupon institute proceedings against

19 the State bank or out-of-state bank, the board of directors

20 thereof, or the trustees under such plan as the nature of

21 the case may require.

22 (6) The Commissioner shall have the power:

23 (a) To promulgate reasonable rules for the purpose

24 of administering the provisions of this Act.

25 (a-5) To impose conditions on any approval issued

26 by the Commissioner if he determines that the

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1 conditions are necessary or appropriate. These

2 conditions shall be imposed in writing and shall

3 continue in effect for the period prescribed by the

4 Commissioner.

5 (b) To issue orders against any person, if the

6 Commissioner has reasonable cause to believe that an

7 unsafe or unsound banking practice has occurred, is

8 occurring, or is about to occur, if any person has

9 violated, is violating, or is about to violate any law,

10 rule, or written agreement with the Commissioner, or

11 for the purpose of administering the provisions of this

12 Act and any rule promulgated in accordance with this

13 Act.

14 (b-1) To enter into agreements with a bank

15 establishing a program to correct the condition of the

16 bank or its practices.

17 (c) To appoint hearing officers to execute any of

18 the powers granted to the Commissioner under this

19 Section for the purpose of administering this Act and

20 any rule promulgated in accordance with this Act and

21 otherwise to authorize, in writing, an officer or

22 employee of the Office of Banks and Real Estate to

23 exercise his powers under this Act.

24 (d) To subpoena witnesses, to compel their

25 attendance, to administer an oath, to examine any

26 person under oath, and to require the production of any

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1 relevant books, papers, accounts, and documents in the

2 course of and pursuant to any investigation being

3 conducted, or any action being taken, by the

4 Commissioner in respect of any matter relating to the

5 duties imposed upon, or the powers vested in, the

6 Commissioner under the provisions of this Act or any

7 rule promulgated in accordance with this Act.

8 (e) To conduct hearings.

9 (7) Whenever, in the opinion of the Secretary, any

10 director, officer, employee, or agent of a State bank or

11 any subsidiary or bank holding company of the bank or,

12 after May 31, 1997, of any branch of an out-of-state bank

13 or any subsidiary or bank holding company of the bank shall

14 have violated any law, rule, or order relating to that bank

15 or any subsidiary or bank holding company of the bank,

16 shall have obstructed or impeded any examination or

17 investigation by the Secretary, shall have engaged in an

18 unsafe or unsound practice in conducting the business of

19 that bank or any subsidiary or bank holding company of the

20 bank, or shall have violated any law or engaged or

21 participated in any unsafe or unsound practice in

22 connection with any financial institution or other

23 business entity such that the character and fitness of the

24 director, officer, employee, or agent does not assure

25 reasonable promise of safe and sound operation of the State

26 bank, the Secretary may issue an order of removal. If, in

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1 the opinion of the Secretary, any former director, officer,

2 employee, or agent of a State bank or any subsidiary or

3 bank holding company of the bank, prior to the termination

4 of his or her service with that bank or any subsidiary or

5 bank holding company of the bank, violated any law, rule,

6 or order relating to that State bank or any subsidiary or

7 bank holding company of the bank, obstructed or impeded any

8 examination or investigation by the Secretary, engaged in

9 an unsafe or unsound practice in conducting the business of

10 that bank or any subsidiary or bank holding company of the

11 bank, or violated any law or engaged or participated in any

12 unsafe or unsound practice in connection with any financial

13 institution or other business entity such that the

14 character and fitness of the director, officer, employee,

15 or agent would not have assured reasonable promise of safe

16 and sound operation of the State bank, the Secretary may

17 issue an order prohibiting that person from further service

18 with a bank or any subsidiary or bank holding company of

19 the bank as a director, officer, employee, or agent. An

20 order issued pursuant to this subsection shall be served

21 upon the director, officer, employee, or agent. A copy of

22 the order shall be sent to each director of the bank

23 affected by registered mail. A copy of the order shall also

24 be served upon the bank of which he is a director, officer,

25 employee, or agent, whereupon he shall cease to be a

26 director, officer, employee, or agent of that bank. The

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1 Secretary may institute a civil action against the

2 director, officer, or agent of the State bank or, after May

3 31, 1997, of the branch of the out-of-state bank against

4 whom any order provided for by this subsection (7) of this

5 Section 48 has been issued, and against the State bank or,

6 after May 31, 1997, out-of-state bank, to enforce

7 compliance with or to enjoin any violation of the terms of

8 the order. Any person who has been the subject of an order

9 of removal or an order of prohibition issued by the

10 Secretary under this subsection or Section 5-6 of the

11 Corporate Fiduciary Act may not thereafter serve as

12 director, officer, employee, or agent of any State bank or

13 of any branch of any out-of-state bank, or of any corporate

14 fiduciary, as defined in Section 1-5.05 of the Corporate

15 Fiduciary Act, or of any other entity that is subject to

16 licensure or regulation by the Division of Banking unless

17 the Secretary has granted prior approval in writing.

18 For purposes of this paragraph (7), "bank holding

19 company" has the meaning prescribed in Section 2 of the

20 Illinois Bank Holding Company Act of 1957.

21 (8) The Commissioner may impose civil penalties of up

22 to $100,000 against any person for each violation of any

23 provision of this Act, any rule promulgated in accordance

24 with this Act, any order of the Commissioner, or any other

25 action which in the Commissioner's discretion is an unsafe

26 or unsound banking practice.

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1 (9) The Commissioner may impose civil penalties of up

2 to $100 against any person for the first failure to comply

3 with reporting requirements set forth in the report of

4 examination of the bank and up to $200 for the second and

5 subsequent failures to comply with those reporting

6 requirements.

7 (10) All final administrative decisions of the

8 Commissioner hereunder shall be subject to judicial review

9 pursuant to the provisions of the Administrative Review

10 Law. For matters involving administrative review, venue

11 shall be in either Sangamon County or Cook County.

12 (11) The endowment fund for the Illinois Bank

13 Examiners' Education Foundation shall be administered as

14 follows:

15 (a) (Blank).

16 (b) The Foundation is empowered to receive

17 voluntary contributions, gifts, grants, bequests, and

18 donations on behalf of the Illinois Bank Examiners'

19 Education Foundation from national banks and other

20 persons for the purpose of funding the endowment of the

21 Illinois Bank Examiners' Education Foundation.

22 (c) The aggregate of all special educational fees

23 collected by the Secretary and property received by the

24 Secretary on behalf of the Illinois Bank Examiners'

25 Education Foundation under this subsection (11) on or

26 after June 30, 1986, shall be either (i) promptly paid

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1 after receipt of the same, accompanied by a detailed

2 statement thereof, into the State Treasury and shall be

3 set apart in a special fund to be known as "The

4 Illinois Bank Examiners' Education Fund" to be

5 invested by either the Treasurer of the State of

6 Illinois in the Public Treasurers' Investment Pool or

7 in any other investment he is authorized to make or by

8 the Illinois State Board of Investment as the State

9 Banking Board of Illinois may direct or (ii) deposited

10 into an account maintained in a commercial bank or

11 corporate fiduciary in the name of the Illinois Bank

12 Examiners' Education Foundation pursuant to the order

13 and direction of the Board of Trustees of the Illinois

14 Bank Examiners' Education Foundation.

15 (12) (Blank).

16 (13) The Secretary may borrow funds from the General

17 Revenue Fund on behalf of the Bank and Trust Company Fund

18 if the Director of Banking certifies to the Governor that

19 there is an economic emergency affecting banking that

20 requires a borrowing to provide additional funds to the

21 Bank and Trust Company Fund. The borrowed funds shall be

22 paid back within 3 years and shall not exceed the total

23 funding appropriated to the Agency in the previous year.

24 (14) In addition to the fees authorized in this Act,

25 the Secretary may assess reasonable receivership fees

26 against any State bank that does not maintain insurance

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1 with the Federal Deposit Insurance Corporation. All fees

2 collected under this subsection (14) shall be paid into the

3 Non-insured Institutions Receivership account in the Bank

4 and Trust Company Fund, as established by the Secretary.

5 The fees assessed under this subsection (14) shall provide

6 for the expenses that arise from the administration of the

7 receivership of any such institution required to pay into

8 the Non-insured Institutions Receivership account, whether

9 pursuant to this Act, the Corporate Fiduciary Act, the

10 Foreign Banking Office Act, or any other Act that requires

11 payments into the Non-insured Institutions Receivership

12 account. The Secretary may establish by rule a reasonable

13 manner of assessing fees under this subsection (14).

14 (Source: P.A. 99-39, eff. 1-1-16; 100-22, eff. 1-1-18.)

15 (205 ILCS 5/48.1) (from Ch. 17, par. 360)

16 Sec. 48.1. Customer financial records; confidentiality.

17 (a) For the purpose of this Section, the term "financial

18 records" means any original, any copy, or any summary of:

19 (1) a document granting signature authority over a

20 deposit or account;

21 (2) a statement, ledger card or other record on any

22 deposit or account, which shows each transaction in or with

23 respect to that account;

24 (3) a check, draft or money order drawn on a bank or

25 issued and payable by a bank; or

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1 (4) any other item containing information pertaining

2 to any relationship established in the ordinary course of a

3 bank's business between a bank and its customer, including

4 financial statements or other financial information

5 provided by the customer.

6 (b) This Section does not prohibit:

7 (1) The preparation, examination, handling or

8 maintenance of any financial records by any officer,

9 employee or agent of a bank having custody of the records,

10 or the examination of the records by a certified public

11 accountant engaged by the bank to perform an independent

12 audit.

13 (2) The examination of any financial records by, or the

14 furnishing of financial records by a bank to, any officer,

15 employee or agent of (i) the Commissioner of Banks and Real

16 Estate, (ii) after May 31, 1997, a state regulatory

17 authority authorized to examine a branch of a State bank

18 located in another state, (iii) the Comptroller of the

19 Currency, (iv) the Federal Reserve Board, or (v) the

20 Federal Deposit Insurance Corporation for use solely in the

21 exercise of his duties as an officer, employee, or agent.

22 (3) The publication of data furnished from financial

23 records relating to customers where the data cannot be

24 identified to any particular customer or account.

25 (4) The making of reports or returns required under

26 Chapter 61 of the Internal Revenue Code of 1986.

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1 (5) Furnishing information concerning the dishonor of

2 any negotiable instrument permitted to be disclosed under

3 the Uniform Commercial Code.

4 (6) The exchange in the regular course of business of

5 (i) credit information between a bank and other banks or

6 financial institutions or commercial enterprises, directly

7 or through a consumer reporting agency or (ii) financial

8 records or information derived from financial records

9 between a bank and other banks or financial institutions or

10 commercial enterprises for the purpose of conducting due

11 diligence pursuant to a purchase or sale involving the bank

12 or assets or liabilities of the bank.

13 (7) The furnishing of information to the appropriate

14 law enforcement authorities where the bank reasonably

15 believes it has been the victim of a crime.

16 (8) The furnishing of information under the ~~Revised~~

17 UniformDisposition of Unclaimed Property Act.

18 (9) The furnishing of information under the Illinois

19 Income Tax Act and the Illinois Estate and

20 Generation-Skipping Transfer Tax Act.

21 (10) The furnishing of information under the federal

22 Currency and Foreign Transactions Reporting Act Title 31,

23 United States Code, Section 1051 et seq.

24 (11) The furnishing of information under any other

25 statute that by its terms or by regulations promulgated

26 thereunder requires the disclosure of financial records

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1 other than by subpoena, summons, warrant, or court order.

2 (12) The furnishing of information about the existence

3 of an account of a person to a judgment creditor of that

4 person who has made a written request for that information.

5 (13) The exchange in the regular course of business of

6 information between commonly owned banks in connection

7 with a transaction authorized under paragraph (23) of

8 Section 5 and conducted at an affiliate facility.

9 (14) The furnishing of information in accordance with

10 the federal Personal Responsibility and Work Opportunity

11 Reconciliation Act of 1996. Any bank governed by this Act

12 shall enter into an agreement for data exchanges with a

13 State agency provided the State agency pays to the bank a

14 reasonable fee not to exceed its actual cost incurred. A

15 bank providing information in accordance with this item

16 shall not be liable to any account holder or other person

17 for any disclosure of information to a State agency, for

18 encumbering or surrendering any assets held by the bank in

19 response to a lien or order to withhold and deliver issued

20 by a State agency, or for any other action taken pursuant

21 to this item, including individual or mechanical errors,

22 provided the action does not constitute gross negligence or

23 willful misconduct. A bank shall have no obligation to

24 hold, encumber, or surrender assets until it has been

25 served with a subpoena, summons, warrant, court or

26 administrative order, lien, or levy.

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1 (15) The exchange in the regular course of business of

2 information between a bank and any commonly owned affiliate

3 of the bank, subject to the provisions of the Financial

4 Institutions Insurance Sales Law.

5 (16) The furnishing of information to law enforcement

6 authorities, the Illinois Department on Aging and its

7 regional administrative and provider agencies, the

8 Department of Human Services Office of Inspector General,

9 or public guardians: (i) upon subpoena by the investigatory

10 entity or the guardian, or (ii) if there is suspicion by

11 the bank that a customer who is an elderly person or person

12 with a disability has been or may become the victim of

13 financial exploitation. For the purposes of this item (16),

14 the term: (i) "elderly person" means a person who is 60 or

15 more years of age, (ii) "disabled person" means a person

16 who has or reasonably appears to the bank to have a

17 physical or mental disability that impairs his or her

18 ability to seek or obtain protection from or prevent

19 financial exploitation, and (iii) "financial exploitation"

20 means tortious or illegal use of the assets or resources of

21 an elderly or disabled person, and includes, without

22 limitation, misappropriation of the elderly or disabled

23 person's assets or resources by undue influence, breach of

24 fiduciary relationship, intimidation, fraud, deception,

25 extortion, or the use of assets or resources in any manner

26 contrary to law. A bank or person furnishing information

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1 pursuant to this item (16) shall be entitled to the same

2 rights and protections as a person furnishing information

3 under the Adult Protective Services Act and the Illinois

4 Domestic Violence Act of 1986.

5 (17) The disclosure of financial records or

6 information as necessary to effect, administer, or enforce

7 a transaction requested or authorized by the customer, or

8 in connection with:

9 (A) servicing or processing a financial product or

10 service requested or authorized by the customer;

11 (B) maintaining or servicing a customer's account

12 with the bank; or

13 (C) a proposed or actual securitization or

14 secondary market sale (including sales of servicing

15 rights) related to a transaction of a customer.

16 Nothing in this item (17), however, authorizes the sale

17 of the financial records or information of a customer

18 without the consent of the customer.

19 (18) The disclosure of financial records or

20 information as necessary to protect against actual or

21 potential fraud, unauthorized transactions, claims, or

22 other liability.

23 (19)(A) ~~(a)~~ The disclosure of financial records or

24 information related to a private label credit program

25 between a financial institution and a private label party

26 in connection with that private label credit program. Such

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1 information is limited to outstanding balance, available

2 credit, payment and performance and account history,

3 product references, purchase information, and information

4 related to the identity of the customer.

5 (B)(1) For purposes of this paragraph (19) of

6 subsection (b) of Section 48.1, a "private label credit

7 program" means a credit program involving a financial

8 institution and a private label party that is used by a

9 customer of the financial institution and the private label

10 party primarily for payment for goods or services sold,

11 manufactured, or distributed by a private label party.

12 (2) For purposes of this paragraph (19) of subsection

13 (b) of Section 48.1, a "private label party" means, with

14 respect to a private label credit program, any of the

15 following: a retailer, a merchant, a manufacturer, a trade

16 group, or any such person's affiliate, subsidiary, member,

17 agent, or service provider.

18 (20)(A) ~~(a)~~ The furnishing of financial records of a

19 customer to the Department to aid the Department's initial

20 determination or subsequent re-determination of the

21 customer's eligibility for Medicaid and Medicaid long-term

22 care benefits for long-term care services, provided that

23 the bank receives the written consent and authorization of

24 the customer, which shall:

25 (1) have the customer's signature notarized;

26 (2) be signed by at least one witness who certifies

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1 that he or she believes the customer to be of sound

2 mind and memory;

3 (3) be tendered to the bank at the earliest

4 practicable time following its execution,

5 certification, and notarization;

6 (4) specifically limit the disclosure of the

7 customer's financial records to the Department; and

8 (5) be in substantially the following form:

9 CUSTOMER CONSENT AND AUTHORIZATION

10 FOR RELEASE OF FINANCIAL RECORDS

11 I, ......................................., hereby authorize

12 (Name of Customer)

13 .............................................................

14 (Name of Financial Institution)

15 .............................................................

16 (Address of Financial Institution)

17 to disclose the following financial records:

18 any and all information concerning my deposit, savings, money

19 market, certificate of deposit, individual retirement,

20 retirement plan, 401(k) plan, incentive plan, employee benefit

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1 plan, mutual fund and loan accounts (including, but not limited

2 to, any indebtedness or obligation for which I am a

3 co-borrower, co-obligor, guarantor, or surety), and any and all

4 other accounts in which I have an interest and any other

5 information regarding me in the possession of the Financial

6 Institution,

7 to the Illinois Department of Human Services or the Illinois

8 Department of Healthcare and Family Services, or both ("the

9 Department"), for the following purpose(s):

10 to aid in the initial determination or re-determination by the

11 State of Illinois of my eligibility for Medicaid long-term care

12 benefits, pursuant to applicable law.

13 I understand that this Consent and Authorization may be revoked

14 by me in writing at any time before my financial records, as

15 described above, are disclosed, and that this Consent and

16 Authorization is valid until the Financial Institution

17 receives my written revocation. This Consent and Authorization

18 shall constitute valid authorization for the Department

19 identified above to inspect all such financial records set

20 forth above, and to request and receive copies of such

21 financial records from the Financial Institution (subject to

22 such records search and reproduction reimbursement policies as

23 the Financial Institution may have in place). An executed copy

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1 of this Consent and Authorization shall be sufficient and as

2 good as the original and permission is hereby granted to honor

3 a photostatic or electronic copy of this Consent and

4 Authorization. Disclosure is strictly limited to the

5 Department identified above and no other person or entity shall

6 receive my financial records pursuant to this Consent and

7 Authorization. By signing this form, I agree to indemnify and

8 hold the Financial Institution harmless from any and all

9 claims, demands, and losses, including reasonable attorneys

10 fees and expenses, arising from or incurred in its reliance on

11 this Consent and Authorization. As used herein, "Customer"

12 shall mean "Member" if the Financial Institution is a credit

13 union.

14 ....................... ......................

15 (Date) (Signature of Customer)

16 ......................

17 ......................

18 (Address of Customer)

19 ......................

20 (Customer's birth date)

21 (month/day/year)

22 The undersigned witness certifies that .................,

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1 known to me to be the same person whose name is subscribed as

2 the customer to the foregoing Consent and Authorization,

3 appeared before me and the notary public and acknowledged

4 signing and delivering the instrument as his or her free and

5 voluntary act for the uses and purposes therein set forth. I

6 believe him or her to be of sound mind and memory. The

7 undersigned witness also certifies that the witness is not an

8 owner, operator, or relative of an owner or operator of a

9 long-term care facility in which the customer is a patient or

10 resident.

11 Dated: ................. ......................

12 (Signature of Witness)

13 ......................

14 (Print Name of Witness)

15 ......................

16 ......................

17 (Address of Witness)

18 State of Illinois)

19 ) ss.

20 County of .......)

21 The undersigned, a notary public in and for the above county

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1 and state, certifies that .........., known to me to be the

2 same person whose name is subscribed as the customer to the

3 foregoing Consent and Authorization, appeared before me

4 together with the witness, .........., in person and

5 acknowledged signing and delivering the instrument as the free

6 and voluntary act of the customer for the uses and purposes

7 therein set forth.

8 Dated:.......................................................

9 Notary Public:...............................................

10 My commission expires:.......................................

11 (B) ~~(b)~~ In no event shall the bank distribute the

12 customer's financial records to the long-term care

13 facility from which the customer seeks initial or

14 continuing residency or long-term care services.

15 (C) ~~(c)~~ A bank providing financial records of a

16 customer in good faith relying on a consent and

17 authorization executed and tendered in accordance with

18 this paragraph (20) shall not be liable to the customer or

19 any other person in relation to the bank's disclosure of

20 the customer's financial records to the Department. The

21 customer signing the consent and authorization shall

22 indemnify and hold the bank harmless that relies in good

23 faith upon the consent and authorization and incurs a loss

24 because of such reliance. The bank recovering under this

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1 indemnification provision shall also be entitled to

2 reasonable attorney's fees and the expenses of recovery.

3 (D) ~~(d)~~ A bank shall be reimbursed by the customer for

4 all costs reasonably necessary and directly incurred in

5 searching for, reproducing, and disclosing a customer's

6 financial records required or requested to be produced

7 pursuant to any consent and authorization executed under

8 this paragraph (20). The requested financial records shall

9 be delivered to the Department within 10 days after

10 receiving a properly executed consent and authorization or

11 at the earliest practicable time thereafter if the

12 requested records cannot be delivered within 10 days, but

13 delivery may be delayed until the final reimbursement of

14 all costs is received by the bank. The bank may honor a

15 photostatic or electronic copy of a properly executed

16 consent and authorization.

17 (E) ~~(e)~~ Nothing in this paragraph (20) shall impair,

18 abridge, or abrogate the right of a customer to:

19 (1) directly disclose his or her financial records

20 to the Department or any other person; or

21 (2) authorize his or her attorney or duly appointed

22 agent to request and obtain the customer's financial

23 records and disclose those financial records to the

24 Department.

25 (F) ~~(f)~~ For purposes of this paragraph (20),

26 "Department" means the Department of Human Services and the

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1 Department of Healthcare and Family Services or any

2 successor administrative agency of either agency.

3 ~~(b)(1) For purposes of this paragraph (19) of~~

4 ~~subsection (b) of Section 48.1, a "private label credit~~

5 ~~program" means a credit program involving a financial~~

6 ~~institution and a private label party that is used by a~~

7 ~~customer of the financial institution and the private label~~

8 ~~party primarily for payment for goods or services sold,~~

9 ~~manufactured, or distributed by a private label party.~~

10 ~~(2) For purposes of this paragraph (19) of subsection~~

11 ~~(b) of Section 48.1, a "private label party" means, with~~

12 ~~respect to a private label credit program, any of the~~

13 ~~following: a retailer, a merchant, a manufacturer, a trade~~

14 ~~group, or any such person's affiliate, subsidiary, member,~~

15 ~~agent, or service provider.~~

16 (c) Except as otherwise provided by this Act, a bank may

17 not disclose to any person, except to the customer or his duly

18 authorized agent, any financial records or financial

19 information obtained from financial records relating to that

20 customer of that bank unless:

21 (1) the customer has authorized disclosure to the

22 person;

23 (2) the financial records are disclosed in response to

24 a lawful subpoena, summons, warrant, citation to discover

25 assets, or court order which meets the requirements of

26 subsection (d) of this Section; or

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1 (3) the bank is attempting to collect an obligation

2 owed to the bank and the bank complies with the provisions

3 of Section 2I of the Consumer Fraud and Deceptive Business

4 Practices Act.

5 (d) A bank shall disclose financial records under paragraph

6 (2) of subsection (c) of this Section under a lawful subpoena,

7 summons, warrant, citation to discover assets, or court order

8 only after the bank mails a copy of the subpoena, summons,

9 warrant, citation to discover assets, or court order to the

10 person establishing the relationship with the bank, if living,

11 and, otherwise his personal representative, if known, at his

12 last known address by first class mail, postage prepaid, unless

13 the bank is specifically prohibited from notifying the person

14 by order of court or by applicable State or federal law. A bank

15 shall not mail a copy of a subpoena to any person pursuant to

16 this subsection if the subpoena was issued by a grand jury

17 under the Statewide Grand Jury Act.

18 (e) Any officer or employee of a bank who knowingly and

19 willfully furnishes financial records in violation of this

20 Section is guilty of a business offense and, upon conviction,

21 shall be fined not more than $1,000.

22 (f) Any person who knowingly and willfully induces or

23 attempts to induce any officer or employee of a bank to

24 disclose financial records in violation of this Section is

25 guilty of a business offense and, upon conviction, shall be

26 fined not more than $1,000.

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1 (g) A bank shall be reimbursed for costs that are

2 reasonably necessary and that have been directly incurred in

3 searching for, reproducing, or transporting books, papers,

4 records, or other data required or requested to be produced

5 pursuant to a lawful subpoena, summons, warrant, citation to

6 discover assets, or court order. The Commissioner shall

7 determine the rates and conditions under which payment may be

8 made.

9 (Source: P.A. 99-143, eff. 7-27-15; 100-22, eff. 1-1-18;

10 100-664, eff. 1-1-19; 100-888, eff. 8-14-18; revised

11 10-22-18.)

12 (205 ILCS 5/48.3) (from Ch. 17, par. 360.2)

13 Sec. 48.3. Disclosure of reports of examinations and

14 confidential supervisory information; limitations.

15 (a) Any report of examination, visitation, or

16 investigation prepared by the Secretary under this Act, the

17 Electronic Fund Transfer Act, the Corporate Fiduciary Act, the

18 Illinois Bank Holding Company Act of 1957, and the Foreign

19 Banking Office Act, any report of examination, visitation, or

20 investigation prepared by the state regulatory authority of

21 another state that examines a branch of an Illinois State bank

22 in that state, any document or record prepared or obtained in

23 connection with or relating to any examination, visitation, or

24 investigation, and any record prepared or obtained by the

25 Secretary to the extent that the record summarizes or contains

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1 information derived from any report, document, or record

2 described in this subsection shall be deemed "confidential

3 supervisory information". Confidential supervisory information

4 shall not include any information or record routinely prepared

5 by a bank or other financial institution and maintained in the

6 ordinary course of business or any information or record that

7 is required to be made publicly available pursuant to State or

8 federal law or rule. Confidential supervisory information

9 shall be the property of the Secretary and shall only be

10 disclosed under the circumstances and for the purposes set

11 forth in this Section.

12 The Secretary may disclose confidential supervisory

13 information only under the following circumstances:

14 (1) The Secretary may furnish confidential supervisory

15 information to the Board of Governors of the Federal

16 Reserve System, the federal reserve bank of the federal

17 reserve district in which the State bank is located or in

18 which the parent or other affiliate of the State bank is

19 located, any official or examiner thereof duly accredited

20 for the purpose, or any other state regulator, federal

21 regulator, or in the case of a foreign bank possessing a

22 certificate of authority pursuant to the Foreign Banking

23 Office Act or a license pursuant to the Foreign Bank

24 Representative Office Act, the bank regulator in the

25 country where the foreign bank is chartered, that the

26 Secretary determines to have an appropriate regulatory

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1 interest. Nothing contained in this Act shall be construed

2 to limit the obligation of any member State bank to comply

3 with the requirements relative to examinations and reports

4 of the Federal Reserve Act and of the Board of Governors of

5 the Federal Reserve System or the federal reserve bank of

6 the federal reserve district in which the bank is located,

7 nor to limit in any way the powers of the Secretary with

8 reference to examinations and reports.

9 (2) The Secretary may furnish confidential supervisory

10 information to the United States, any agency thereof that

11 has insured a bank's deposits in whole or in part, or any

12 official or examiner thereof duly accredited for the

13 purpose. Nothing contained in this Act shall be construed

14 to limit the obligation relative to examinations and

15 reports of any State bank, deposits in which are to any

16 extent insured by the United States, any agency thereof,

17 nor to limit in any way the powers of the Secretary with

18 reference to examination and reports of such bank.

19 (2.5) The Secretary may furnish confidential

20 supervisory information to a Federal Home Loan Bank in

21 connection with any bank that is a member of the Federal

22 Home Loan Bank or in connection with any application by the

23 bank before the Federal Home Loan Bank. The confidential

24 supervisory information shall remain the property of the

25 Secretary and may not be further disclosed without the

26 Secretary's permission.

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1 (3) The Secretary may furnish confidential supervisory

2 information to the appropriate law enforcement authorities

3 when the Secretary reasonably believes a bank, which the

4 Secretary has caused to be examined, has been a victim of a

5 crime.

6 (4) The Secretary may furnish confidential supervisory

7 information relating to a bank or other financial

8 institution, which the Secretary has caused to be examined,

9 to be sent to the administrator of the~~Revised~~ Uniform

10 Disposition of Unclaimed Property Act.

11 (5) The Secretary may furnish confidential supervisory

12 information relating to a bank or other financial

13 institution, which the Secretary has caused to be examined,

14 relating to its performance of obligations under the

15 Illinois Income Tax Act and the Illinois Estate and

16 Generation-Skipping Transfer Tax Act to the Illinois

17 Department of Revenue.

18 (6) The Secretary may furnish confidential supervisory

19 information relating to a bank or other financial

20 institution, which the Secretary has caused to be examined,

21 under the federal Currency and Foreign Transactions

22 Reporting Act, Title 31, United States Code, Section 1051

23 et seq.

24 (6.5) The Secretary may furnish confidential

25 supervisory information to any other agency or entity that

26 the Secretary determines to have a legitimate regulatory

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1 interest.

2 (7) The Secretary may furnish confidential supervisory

3 information under any other statute that by its terms or by

4 regulations promulgated thereunder requires the disclosure

5 of financial records other than by subpoena, summons,

6 warrant, or court order.

7 (8) At the request of the affected bank or other

8 financial institution, the Secretary may furnish

9 confidential supervisory information relating to a bank or

10 other financial institution, which the Secretary has

11 caused to be examined, in connection with the obtaining of

12 insurance coverage or the pursuit of an insurance claim for

13 or on behalf of the bank or other financial institution;

14 provided that, when possible, the Secretary shall disclose

15 only relevant information while maintaining the

16 confidentiality of financial records not relevant to such

17 insurance coverage or claim and, when appropriate, may

18 delete identifying data relating to any person or

19 individual.

20 (9) The Secretary may furnish a copy of a report of any

21 examination performed by the Secretary of the condition and

22 affairs of any electronic data processing entity to the

23 banks serviced by the electronic data processing entity.

24 (10) In addition to the foregoing circumstances, the

25 Secretary may, but is not required to, furnish confidential

26 supervisory information under the same circumstances

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1 authorized for the bank or financial institution pursuant

2 to subsection (b) of this Section, except that the

3 Secretary shall provide confidential supervisory

4 information under circumstances described in paragraph (3)

5 of subsection (b) of this Section only upon the request of

6 the bank or other financial institution.

7 (b) A bank or other financial institution or its officers,

8 agents, and employees may disclose confidential supervisory

9 information only under the following circumstances:

10 (1) to the board of directors of the bank or other

11 financial institution, as well as the president,

12 vice-president, cashier, and other officers of the bank or

13 other financial institution to whom the board of directors

14 may delegate duties with respect to compliance with

15 recommendations for action, and to the board of directors

16 of a bank holding company that owns at least 80% of the

17 outstanding stock of the bank or other financial

18 institution;

19 (2) to attorneys for the bank or other financial

20 institution and to a certified public accountant engaged by

21 the State bank or financial institution to perform an

22 independent audit provided that the attorney or certified

23 public accountant shall not permit the confidential

24 supervisory information to be further disseminated;

25 (3) to any person who seeks to acquire a controlling

26 interest in, or who seeks to merge with, the bank or

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1 financial institution, provided that all attorneys,

2 certified public accountants, officers, agents, or

3 employees of that person shall agree to be bound to respect

4 the confidentiality of the confidential supervisory

5 information and to not further disseminate the information

6 therein contained;

7 (3.5) to a Federal Home Loan Bank of which it is a

8 member;

9 (4) (blank);

10 (4.5) to any attorney, accountant, consultant, or

11 other professional as needed to comply with any enforcement

12 action issued by the Secretary; or

13 (5) to the bank's insurance company in relation to an

14 insurance claim or the effort by the bank to procure

15 insurance coverage, provided that, when possible, the bank

16 shall disclose only information that is relevant to the

17 insurance claim or that is necessary to procure the

18 insurance coverage, while maintaining the confidentiality

19 of financial information pertaining to customers. When

20 appropriate, the bank may delete identifying data relating

21 to any person.

22 The disclosure of confidential supervisory information by

23 a bank or other financial institution pursuant to this

24 subsection (b) and the disclosure of information to the

25 Secretary or other regulatory agency in connection with any

26 examination, visitation, or investigation shall not constitute

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1 a waiver of any legal privilege otherwise available to the bank

2 or other financial institution with respect to the information.

3 (c) (1) Notwithstanding any other provision of this Act or

4 any other law, confidential supervisory information shall be

5 the property of the Secretary and shall be privileged from

6 disclosure to any person except as provided in this Section. No

7 person in possession of confidential supervisory information

8 may disclose that information for any reason or under any

9 circumstances not specified in this Section without the prior

10 authorization of the Secretary. Any person upon whom a demand

11 for production of confidential supervisory information is

12 made, whether by subpoena, order, or other judicial or

13 administrative process, must withhold production of the

14 confidential supervisory information and must notify the

15 Secretary of the demand, at which time the Secretary is

16 authorized to intervene for the purpose of enforcing the

17 limitations of this Section or seeking the withdrawal or

18 termination of the attempt to compel production of the

19 confidential supervisory information.

20 (2) Any request for discovery or disclosure of confidential

21 supervisory information, whether by subpoena, order, or other

22 judicial or administrative process, shall be made to the

23 Secretary, and the Secretary shall determine within 15 days

24 whether to disclose the information pursuant to procedures and

25 standards that the Secretary shall establish by rule. If the

26 Secretary determines that such information will not be

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1 disclosed, the Secretary's decision shall be subject to

2 judicial review under the provisions of the Administrative

3 Review Law, and venue shall be in either Sangamon County or

4 Cook County.

5 (3) Any court order that compels disclosure of confidential

6 supervisory information may be immediately appealed by the

7 Secretary, and the order shall be automatically stayed pending

8 the outcome of the appeal.

9 (d) If any officer, agent, attorney, or employee of a bank

10 or financial institution knowingly and willfully furnishes

11 confidential supervisory information in violation of this

12 Section, the Secretary may impose a civil monetary penalty up

13 to $1,000 for the violation against the officer, agent,

14 attorney, or employee.

15 (Source: P.A. 100-22, eff 1-1-18; 100-64, eff. 8-11-17;

16 100-863, eff. 8-14-18; 100-888, eff. 8-14-18.)

17 (205 ILCS 5/65) (from Ch. 17, par. 377)

18 Sec. 65. Dividends; dissolution. From time to time during a

19 receivership other than a receivership conducted by the Federal

20 Deposit Insurance Corporation, the Commissioner shall make and

21 pay from monies of the bank a ratable dividend on all claims as

22 may be proved to his or her satisfaction or adjudicated by the

23 court. Claims so proven or adjudicated shall bear interest at

24 the rate of 3% per annum from the date of the appointment of

25 the receiver to the date of payment, but all dividends on a

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1 claim shall be applied first to principal. In computing the

2 amount of any dividend to be paid, if the Commissioner deems it

3 desirable in the interests of economy of administration and to

4 the interest of the bank and its creditors, he or she may pay

5 up to the amount of $10 of each claim or unpaid portion thereof

6 in full. As the proceeds of the assets of the bank are

7 collected in the course of liquidation, the Commissioner shall

8 make and pay further dividends on all claims previously proven

9 or adjudicated. After one year from the entry of a judgment of

10 dissolution, all unclaimed dividends shall be remitted to the

11 State Treasurer in accordance with the ~~Revised~~ Uniform

12 Disposition ofUnclaimed Property Act, as now or hereafter

13 amended, together with a list of all unpaid claimants, their

14 last known addresses and the amounts unpaid.

15 (Source: P.A. 100-22, eff. 1-1-18.)

16 Section 55. The Savings Bank Act is amended by changing

17 Sections 4013, 9012, and 10090 as follows:

18 (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)

19 Sec. 4013. Access to books and records; communication with

20 members and shareholders.

21 (a) Every member or shareholder shall have the right to

22 inspect books and records of the savings bank that pertain to

23 his accounts. Otherwise, the right of inspection and

24 examination of the books and records shall be limited as

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1 provided in this Act, and no other person shall have access to

2 the books and records nor shall be entitled to a list of the

3 members or shareholders.

4 (b) For the purpose of this Section, the term "financial

5 records" means any original, any copy, or any summary of (1) a

6 document granting signature authority over a deposit or

7 account; (2) a statement, ledger card, or other record on any

8 deposit or account that shows each transaction in or with

9 respect to that account; (3) a check, draft, or money order

10 drawn on a savings bank or issued and payable by a savings

11 bank; or (4) any other item containing information pertaining

12 to any relationship established in the ordinary course of a

13 savings bank's business between a savings bank and its

14 customer, including financial statements or other financial

15 information provided by the member or shareholder.

16 (c) This Section does not prohibit:

17 (1) The preparation, examination, handling, or

18 maintenance of any financial records by any officer,

19 employee, or agent of a savings bank having custody of

20 records or examination of records by a certified public

21 accountant engaged by the savings bank to perform an

22 independent audit.

23 (2) The examination of any financial records by, or the

24 furnishing of financial records by a savings bank to, any

25 officer, employee, or agent of the Commissioner of Banks

26 and Real Estate or the federal depository institution

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1 regulator for use solely in the exercise of his duties as

2 an officer, employee, or agent.

3 (3) The publication of data furnished from financial

4 records relating to members or holders of capital where the

5 data cannot be identified to any particular member,

6 shareholder, or account.

7 (4) The making of reports or returns required under

8 Chapter 61 of the Internal Revenue Code of 1986.

9 (5) Furnishing information concerning the dishonor of

10 any negotiable instrument permitted to be disclosed under

11 the Uniform Commercial Code.

12 (6) The exchange in the regular course of business of

13 (i) credit information between a savings bank and other

14 savings banks or financial institutions or commercial

15 enterprises, directly or through a consumer reporting

16 agency or (ii) financial records or information derived

17 from financial records between a savings bank and other

18 savings banks or financial institutions or commercial

19 enterprises for the purpose of conducting due diligence

20 pursuant to a purchase or sale involving the savings bank

21 or assets or liabilities of the savings bank.

22 (7) The furnishing of information to the appropriate

23 law enforcement authorities where the savings bank

24 reasonably believes it has been the victim of a crime.

25 (8) The furnishing of information pursuant to the

26 ~~Revised~~ Uniform Disposition of Unclaimed Property Act.

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1 (9) The furnishing of information pursuant to the

2 Illinois Income Tax Act and the Illinois Estate and

3 Generation-Skipping Transfer Tax Act.

4 (10) The furnishing of information pursuant to the

5 federal Currency and Foreign Transactions Reporting Act,

6 (Title 31, United States Code, Section 1051 et seq.).

7 (11) The furnishing of information pursuant to any

8 other statute which by its terms or by regulations

9 promulgated thereunder requires the disclosure of

10 financial records other than by subpoena, summons,

11 warrant, or court order.

12 (12) The furnishing of information in accordance with

13 the federal Personal Responsibility and Work Opportunity

14 Reconciliation Act of 1996. Any savings bank governed by

15 this Act shall enter into an agreement for data exchanges

16 with a State agency provided the State agency pays to the

17 savings bank a reasonable fee not to exceed its actual cost

18 incurred. A savings bank providing information in

19 accordance with this item shall not be liable to any

20 account holder or other person for any disclosure of

21 information to a State agency, for encumbering or

22 surrendering any assets held by the savings bank in

23 response to a lien or order to withhold and deliver issued

24 by a State agency, or for any other action taken pursuant

25 to this item, including individual or mechanical errors,

26 provided the action does not constitute gross negligence or

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1 willful misconduct. A savings bank shall have no obligation

2 to hold, encumber, or surrender assets until it has been

3 served with a subpoena, summons, warrant, court or

4 administrative order, lien, or levy.

5 (13) The furnishing of information to law enforcement

6 authorities, the Illinois Department on Aging and its

7 regional administrative and provider agencies, the

8 Department of Human Services Office of Inspector General,

9 or public guardians: (i) upon subpoena by the investigatory

10 entity or the guardian, or (ii) if there is suspicion by

11 the savings bank that a customer who is an elderly person

12 or person with a disability has been or may become the

13 victim of financial exploitation. For the purposes of this

14 item (13), the term: (i) "elderly person" means a person

15 who is 60 or more years of age, (ii) "person with a

16 disability" means a person who has or reasonably appears to

17 the savings bank to have a physical or mental disability

18 that impairs his or her ability to seek or obtain

19 protection from or prevent financial exploitation, and

20 (iii) "financial exploitation" means tortious or illegal

21 use of the assets or resources of an elderly person or

22 person with a disability, and includes, without

23 limitation, misappropriation of the assets or resources of

24 the elderly person or person with a disability by undue

25 influence, breach of fiduciary relationship, intimidation,

26 fraud, deception, extortion, or the use of assets or

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1 resources in any manner contrary to law. A savings bank or

2 person furnishing information pursuant to this item (13)

3 shall be entitled to the same rights and protections as a

4 person furnishing information under the Adult Protective

5 Services Act and the Illinois Domestic Violence Act of

6 1986.

7 (14) The disclosure of financial records or

8 information as necessary to effect, administer, or enforce

9 a transaction requested or authorized by the member or

10 holder of capital, or in connection with:

11 (A) servicing or processing a financial product or

12 service requested or authorized by the member or holder

13 of capital;

14 (B) maintaining or servicing an account of a member

15 or holder of capital with the savings bank; or

16 (C) a proposed or actual securitization or

17 secondary market sale (including sales of servicing

18 rights) related to a transaction of a member or holder

19 of capital.

20 Nothing in this item (14), however, authorizes the sale

21 of the financial records or information of a member or

22 holder of capital without the consent of the member or

23 holder of capital.

24 (15) The exchange in the regular course of business of

25 information between a savings bank and any commonly owned

26 affiliate of the savings bank, subject to the provisions of

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1 the Financial Institutions Insurance Sales Law.

2 (16) The disclosure of financial records or

3 information as necessary to protect against or prevent

4 actual or potential fraud, unauthorized transactions,

5 claims, or other liability.

6 (17)(a) The disclosure of financial records or

7 information related to a private label credit program

8 between a financial institution and a private label party

9 in connection with that private label credit program. Such

10 information is limited to outstanding balance, available

11 credit, payment and performance and account history,

12 product references, purchase information, and information

13 related to the identity of the customer.

14 (b)(1) For purposes of this paragraph (17) of

15 subsection (c) of Section 4013, a "private label credit

16 program" means a credit program involving a financial

17 institution and a private label party that is used by a

18 customer of the financial institution and the private label

19 party primarily for payment for goods or services sold,

20 manufactured, or distributed by a private label party.

21 (2) For purposes of this paragraph (17) of subsection

22 (c) of Section 4013, a "private label party" means, with

23 respect to a private label credit program, any of the

24 following: a retailer, a merchant, a manufacturer, a trade

25 group, or any such person's affiliate, subsidiary, member,

26 agent, or service provider.

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1 (18)(a) The furnishing of financial records of a

2 customer to the Department to aid the Department's initial

3 determination or subsequent re-determination of the

4 customer's eligibility for Medicaid and Medicaid long-term

5 care benefits for long-term care services, provided that

6 the savings bank receives the written consent and

7 authorization of the customer, which shall:

8 (1) have the customer's signature notarized;

9 (2) be signed by at least one witness who certifies

10 that he or she believes the customer to be of sound

11 mind and memory;

12 (3) be tendered to the savings bank at the earliest

13 practicable time following its execution,

14 certification, and notarization;

15 (4) specifically limit the disclosure of the

16 customer's financial records to the Department; and

17 (5) be in substantially the following form:

18 CUSTOMER CONSENT AND AUTHORIZATION

19 FOR RELEASE OF FINANCIAL RECORDS

20 I, ......................................., hereby authorize

21 (Name of Customer)

22 .............................................................

23 (Name of Financial Institution)

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1 .............................................................

2 (Address of Financial Institution)

3 to disclose the following financial records:

4 any and all information concerning my deposit, savings, money

5 market, certificate of deposit, individual retirement,

6 retirement plan, 401(k) plan, incentive plan, employee benefit

7 plan, mutual fund and loan accounts (including, but not limited

8 to, any indebtedness or obligation for which I am a

9 co-borrower, co-obligor, guarantor, or surety), and any and all

10 other accounts in which I have an interest and any other

11 information regarding me in the possession of the Financial

12 Institution,

13 to the Illinois Department of Human Services or the Illinois

14 Department of Healthcare and Family Services, or both ("the

15 Department"), for the following purpose(s):

16 to aid in the initial determination or re-determination by the

17 State of Illinois of my eligibility for Medicaid long-term care

18 benefits, pursuant to applicable law.

19 I understand that this Consent and Authorization may be revoked

20 by me in writing at any time before my financial records, as

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1 described above, are disclosed, and that this Consent and

2 Authorization is valid until the Financial Institution

3 receives my written revocation. This Consent and Authorization

4 shall constitute valid authorization for the Department

5 identified above to inspect all such financial records set

6 forth above, and to request and receive copies of such

7 financial records from the Financial Institution (subject to

8 such records search and reproduction reimbursement policies as

9 the Financial Institution may have in place). An executed copy

10 of this Consent and Authorization shall be sufficient and as

11 good as the original and permission is hereby granted to honor

12 a photostatic or electronic copy of this Consent and

13 Authorization. Disclosure is strictly limited to the

14 Department identified above and no other person or entity shall

15 receive my financial records pursuant to this Consent and

16 Authorization. By signing this form, I agree to indemnify and

17 hold the Financial Institution harmless from any and all

18 claims, demands, and losses, including reasonable attorneys

19 fees and expenses, arising from or incurred in its reliance on

20 this Consent and Authorization. As used herein, "Customer"

21 shall mean "Member" if the Financial Institution is a credit

22 union.

23 ....................... ......................

24 (Date) (Signature of Customer)

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1 ......................

2 ......................

3 (Address of Customer)

4 ......................

5 (Customer's birth date)

6 (month/day/year)

7 The undersigned witness certifies that .................,

8 known to me to be the same person whose name is subscribed as

9 the customer to the foregoing Consent and Authorization,

10 appeared before me and the notary public and acknowledged

11 signing and delivering the instrument as his or her free and

12 voluntary act for the uses and purposes therein set forth. I

13 believe him or her to be of sound mind and memory. The

14 undersigned witness also certifies that the witness is not an

15 owner, operator, or relative of an owner or operator of a

16 long-term care facility in which the customer is a patient or

17 resident.

18 Dated: ................. ......................

19 (Signature of Witness)

20 ......................

21 (Print Name of Witness)

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1 ......................

2 ......................

3 (Address of Witness)

4 State of Illinois)

5 ) ss.

6 County of .......)

7 The undersigned, a notary public in and for the above county

8 and state, certifies that .........., known to me to be the

9 same person whose name is subscribed as the customer to the

10 foregoing Consent and Authorization, appeared before me

11 together with the witness, .........., in person and

12 acknowledged signing and delivering the instrument as the free

13 and voluntary act of the customer for the uses and purposes

14 therein set forth.

15 Dated:.......................................................

16 Notary Public:...............................................

17 My commission expires:.......................................

18 (b) In no event shall the savings bank distribute the

19 customer's financial records to the long-term care

20 facility from which the customer seeks initial or

21 continuing residency or long-term care services.

22 (c) A savings bank providing financial records of a

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1 customer in good faith relying on a consent and

2 authorization executed and tendered in accordance with

3 this paragraph (18) shall not be liable to the customer or

4 any other person in relation to the savings bank's

5 disclosure of the customer's financial records to the

6 Department. The customer signing the consent and

7 authorization shall indemnify and hold the savings bank

8 harmless that relies in good faith upon the consent and

9 authorization and incurs a loss because of such reliance.

10 The savings bank recovering under this indemnification

11 provision shall also be entitled to reasonable attorney's

12 fees and the expenses of recovery.

13 (d) A savings bank shall be reimbursed by the customer

14 for all costs reasonably necessary and directly incurred in

15 searching for, reproducing, and disclosing a customer's

16 financial records required or requested to be produced

17 pursuant to any consent and authorization executed under

18 this paragraph (18). The requested financial records shall

19 be delivered to the Department within 10 days after

20 receiving a properly executed consent and authorization or

21 at the earliest practicable time thereafter if the

22 requested records cannot be delivered within 10 days, but

23 delivery may be delayed until the final reimbursement of

24 all costs is received by the savings bank. The savings bank

25 may honor a photostatic or electronic copy of a properly

26 executed consent and authorization.

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1 (e) Nothing in this paragraph (18) shall impair,

2 abridge, or abrogate the right of a customer to:

3 (1) directly disclose his or her financial records

4 to the Department or any other person; or

5 (2) authorize his or her attorney or duly appointed

6 agent to request and obtain the customer's financial

7 records and disclose those financial records to the

8 Department.

9 (f) For purposes of this paragraph (18), "Department"

10 means the Department of Human Services and the Department

11 of Healthcare and Family Services or any successor

12 administrative agency of either agency.

13 (d) A savings bank may not disclose to any person, except

14 to the member or holder of capital or his duly authorized

15 agent, any financial records relating to that member or

16 shareholder of the savings bank unless:

17 (1) the member or shareholder has authorized

18 disclosure to the person; or

19 (2) the financial records are disclosed in response to

20 a lawful subpoena, summons, warrant, citation to discover

21 assets, or court order that meets the requirements of

22 subsection (e) of this Section.

23 (e) A savings bank shall disclose financial records under

24 subsection (d) of this Section pursuant to a lawful subpoena,

25 summons, warrant, citation to discover assets, or court order

26 only after the savings bank mails a copy of the subpoena,

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1 summons, warrant, citation to discover assets, or court order

2 to the person establishing the relationship with the savings

3 bank, if living, and otherwise, his personal representative, if

4 known, at his last known address by first class mail, postage

5 prepaid, unless the savings bank is specifically prohibited

6 from notifying the person by order of court.

7 (f) Any officer or employee of a savings bank who knowingly

8 and willfully furnishes financial records in violation of this

9 Section is guilty of a business offense and, upon conviction,

10 shall be fined not more than $1,000.

11 (g) Any person who knowingly and willfully induces or

12 attempts to induce any officer or employee of a savings bank to

13 disclose financial records in violation of this Section is

14 guilty of a business offense and, upon conviction, shall be

15 fined not more than $1,000.

16 (h) If any member or shareholder desires to communicate

17 with the other members or shareholders of the savings bank with

18 reference to any question pending or to be presented at an

19 annual or special meeting, the savings bank shall give that

20 person, upon request, a statement of the approximate number of

21 members or shareholders entitled to vote at the meeting and an

22 estimate of the cost of preparing and mailing the

23 communication. The requesting member shall submit the

24 communication to the Commissioner who, upon finding it to be

25 appropriate and truthful, shall direct that it be prepared and

26 mailed to the members upon the requesting member's or

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1 shareholder's payment or adequate provision for payment of the

2 expenses of preparation and mailing.

3 (i) A savings bank shall be reimbursed for costs that are

4 necessary and that have been directly incurred in searching

5 for, reproducing, or transporting books, papers, records, or

6 other data of a customer required to be reproduced pursuant to

7 a lawful subpoena, warrant, citation to discover assets, or

8 court order.

9 (j) Notwithstanding the provisions of this Section, a

10 savings bank may sell or otherwise make use of lists of

11 customers' names and addresses. All other information

12 regarding a customer's account is subject to the disclosure

13 provisions of this Section. At the request of any customer,

14 that customer's name and address shall be deleted from any list

15 that is to be sold or used in any other manner beyond

16 identification of the customer's accounts.

17 (Source: P.A. 99-143, eff. 7-27-15; 100-22, eff. 1-1-18;

18 100-201, eff. 8-18-17; 100-664, eff. 1-1-19.)

19 (205 ILCS 205/9012) (from Ch. 17, par. 7309-12)

20 Sec. 9012. Disclosure of reports of examinations and

21 confidential supervisory information; limitations.

22 (a) Any report of examination, visitation, or

23 investigation prepared by the Secretary under this Act, any

24 report of examination, visitation, or investigation prepared

25 by the state regulatory authority of another state that

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1 examines a branch of an Illinois State savings bank in that

2 state, any document or record prepared or obtained in

3 connection with or relating to any examination, visitation, or

4 investigation, and any record prepared or obtained by the

5 Secretary to the extent that the record summarizes or contains

6 information derived from any report, document, or record

7 described in this subsection shall be deemed confidential

8 supervisory information. "Confidential supervisory

9 information" shall not include any information or record

10 routinely prepared by a savings bank and maintained in the

11 ordinary course of business or any information or record that

12 is required to be made publicly available pursuant to State or

13 federal law or rule. Confidential supervisory information

14 shall be the property of the Secretary and shall only be

15 disclosed under the circumstances and for the purposes set

16 forth in this Section.

17 The Secretary may disclose confidential supervisory

18 information only under the following circumstances:

19 (1) The Secretary may furnish confidential supervisory

20 information to federal and state depository institution

21 regulators, or any official or examiner thereof duly

22 accredited for the purpose. Nothing contained in this Act

23 shall be construed to limit the obligation of any savings

24 bank to comply with the requirements relative to

25 examinations and reports nor to limit in any way the powers

26 of the Secretary relative to examinations and reports.

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1 (2) The Secretary may furnish confidential supervisory

2 information to the United States or any agency thereof that

3 to any extent has insured a savings bank's deposits, or any

4 official or examiner thereof duly accredited for the

5 purpose. Nothing contained in this Act shall be construed

6 to limit the obligation relative to examinations and

7 reports of any savings bank in which deposits are to any

8 extent insured by the United States or any agency thereof

9 nor to limit in any way the powers of the Secretary with

10 reference to examination and reports of the savings bank.

11 (2.5) The Secretary may furnish confidential

12 supervisory information to a Federal Home Loan Bank in

13 connection with any savings bank that is a member of the

14 Federal Home Loan Bank or in connection with any

15 application by the savings bank before the Federal Home

16 Loan Bank. The confidential supervisory information shall

17 remain the property of the Secretary and may not be further

18 disclosed without the Secretary's permission.

19 (3) The Secretary may furnish confidential supervisory

20 information to the appropriate law enforcement authorities

21 when the Secretary reasonably believes a savings bank,

22 which the Secretary has caused to be examined, has been a

23 victim of a crime.

24 (4) The Secretary may furnish confidential supervisory

25 information related to a savings bank, which the Secretary

26 has caused to be examined, to the administrator of the

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1 ~~Revised~~ Uniform Disposition of Unclaimed Property Act.

2 (5) The Secretary may furnish confidential supervisory

3 information relating to a savings bank, which the Secretary

4 has caused to be examined, relating to its performance of

5 obligations under the Illinois Income Tax Act and the

6 Illinois Estate and Generation-Skipping Transfer Tax Act

7 to the Illinois Department of Revenue.

8 (6) The Secretary may furnish confidential supervisory

9 information relating to a savings bank, which the Secretary

10 has caused to be examined, under the federal Currency and

11 Foreign Transactions Reporting Act, 31 United States Code,

12 Section 1051 et seq.

13 (7) The Secretary may furnish confidential supervisory

14 information to any other agency or entity that the

15 Secretary determines to have a legitimate regulatory

16 interest.

17 (8) The Secretary may furnish confidential supervisory

18 information as otherwise permitted or required by this Act

19 and may furnish confidential supervisory information under

20 any other statute that by its terms or by regulations

21 promulgated thereunder requires the disclosure of

22 financial records other than by subpoena, summons,

23 warrant, or court order.

24 (9) At the request of the affected savings bank, the

25 Secretary may furnish confidential supervisory information

26 relating to the savings bank, which the Secretary has

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1 caused to be examined, in connection with the obtaining of

2 insurance coverage or the pursuit of an insurance claim for

3 or on behalf of the savings bank; provided that, when

4 possible, the Secretary shall disclose only relevant

5 information while maintaining the confidentiality of

6 financial records not relevant to such insurance coverage

7 or claim and, when appropriate, may delete identifying data

8 relating to any person.

9 (10) The Secretary may furnish a copy of a report of

10 any examination performed by the Secretary of the condition

11 and affairs of any electronic data processing entity to the

12 savings banks serviced by the electronic data processing

13 entity.

14 (11) In addition to the foregoing circumstances, the

15 Secretary may, but is not required to, furnish confidential

16 supervisory information under the same circumstances

17 authorized for the savings bank pursuant to subsection (b)

18 of this Section, except that the Secretary shall provide

19 confidential supervisory information under circumstances

20 described in paragraph (3) of subsection (b) of this

21 Section only upon the request of the savings bank.

22 (b) A savings bank or its officers, agents, and employees

23 may disclose confidential supervisory information only under

24 the following circumstances:

25 (1) to the board of directors of the savings bank, as

26 well as the president, vice-president, cashier, and other

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1 officers of the savings bank to whom the board of directors

2 may delegate duties with respect to compliance with

3 recommendations for action, and to the board of directors

4 of a savings bank holding company that owns at least 80% of

5 the outstanding stock of the savings bank or other

6 financial institution.

7 (2) to attorneys for the savings bank and to a

8 certified public accountant engaged by the savings bank to

9 perform an independent audit; provided that the attorney or

10 certified public accountant shall not permit the

11 confidential supervisory information to be further

12 disseminated.

13 (3) to any person who seeks to acquire a controlling

14 interest in, or who seeks to merge with, the savings bank;

15 provided that the person shall agree to be bound to respect

16 the confidentiality of the confidential supervisory

17 information and to not further disseminate the information

18 other than to attorneys, certified public accountants,

19 officers, agents, or employees of that person who likewise

20 shall agree to be bound to respect the confidentiality of

21 the confidential supervisory information and to not

22 further disseminate the information.

23 (4) to the savings bank's insurance company, if the

24 supervisory information contains information that is

25 otherwise unavailable and is strictly necessary to

26 obtaining insurance coverage or pursuing an insurance

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1 claim for or on behalf of the savings bank; provided that,

2 when possible, the savings bank shall disclose only

3 information that is relevant to obtaining insurance

4 coverage or pursuing an insurance claim, while maintaining

5 the confidentiality of financial information pertaining to

6 customers; and provided further that, when appropriate,

7 the savings bank may delete identifying data relating to

8 any person.

9 (5) to a Federal Home Loan Bank of which it is a

10 member.

11 (6) to any attorney, accountant, consultant, or other

12 professional as needed to comply with an enforcement action

13 issued by the Secretary.

14 The disclosure of confidential supervisory information by

15 a savings bank pursuant to this subsection (b) and the

16 disclosure of information to the Secretary or other regulatory

17 agency in connection with any examination, visitation, or

18 investigation shall not constitute a waiver of any legal

19 privilege otherwise available to the savings bank with respect

20 to the information.

21 (c)(1) Notwithstanding any other provision of this Act or

22 any other law, confidential supervisory information shall be

23 the property of the Secretary and shall be privileged from

24 disclosure to any person except as provided in this Section. No

25 person in possession of confidential supervisory information

26 may disclose that information for any reason or under any

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1 circumstances not specified in this Section without the prior

2 authorization of the Secretary. Any person upon whom a demand

3 for production of confidential supervisory information is

4 made, whether by subpoena, order, or other judicial or

5 administrative process, must withhold production of the

6 confidential supervisory information and must notify the

7 Secretary of the demand, at which time the Secretary is

8 authorized to intervene for the purpose of enforcing the

9 limitations of this Section or seeking the withdrawal or

10 termination of the attempt to compel production of the

11 confidential supervisory information.

12 (2) Any request for discovery or disclosure of confidential

13 supervisory information, whether by subpoena, order, or other

14 judicial or administrative process, shall be made to the

15 Secretary, and the Secretary shall determine within 15 days

16 whether to disclose the information pursuant to procedures and

17 standards that the Secretary shall establish by rule. If the

18 Secretary determines that such information will not be

19 disclosed, the Secretary's decision shall be subject to

20 judicial review under the provisions of the Administrative

21 Review Law, and venue shall be in either Sangamon County or

22 Cook County.

23 (3) Any court order that compels disclosure of confidential

24 supervisory information may be immediately appealed by the

25 Secretary, and the order shall be automatically stayed pending

26 the outcome of the appeal.

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1 (d) If any officer, agent, attorney, or employee of a

2 savings bank knowingly and willfully furnishes confidential

3 supervisory information in violation of this Section, the

4 Secretary may impose a civil monetary penalty up to $1,000 for

5 the violation against the officer, agent, attorney, or

6 employee.

7 (e) Subject to the limits of this Section, the Secretary

8 also may promulgate regulations to set procedures and standards

9 for disclosure of the following items:

10 (1) All fixed orders and opinions made in cases of

11 appeals of the Secretary's actions.

12 (2) Statements of policy and interpretations adopted

13 by the Secretary's office, but not otherwise made public.

14 (3) Nonconfidential portions of application files,

15 including applications for new charters. The Secretary

16 shall specify by rule as to what part of the files are

17 confidential.

18 (4) Quarterly reports of income, deposits, and

19 financial condition.

20 (Source: P.A. 100-22, eff. 1-1-18; 100-64, eff. 8-11-17;

21 100-863, eff. 8-14-18; 100-888, eff. 8-14-18.)

22 (205 ILCS 205/10090)

23 Sec. 10090. Dividends; dissolution. From time to time

24 during a receivership other than a receivership conducted by

25 the Federal Deposit Insurance Corporation, the Secretary shall

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1 make and pay from moneys of the savings bank a ratable dividend

2 on all claims as may be proved to his or her satisfaction or

3 adjudicated by the court. Claims so proven or adjudicated shall

4 bear interest at the rate of 3% per annum from the date of the

5 appointment of the receiver to the date of payment, but all

6 dividends on a claim shall be applied first to principal. In

7 computing the amount of any dividend to be paid, if the

8 Secretary deems it desirable in the interests of economy of

9 administration and to the interest of the savings bank and its

10 creditors, he or she may pay up to the amount of $10 of each

11 claim or unpaid portion thereof in full. As the proceeds of the

12 assets of the savings bank are collected in the course of

13 liquidation, the Secretary shall make and pay further dividends

14 on all claims previously proven or adjudicated. After one year

15 from the entry of a judgment of dissolution, all unclaimed

16 dividends shall be remitted to the State Treasurer in

17 accordance with the ~~Revised~~ Uniform Disposition of Unclaimed

18 Property Act, as now or hereafter amended, together with a list

19 of all unpaid claimants, their last known addresses and the

20 amounts unpaid.

21 (Source: P.A. 100-22, eff. 1-1-18.)

22 Section 60. The Illinois Credit Union Act is amended by

23 changing Sections 10 and 62 as follows:

24 (205 ILCS 305/10) (from Ch. 17, par. 4411)

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1 Sec. 10. Credit union records; member financial records.

2 (1) A credit union shall establish and maintain books,

3 records, accounting systems and procedures which accurately

4 reflect its operations and which enable the Department to

5 readily ascertain the true financial condition of the credit

6 union and whether it is complying with this Act.

7 (2) A photostatic or photographic reproduction of any

8 credit union records shall be admissible as evidence of

9 transactions with the credit union.

10 (3)(a) For the purpose of this Section, the term "financial

11 records" means any original, any copy, or any summary of (1) a

12 document granting signature authority over an account, (2) a

13 statement, ledger card or other record on any account which

14 shows each transaction in or with respect to that account, (3)

15 a check, draft or money order drawn on a financial institution

16 or other entity or issued and payable by or through a financial

17 institution or other entity, or (4) any other item containing

18 information pertaining to any relationship established in the

19 ordinary course of business between a credit union and its

20 member, including financial statements or other financial

21 information provided by the member.

22 (b) This Section does not prohibit:

23 (1) The preparation, examination, handling or

24 maintenance of any financial records by any officer,

25 employee or agent of a credit union having custody of such

26 records, or the examination of such records by a certified

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1 public accountant engaged by the credit union to perform an

2 independent audit.

3 (2) The examination of any financial records by or the

4 furnishing of financial records by a credit union to any

5 officer, employee or agent of the Department, the National

6 Credit Union Administration, Federal Reserve board or any

7 insurer of share accounts for use solely in the exercise of

8 his duties as an officer, employee or agent.

9 (3) The publication of data furnished from financial

10 records relating to members where the data cannot be

11 identified to any particular customer of account.

12 (4) The making of reports or returns required under

13 Chapter 61 of the Internal Revenue Code of 1954.

14 (5) Furnishing information concerning the dishonor of

15 any negotiable instrument permitted to be disclosed under

16 the Uniform Commercial Code.

17 (6) The exchange in the regular course of business of

18 (i) credit information between a credit union and other

19 credit unions or financial institutions or commercial

20 enterprises, directly or through a consumer reporting

21 agency or (ii) financial records or information derived

22 from financial records between a credit union and other

23 credit unions or financial institutions or commercial

24 enterprises for the purpose of conducting due diligence

25 pursuant to a merger or a purchase or sale of assets or

26 liabilities of the credit union.

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1 (7) The furnishing of information to the appropriate

2 law enforcement authorities where the credit union

3 reasonably believes it has been the victim of a crime.

4 (8) The furnishing of information pursuant to the

5 ~~Revised~~ Uniform Disposition of Unclaimed Property Act.

6 (9) The furnishing of information pursuant to the

7 Illinois Income Tax Act and the Illinois Estate and

8 Generation-Skipping Transfer Tax Act.

9 (10) The furnishing of information pursuant to the

10 federal ~~"~~Currency and Foreign Transactions Reporting Act~~"~~,

11 Title 31, United States Code, Section 1051 et sequentia.

12 (11) The furnishing of information pursuant to any

13 other statute which by its terms or by regulations

14 promulgated thereunder requires the disclosure of

15 financial records other than by subpoena, summons, warrant

16 or court order.

17 (12) The furnishing of information in accordance with

18 the federal Personal Responsibility and Work Opportunity

19 Reconciliation Act of 1996. Any credit union governed by

20 this Act shall enter into an agreement for data exchanges

21 with a State agency provided the State agency pays to the

22 credit union a reasonable fee not to exceed its actual cost

23 incurred. A credit union providing information in

24 accordance with this item shall not be liable to any

25 account holder or other person for any disclosure of

26 information to a State agency, for encumbering or

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1 surrendering any assets held by the credit union in

2 response to a lien or order to withhold and deliver issued

3 by a State agency, or for any other action taken pursuant

4 to this item, including individual or mechanical errors,

5 provided the action does not constitute gross negligence or

6 willful misconduct. A credit union shall have no obligation

7 to hold, encumber, or surrender assets until it has been

8 served with a subpoena, summons, warrant, court or

9 administrative order, lien, or levy.

10 (13) The furnishing of information to law enforcement

11 authorities, the Illinois Department on Aging and its

12 regional administrative and provider agencies, the

13 Department of Human Services Office of Inspector General,

14 or public guardians: (i) upon subpoena by the investigatory

15 entity or the guardian, or (ii) if there is suspicion by

16 the credit union that a member who is an elderly person or

17 person with a disability has been or may become the victim

18 of financial exploitation. For the purposes of this item

19 (13), the term: (i) "elderly person" means a person who is

20 60 or more years of age, (ii) "person with a disability"

21 means a person who has or reasonably appears to the credit

22 union to have a physical or mental disability that impairs

23 his or her ability to seek or obtain protection from or

24 prevent financial exploitation, and (iii) "financial

25 exploitation" means tortious or illegal use of the assets

26 or resources of an elderly person or person with a

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1 disability, and includes, without limitation,

2 misappropriation of the elderly or disabled person's

3 assets or resources by undue influence, breach of fiduciary

4 relationship, intimidation, fraud, deception, extortion,

5 or the use of assets or resources in any manner contrary to

6 law. A credit union or person furnishing information

7 pursuant to this item (13) shall be entitled to the same

8 rights and protections as a person furnishing information

9 under the Adult Protective Services Act and the Illinois

10 Domestic Violence Act of 1986.

11 (14) The disclosure of financial records or

12 information as necessary to effect, administer, or enforce

13 a transaction requested or authorized by the member, or in

14 connection with:

15 (A) servicing or processing a financial product or

16 service requested or authorized by the member;

17 (B) maintaining or servicing a member's account

18 with the credit union; or

19 (C) a proposed or actual securitization or

20 secondary market sale (including sales of servicing

21 rights) related to a transaction of a member.

22 Nothing in this item (14), however, authorizes the sale

23 of the financial records or information of a member without

24 the consent of the member.

25 (15) The disclosure of financial records or

26 information as necessary to protect against or prevent

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1 actual or potential fraud, unauthorized transactions,

2 claims, or other liability.

3 (16)(a) The disclosure of financial records or

4 information related to a private label credit program

5 between a financial institution and a private label party

6 in connection with that private label credit program. Such

7 information is limited to outstanding balance, available

8 credit, payment and performance and account history,

9 product references, purchase information, and information

10 related to the identity of the customer.

11 (b)(1) For purposes of this item ~~paragraph~~ (16) ~~of~~

12 ~~subsection (b) of Section 10~~, ~~a~~ "private label credit

13 program" means a credit program involving a financial

14 institution and a private label party that is used by a

15 customer of the financial institution and the private label

16 party primarily for payment for goods or services sold,

17 manufactured, or distributed by a private label party.

18 (2) For purposes of this item ~~paragraph~~ (16) ~~of~~

19 ~~subsection (b) of Section 10~~, ~~a~~ "private label party"

20 means, with respect to a private label credit program, any

21 of the following: a retailer, a merchant, a manufacturer, a

22 trade group, or any such person's affiliate, subsidiary,

23 member, agent, or service provider.

24 (17)(a) The furnishing of financial records of a member

25 to the Department to aid the Department's initial

26 determination or subsequent re-determination of the

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1 member's eligibility for Medicaid and Medicaid long-term

2 care benefits for long-term care services, provided that

3 the credit union receives the written consent and

4 authorization of the member, which shall:

5 (1) have the member's signature notarized;

6 (2) be signed by at least one witness who certifies

7 that he or she believes the member to be of sound mind

8 and memory;

9 (3) be tendered to the credit union at the earliest

10 practicable time following its execution,

11 certification, and notarization;

12 (4) specifically limit the disclosure of the

13 member's financial records to the Department; and

14 (5) be in substantially the following form:

15 CUSTOMER CONSENT AND AUTHORIZATION

16 FOR RELEASE OF FINANCIAL RECORDS

17 I, ......................................., hereby authorize

18 (Name of Customer)

19 .............................................................

20 (Name of Financial Institution)

21 .............................................................

22 (Address of Financial Institution)

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1 to disclose the following financial records:

2 any and all information concerning my deposit, savings, money

3 market, certificate of deposit, individual retirement,

4 retirement plan, 401(k) plan, incentive plan, employee benefit

5 plan, mutual fund and loan accounts (including, but not limited

6 to, any indebtedness or obligation for which I am a

7 co-borrower, co-obligor, guarantor, or surety), and any and all

8 other accounts in which I have an interest and any other

9 information regarding me in the possession of the Financial

10 Institution,

11 to the Illinois Department of Human Services or the Illinois

12 Department of Healthcare and Family Services, or both ("the

13 Department"), for the following purpose(s):

14 to aid in the initial determination or re-determination by the

15 State of Illinois of my eligibility for Medicaid long-term care

16 benefits, pursuant to applicable law.

17 I understand that this Consent and Authorization may be revoked

18 by me in writing at any time before my financial records, as

19 described above, are disclosed, and that this Consent and

20 Authorization is valid until the Financial Institution

21 receives my written revocation. This Consent and Authorization

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1 shall constitute valid authorization for the Department

2 identified above to inspect all such financial records set

3 forth above, and to request and receive copies of such

4 financial records from the Financial Institution (subject to

5 such records search and reproduction reimbursement policies as

6 the Financial Institution may have in place). An executed copy

7 of this Consent and Authorization shall be sufficient and as

8 good as the original and permission is hereby granted to honor

9 a photostatic or electronic copy of this Consent and

10 Authorization. Disclosure is strictly limited to the

11 Department identified above and no other person or entity shall

12 receive my financial records pursuant to this Consent and

13 Authorization. By signing this form, I agree to indemnify and

14 hold the Financial Institution harmless from any and all

15 claims, demands, and losses, including reasonable attorneys

16 fees and expenses, arising from or incurred in its reliance on

17 this Consent and Authorization. As used herein, "Customer"

18 shall mean "Member" if the Financial Institution is a credit

19 union.

20 ....................... ......................

21 (Date) (Signature of Customer)

22 ......................

23 ......................

24 (Address of Customer)

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1 ......................

2 (Customer's birth date)

3 (month/day/year)

4 The undersigned witness certifies that .................,

5 known to me to be the same person whose name is subscribed as

6 the customer to the foregoing Consent and Authorization,

7 appeared before me and the notary public and acknowledged

8 signing and delivering the instrument as his or her free and

9 voluntary act for the uses and purposes therein set forth. I

10 believe him or her to be of sound mind and memory. The

11 undersigned witness also certifies that the witness is not an

12 owner, operator, or relative of an owner or operator of a

13 long-term care facility in which the customer is a patient or

14 resident.

15 Dated: ................. ......................

16 (Signature of Witness)

17 ......................

18 (Print Name of Witness)

19 ......................

20 ......................

21 (Address of Witness)

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1 State of Illinois)

2 ) ss.

3 County of .......)

4 The undersigned, a notary public in and for the above county

5 and state, certifies that .........., known to me to be the

6 same person whose name is subscribed as the customer to the

7 foregoing Consent and Authorization, appeared before me

8 together with the witness, .........., in person and

9 acknowledged signing and delivering the instrument as the free

10 and voluntary act of the customer for the uses and purposes

11 therein set forth.

12 Dated:.......................................................

13 Notary Public:...............................................

14 My commission expires:.......................................

15 (b) In no event shall the credit union distribute the

16 member's financial records to the long-term care facility

17 from which the member seeks initial or continuing residency

18 or long-term care services.

19 (c) A credit union providing financial records of a

20 member in good faith relying on a consent and authorization

21 executed and tendered in accordance with this item

22 ~~subparagraph~~ (17) shall not be liable to the member or any

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1 other person in relation to the credit union's disclosure

2 of the member's financial records to the Department. The

3 member signing the consent and authorization shall

4 indemnify and hold the credit union harmless that relies in

5 good faith upon the consent and authorization and incurs a

6 loss because of such reliance. The credit union recovering

7 under this indemnification provision shall also be

8 entitled to reasonable attorney's fees and the expenses of

9 recovery.

10 (d) A credit union shall be reimbursed by the member

11 for all costs reasonably necessary and directly incurred in

12 searching for, reproducing, and disclosing a member's

13 financial records required or requested to be produced

14 pursuant to any consent and authorization executed under

15 this item ~~subparagraph~~ (17). The requested financial

16 records shall be delivered to the Department within 10 days

17 after receiving a properly executed consent and

18 authorization or at the earliest practicable time

19 thereafter if the requested records cannot be delivered

20 within 10 days, but delivery may be delayed until the final

21 reimbursement of all costs is received by the credit union.

22 The credit union may honor a photostatic or electronic copy

23 of a properly executed consent and authorization.

24 (e) Nothing in this item ~~subparagraph~~ (17) shall

25 impair, abridge, or abrogate the right of a member to:

26 (1) directly disclose his or her financial records

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1 to the Department or any other person; or

2 (2) authorize his or her attorney or duly appointed

3 agent to request and obtain the member's financial

4 records and disclose those financial records to the

5 Department.

6 (f) For purposes of this item ~~subparagraph~~ (17),

7 "Department" means the Department of Human Services and the

8 Department of Healthcare and Family Services or any

9 successor administrative agency of either agency.

10 (18) ~~(17)~~ The furnishing of the financial records of a

11 member to an appropriate law enforcement authority,

12 without prior notice to or consent of the member, upon

13 written request of the law enforcement authority, when

14 reasonable suspicion of an imminent threat to the personal

15 security and safety of the member exists that necessitates

16 an expedited release of the member's financial records, as

17 determined by the law enforcement authority. The law

18 enforcement authority shall include a brief explanation of

19 the imminent threat to the member in its written request to

20 the credit union. The written request shall reflect that it

21 has been authorized by a supervisory or managerial official

22 of the law enforcement authority. The decision to furnish

23 the financial records of a member to a law enforcement

24 authority shall be made by a supervisory or managerial

25 official of the credit union. A credit union providing

26 information in accordance with this item (18) ~~(17)~~ shall

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1 not be liable to the member or any other person for the

2 disclosure of the information to the law enforcement

3 authority.

4 (c) Except as otherwise provided by this Act, a credit

5 union may not disclose to any person, except to the member or

6 his duly authorized agent, any financial records relating to

7 that member of the credit union unless:

8 (1) the member has authorized disclosure to the person;

9 (2) the financial records are disclosed in response to

10 a lawful subpoena, summons, warrant, citation to discover

11 assets, or court order that meets the requirements of

12 subparagraph (3)(d)~~(d)~~ of this Section; or

13 (3) the credit union is attempting to collect an

14 obligation owed to the credit union and the credit union

15 complies with the provisions of Section 2I of the Consumer

16 Fraud and Deceptive Business Practices Act.

17 (d) A credit union shall disclose financial records under

18 item (3)(c)(2) ~~subparagraph (c)(2)~~ of this Section pursuant to

19 a lawful subpoena, summons, warrant, citation to discover

20 assets, or court order only after the credit union mails a copy

21 of the subpoena, summons, warrant, citation to discover assets,

22 or court order to the person establishing the relationship with

23 the credit union, if living, and otherwise his personal

24 representative, if known, at his last known address by first

25 class mail, postage prepaid unless the credit union is

26 specifically prohibited from notifying the person by order of

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1 court or by applicable State or federal law. In the case of a

2 grand jury subpoena, a credit union shall not mail a copy of a

3 subpoena to any person pursuant to this subsection if the

4 subpoena was issued by a grand jury under the Statewide Grand

5 Jury Act or notifying the person would constitute a violation

6 of the federal Right to Financial Privacy Act of 1978.

7 (e)(1) Any officer or employee of a credit union who

8 knowingly and willfully~~wilfully~~ furnishes financial records

9 in violation of this Section is guilty of a business offense

10 and upon conviction thereof shall be fined not more than

11 $1,000.

12 (2) Any person who knowingly and willfully ~~wilfully~~ induces

13 or attempts to induce any officer or employee of a credit union

14 to disclose financial records in violation of this Section is

15 guilty of a business offense and upon conviction thereof shall

16 be fined not more than $1,000.

17 (f) A credit union shall be reimbursed for costs which are

18 reasonably necessary and which have been directly incurred in

19 searching for, reproducing or transporting books, papers,

20 records or other data of a member required or requested to be

21 produced pursuant to a lawful subpoena, summons, warrant,

22 citation to discover assets, or court order. The Secretary and

23 the Director may determine, by rule, the rates and conditions

24 under which payment shall be made. Delivery of requested

25 documents may be delayed until final reimbursement of all costs

26 is received.

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1 (Source: P.A. 99-143, eff. 7-27-15; 100-22, eff. 1-1-18;

2 100-664, eff. 1-1-19; 100-778, eff. 8-10-18; revised

3 10-18-18.)

4 (205 ILCS 305/62) (from Ch. 17, par. 4463)

5 Sec. 62. Liquidation.

6 (1) A credit union may elect to dissolve voluntarily and

7 liquidate its affairs in the manner prescribed in this Section.

8 (2) The board of directors shall adopt a resolution

9 recommending the credit union be dissolved voluntarily, and

10 directing that the question of liquidating be submitted to the

11 members.

12 (3) Within 10 days after the board of directors decides to

13 submit the question of liquidation to the members, the chairman

14 or president shall notify the Secretary thereof, in writing,

15 setting forth the reasons for the proposed action. Within 10

16 days after the members act on the question of liquidation, the

17 chairman or president shall notify the Secretary, in writing,

18 as to whether or not the members approved the proposed

19 liquidation. The Secretary then must determine whether this

20 Section has been complied with and if his decision is

21 favorable, he shall prepare a certificate to the effect that

22 this Section has been complied with, a copy of which will be

23 retained by the Department and the other copy forwarded to the

24 credit union. The certificate must be filed with the recorder

25 or if there is no recorder, in the office of the county clerk

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1 of the county or counties in which the credit union is

2 operating, whereupon the credit union must cease operations

3 except for the purpose of its liquidation.

4 (4) As soon as the board of directors passes a resolution

5 to submit the question of liquidation to the members, payment

6 on shares, withdrawal of shares, making any transfer of shares

7 to loans and interest, making investments of any kind and

8 granting loans shall be suspended pending action by members. On

9 approval by the members of such proposal, all such operations

10 shall be permanently discontinued. The necessary expenses of

11 operating shall, however, continue to be paid on authorization

12 of the board of directors or the liquidating agent during the

13 period of liquidation.

14 (5) For a credit union to enter voluntary liquidation, it

15 must be approved by affirmative vote of the members owning a

16 majority of the shares entitled to vote, in person or by proxy,

17 at a regular or special meeting of the members. Notice, in

18 writing, shall be given to each member, by first class mail, at

19 least 10 days prior to such meeting. If liquidation is

20 approved, the board of directors shall appoint a liquidating

21 agent for the purpose of conserving and collecting the assets,

22 closing the affairs of the credit union and distributing the

23 assets as required by this Act.

24 (6) A liquidating credit union shall continue in existence

25 for the purpose of discharging its debts, collecting and

26 distributing its assets, and doing all acts required in order

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1 to terminate its operations and may sue and be sued for the

2 purpose of enforcing such debts and obligations until its

3 affairs are fully adjusted.

4 (7) Subject to such rules and regulations as the Secretary

5 may promulgate, the liquidating agent shall use the assets of

6 the credit union to pay; first, expenses incidental to

7 liquidating including any surety bond that may be required;

8 then, liabilities of the credit union; then special classes of

9 shares. The remaining assets shall then be distributed to the

10 members proportionately to the dollar value of the shares held

11 by each member in relation to the total dollar value of all

12 shares outstanding as of the date the dissolution was voted.

13 (8) As soon as the liquidating agent determines that all

14 assets as to which there is a reasonable expectancy of sale or

15 transfer have been liquidated and distributed as set forth in

16 this Section, he shall execute a certificate of dissolution on

17 a form prescribed by the Department and file the same, together

18 with all pertinent books and records of the liquidating credit

19 union with the Department, whereupon such credit union shall be

20 dissolved. The liquidating agent must, within 3 years after

21 issuance of a certificate by the Secretary referred to in

22 Subsection (3) of this Section, discharge the debts of the

23 credit union, collect and distribute its assets and do all

24 other acts required to wind up its business.

25 (9) If the Secretary determines that the liquidating agent

26 has failed to make reasonable progress in the liquidating of

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1 the credit union's affairs and distribution of its assets or

2 has violated this Act, the Secretary may take possession and

3 control of the credit union and remove the liquidating agent

4 and appoint a liquidating agent to complete the liquidation

5 under his direction and control. The Secretary shall fill any

6 vacancy caused by the resignation, death, illness, removal,

7 desertion or incapacity to function of the liquidating agent.

8 (10) Any funds representing unclaimed dividends and shares

9 in liquidation and remaining in the hands of the board of

10 directors or the liquidating agent at the end of the

11 liquidation must be deposited by them, together with all books

12 and papers of the credit union, with the State Treasurer in

13 compliance with the ~~Revised~~ Uniform Disposition of Unclaimed

14 Property Act, approved August 17, 1961, as amended.

15 (Source: P.A. 100-22, eff. 1-1-18.)

16 Section 65. The Currency Exchange Act is amended by

17 changing Sections 15.1b and 19.3 as follows:

18 (205 ILCS 405/15.1b) (from Ch. 17, par. 4827)

19 Sec. 15.1b. Liquidation; distribution; priority. The

20 General Assembly finds and declares that community currency

21 exchanges provide important and vital services to Illinois

22 citizens. The General Assembly also finds that in providing

23 such services, community currency exchanges transact extensive

24 business involving check cashing and the writing of money

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1 orders in communities in which banking services are generally

2 unavailable. It is therefore declared to be the policy of this

3 State that customers who receive these services must be

4 protected from insolvencies of currency exchanges and

5 interruptions of services. To carry out this policy and to

6 insure that customers of community currency exchanges are

7 protected in the event it is determined that a community

8 currency exchange in receivership should be liquidated in

9 accordance with Section 15.1a of this Act, the Secretary shall

10 make a distribution of moneys collected by the receiver in the

11 following order of priority: First, allowed claims for the

12 actual necessary expenses of the receivership of the community

13 currency exchange being liquidated, including (a) reasonable

14 receiver fees and receiver's attorney's fees approved by the

15 Secretary, (b) all expenses of any preliminary or other

16 examinations into the condition of the community currency

17 exchange or receivership, (c) all expenses incurred by the

18 Secretary which are incident to possession and control of any

19 property or records of the community currency exchange, and (d)

20 reasonable expenses incurred by the Secretary as the result of

21 business agreements or contractual arrangements necessary to

22 insure that the services of the community currency exchanges

23 are delivered to the community without interruption. Said

24 business agreements or contractual arrangements may include,

25 but are not limited to, agreements made by the Secretary, or by

26 the Receiver with the approval of the Secretary, with banks,

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1 money order companies, bonding companies and other types of

2 financial institutions; Second, allowed claims by a purchaser

3 of money orders issued on demand of the community currency

4 exchange being liquidated; Third, allowed claims arising by

5 virtue of and to the extent of the amount a utility customer

6 deposits with the community currency exchange being liquidated

7 which are not remitted to the utility company; Fourth, allowed

8 claims arising by virtue of and to the extent of the amount

9 paid by a purchaser of Illinois license plates, vehicle

10 stickers sold for State and municipal governments in Illinois,

11 and temporary Illinois registration permits purchased at the

12 currency exchange being liquidated; Fifth, allowed unsecured

13 claims for wages or salaries, excluding vacation, severance and

14 sick leave pay earned by employee earned within 90 days prior

15 to the appointment of a Receiver; Sixth, secured claims;

16 Seventh, allowed unsecured claims of any tax, and interest and

17 penalty on the tax; Eighth, allowed unsecured claims other than

18 a kind specified in paragraph one, two and three of this

19 Section, filed with the Secretary within the time the Secretary

20 fixes for filing claims; Ninth, allowed unsecured claims, other

21 than a kind specified in paragraphs one, two and three of this

22 Section filed with the Secretary after the time fixed for

23 filing claims by the Secretary; Tenth, allowed creditor claims

24 asserted by an owner, member, or stockholder of the community

25 currency exchange in liquidation; Eleventh, after one year from

26 the final dissolution of the currency exchange, all assets not

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1 used to satisfy allowed claims shall be distributed pro rata to

2 the owner, owners, members, or stockholders of the currency

3 exchange.

4 The Secretary shall pay all claims of equal priority

5 according to the schedule set out above, and shall not pay

6 claims of lower priority until all higher priority claims are

7 satisfied. If insufficient assets are available to meet all

8 claims of equal priority, those assets shall be distributed pro

9 rata among those claims. All unclaimed assets of a currency

10 exchange shall be deposited with the Secretary to be paid out

11 by him when proper claims therefor are presented to the

12 Secretary. If there are funds remaining after the conclusion of

13 a receivership of an abandoned currency exchange, the remaining

14 funds shall be considered unclaimed property and remitted to

15 the State Treasurer under the ~~Revised~~ Uniform Disposition of

16 Unclaimed Property Act.

17 (Source: P.A. 100-22, eff. 1-1-18.)

18 (205 ILCS 405/19.3) (from Ch. 17, par. 4838)

19 (Text of Section before amendment by P.A. 100-704)

20 Sec. 19.3. (A) The General Assembly hereby finds and

21 declares: community currency exchanges and ambulatory currency

22 exchanges provide important and vital services to Illinois

23 citizens. In so doing, they transact extensive business

24 involving check cashing and the writing of money orders in

25 communities in which banking services are generally

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1 unavailable. Customers of currency exchanges who receive these

2 services must be protected from being charged unreasonable and

3 unconscionable rates for cashing checks and purchasing money

4 orders. The Illinois Department of Financial and Professional

5 Regulation has the responsibility for regulating the

6 operations of currency exchanges and has the expertise to

7 determine reasonable maximum rates to be charged for check

8 cashing and money order purchases. Therefore, it is in the

9 public interest, convenience, welfare and good to have the

10 Department establish reasonable maximum rate schedules for

11 check cashing and the issuance of money orders and to require

12 community and ambulatory currency exchanges to prominently

13 display to the public the fees charged for all services. The

14 Secretary shall review, each year, the cost of operation of the

15 Currency Exchange Section and the revenue generated from

16 currency exchange examinations and report to the General

17 Assembly if the need exists for an increase in the fees

18 mandated by this Act to maintain the Currency Exchange Section

19 at a fiscally self-sufficient level. The Secretary shall

20 include in such report the total amount of funds remitted to

21 the State and delivered to the State Treasurer by currency

22 exchanges pursuant to the ~~Revised~~UniformDisposition of

23 Unclaimed Property Act.

24 (B) The Secretary shall, by rules adopted in accordance

25 with the Illinois Administrative Procedure Act, expeditiously

26 formulate and issue schedules of reasonable maximum rates which

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1 can be charged for check cashing and writing of money orders by

2 community currency exchanges and ambulatory currency

3 exchanges.

4 (1) In determining the maximum rate schedules for the

5 purposes of this Section the Secretary shall take into

6 account:

7 (a) Rates charged in the past for the cashing of

8 checks and the issuance of money orders by community

9 and ambulatory currency exchanges.

10 (b) Rates charged by banks or other business

11 entities for rendering the same or similar services and

12 the factors upon which those rates are based.

13 (c) The income, cost and expense of the operation

14 of currency exchanges.

15 (d) Rates charged by currency exchanges or other

16 similar entities located in other states for the same

17 or similar services and the factors upon which those

18 rates are based.

19 (e) Rates charged by the United States Postal

20 Service for the issuing of money orders and the factors

21 upon which those rates are based.

22 (f) A reasonable profit for a currency exchange

23 operation.

24 (2)(a) The schedule of reasonable maximum rates

25 established pursuant to this Section may be modified by the

26 Secretary from time to time pursuant to rules adopted in

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1 accordance with the Illinois Administrative Procedure Act.

2 (b) Upon the filing of a verified petition setting

3 forth allegations demonstrating reasonable cause to

4 believe that the schedule of maximum rates previously

5 issued and promulgated should be adjusted, the Secretary

6 shall expeditiously:

7 (i) reject the petition if it fails to demonstrate

8 reasonable cause to believe that an adjustment is

9 necessary; or

10 (ii) conduct such hearings, in accordance with

11 this Section, as may be necessary to determine whether

12 the petition should be granted in whole or in part.

13 (c) No petition may be filed pursuant to subparagraph

14 (a) of paragraph (2) of subsection (B) unless:

15 (i) at least nine months have expired since the

16 last promulgation of schedules of maximum rates; and

17 (ii) at least one-fourth of all community currency

18 exchange licensees join in a petition or, in the case

19 of ambulatory currency exchanges, a licensee or

20 licensees authorized to serve at least 100 locations

21 join in a petition.

22 (3) Any currency exchange may charge lower fees than

23 those of the applicable maximum fee schedule after filing

24 with the Secretary a schedule of fees it proposes to use.

25 (Source: P.A. 100-22, eff. 1-1-18.)

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1 (Text of Section after amendment by P.A. 100-704)

2 Sec. 19.3. (A) The General Assembly hereby finds and

3 declares: community currency exchanges and ambulatory currency

4 exchanges provide important and vital services to Illinois

5 citizens. In so doing, they transact extensive business

6 involving check cashing and the writing of money orders in

7 communities in which banking services are generally

8 unavailable. Customers of currency exchanges who receive these

9 services must be protected from being charged unreasonable and

10 unconscionable rates for cashing checks and purchasing money

11 orders. The Illinois Department of Financial and Professional

12 Regulation has the responsibility for regulating the

13 operations of currency exchanges and has the expertise to

14 determine reasonable maximum rates to be charged for check

15 cashing and money order purchases. Therefore, it is in the

16 public interest, convenience, welfare and good to have the

17 Department establish reasonable maximum rate schedules for

18 check cashing and the issuance of money orders and to require

19 community and ambulatory currency exchanges to prominently

20 display to the public the fees charged for all services. The

21 Secretary shall review, each year, the cost of operation of the

22 Currency Exchange Section and the revenue generated from

23 currency exchange examinations and report to the General

24 Assembly if the need exists for an increase in the fees

25 mandated by this Act to maintain the Currency Exchange Section

26 at a fiscally self-sufficient level. The Secretary shall

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1 include in such report the total amount of funds remitted to

2 the State and delivered to the State Treasurer by currency

3 exchanges pursuant to the ~~Revised~~UniformDisposition of

4 Unclaimed Property Act.

5 (B) The Secretary shall, by rules adopted in accordance

6 with the Illinois Administrative Procedure Act, expeditiously

7 formulate and issue schedules of reasonable maximum rates which

8 can be charged for check cashing and writing of money orders by

9 community currency exchanges and ambulatory currency

10 exchanges.

11 (1) In determining the maximum rate schedules for the

12 purposes of this Section the Secretary shall take into

13 account:

14 (a) Rates charged in the past for the cashing of

15 checks and the issuance of money orders by community

16 and ambulatory currency exchanges.

17 (b) Rates charged by banks or other business

18 entities for rendering the same or similar services and

19 the factors upon which those rates are based.

20 (c) The income, cost and expense of the operation

21 of currency exchanges.

22 (d) Rates charged by currency exchanges or other

23 similar entities located in other states for the same

24 or similar services and the factors upon which those

25 rates are based.

26 (e) Rates charged by the United States Postal

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1 Service for the issuing of money orders and the factors

2 upon which those rates are based.

3 (f) A reasonable profit for a currency exchange

4 operation.

5 (g) The impact on consumers.

6 (h) Whether the rate schedule will

7 disproportionately impact anyone on the basis of any

8 protected characteristic or category listed in

9 subsection (Q) of Section 1-103 of the Illinois Human

10 Rights Act as those terms are defined in that Section.

11 (2)(a) The schedule of reasonable maximum rates

12 established pursuant to this Section may be modified by the

13 Secretary from time to time pursuant to rules adopted in

14 accordance with the Illinois Administrative Procedure Act.

15 (b) Upon the filing of a verified petition setting

16 forth allegations demonstrating reasonable cause to

17 believe that the schedule of maximum rates previously

18 issued and promulgated should be adjusted, the Secretary

19 shall expeditiously:

20 (i) reject the petition if it fails to demonstrate

21 reasonable cause to believe that an adjustment is

22 necessary; or

23 (ii) conduct such hearings, in accordance with

24 this Section, as may be necessary to determine whether

25 the petition should be granted in whole or in part.

26 (c) No petition may be filed pursuant to subparagraph

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1 (a) of paragraph (2) of subsection (B) unless:

2 (i) at least nine months have expired since the

3 last promulgation of schedules of maximum rates; and

4 (ii) at least one-fourth of all community currency

5 exchange licensees join in a petition or, in the case

6 of ambulatory currency exchanges, a licensee or

7 licensees authorized to serve at least 100 locations

8 join in a petition.

9 (3) Any currency exchange may charge lower fees than

10 those of the applicable maximum fee schedule after filing

11 with the Secretary a schedule of fees it proposes to use.

12 (Source: P.A. 100-22, eff. 1-1-18; 100-704, eff. 6-1-19.)

13 Section 70. The Corporate Fiduciary Act is amended by

14 changing Section 6-14 as follows:

15 (205 ILCS 620/6-14) (from Ch. 17, par. 1556-14)

16 Sec. 6-14. From time to time during receivership the

17 Commissioner shall make and pay from monies of the corporate

18 fiduciary a ratable dividend on all claims as may be proved to

19 his or her satisfaction or adjudicated by the court. After one

20 year from the entry of a judgment of dissolution, all unclaimed

21 dividends shall be remitted to the State Treasurer in

22 accordance with the ~~Revised~~UniformDisposition of Unclaimed

23 Property Act, as now or hereafter amended, together with a list

24 of all unpaid claimants, their last known addresses and the

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1 amounts unpaid.

2 (Source: P.A. 100-22, eff. 1-1-18.)

3 Section 75. The Transmitters of Money Act is amended by

4 changing Section 30 as follows:

5 (205 ILCS 657/30)

6 Sec. 30. Surety bond.

7 (a) An applicant for a license shall post and a licensee

8 must maintain with the Director a bond or bonds issued by

9 corporations qualified to do business as surety companies in

10 this State.

11 (b) The applicant or licensee shall post a bond in the

12 amount of $50,000 or an amount equal to 1% of all

13 Illinois-based activity, whichever is greater, up to a maximum

14 amount of $2,000,000. When the amount of the required bond

15 exceeds $1,000,000, the applicant or licensee may, in the

16 alternative, post a bond in the amount of $1,000,000 plus a

17 dollar for dollar increase in the net worth of the applicant or

18 licensee over and above the amount required in Section 20, up

19 to a total amount of $2,000,000.

20 (c) The bond must be in a form satisfactory to the Director

21 and shall run to the State of Illinois for the benefit of any

22 claimant against the applicant or licensee with respect to the

23 receipt, handling, transmission, and payment of money by the

24 licensee or authorized seller in connection with the licensed

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1 operations. A claimant damaged by a breach of the conditions of

2 a bond shall have a right to action upon the bond for damages

3 suffered thereby and may bring suit directly on the bond, or

4 the Director may bring suit on behalf of the claimant.

5 (d) (Blank).

6 (e) (Blank).

7 (f) After receiving a license, the licensee must maintain

8 the required bond plus net worth (if applicable) until 5 years

9 after it ceases to do business in this State unless all

10 outstanding payment instruments are eliminated or the

11 provisions under the ~~Revised~~UniformDisposition of Unclaimed

12 Property Act have become operative and are adhered to by the

13 licensee. Notwithstanding this provision, however, the amount

14 required to be maintained may be reduced to the extent that the

15 amount of the licensee's payment instruments outstanding in

16 this State are reduced.

17 (g) If the Director at any time reasonably determines that

18 the required bond is insecure, deficient in amount, or

19 exhausted in whole or in part, he may in writing require the

20 filing of a new or supplemental bond in order to secure

21 compliance with this Act and may demand compliance with the

22 requirement within 30 days following service on the licensee.

23 (Source: P.A. 100-22, eff. 1-1-18; 100-640, eff. 7-27-18.)

24 Section 80. The Adverse Claims to Deposit Accounts Act is

25 amended by changing Section 10 as follows:

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1 (205 ILCS 700/10)

2 Sec. 10. Application of Act. This Act shall not preempt:

3 (1) the ~~Revised~~ Uniform Disposition of Unclaimed

4 Property Act, nor shall any provision of this Act be

5 construed to relieve any holder, including a financial

6 institution, from reporting and remitting all unclaimed

7 property, including deposit accounts, under the~~Revised~~

8 Uniform Disposition of Unclaimed Property Act;

9 (2) the Uniform Commercial Code, nor shall any

10 provision of this Act be construed as affecting the rights

11 of a person with respect to a deposit account under the

12 Uniform Commercial Code;

13 (3) the provisions of Section 2-1402 of the Code of

14 Civil Procedure, nor shall any provision of this Act be

15 construed as affecting the rights of a person with respect

16 to a deposit account under Section 2-1402 of the Code of

17 Civil Procedure;

18 (4) the provisions of Part 7 of Article II of the Code

19 of Civil Procedure, nor shall any provision of this Act be

20 construed as affecting the rights of a person with respect

21 to a deposit account under the provisions of Part 7 of

22 Article II of the Code of Civil Procedure;

23 (5) the provisions of Article XXV of the Probate Act of

24 1975, nor shall any provision of this Act be construed as

25 affecting the rights of a person with respect to a deposit

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1 account under the provisions of Article XXV of the Probate

2 Act of 1975; or

3 (6) the Safety Deposit Box Opening Act, nor shall any

4 provision of this Act be construed as affecting the rights

5 of a person with respect to a deposit account under the

6 Safety Deposit Box Opening Act.

7 (Source: P.A. 100-22, eff. 1-1-18.)

8 Section 85. The Illinois Insurance Code is amended by

9 changing Section 210 as follows:

10 (215 ILCS 5/210) (from Ch. 73, par. 822)

11 Sec. 210. Distribution of assets; priorities; unpaid

12 dividends.

13 (1) Any time after the last day fixed for the filing of

14 proofs of claims in the liquidation of a company, the court

15 may, upon the application of the Director authorize him to

16 declare out of the funds remaining in his hands, one or more

17 dividends upon all claims allowed in accordance with the

18 priorities established in Section 205.

19 (2) Where there has been no adjudication of insolvency, the

20 Director shall pay all allowed claims in full in accordance

21 with the priorities set forth in Section 205. The director

22 shall not be chargeable for any assets so distributed to any

23 claimant who has failed to file a proper proof of claim before

24 such distribution has been made.

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1 (3) When subsequent to an adjudication of insolvency,

2 pursuant to Section 208, a surplus is found to exist after the

3 payment in full of all allowed claims falling within the

4 priorities set forth in paragraphs (a), (b), (c), (d), (e), (f)

5 and (g) of subsection (1) of Section 205 and which have been

6 duly filed prior to the last date fixed for the filing thereof,

7 and after the setting aside of a reserve for all additional

8 costs and expenses of the proceeding, the court shall set a new

9 date for the filing of claims. After the expiration of the new

10 date, all allowed claims filed on or before said new date

11 together with all previously allowed claims falling within the

12 priorities set forth in paragraphs (h) and (i) of subsection

13 (1) of Section 205 shall be paid in accordance with the

14 priorities set forth in Section 205.

15 (4) Dividends remaining unclaimed or unpaid in the hands of

16 the Director for 6 months after the final order of distribution

17 may be by him deposited in one or more savings and loan

18 associations, State or national banks, trust companies or

19 savings banks to the credit of the Director, whomsoever he may

20 be, in trust for the person entitled thereto, but no such

21 person shall be entitled to any interest upon such deposit. All

22 such deposits shall be entitled to priority of payment in case

23 of the insolvency or voluntary or involuntary liquidation of

24 the depositary on an equality with any other priority given by

25 the banking law. Any such funds together with interest, if any,

26 paid or credited thereon, remaining and unclaimed in the hands

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1 of the Director in Trust after 2 years shall be presumed

2 abandoned and reported and delivered to the State Treasurer and

3 become subject to the provisions of the ~~Revised~~Uniform

4 Disposition of Unclaimed Property Act.

5 (Source: P.A. 100-22, eff. 1-1-18.)

6 Section 90. The Unclaimed Life Insurance Benefits Act is

7 amended by changing Sections 5, 15, and 20 as follows:

8 (215 ILCS 185/5)

9 Sec. 5. Purpose. This Act shall require recognition of the

10 ~~Revised~~ Uniform Disposition of Unclaimed Property Act and

11 require the complete and proper disclosure, transparency, and

12 accountability relating to any method of payment for life

13 insurance, annuity, or retained asset agreement death

14 benefits.

15 (Source: P.A. 99-893, eff. 1-1-17; 100-22, eff. 1-1-18.)

16 (215 ILCS 185/15)

17 Sec. 15. Insurer conduct.

18 (a) An insurer shall initially perform a comparison of its

19 insureds', annuitants', and retained asset account holders'

20 in-force policies, annuity contracts, and retained asset

21 accounts in force on or after January 1, 2017 by using the full

22 Death Master File. The initial comparison shall be completed on

23 or before December 31, 2017. An insurer required to perform a

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1 comparison of its insureds', annuitants', and retained asset

2 account holders' in-force policies, annuity contracts, and

3 retained asset accounts in force on or after January 1, 2012

4 shall perform a comparison of policies, annuity contracts, and

5 retained asset accounts in force between January 1, 2012 and

6 December 31, 2016 on or before December 31, 2018 by using the

7 full Death Master File. An insurer required to perform a

8 comparison of electronic searchable files concerning its

9 insureds', annuitants', and retained asset account holders'

10 in-force policies, annuity contracts, and retained asset

11 accounts in force on or after January 1, 2000 shall perform a

12 comparison of policies, annuity contracts, and retained asset

13 accounts in force between January 1, 2000 and December 31, 2016

14 on or before December 31, 2018 by using the full Death Master

15 File. Thereafter, an insurer shall perform a comparison on at

16 least a semi-annual basis using the Death Master File update

17 files for comparisons to identify potential matches of its

18 insureds, annuitants, and retained asset account holders. In

19 the event that one of the insurer's lines of business conducts

20 a search for matches of its insureds, annuitants, and retained

21 asset account holders against the Death Master File at

22 intervals more frequently than semi-annually, then all lines of

23 the insurer's business shall conduct searches for matches

24 against the Death Master File with the same frequency. Within 6

25 months after acquisition of policies, annuity contracts, or

26 retained asset accounts from another insurer, the acquiring

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1 insurer shall compare all newly acquired policies, annuity

2 contracts, and retained asset accounts that were not searched

3 by the previous insurer in compliance with this Act against the

4 complete Death Master File to identify potential matches of its

5 insureds, annuitants, and retained asset account holders. Upon

6 any subsequent acquisition of policies, annuity contracts, or

7 retained asset accounts from another insurer, when the previous

8 insurer has already conducted a search of the newly acquired

9 policies, annuity contracts, and retained asset accounts using

10 the complete Death Master File, the acquiring insurer shall

11 compare all newly acquired policies, annuity contracts, and

12 retained asset accounts using all of the Death Master File

13 updates since the time the previous insurer conducted the

14 complete search to identify potential matches of its insureds,

15 annuitants, and retained asset account holders.

16 An insured, an annuitant, or a retained asset account

17 holder is presumed dead if the date of his or her death is

18 indicated by the comparison required in this subsection (a),

19 unless the insurer has competent and substantial evidence that

20 the person is living, including, but not limited to, a contact

21 made by the insurer with the person or his or her legal

22 representative.

23 For those potential matches identified as a result of a

24 Death Master File match, the insurer shall within 120 days

25 after the date of death notice, if the insurer has not been

26 contacted by a beneficiary, determine whether benefits are due

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1 in accordance with the applicable policy or contract and, if

2 benefits are due in accordance with the applicable policy or

3 contract:

4 (1) use good faith efforts, which shall be documented

5 by the insurer, to locate the beneficiary or beneficiaries;

6 the Department shall establish by administrative rule

7 minimum standards for what constitutes good faith efforts

8 to locate a beneficiary, which shall include: (A) searching

9 insurer records; (B) the appropriate use of First Class

10 United States mail, e-mail addresses, and telephone calls;

11 and (C) reasonable efforts by insurers to obtain updated

12 contact information for the beneficiary or beneficiaries;

13 good faith efforts shall not include additional attempts to

14 contact the beneficiary at an address already confirmed not

15 to be current; and

16 (2) provide the appropriate claims forms or

17 instructions to the beneficiary or beneficiaries to make a

18 claim, including the need to provide an official death

19 certificate if applicable under the policy or annuity

20 contract.

21 (b) Insurers shall implement procedures to account for the

22 following when conducting searches of the Death Master File:

23 (1) common nicknames, initials used in lieu of a first

24 or middle name, use of a middle name, compound first and

25 middle names, and interchanged first and middle names;

26 (2) compound last names, maiden or married names, and

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1 hyphens, blank spaces, or apostrophes in last names;

2 (3) transposition of the "month" and "date" portions of

3 the date of birth; and

4 (4) incomplete social security numbers.

5 (c) To the extent permitted by law, an insurer may disclose

6 the minimum necessary personal information about the insured,

7 annuity owner, retained asset account holder, or beneficiary to

8 a person whom the insurer reasonably believes may be able to

9 assist the insurer with locating the beneficiary or a person

10 otherwise entitled to payment of the claims proceeds.

11 (d) An insurer or its service provider shall not charge any

12 beneficiary or other authorized representative for any fees or

13 costs associated with a Death Master File search or

14 verification of a Death Master File match conducted pursuant to

15 this Act.

16 (e) The benefits from a policy, annuity contract, or a

17 retained asset account, plus any applicable accrued interest,

18 shall first be payable to the designated beneficiaries or

19 owners and, in the event the beneficiaries or owners cannot be

20 found, shall be reported and delivered to the State Treasurer

21 pursuant to the ~~Revised~~ Uniform Disposition of Unclaimed

22 Property Act. Nothing in this subsection (e) is intended to

23 alter the amounts reportable under the existing provisions of

24 the ~~Revised~~ Uniform Disposition of Unclaimed Property Act or to

25 allow the imposition of additional statutory interest under

26 Article XIV of the Illinois Insurance Code.

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1 (f) Failure to meet any requirement of this Section with

2 such frequency as to constitute a general business practice is

3 a violation of Section 424 of the Illinois Insurance Code.

4 Nothing in this Section shall be construed to create or imply a

5 private cause of action for a violation of this Section.

6 (Source: P.A. 99-893, eff. 1-1-17; 100-22, eff. 1-1-18;

7 100-543, eff. 1-1-18; 100-863, eff. 8-14-18.)

8 (215 ILCS 185/20)

9 Sec. 20. ~~Revised~~ Uniform Disposition of Unclaimed Property

10 Act. Nothing in this Act shall be construed to amend, modify,

11 or supersede the ~~Revised~~ Uniform Disposition of Unclaimed

12 Property Act, including the authority of the State Treasurer to

13 examine the records of any person if the State Treasurer has

14 reason to believe that such person has failed to report

15 property that should have been reported pursuant to the ~~Revised~~

16 Uniform Disposition of Unclaimed Property Act.

17 (Source: P.A. 99-893, eff. 1-1-17; 100-22, eff. 1-1-18.)

18 Section 95. The Real Estate License Act of 2000 is amended

19 by changing Section 20-20 as follows:

20 (225 ILCS 454/20-20)

21 (Section scheduled to be repealed on January 1, 2020)

22 Sec. 20-20. Grounds for discipline.

23 (a) The Department may refuse to issue or renew a license,

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1 may place on probation, suspend, or revoke any license,

2 reprimand, or take any other disciplinary or non-disciplinary

3 action as the Department may deem proper and impose a fine not

4 to exceed $25,000 upon any licensee or applicant under this Act

5 or any person who holds himself or herself out as an applicant

6 or licensee or against a licensee in handling his or her own

7 property, whether held by deed, option, or otherwise, for any

8 one or any combination of the following causes:

9 (1) Fraud or misrepresentation in applying for, or

10 procuring, a license under this Act or in connection with

11 applying for renewal of a license under this Act.

12 (2) The conviction of or plea of guilty or plea of nolo

13 contendere to a felony or misdemeanor in this State or any

14 other jurisdiction; or the entry of an administrative

15 sanction by a government agency in this State or any other

16 jurisdiction. Action taken under this paragraph (2) for a

17 misdemeanor or an administrative sanction is limited to a

18 misdemeanor or administrative sanction that has as an

19 essential element dishonesty or fraud or involves larceny,

20 embezzlement, or obtaining money, property, or credit by

21 false pretenses or by means of a confidence game.

22 (3) Inability to practice the profession with

23 reasonable judgment, skill, or safety as a result of a

24 physical illness, including, but not limited to,

25 deterioration through the aging process or loss of motor

26 skill, or a mental illness or disability.

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1 (4) Practice under this Act as a licensee in a retail

2 sales establishment from an office, desk, or space that is

3 not separated from the main retail business by a separate

4 and distinct area within the establishment.

5 (5) Having been disciplined by another state, the

6 District of Columbia, a territory, a foreign nation, or a

7 governmental agency authorized to impose discipline if at

8 least one of the grounds for that discipline is the same as

9 or the equivalent of one of the grounds for which a

10 licensee may be disciplined under this Act. A certified

11 copy of the record of the action by the other state or

12 jurisdiction shall be prima facie evidence thereof.

13 (6) Engaging in the practice of real estate brokerage

14 without a license or after the licensee's license or

15 temporary permit was expired or while the license was

16 inoperative.

17 (7) Cheating on or attempting to subvert the Real

18 Estate License Exam or continuing education exam.

19 (8) Aiding or abetting an applicant to subvert or cheat

20 on the Real Estate License Exam or continuing education

21 exam administered pursuant to this Act.

22 (9) Advertising that is inaccurate, misleading, or

23 contrary to the provisions of the Act.

24 (10) Making any substantial misrepresentation or

25 untruthful advertising.

26 (11) Making any false promises of a character likely to

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1 influence, persuade, or induce.

2 (12) Pursuing a continued and flagrant course of

3 misrepresentation or the making of false promises through

4 licensees, employees, agents, advertising, or otherwise.

5 (13) Any misleading or untruthful advertising, or

6 using any trade name or insignia of membership in any real

7 estate organization of which the licensee is not a member.

8 (14) Acting for more than one party in a transaction

9 without providing written notice to all parties for whom

10 the licensee acts.

11 (15) Representing or attempting to represent a broker

12 other than the sponsoring broker.

13 (16) Failure to account for or to remit any moneys or

14 documents coming into his or her possession that belong to

15 others.

16 (17) Failure to maintain and deposit in a special

17 account, separate and apart from personal and other

18 business accounts, all escrow moneys belonging to others

19 entrusted to a licensee while acting as a broker, escrow

20 agent, or temporary custodian of the funds of others or

21 failure to maintain all escrow moneys on deposit in the

22 account until the transactions are consummated or

23 terminated, except to the extent that the moneys, or any

24 part thereof, shall be:

25 (A) disbursed prior to the consummation or

26 termination (i) in accordance with the written

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1 direction of the principals to the transaction or their

2 duly authorized agents, (ii) in accordance with

3 directions providing for the release, payment, or

4 distribution of escrow moneys contained in any written

5 contract signed by the principals to the transaction or

6 their duly authorized agents, or (iii) pursuant to an

7 order of a court of competent jurisdiction; or

8 (B) deemed abandoned and transferred to the Office

9 of the State Treasurer to be handled as unclaimed

10 property pursuant to the ~~Revised~~ Uniform Disposition

11 of Unclaimed Property Act. Escrow moneys may be deemed

12 abandoned under this subparagraph (B) only: (i) in the

13 absence of disbursement under subparagraph (A); (ii)

14 in the absence of notice of the filing of any claim in

15 a court of competent jurisdiction; and (iii) if 6

16 months have elapsed after the receipt of a written

17 demand for the escrow moneys from one of the principals

18 to the transaction or the principal's duly authorized

19 agent.

20 The account shall be noninterest bearing, unless the

21 character of the deposit is such that payment of interest

22 thereon is otherwise required by law or unless the

23 principals to the transaction specifically require, in

24 writing, that the deposit be placed in an interest bearing

25 account.

26 (18) Failure to make available to the Department all

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1 escrow records and related documents maintained in

2 connection with the practice of real estate within 24 hours

3 of a request for those documents by Department personnel.

4 (19) Failing to furnish copies upon request of

5 documents relating to a real estate transaction to a party

6 who has executed that document.

7 (20) Failure of a sponsoring broker to timely provide

8 information, sponsor cards, or termination of licenses to

9 the Department.

10 (21) Engaging in dishonorable, unethical, or

11 unprofessional conduct of a character likely to deceive,

12 defraud, or harm the public.

13 (22) Commingling the money or property of others with

14 his or her own money or property.

15 (23) Employing any person on a purely temporary or

16 single deal basis as a means of evading the law regarding

17 payment of commission to nonlicensees on some contemplated

18 transactions.

19 (24) Permitting the use of his or her license as a

20 broker to enable a leasing agent or unlicensed person to

21 operate a real estate business without actual

22 participation therein and control thereof by the broker.

23 (25) Any other conduct, whether of the same or a

24 different character from that specified in this Section,

25 that constitutes dishonest dealing.

26 (26) Displaying a "for rent" or "for sale" sign on any

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1 property without the written consent of an owner or his or

2 her duly authorized agent or advertising by any means that

3 any property is for sale or for rent without the written

4 consent of the owner or his or her authorized agent.

5 (27) Failing to provide information requested by the

6 Department, or otherwise respond to that request, within 30

7 days of the request.

8 (28) Advertising by means of a blind advertisement,

9 except as otherwise permitted in Section 10-30 of this Act.

10 (29) Offering guaranteed sales plans, as defined in

11 clause (A) of this subdivision (29), except to the extent

12 hereinafter set forth:

13 (A) A "guaranteed sales plan" is any real estate

14 purchase or sales plan whereby a licensee enters into a

15 conditional or unconditional written contract with a

16 seller, prior to entering into a brokerage agreement

17 with the seller, by the terms of which a licensee

18 agrees to purchase a property of the seller within a

19 specified period of time at a specific price in the

20 event the property is not sold in accordance with the

21 terms of a brokerage agreement to be entered into

22 between the sponsoring broker and the seller.

23 (B) A licensee offering a guaranteed sales plan

24 shall provide the details and conditions of the plan in

25 writing to the party to whom the plan is offered.

26 (C) A licensee offering a guaranteed sales plan

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1 shall provide to the party to whom the plan is offered

2 evidence of sufficient financial resources to satisfy

3 the commitment to purchase undertaken by the broker in

4 the plan.

5 (D) Any licensee offering a guaranteed sales plan

6 shall undertake to market the property of the seller

7 subject to the plan in the same manner in which the

8 broker would market any other property, unless the

9 agreement with the seller provides otherwise.

10 (E) The licensee cannot purchase seller's property

11 until the brokerage agreement has ended according to

12 its terms or is otherwise terminated.

13 (F) Any licensee who fails to perform on a

14 guaranteed sales plan in strict accordance with its

15 terms shall be subject to all the penalties provided in

16 this Act for violations thereof and, in addition, shall

17 be subject to a civil fine payable to the party injured

18 by the default in an amount of up to $25,000.

19 (30) Influencing or attempting to influence, by any

20 words or acts, a prospective seller, purchaser, occupant,

21 landlord, or tenant of real estate, in connection with

22 viewing, buying, or leasing real estate, so as to promote

23 or tend to promote the continuance or maintenance of

24 racially and religiously segregated housing or so as to

25 retard, obstruct, or discourage racially integrated

26 housing on or in any street, block, neighborhood, or

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1 community.

2 (31) Engaging in any act that constitutes a violation

3 of any provision of Article 3 of the Illinois Human Rights

4 Act, whether or not a complaint has been filed with or

5 adjudicated by the Human Rights Commission.

6 (32) Inducing any party to a contract of sale or lease

7 or brokerage agreement to break the contract of sale or

8 lease or brokerage agreement for the purpose of

9 substituting, in lieu thereof, a new contract for sale or

10 lease or brokerage agreement with a third party.

11 (33) Negotiating a sale, exchange, or lease of real

12 estate directly with any person if the licensee knows that

13 the person has an exclusive brokerage agreement with

14 another broker, unless specifically authorized by that

15 broker.

16 (34) When a licensee is also an attorney, acting as the

17 attorney for either the buyer or the seller in the same

18 transaction in which the licensee is acting or has acted as

19 a managing broker or broker.

20 (35) Advertising or offering merchandise or services

21 as free if any conditions or obligations necessary for

22 receiving the merchandise or services are not disclosed in

23 the same advertisement or offer. These conditions or

24 obligations include without limitation the requirement

25 that the recipient attend a promotional activity or visit a

26 real estate site. As used in this subdivision (35), "free"

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1 includes terms such as "award", "prize", "no charge", "free

2 of charge", "without charge", and similar words or phrases

3 that reasonably lead a person to believe that he or she may

4 receive or has been selected to receive something of value,

5 without any conditions or obligations on the part of the

6 recipient.

7 (36) (Blank).

8 (37) Violating the terms of a disciplinary order issued

9 by the Department.

10 (38) Paying or failing to disclose compensation in

11 violation of Article 10 of this Act.

12 (39) Requiring a party to a transaction who is not a

13 client of the licensee to allow the licensee to retain a

14 portion of the escrow moneys for payment of the licensee's

15 commission or expenses as a condition for release of the

16 escrow moneys to that party.

17 (40) Disregarding or violating any provision of this

18 Act or the published rules adopted by the Department to

19 enforce this Act or aiding or abetting any individual,

20 foreign or domestic partnership, registered limited

21 liability partnership, limited liability company,

22 corporation, or other business entity in disregarding any

23 provision of this Act or the published rules adopted by the

24 Department to enforce this Act.

25 (41) Failing to provide the minimum services required

26 by Section 15-75 of this Act when acting under an exclusive

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1 brokerage agreement.

2 (42) Habitual or excessive use or addiction to alcohol,

3 narcotics, stimulants, or any other chemical agent or drug

4 that results in a managing broker, broker, or leasing

5 agent's inability to practice with reasonable skill or

6 safety.

7 (43) Enabling, aiding, or abetting an auctioneer, as

8 defined in the Auction License Act, to conduct a real

9 estate auction in a manner that is in violation of this

10 Act.

11 (44) Permitting any leasing agent or temporary leasing

12 agent permit holder to engage in activities that require a

13 broker's or managing broker's license.

14 (b) The Department may refuse to issue or renew or may

15 suspend the license of any person who fails to file a return,

16 pay the tax, penalty or interest shown in a filed return, or

17 pay any final assessment of tax, penalty, or interest, as

18 required by any tax Act administered by the Department of

19 Revenue, until such time as the requirements of that tax Act

20 are satisfied in accordance with subsection (g) of Section

21 2105-15 of the Civil Administrative Code of Illinois.

22 (c) (Blank).

23 (d) In cases where the Department of Healthcare and Family

24 Services (formerly Department of Public Aid) has previously

25 determined that a licensee or a potential licensee is more than

26 30 days delinquent in the payment of child support and has

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1 subsequently certified the delinquency to the Department may

2 refuse to issue or renew or may revoke or suspend that person's

3 license or may take other disciplinary action against that

4 person based solely upon the certification of delinquency made

5 by the Department of Healthcare and Family Services in

6 accordance with item (5) of subsection (a) of Section 2105-15

7 of the Civil Administrative Code of Illinois.

8 (e) In enforcing this Section, the Department or Board upon

9 a showing of a possible violation may compel an individual

10 licensed to practice under this Act, or who has applied for

11 licensure under this Act, to submit to a mental or physical

12 examination, or both, as required by and at the expense of the

13 Department. The Department or Board may order the examining

14 physician to present testimony concerning the mental or

15 physical examination of the licensee or applicant. No

16 information shall be excluded by reason of any common law or

17 statutory privilege relating to communications between the

18 licensee or applicant and the examining physician. The

19 examining physicians shall be specifically designated by the

20 Board or Department. The individual to be examined may have, at

21 his or her own expense, another physician of his or her choice

22 present during all aspects of this examination. Failure of an

23 individual to submit to a mental or physical examination, when

24 directed, shall be grounds for suspension of his or her license

25 until the individual submits to the examination if the

26 Department finds, after notice and hearing, that the refusal to

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1 submit to the examination was without reasonable cause.

2 If the Department or Board finds an individual unable to

3 practice because of the reasons set forth in this Section, the

4 Department or Board may require that individual to submit to

5 care, counseling, or treatment by physicians approved or

6 designated by the Department or Board, as a condition, term, or

7 restriction for continued, reinstated, or renewed licensure to

8 practice; or, in lieu of care, counseling, or treatment, the

9 Department may file, or the Board may recommend to the

10 Department to file, a complaint to immediately suspend, revoke,

11 or otherwise discipline the license of the individual. An

12 individual whose license was granted, continued, reinstated,

13 renewed, disciplined or supervised subject to such terms,

14 conditions, or restrictions, and who fails to comply with such

15 terms, conditions, or restrictions, shall be referred to the

16 Secretary for a determination as to whether the individual

17 shall have his or her license suspended immediately, pending a

18 hearing by the Department.

19 In instances in which the Secretary immediately suspends a

20 person's license under this Section, a hearing on that person's

21 license must be convened by the Department within 30 days after

22 the suspension and completed without appreciable delay. The

23 Department and Board shall have the authority to review the

24 subject individual's record of treatment and counseling

25 regarding the impairment to the extent permitted by applicable

26 federal statutes and regulations safeguarding the

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1 confidentiality of medical records.

2 An individual licensed under this Act and affected under

3 this Section shall be afforded an opportunity to demonstrate to

4 the Department or Board that he or she can resume practice in

5 compliance with acceptable and prevailing standards under the

6 provisions of his or her license.

7 (Source: P.A. 99-227, eff. 8-3-15; 100-22, eff. 1-1-18;

8 100-188, eff. 1-1-18; 100-534, eff. 9-22-17; 100-831, eff.

9 1-1-19; 100-863, eff. 8-14-18; 100-872, eff. 8-14-18; revised

10 10-22-18.)

11 Section 100. The Code of Criminal Procedure of 1963 is

12 amended by changing Section 110-17 as follows:

13 (725 ILCS 5/110-17) (from Ch. 38, par. 110-17)

14 Sec. 110-17. Unclaimed bail deposits. Any sum of money

15 deposited by any person to secure his or her release from

16 custody which remains unclaimed by the person entitled to its

17 return for 3 years after the conditions of the bail bond have

18 been performed and the accused has been discharged from all

19 obligations in the cause shall be presumed to be abandoned and

20 subject to disposition under the ~~Revised~~ Uniform Disposition of

21 Unclaimed Property Act.

22 ~~(a) (Blank).~~

23 ~~(b) (Blank).~~

24 ~~(c) (Blank).~~

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1 ~~(d) (Blank).~~

2 ~~(e) (Blank).~~

3 (Source: P.A. 100-22, eff. 1-1-18; 100-929, eff. 1-1-19;

4 revised 10-3-18.)

5 Section 105. The Probate Act of 1975 is amended by changing

6 Sections 2-1 and 2-2 as follows:

7 (755 ILCS 5/2-1) (from Ch. 110 1/2, par. 2-1)

8 Sec. 2-1. Rules of descent and distribution. The intestate

9 real and personal estate of a resident decedent and the

10 intestate real estate in this State of a nonresident decedent,

11 after all just claims against his estate are fully paid,

12 descends and shall be distributed as follows:

13 (a) If there is a surviving spouse and also a descendant of

14 the decedent: 1/2 of the entire estate to the surviving spouse

15 and 1/2 to the decedent's descendants per stirpes.

16 (b) If there is no surviving spouse but a descendant of the

17 decedent: the entire estate to the decedent's descendants per

18 stirpes.

19 (c) If there is a surviving spouse but no descendant of the

20 decedent: the entire estate to the surviving spouse.

21 (d) If there is no surviving spouse or descendant but a

22 parent, brother, sister or descendant of a brother or sister of

23 the decedent: the entire estate to the parents, brothers and

24 sisters of the decedent in equal parts, allowing to the

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1 surviving parent if one is dead a double portion and to the

2 descendants of a deceased brother or sister per stirpes the

3 portion which the deceased brother or sister would have taken

4 if living.

5 (e) If there is no surviving spouse, descendant, parent,

6 brother, sister or descendant of a brother or sister of the

7 decedent but a grandparent or descendant of a grandparent of

8 the decedent: (1) 1/2 of the entire estate to the decedent's

9 maternal grandparents in equal parts or to the survivor of

10 them, or if there is none surviving, to their descendants per

11 stirpes, and (2) 1/2 of the entire estate to the decedent's

12 paternal grandparents in equal parts or to the survivor of

13 them, or if there is none surviving, to their descendants per

14 stirpes. If there is no surviving paternal grandparent or

15 descendant of a paternal grandparent, but a maternal

16 grandparent or descendant of a maternal grandparent of the

17 decedent: the entire estate to the decedent's maternal

18 grandparents in equal parts or to the survivor of them, or if

19 there is none surviving, to their descendants per stirpes. If

20 there is no surviving maternal grandparent or descendant of a

21 maternal grandparent, but a paternal grandparent or descendant

22 of a paternal grandparent of the decedent: the entire estate to

23 the decedent's paternal grandparents in equal parts or to the

24 survivor of them, or if there is none surviving, to their

25 descendants per stirpes.

26 (f) If there is no surviving spouse, descendant, parent,

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1 brother, sister, descendant of a brother or sister or

2 grandparent or descendant of a grandparent of the decedent: (1)

3 1/2 of the entire estate to the decedent's maternal

4 great-grandparents in equal parts or to the survivor of them,

5 or if there is none surviving, to their descendants per

6 stirpes, and (2) 1/2 of the entire estate to the decedent's

7 paternal great-grandparents in equal parts or to the survivor

8 of them, or if there is none surviving, to their descendants

9 per stirpes. If there is no surviving paternal

10 great-grandparent or descendant of a paternal

11 great-grandparent, but a maternal great-grandparent or

12 descendant of a maternal great-grandparent of the decedent: the

13 entire estate to the decedent's maternal great-grandparents in

14 equal parts or to the survivor of them, or if there is none

15 surviving, to their descendants per stirpes. If there is no

16 surviving maternal great-grandparent or descendant of a

17 maternal great-grandparent, but a paternal great-grandparent

18 or descendant of a paternal great-grandparent of the decedent:

19 the entire estate to the decedent's paternal

20 great-grandparents in equal parts or to the survivor of them,

21 or if there is none surviving, to their descendants per

22 stirpes.

23 (g) If there is no surviving spouse, descendant, parent,

24 brother, sister, descendant of a brother or sister,

25 grandparent, descendant of a grandparent, great-grandparent or

26 descendant of a great-grandparent of the decedent: the entire

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1 estate in equal parts to the nearest kindred of the decedent in

2 equal degree (computing by the rules of the civil law) and

3 without representation.

4 (h) If there is no surviving spouse and no known kindred of

5 the decedent: the real estate escheats to the county in which

6 it is located; the personal estate physically located within

7 this State and the personal estate physically located or held

8 outside this State which is the subject of ancillary

9 administration of an estate being administered within this

10 State escheats to the county of which the decedent was a

11 resident, or, if the decedent was not a resident of this State,

12 to the county in which it is located; all other personal

13 property of the decedent of every class and character, wherever

14 situate, or the proceeds thereof, shall escheat to this State

15 and be delivered to the State Treasurer pursuant to the~~Revised~~

16 Uniform Disposition of Unclaimed Property Act.

17 In no case is there any distinction between the kindred of

18 the whole and the half blood.

19 (Source: P.A. 100-22, eff. 1-1-18.)

20 (755 ILCS 5/2-2) (from Ch. 110 1/2, par. 2-2)

21 Sec. 2-2. Children born out of wedlock. The intestate real

22 and personal estate of a resident decedent who was a child born

23 out of wedlock at the time of death and the intestate real

24 estate in this State of a nonresident decedent who was a child

25 born out of wedlock at the time of death, after all just claims

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1 against his estate are fully paid, descends and shall be

2 distributed as provided in Section 2-1, subject to Section

3 2-6.5 of this Act, if both parents are eligible parents. As

4 used in this Section, "eligible parent" means a parent of the

5 decedent who, during the decedent's lifetime, acknowledged the

6 decedent as the parent's child, established a parental

7 relationship with the decedent, and supported the decedent as

8 the parent's child. "Eligible parents" who are in arrears of in

9 excess of one year's child support obligations shall not

10 receive any property benefit or other interest of the decedent

11 unless and until a court of competent jurisdiction makes a

12 determination as to the effect on the deceased of the arrearage

13 and allows a reduced benefit. In no event shall the reduction

14 of the benefit or other interest be less than the amount of

15 child support owed for the support of the decedent at the time

16 of death. The court's considerations shall include but are not

17 limited to the considerations in subsections (1) through (3) of

18 Section 2-6.5 of this Act.

19 If neither parent is an eligible parent, the intestate real

20 and personal estate of a resident decedent who was a child born

21 out of wedlock at the time of death and the intestate real

22 estate in this State of a nonresident decedent who was a child

23 born out of wedlock at the time of death, after all just claims

24 against his or her estate are fully paid, descends and shall be

25 distributed as provided in Section 2-1, but the parents of the

26 decedent shall be treated as having predeceased the decedent.

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1 If only one parent is an eligible parent, the intestate

2 real and personal estate of a resident decedent who was a child

3 born out of wedlock at the time of death and the intestate real

4 estate in this State of a nonresident decedent who was a child

5 born out of wedlock at the time of death, after all just claims

6 against his or her estate are fully paid, subject to Section

7 2-6.5 of this Act, descends and shall be distributed as

8 follows:

9 (a) If there is a surviving spouse and also a descendant of

10 the decedent: 1/2 of the entire estate to the surviving spouse

11 and 1/2 to the decedent's descendants per stirpes.

12 (b) If there is no surviving spouse but a descendant of the

13 decedent: the entire estate to the decedent's descendants per

14 stirpes.

15 (c) If there is a surviving spouse but no descendant of the

16 decedent: the entire estate to the surviving spouse.

17 (d) If there is no surviving spouse or descendant but the

18 eligible parent or a descendant of the eligible parent of the

19 decedent: the entire estate to the eligible parent and the

20 eligible parent's descendants, allowing 1/2 to the eligible

21 parent and 1/2 to the eligible parent's descendants per

22 stirpes.

23 (e) If there is no surviving spouse, descendant, eligible

24 parent, or descendant of the eligible parent of the decedent,

25 but a grandparent on the eligible parent's side of the family

26 or descendant of such grandparent of the decedent: the entire

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1 estate to the decedent's grandparents on the eligible parent's

2 side of the family in equal parts, or to the survivor of them,

3 or if there is none surviving, to their descendants per

4 stirpes.

5 (f) If there is no surviving spouse, descendant, eligible

6 parent, descendant of the eligible parent, grandparent on the

7 eligible parent's side of the family, or descendant of such

8 grandparent of the decedent: the entire estate to the

9 decedent's great-grandparents on the eligible parent's side of

10 the family in equal parts or to the survivor of them, or if

11 there is none surviving, to their descendants per stirpes.

12 (g) If there is no surviving spouse, descendant, eligible

13 parent, descendant of the eligible parent, grandparent on the

14 eligible parent's side of the family, descendant of such

15 grandparent, great-grandparent on the eligible parent's side

16 of the family, or descendant of such great-grandparent of the

17 decedent: the entire estate in equal parts to the nearest

18 kindred of the eligible parent of the decedent in equal degree

19 (computing by the rules of the civil law) and without

20 representation.

21 (h) If there is no surviving spouse, descendant, or

22 eligible parent of the decedent and no known kindred of the

23 eligible parent of the decedent: the real estate escheats to

24 the county in which it is located; the personal estate

25 physically located within this State and the personal estate

26 physically located or held outside this State which is the

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1 subject of ancillary administration within this State escheats

2 to the county of which the decedent was a resident or, if the

3 decedent was not a resident of this State, to the county in

4 which it is located; all other personal property of the

5 decedent of every class and character, wherever situate, or the

6 proceeds thereof, shall escheat to this State and be delivered

7 to the State Treasurer of this State pursuant to the~~Revised~~

8 Uniform Disposition of Unclaimed Property Act.

9 For purposes of inheritance, the changes made by this

10 amendatory Act of 1998 apply to all decedents who die on or

11 after the effective date of this amendatory Act of 1998. For

12 the purpose of determining the property rights of any person

13 under any instrument, the changes made by this amendatory Act

14 of 1998 apply to all instruments executed on or after the

15 effective date of this amendatory Act of 1998.

16 A child born out of wedlock is heir of his mother and of

17 any maternal ancestor and of any person from whom his mother

18 might have inherited, if living; and the descendants of a

19 person who was a child born out of wedlock shall represent such

20 person and take by descent any estate which the parent would

21 have taken, if living. If a decedent has acknowledged paternity

22 of a child born out of wedlock or if during his lifetime or

23 after his death a decedent has been adjudged to be the father

24 of a child born out of wedlock, that person is heir of his

25 father and of any paternal ancestor and of any person from whom

26 his father might have inherited, if living; and the descendants

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1 of a person who was a child born out of wedlock shall represent

2 that person and take by descent any estate which the parent

3 would have taken, if living. If during his lifetime the

4 decedent was adjudged to be the father of a child born out of

5 wedlock by a court of competent jurisdiction, an authenticated

6 copy of the judgment is sufficient proof of the paternity; but

7 in all other cases paternity must be proved by clear and

8 convincing evidence. A person who was a child born out of

9 wedlock whose parents intermarry and who is acknowledged by the

10 father as the father's child is a lawful child of the father.

11 After a child born out of wedlock is adopted, that person's

12 relationship to his or her adopting and natural parents shall

13 be governed by Section 2-4 of this Act. For purposes of

14 inheritance, the changes made by this amendatory Act of 1997

15 apply to all decedents who die on or after January 1, 1998. For

16 the purpose of determining the property rights of any person

17 under any instrument, the changes made by this amendatory Act

18 of 1997 apply to all instruments executed on or after January

19 1, 1998.

20 (Source: P.A. 100-22, eff. 1-1-18.)

21 Section 110. The Sale of Unclaimed Property Act is amended

22 by changing Section 3 as follows:

23 (770 ILCS 90/3) (from Ch. 141, par. 3)

24 Sec. 3. All persons other than common carriers having a

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1 lien on personal property, by virtue of the Innkeepers Lien Act

2 or for more than $2,000 by virtue of the Labor and Storage Lien

3 Act may enforce the lien by a sale of the property, on giving

4 to the owner thereof, if he and his residence be known to the

5 person having such lien, 30 days' notice by certified mail, in

6 writing of the time and place of such sale, and if the owner or

7 his place of residence be unknown to the person having such

8 lien, then upon his filing his affidavit to that effect with

9 the clerk of the circuit court in the county where such

10 property is situated; notice of the sale may be given by

11 publishing the same once in each week for 3 successive weeks in

12 some newspaper of general circulation published in the county,

13 and out of the proceeds of the sale all costs and charges for

14 advertising and making the same, and the amount of the lien

15 shall be paid, and the surplus, if any, shall be paid to the

16 owner of the property or, if not claimed by said owner, such

17 surplus, if any, shall be disposed under the ~~Revised~~ Uniform

18 Disposition of Unclaimed Property Act. All sales pursuant to

19 this Section must be public and conducted in a commercially

20 reasonable manner so as to maximize the net proceeds of the

21 sale. Conformity to the requirements of this Act shall be a

22 perpetual bar to any action against such lienor by any person

23 for the recovery of such chattels or the value thereof or any

24 damages growing out of the failure of such person to receive

25 such chattels.

26 (Source: P.A. 100-22, eff. 1-1-18.)

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1 Section 115. The Business Corporation Act of 1983 is

2 amended by changing Section 12.70 as follows:

3 (805 ILCS 5/12.70) (from Ch. 32, par. 12.70)

4 Sec. 12.70. Deposit of amount due certain shareholders.

5 Upon the distribution of the assets of a corporation among its

6 shareholders, the distributive portion to which a shareholder

7 would be entitled who is unknown orcan not ~~cannot~~ be found, or

8 who is under disability and there is no person legally

9 competent to receive such distributive portion, shall be

10 presumed abandoned and reported and delivered to the State

11 Treasurer and become subject to the provision of the ~~Revised~~

12 UniformDisposition of Unclaimed Property Act. In the event

13 such distribution is made other than in cash, such distributive

14 portion of the assets shall be reduced to cash before being so

15 reported and delivered.

16 (Source: P.A. 100-22, eff. 1-1-18.)

17 Section 120. The General Not For Profit Corporation Act of

18 1986 is amended by changing Section 112.70 as follows:

19 (805 ILCS 105/112.70) (from Ch. 32, par. 112.70)

20 Sec. 112.70. Deposit of amount due. Upon the distribution

21 of the assets of a corporation, the distributive portion to

22 which a person would be entitled who is unknown or cannot be

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1 found, or who is under disability and there is no person

2 legally competent to receive such distributive portion, shall

3 be presumed abandoned and reported and delivered to the State

4 Treasurer and become subject to the provisions of the ~~Revised~~

5 Uniform Disposition ofUnclaimed Property Act. In the event

6 such distribution is made other than in cash, such distributive

7 portion of the assets shall be reduced to cash before being so

8 reported and delivered.

9 (Source: P.A. 100-22, eff. 1-1-18.)

10 Section 125. The Illinois Income Tax Act is amended by

11 changing Sections 201, 203, 204, 208, 212, 901, 1501, 1102,

12 1103, and 1105 as follows:

13 (35 ILCS 5/201) (from Ch. 120, par. 2-201)

14 Sec. 201. Tax imposed.

15 (a) In general. A tax measured by net income is hereby

16 imposed on every individual, corporation, trust and estate for

17 each taxable year ending after July 31, 1969 on the privilege

18 of earning or receiving income in or as a resident of this

19 State. Such tax shall be in addition to all other occupation or

20 privilege taxes imposed by this State or by any municipal

21 corporation or political subdivision thereof.

22 (b) Rates. The tax imposed by subsection (a) of this

23 Section shall be determined as follows, except as adjusted by

24 subsection (d-1):

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1 (1) In the case of an individual, trust or estate, for

2 taxable years ending prior to July 1, 1989, an amount equal

3 to 2 1/2% of the taxpayer's net income for the taxable

4 year.

5 (2) In the case of an individual, trust or estate, for

6 taxable years beginning prior to July 1, 1989 and ending

7 after June 30, 1989, an amount equal to the sum of (i) 2

8 1/2% of the taxpayer's net income for the period prior to

9 July 1, 1989, as calculated under Section 202.3, and (ii)

10 3% of the taxpayer's net income for the period after June

11 30, 1989, as calculated under Section 202.3.

12 (3) In the case of an individual, trust or estate, for

13 taxable years beginning after June 30, 1989, and ending

14 prior to January 1, 2011, an amount equal to 3% of the

15 taxpayer's net income for the taxable year.

16 (4) In the case of an individual, trust, or estate, for

17 taxable years beginning prior to January 1, 2011, and

18 ending after December 31, 2010, an amount equal to the sum

19 of (i) 3% of the taxpayer's net income for the period prior

20 to January 1, 2011, as calculated under Section 202.5, and

21 (ii) 5% of the taxpayer's net income for the period after

22 December 31, 2010, as calculated under Section 202.5.

23 (5) In the case of an individual, trust, or estate, for

24 taxable years beginning on or after January 1, 2011, and

25 ending prior to January 1, 2015, an amount equal to 5% of

26 the taxpayer's net income for the taxable year.

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1 (5.1) In the case of an individual, trust, or estate,

2 for taxable years beginning prior to January 1, 2015, and

3 ending after December 31, 2014, an amount equal to the sum

4 of (i) 5% of the taxpayer's net income for the period prior

5 to January 1, 2015, as calculated under Section 202.5, and

6 (ii) 3.75% of the taxpayer's net income for the period

7 after December 31, 2014, as calculated under Section 202.5.

8 (5.2) In the case of an individual, trust, or estate,

9 for taxable years beginning on or after January 1, 2015,

10 and ending prior to July 1, 2017, an amount equal to 3.75%

11 of the taxpayer's net income for the taxable year.

12 (5.3) In the case of an individual, trust, or estate,

13 for taxable years beginning prior to July 1, 2017, and

14 ending after June 30, 2017, an amount equal to the sum of

15 (i) 3.75% of the taxpayer's net income for the period prior

16 to July 1, 2017, as calculated under Section 202.5, and

17 (ii) 4.95% of the taxpayer's net income for the period

18 after June 30, 2017, as calculated under Section 202.5.

19 (5.4) In the case of an individual, trust, or estate,

20 for taxable years beginning on or after July 1, 2017 and

21 ending prior to January 1, 2019, an amount equal to 4.95%

22 of the taxpayer's net income for the taxable year.

23 (5.5) In the case of an individual, trust, or estate,

24 for taxable years beginning prior to January 1, 2019, and

25 ending after December 31, 2018, an amount equal to the sum

26 of (i) 4.95% of the taxpayer's net income for the period

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1 prior to January 1, 2019, as calculated under Section

2 202.5, and (ii) 3.75% of the taxpayer's net income for the

3 period after December 31, 2018, as calculated under Section

4 202.5.

5 (5.6) In the case of an individual, trust, or estate,

6 for taxable years beginning on or after January 1, 2019 and

7 ending prior to January 1, 2025, an amount equal to 3.75%

8 of the taxpayer's net income for the taxable year.

9 (5.7) In the case of an individual, trust, or estate,

10 for taxable years beginning prior to January 1, 2025, and

11 ending after December 31, 2024, an amount equal to the sum

12 of (i) 3.75% of the taxpayer's net income for the period

13 prior to January 1, 2025, as calculated under Section

14 202.5, and (ii) 3.25% of the taxpayer's net income for the

15 period after December 31, 2024, as calculated under Section

16 202.5.

17 (5.8) In the case of an individual, trust, or estate,

18 for taxable years beginning on or after January 1, 2025, an

19 amount equal to 3.25% of the taxpayer's net income for the

20 taxable year.

21 (6) In the case of a corporation, for taxable years

22 ending prior to July 1, 1989, an amount equal to 4% of the

23 taxpayer's net income for the taxable year.

24 (7) In the case of a corporation, for taxable years

25 beginning prior to July 1, 1989 and ending after June 30,

26 1989, an amount equal to the sum of (i) 4% of the

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1 taxpayer's net income for the period prior to July 1, 1989,

2 as calculated under Section 202.3, and (ii) 4.8% of the

3 taxpayer's net income for the period after June 30, 1989,

4 as calculated under Section 202.3.

5 (8) In the case of a corporation, for taxable years

6 beginning after June 30, 1989, and ending prior to January

7 1, 2011, an amount equal to 4.8% of the taxpayer's net

8 income for the taxable year.

9 (9) In the case of a corporation, for taxable years

10 beginning prior to January 1, 2011, and ending after

11 December 31, 2010, an amount equal to the sum of (i) 4.8%

12 of the taxpayer's net income for the period prior to

13 January 1, 2011, as calculated under Section 202.5, and

14 (ii) 7% of the taxpayer's net income for the period after

15 December 31, 2010, as calculated under Section 202.5.

16 (10) In the case of a corporation, for taxable years

17 beginning on or after January 1, 2011, and ending prior to

18 January 1, 2015, an amount equal to 7% of the taxpayer's

19 net income for the taxable year.

20 (11) In the case of a corporation, for taxable years

21 beginning prior to January 1, 2015, and ending after

22 December 31, 2014, an amount equal to the sum of (i) 7% of

23 the taxpayer's net income for the period prior to January

24 1, 2015, as calculated under Section 202.5, and (ii) 5.25%

25 of the taxpayer's net income for the period after December

26 31, 2014, as calculated under Section 202.5.

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1 (12) In the case of a corporation, for taxable years

2 beginning on or after January 1, 2015, and ending prior to

3 July 1, 2017, an amount equal to 5.25% of the taxpayer's

4 net income for the taxable year.

5 (13) In the case of a corporation, for taxable years

6 beginning prior to July 1, 2017, and ending after June 30,

7 2017, an amount equal to the sum of (i) 5.25% of the

8 taxpayer's net income for the period prior to July 1, 2017,

9 as calculated under Section 202.5, and (ii) 7% of the

10 taxpayer's net income for the period after June 30, 2017,

11 as calculated under Section 202.5.

12 (14) In the case of a corporation, for taxable years

13 beginning on or after July 1, 2017 and ending prior to

14 January 1, 2019, an amount equal to 7% of the taxpayer's

15 net income for the taxable year.

16 (15) In the case of a corporation, for taxable years

17 beginning prior to January 1, 2019 and ending after

18 December 31, 2018, an amount equal to the sum of (i) 7% of

19 the taxpayer's net income for the period prior to January

20 1, 2019, as calculated under Section 202.5, and (ii) 5.25%

21 of the taxpayer's net income for the period after December

22 31, 2014, as calculated under Section 202.5.

23 (16) In the case of a corporation, for taxable years

24 beginning after January 1, 2019 and ending prior to January

25 1, 2025, an amount equal to 5.25% of the taxpayer's net

26 income for the taxable year.

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1 (17) In the case of a corporation, for taxable years

2 beginning prior to January 1, 2025 and ending after

3 December 31, 2024, an amount equal to the sum of (i) 5.25%

4 of the taxpayer's net income for the period prior to

5 January 1, 2025, as calculated under Section 202.5, and

6 (ii) 4.8% of the taxpayer's net income for the period after

7 December 31, 2024, as calculated under Section 202.5.

8 (18) In the case of a corporation, for taxable years

9 beginning on or after January 1, 2025, an amount equal to

10 4.8% of the taxpayer's net income for the taxable year.

11 The rates under this subsection (b) are subject to the

12 provisions of Section 201.5.

13 (c) Personal Property Tax Replacement Income Tax.

14 Beginning on July 1, 1979 and thereafter, in addition to such

15 income tax, there is also hereby imposed the Personal Property

16 Tax Replacement Income Tax measured by net income on every

17 corporation (including Subchapter S corporations), partnership

18 and trust, for each taxable year ending after June 30, 1979.

19 Such taxes are imposed on the privilege of earning or receiving

20 income in or as a resident of this State. The Personal Property

21 Tax Replacement Income Tax shall be in addition to the income

22 tax imposed by subsections (a) and (b) of this Section and in

23 addition to all other occupation or privilege taxes imposed by

24 this State or by any municipal corporation or political

25 subdivision thereof.

26 (d) Additional Personal Property Tax Replacement Income

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1 Tax Rates. The personal property tax replacement income tax

2 imposed by this subsection and subsection (c) of this Section

3 in the case of a corporation, other than a Subchapter S

4 corporation and except as adjusted by subsection (d-1), shall

5 be an additional amount equal to 2.85% of such taxpayer's net

6 income for the taxable year, except that beginning on January

7 1, 1981, and thereafter, the rate of 2.85% specified in this

8 subsection shall be reduced to 2.5%, and in the case of a

9 partnership, trust or a Subchapter S corporation shall be an

10 additional amount equal to 1.5% of such taxpayer's net income

11 for the taxable year.

12 (d-1) Rate reduction for certain foreign insurers. In the

13 case of a foreign insurer, as defined by Section 35A-5 of the

14 Illinois Insurance Code, whose state or country of domicile

15 imposes on insurers domiciled in Illinois a retaliatory tax

16 (excluding any insurer whose premiums from reinsurance assumed

17 are 50% or more of its total insurance premiums as determined

18 under paragraph (2) of subsection (b) of Section 304, except

19 that for purposes of this determination premiums from

20 reinsurance do not include premiums from inter-affiliate

21 reinsurance arrangements), beginning with taxable years ending

22 on or after December 31, 1999, the sum of the rates of tax

23 imposed by subsections (b) and (d) shall be reduced (but not

24 increased) to the rate at which the total amount of tax imposed

25 under this Act, net of all credits allowed under this Act,

26 shall equal (i) the total amount of tax that would be imposed

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1 on the foreign insurer's net income allocable to Illinois for

2 the taxable year by such foreign insurer's state or country of

3 domicile if that net income were subject to all income taxes

4 and taxes measured by net income imposed by such foreign

5 insurer's state or country of domicile, net of all credits

6 allowed or (ii) a rate of zero if no such tax is imposed on such

7 income by the foreign insurer's state of domicile. For the

8 purposes of this subsection (d-1), an inter-affiliate includes

9 a mutual insurer under common management.

10 (1) For the purposes of subsection (d-1), in no event

11 shall the sum of the rates of tax imposed by subsections

12 (b) and (d) be reduced below the rate at which the sum of:

13 (A) the total amount of tax imposed on such foreign

14 insurer under this Act for a taxable year, net of all

15 credits allowed under this Act, plus

16 (B) the privilege tax imposed by Section 409 of the

17 Illinois Insurance Code, the fire insurance company

18 tax imposed by Section 12 of the Fire Investigation

19 Act, and the fire department taxes imposed under

20 Section 11-10-1 of the Illinois Municipal Code,

21 equals 1.25% for taxable years ending prior to December 31,

22 2003, or 1.75% for taxable years ending on or after

23 December 31, 2003, of the net taxable premiums written for

24 the taxable year, as described by subsection (1) of Section

25 409 of the Illinois Insurance Code. This paragraph will in

26 no event increase the rates imposed under subsections (b)

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1 and (d).

2 (2) Any reduction in the rates of tax imposed by this

3 subsection shall be applied first against the rates imposed

4 by subsection (b) and only after the tax imposed by

5 subsection (a) net of all credits allowed under this

6 Section other than the credit allowed under subsection (i)

7 has been reduced to zero, against the rates imposed by

8 subsection (d).

9 This subsection (d-1) is exempt from the provisions of

10 Section 250.

11 (e) Investment credit. A taxpayer shall be allowed a credit

12 against the Personal Property Tax Replacement Income Tax for

13 investment in qualified property.

14 (1) A taxpayer shall be allowed a credit equal to .5%

15 of the basis of qualified property placed in service during

16 the taxable year, provided such property is placed in

17 service on or after July 1, 1984. There shall be allowed an

18 additional credit equal to .5% of the basis of qualified

19 property placed in service during the taxable year,

20 provided such property is placed in service on or after

21 July 1, 1986, and the taxpayer's base employment within

22 Illinois has increased by 1% or more over the preceding

23 year as determined by the taxpayer's employment records

24 filed with the Illinois Department of Employment Security.

25 Taxpayers who are new to Illinois shall be deemed to have

26 met the 1% growth in base employment for the first year in

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1 which they file employment records with the Illinois

2 Department of Employment Security. The provisions added to

3 this Section by Public Act 85-1200 (and restored by Public

4 Act 87-895) shall be construed as declaratory of existing

5 law and not as a new enactment. If, in any year, the

6 increase in base employment within Illinois over the

7 preceding year is less than 1%, the additional credit shall

8 be limited to that percentage times a fraction, the

9 numerator of which is .5% and the denominator of which is

10 1%, but shall not exceed .5%. The investment credit shall

11 not be allowed to the extent that it would reduce a

12 taxpayer's liability in any tax year below zero, nor may

13 any credit for qualified property be allowed for any year

14 other than the year in which the property was placed in

15 service in Illinois. For tax years ending on or after

16 December 31, 1987, and on or before December 31, 1988, the

17 credit shall be allowed for the tax year in which the

18 property is placed in service, or, if the amount of the

19 credit exceeds the tax liability for that year, whether it

20 exceeds the original liability or the liability as later

21 amended, such excess may be carried forward and applied to

22 the tax liability of the 5 taxable years following the

23 excess credit years if the taxpayer (i) makes investments

24 which cause the creation of a minimum of 2,000 full-time

25 equivalent jobs in Illinois, (ii) is located in an

26 enterprise zone established pursuant to the Illinois

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1 Enterprise Zone Act and (iii) is certified by the

2 Department of Commerce and Community Affairs (now

3 Department of Commerce and Economic Opportunity) as

4 complying with the requirements specified in clause (i) and

5 (ii) by July 1, 1986. The Department of Commerce and

6 Community Affairs (now Department of Commerce and Economic

7 Opportunity) shall notify the Department of Revenue of all

8 such certifications immediately. For tax years ending

9 after December 31, 1988, the credit shall be allowed for

10 the tax year in which the property is placed in service,

11 or, if the amount of the credit exceeds the tax liability

12 for that year, whether it exceeds the original liability or

13 the liability as later amended, such excess may be carried

14 forward and applied to the tax liability of the 5 taxable

15 years following the excess credit years. The credit shall

16 be applied to the earliest year for which there is a

17 liability. If there is credit from more than one tax year

18 that is available to offset a liability, earlier credit

19 shall be applied first.

20 (2) The term "qualified property" means property

21 which:

22 (A) is tangible, whether new or used, including

23 buildings and structural components of buildings and

24 signs that are real property, but not including land or

25 improvements to real property that are not a structural

26 component of a building such as landscaping, sewer

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1 lines, local access roads, fencing, parking lots, and

2 other appurtenances;

3 (B) is depreciable pursuant to Section 167 of the

4 Internal Revenue Code, except that "3-year property"

5 as defined in Section 168(c)(2)(A) of that Code is not

6 eligible for the credit provided by this subsection

7 (e);

8 (C) is acquired by purchase as defined in Section

9 179(d) of the Internal Revenue Code;

10 (D) is used in Illinois by a taxpayer who is

11 primarily engaged in manufacturing, or in mining coal

12 or fluorite, or in retailing, or was placed in service

13 on or after July 1, 2006 in a River Edge Redevelopment

14 Zone established pursuant to the River Edge

15 Redevelopment Zone Act; and

16 (E) has not previously been used in Illinois in

17 such a manner and by such a person as would qualify for

18 the credit provided by this subsection (e) or

19 subsection (f).

20 (3) For purposes of this subsection (e),

21 "manufacturing" means the material staging and production

22 of tangible personal property by procedures commonly

23 regarded as manufacturing, processing, fabrication, or

24 assembling which changes some existing material into new

25 shapes, new qualities, or new combinations. For purposes of

26 this subsection (e) the term "mining" shall have the same

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1 meaning as the term "mining" in Section 613(c) of the

2 Internal Revenue Code. For purposes of this subsection (e),

3 the term "retailing" means the sale of tangible personal

4 property for use or consumption and not for resale, or

5 services rendered in conjunction with the sale of tangible

6 personal property for use or consumption and not for

7 resale. For purposes of this subsection (e), "tangible

8 personal property" has the same meaning as when that term

9 is used in the Retailers' Occupation Tax Act, and, for

10 taxable years ending after December 31, 2008, does not

11 include the generation, transmission, or distribution of

12 electricity.

13 (4) The basis of qualified property shall be the basis

14 used to compute the depreciation deduction for federal

15 income tax purposes.

16 (5) If the basis of the property for federal income tax

17 depreciation purposes is increased after it has been placed

18 in service in Illinois by the taxpayer, the amount of such

19 increase shall be deemed property placed in service on the

20 date of such increase in basis.

21 (6) The term "placed in service" shall have the same

22 meaning as under Section 46 of the Internal Revenue Code.

23 (7) If during any taxable year, any property ceases to

24 be qualified property in the hands of the taxpayer within

25 48 months after being placed in service, or the situs of

26 any qualified property is moved outside Illinois within 48

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1 months after being placed in service, the Personal Property

2 Tax Replacement Income Tax for such taxable year shall be

3 increased. Such increase shall be determined by (i)

4 recomputing the investment credit which would have been

5 allowed for the year in which credit for such property was

6 originally allowed by eliminating such property from such

7 computation and, (ii) subtracting such recomputed credit

8 from the amount of credit previously allowed. For the

9 purposes of this paragraph (7), a reduction of the basis of

10 qualified property resulting from a redetermination of the

11 purchase price shall be deemed a disposition of qualified

12 property to the extent of such reduction.

13 (8) Unless the investment credit is extended by law,

14 the basis of qualified property shall not include costs

15 incurred after December 31, 2018, except for costs incurred

16 pursuant to a binding contract entered into on or before

17 December 31, 2018.

18 (9) Each taxable year ending before December 31, 2000,

19 a partnership may elect to pass through to its partners the

20 credits to which the partnership is entitled under this

21 subsection (e) for the taxable year. A partner may use the

22 credit allocated to him or her under this paragraph only

23 against the tax imposed in subsections (c) and (d) of this

24 Section. If the partnership makes that election, those

25 credits shall be allocated among the partners in the

26 partnership in accordance with the rules set forth in

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1 Section 704(b) of the Internal Revenue Code, and the rules

2 promulgated under that Section, and the allocated amount of

3 the credits shall be allowed to the partners for that

4 taxable year. The partnership shall make this election on

5 its Personal Property Tax Replacement Income Tax return for

6 that taxable year. The election to pass through the credits

7 shall be irrevocable.

8 For taxable years ending on or after December 31, 2000,

9 a partner that qualifies its partnership for a subtraction

10 under subparagraph (I) of paragraph (2) of subsection (d)

11 of Section 203 or a shareholder that qualifies a Subchapter

12 S corporation for a subtraction under subparagraph (S) of

13 paragraph (2) of subsection (b) of Section 203 shall be

14 allowed a credit under this subsection (e) equal to its

15 share of the credit earned under this subsection (e) during

16 the taxable year by the partnership or Subchapter S

17 corporation, determined in accordance with the

18 determination of income and distributive share of income

19 under Sections 702 and 704 and Subchapter S of the Internal

20 Revenue Code. This paragraph is exempt from the provisions

21 of Section 250.

22 (f) Investment credit; Enterprise Zone; River Edge

23 Redevelopment Zone.

24 (1) A taxpayer shall be allowed a credit against the

25 tax imposed by subsections (a) and (b) of this Section for

26 investment in qualified property which is placed in service

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1 in an Enterprise Zone created pursuant to the Illinois

2 Enterprise Zone Act or, for property placed in service on

3 or after July 1, 2006, a River Edge Redevelopment Zone

4 established pursuant to the River Edge Redevelopment Zone

5 Act. For partners, shareholders of Subchapter S

6 corporations, and owners of limited liability companies,

7 if the liability company is treated as a partnership for

8 purposes of federal and State income taxation, there shall

9 be allowed a credit under this subsection (f) to be

10 determined in accordance with the determination of income

11 and distributive share of income under Sections 702 and 704

12 and Subchapter S of the Internal Revenue Code. The credit

13 shall be .5% of the basis for such property. The credit

14 shall be available only in the taxable year in which the

15 property is placed in service in the Enterprise Zone or

16 River Edge Redevelopment Zone and shall not be allowed to

17 the extent that it would reduce a taxpayer's liability for

18 the tax imposed by subsections (a) and (b) of this Section

19 to below zero. For tax years ending on or after December

20 31, 1985, the credit shall be allowed for the tax year in

21 which the property is placed in service, or, if the amount

22 of the credit exceeds the tax liability for that year,

23 whether it exceeds the original liability or the liability

24 as later amended, such excess may be carried forward and

25 applied to the tax liability of the 5 taxable years

26 following the excess credit year. The credit shall be

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1 applied to the earliest year for which there is a

2 liability. If there is credit from more than one tax year

3 that is available to offset a liability, the credit

4 accruing first in time shall be applied first.

5 (2) The term qualified property means property which:

6 (A) is tangible, whether new or used, including

7 buildings and structural components of buildings;

8 (B) is depreciable pursuant to Section 167 of the

9 Internal Revenue Code, except that "3-year property"

10 as defined in Section 168(c)(2)(A) of that Code is not

11 eligible for the credit provided by this subsection

12 (f);

13 (C) is acquired by purchase as defined in Section

14 179(d) of the Internal Revenue Code;

15 (D) is used in the Enterprise Zone or River Edge

16 Redevelopment Zone by the taxpayer; and

17 (E) has not been previously used in Illinois in

18 such a manner and by such a person as would qualify for

19 the credit provided by this subsection (f) or

20 subsection (e).

21 (3) The basis of qualified property shall be the basis

22 used to compute the depreciation deduction for federal

23 income tax purposes.

24 (4) If the basis of the property for federal income tax

25 depreciation purposes is increased after it has been placed

26 in service in the Enterprise Zone or River Edge

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1 Redevelopment Zone by the taxpayer, the amount of such

2 increase shall be deemed property placed in service on the

3 date of such increase in basis.

4 (5) The term "placed in service" shall have the same

5 meaning as under Section 46 of the Internal Revenue Code.

6 (6) If during any taxable year, any property ceases to

7 be qualified property in the hands of the taxpayer within

8 48 months after being placed in service, or the situs of

9 any qualified property is moved outside the Enterprise Zone

10 or River Edge Redevelopment Zone within 48 months after

11 being placed in service, the tax imposed under subsections

12 (a) and (b) of this Section for such taxable year shall be

13 increased. Such increase shall be determined by (i)

14 recomputing the investment credit which would have been

15 allowed for the year in which credit for such property was

16 originally allowed by eliminating such property from such

17 computation, and (ii) subtracting such recomputed credit

18 from the amount of credit previously allowed. For the

19 purposes of this paragraph (6), a reduction of the basis of

20 qualified property resulting from a redetermination of the

21 purchase price shall be deemed a disposition of qualified

22 property to the extent of such reduction.

23 (7) There shall be allowed an additional credit equal

24 to 0.5% of the basis of qualified property placed in

25 service during the taxable year in a River Edge

26 Redevelopment Zone, provided such property is placed in

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1 service on or after July 1, 2006, and the taxpayer's base

2 employment within Illinois has increased by 1% or more over

3 the preceding year as determined by the taxpayer's

4 employment records filed with the Illinois Department of

5 Employment Security. Taxpayers who are new to Illinois

6 shall be deemed to have met the 1% growth in base

7 employment for the first year in which they file employment

8 records with the Illinois Department of Employment

9 Security. If, in any year, the increase in base employment

10 within Illinois over the preceding year is less than 1%,

11 the additional credit shall be limited to that percentage

12 times a fraction, the numerator of which is 0.5% and the

13 denominator of which is 1%, but shall not exceed 0.5%.

14 (g) (Blank).

15 (h) Investment credit; High Impact Business.

16 (1) Subject to subsections (b) and (b-5) of Section 5.5

17 of the Illinois Enterprise Zone Act, a taxpayer shall be

18 allowed a credit against the tax imposed by subsections (a)

19 and (b) of this Section for investment in qualified

20 property which is placed in service by a Department of

21 Commerce and Economic Opportunity designated High Impact

22 Business. The credit shall be .5% of the basis for such

23 property. The credit shall not be available (i) until the

24 minimum investments in qualified property set forth in

25 subdivision (a)(3)(A) of Section 5.5 of the Illinois

26 Enterprise Zone Act have been satisfied or (ii) until the

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1 time authorized in subsection (b-5) of the Illinois

2 Enterprise Zone Act for entities designated as High Impact

3 Businesses under subdivisions (a)(3)(B), (a)(3)(C), and

4 (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone

5 Act, and shall not be allowed to the extent that it would

6 reduce a taxpayer's liability for the tax imposed by

7 subsections (a) and (b) of this Section to below zero. The

8 credit applicable to such investments shall be taken in the

9 taxable year in which such investments have been completed.

10 The credit for additional investments beyond the minimum

11 investment by a designated high impact business authorized

12 under subdivision (a)(3)(A) of Section 5.5 of the Illinois

13 Enterprise Zone Act shall be available only in the taxable

14 year in which the property is placed in service and shall

15 not be allowed to the extent that it would reduce a

16 taxpayer's liability for the tax imposed by subsections (a)

17 and (b) of this Section to below zero. For tax years ending

18 on or after December 31, 1987, the credit shall be allowed

19 for the tax year in which the property is placed in

20 service, or, if the amount of the credit exceeds the tax

21 liability for that year, whether it exceeds the original

22 liability or the liability as later amended, such excess

23 may be carried forward and applied to the tax liability of

24 the 5 taxable years following the excess credit year. The

25 credit shall be applied to the earliest year for which

26 there is a liability. If there is credit from more than one

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1 tax year that is available to offset a liability, the

2 credit accruing first in time shall be applied first.

3 Changes made in this subdivision (h)(1) by Public Act

4 88-670 restore changes made by Public Act 85-1182 and

5 reflect existing law.

6 (2) The term qualified property means property which:

7 (A) is tangible, whether new or used, including

8 buildings and structural components of buildings;

9 (B) is depreciable pursuant to Section 167 of the

10 Internal Revenue Code, except that "3-year property"

11 as defined in Section 168(c)(2)(A) of that Code is not

12 eligible for the credit provided by this subsection

13 (h);

14 (C) is acquired by purchase as defined in Section

15 179(d) of the Internal Revenue Code; and

16 (D) is not eligible for the Enterprise Zone

17 Investment Credit provided by subsection (f) of this

18 Section.

19 (3) The basis of qualified property shall be the basis

20 used to compute the depreciation deduction for federal

21 income tax purposes.

22 (4) If the basis of the property for federal income tax

23 depreciation purposes is increased after it has been placed

24 in service in a federally designated Foreign Trade Zone or

25 Sub-Zone located in Illinois by the taxpayer, the amount of

26 such increase shall be deemed property placed in service on

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1 the date of such increase in basis.

2 (5) The term "placed in service" shall have the same

3 meaning as under Section 46 of the Internal Revenue Code.

4 (6) If during any taxable year ending on or before

5 December 31, 1996, any property ceases to be qualified

6 property in the hands of the taxpayer within 48 months

7 after being placed in service, or the situs of any

8 qualified property is moved outside Illinois within 48

9 months after being placed in service, the tax imposed under

10 subsections (a) and (b) of this Section for such taxable

11 year shall be increased. Such increase shall be determined

12 by (i) recomputing the investment credit which would have

13 been allowed for the year in which credit for such property

14 was originally allowed by eliminating such property from

15 such computation, and (ii) subtracting such recomputed

16 credit from the amount of credit previously allowed. For

17 the purposes of this paragraph (6), a reduction of the

18 basis of qualified property resulting from a

19 redetermination of the purchase price shall be deemed a

20 disposition of qualified property to the extent of such

21 reduction.

22 (7) Beginning with tax years ending after December 31,

23 1996, if a taxpayer qualifies for the credit under this

24 subsection (h) and thereby is granted a tax abatement and

25 the taxpayer relocates its entire facility in violation of

26 the explicit terms and length of the contract under Section

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1 18-183 of the Property Tax Code, the tax imposed under

2 subsections (a) and (b) of this Section shall be increased

3 for the taxable year in which the taxpayer relocated its

4 facility by an amount equal to the amount of credit

5 received by the taxpayer under this subsection (h).

6 (i) Credit for Personal Property Tax Replacement Income

7 Tax. For tax years ending prior to December 31, 2003, a credit

8 shall be allowed against the tax imposed by subsections (a) and

9 (b) of this Section for the tax imposed by subsections (c) and

10 (d) of this Section. This credit shall be computed by

11 multiplying the tax imposed by subsections (c) and (d) of this

12 Section by a fraction, the numerator of which is base income

13 allocable to Illinois and the denominator of which is Illinois

14 base income, and further multiplying the product by the tax

15 rate imposed by subsections (a) and (b) of this Section.

16 Any credit earned on or after December 31, 1986 under this

17 subsection which is unused in the year the credit is computed

18 because it exceeds the tax liability imposed by subsections (a)

19 and (b) for that year (whether it exceeds the original

20 liability or the liability as later amended) may be carried

21 forward and applied to the tax liability imposed by subsections

22 (a) and (b) of the 5 taxable years following the excess credit

23 year, provided that no credit may be carried forward to any

24 year ending on or after December 31, 2003. This credit shall be

25 applied first to the earliest year for which there is a

26 liability. If there is a credit under this subsection from more

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1 than one tax year that is available to offset a liability the

2 earliest credit arising under this subsection shall be applied

3 first.

4 If, during any taxable year ending on or after December 31,

5 1986, the tax imposed by subsections (c) and (d) of this

6 Section for which a taxpayer has claimed a credit under this

7 subsection (i) is reduced, the amount of credit for such tax

8 shall also be reduced. Such reduction shall be determined by

9 recomputing the credit to take into account the reduced tax

10 imposed by subsections (c) and (d). If any portion of the

11 reduced amount of credit has been carried to a different

12 taxable year, an amended return shall be filed for such taxable

13 year to reduce the amount of credit claimed.

14 (j) Training expense credit. Beginning with tax years

15 ending on or after December 31, 1986 and prior to December 31,

16 2003, a taxpayer shall be allowed a credit against the tax

17 imposed by subsections (a) and (b) under this Section for all

18 amounts paid or accrued, on behalf of all persons employed by

19 the taxpayer in Illinois or Illinois residents employed outside

20 of Illinois by a taxpayer, for educational or vocational

21 training in semi-technical or technical fields or semi-skilled

22 or skilled fields, which were deducted from gross income in the

23 computation of taxable income. The credit against the tax

24 imposed by subsections (a) and (b) shall be 1.6% of such

25 training expenses. For partners, shareholders of subchapter S

26 corporations, and owners of limited liability companies, if the

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1 liability company is treated as a partnership for purposes of

2 federal and State income taxation, there shall be allowed a

3 credit under this subsection (j) to be determined in accordance

4 with the determination of income and distributive share of

5 income under Sections 702 and 704 and subchapter S of the

6 Internal Revenue Code.

7 Any credit allowed under this subsection which is unused in

8 the year the credit is earned may be carried forward to each of

9 the 5 taxable years following the year for which the credit is

10 first computed until it is used. This credit shall be applied

11 first to the earliest year for which there is a liability. If

12 there is a credit under this subsection from more than one tax

13 year that is available to offset a liability the earliest

14 credit arising under this subsection shall be applied first. No

15 carryforward credit may be claimed in any tax year ending on or

16 after December 31, 2003.

17 (k) Research and development credit. For tax years ending

18 after July 1, 1990 and prior to December 31, 2003, and

19 beginning again for tax years ending on or after December 31,

20 2004, and ending prior to January 1, 2019 ~~January 1, 2022~~, a

21 taxpayer shall be allowed a credit against the tax imposed by

22 subsections (a) and (b) of this Section for increasing research

23 activities in this State. The credit allowed against the tax

24 imposed by subsections (a) and (b) shall be equal to 6 1/2% of

25 the qualifying expenditures for increasing research activities

26 in this State. For partners, shareholders of subchapter S

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1 corporations, and owners of limited liability companies, if the

2 liability company is treated as a partnership for purposes of

3 federal and State income taxation, there shall be allowed a

4 credit under this subsection to be determined in accordance

5 with the determination of income and distributive share of

6 income under Sections 702 and 704 and subchapter S of the

7 Internal Revenue Code.

8 For purposes of this subsection, "qualifying expenditures"

9 means the qualifying expenditures as defined for the federal

10 credit for increasing research activities which would be

11 allowable under Section 41 of the Internal Revenue Code and

12 which are conducted in this State, "qualifying expenditures for

13 increasing research activities in this State" means the excess

14 of qualifying expenditures for the taxable year in which

15 incurred over qualifying expenditures for the base period,

16 "qualifying expenditures for the base period" means the average

17 of the qualifying expenditures for each year in the base

18 period, and "base period" means the 3 taxable years immediately

19 preceding the taxable year for which the determination is being

20 made.

21 Any credit in excess of the tax liability for the taxable

22 year may be carried forward. A taxpayer may elect to have the

23 unused credit shown on its final completed return carried over

24 as a credit against the tax liability for the following 5

25 taxable years or until it has been fully used, whichever occurs

26 first; provided that no credit earned in a tax year ending

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1 prior to December 31, 2003 may be carried forward to any year

2 ending on or after December 31, 2003.

3 If an unused credit is carried forward to a given year from

4 2 or more earlier years, that credit arising in the earliest

5 year will be applied first against the tax liability for the

6 given year. If a tax liability for the given year still

7 remains, the credit from the next earliest year will then be

8 applied, and so on, until all credits have been used or no tax

9 liability for the given year remains. Any remaining unused

10 credit or credits then will be carried forward to the next

11 following year in which a tax liability is incurred, except

12 that no credit can be carried forward to a year which is more

13 than 5 years after the year in which the expense for which the

14 credit is given was incurred.

15 No inference shall be drawn from this amendatory Act of the

16 91st General Assembly in construing this Section for taxable

17 years beginning before January 1, 1999.

18 ~~It is the intent of the General Assembly that the research~~

19 ~~and development credit under this subsection (k) shall apply~~

20 ~~continuously for all tax years ending on or after December 31,~~

21 ~~2004 and ending prior to January 1, 2022, including, but not~~

22 ~~limited to, the period beginning on January 1, 2016 and ending~~

23 ~~on the effective date of this amendatory Act of the 100th~~

24 ~~General Assembly. All actions taken in reliance on the~~

25 ~~continuation of the credit under this subsection (k) by any~~

26 ~~taxpayer are hereby validated.~~

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1 (l) Environmental Remediation Tax Credit.

2 (i) For tax years ending after December 31, 1997 and on

3 or before December 31, 2001, a taxpayer shall be allowed a

4 credit against the tax imposed by subsections (a) and (b)

5 of this Section for certain amounts paid for unreimbursed

6 eligible remediation costs, as specified in this

7 subsection. For purposes of this Section, "unreimbursed

8 eligible remediation costs" means costs approved by the

9 Illinois Environmental Protection Agency ("Agency") under

10 Section 58.14 of the Environmental Protection Act that were

11 paid in performing environmental remediation at a site for

12 which a No Further Remediation Letter was issued by the

13 Agency and recorded under Section 58.10 of the

14 Environmental Protection Act. The credit must be claimed

15 for the taxable year in which Agency approval of the

16 eligible remediation costs is granted. The credit is not

17 available to any taxpayer if the taxpayer or any related

18 party caused or contributed to, in any material respect, a

19 release of regulated substances on, in, or under the site

20 that was identified and addressed by the remedial action

21 pursuant to the Site Remediation Program of the

22 Environmental Protection Act. After the Pollution Control

23 Board rules are adopted pursuant to the Illinois

24 Administrative Procedure Act for the administration and

25 enforcement of Section 58.9 of the Environmental

26 Protection Act, determinations as to credit availability

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1 for purposes of this Section shall be made consistent with

2 those rules. For purposes of this Section, "taxpayer"

3 includes a person whose tax attributes the taxpayer has

4 succeeded to under Section 381 of the Internal Revenue Code

5 and "related party" includes the persons disallowed a

6 deduction for losses by paragraphs (b), (c), and (f)(1) of

7 Section 267 of the Internal Revenue Code by virtue of being

8 a related taxpayer, as well as any of its partners. The

9 credit allowed against the tax imposed by subsections (a)

10 and (b) shall be equal to 25% of the unreimbursed eligible

11 remediation costs in excess of $100,000 per site, except

12 that the $100,000 threshold shall not apply to any site

13 contained in an enterprise zone as determined by the

14 Department of Commerce and Community Affairs (now

15 Department of Commerce and Economic Opportunity). The

16 total credit allowed shall not exceed $40,000 per year with

17 a maximum total of $150,000 per site. For partners and

18 shareholders of subchapter S corporations, there shall be

19 allowed a credit under this subsection to be determined in

20 accordance with the determination of income and

21 distributive share of income under Sections 702 and 704 and

22 subchapter S of the Internal Revenue Code.

23 (ii) A credit allowed under this subsection that is

24 unused in the year the credit is earned may be carried

25 forward to each of the 5 taxable years following the year

26 for which the credit is first earned until it is used. The

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1 term "unused credit" does not include any amounts of

2 unreimbursed eligible remediation costs in excess of the

3 maximum credit per site authorized under paragraph (i).

4 This credit shall be applied first to the earliest year for

5 which there is a liability. If there is a credit under this

6 subsection from more than one tax year that is available to

7 offset a liability, the earliest credit arising under this

8 subsection shall be applied first. A credit allowed under

9 this subsection may be sold to a buyer as part of a sale of

10 all or part of the remediation site for which the credit

11 was granted. The purchaser of a remediation site and the

12 tax credit shall succeed to the unused credit and remaining

13 carry-forward period of the seller. To perfect the

14 transfer, the assignor shall record the transfer in the

15 chain of title for the site and provide written notice to

16 the Director of the Illinois Department of Revenue of the

17 assignor's intent to sell the remediation site and the

18 amount of the tax credit to be transferred as a portion of

19 the sale. In no event may a credit be transferred to any

20 taxpayer if the taxpayer or a related party would not be

21 eligible under the provisions of subsection (i).

22 (iii) For purposes of this Section, the term "site"

23 shall have the same meaning as under Section 58.2 of the

24 Environmental Protection Act.

25 (m) Education expense credit. Beginning with tax years

26 ending after December 31, 1999, a taxpayer who is the custodian

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1 of one or more qualifying pupils shall be allowed a credit

2 against the tax imposed by subsections (a) and (b) of this

3 Section for qualified education expenses incurred on behalf of

4 the qualifying pupils. The credit shall be equal to 25% of

5 qualified education expenses, but in no event may the total

6 credit under this subsection claimed by a family that is the

7 custodian of qualifying pupils exceed ~~(i)~~ $500 ~~for tax years~~

8 ~~ending prior to December 31, 2017, and (ii) $750 for tax years~~

9 ~~ending on or after December 31, 2017~~. In no event shall a

10 credit under this subsection reduce the taxpayer's liability

11 under this Act to less than zero.~~Notwithstanding any other~~

12 ~~provision of law, for taxable years beginning on or after~~

13 ~~January 1, 2017, no taxpayer may claim a credit under this~~

14 ~~subsection (m) if the taxpayer's adjusted gross income for the~~

15 ~~taxable year exceeds (i) $500,000, in the case of spouses~~

16 ~~filing a joint federal tax return or (ii) $250,000, in the case~~

17 ~~of all other taxpayers.~~ This subsection is exempt from the

18 provisions of Section 250 of this Act.

19 For purposes of this subsection:

20 "Qualifying pupils" means individuals who (i) are

21 residents of the State of Illinois, (ii) are under the age of

22 21 at the close of the school year for which a credit is

23 sought, and (iii) during the school year for which a credit is

24 sought were full-time pupils enrolled in a kindergarten through

25 twelfth grade education program at any school, as defined in

26 this subsection.

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1 "Qualified education expense" means the amount incurred on

2 behalf of a qualifying pupil in excess of $250 for tuition,

3 book fees, and lab fees at the school in which the pupil is

4 enrolled during the regular school year.

5 "School" means any public or nonpublic elementary or

6 secondary school in Illinois that is in compliance with Title

7 VI of the Civil Rights Act of 1964 and attendance at which

8 satisfies the requirements of Section 26-1 of the School Code,

9 except that nothing shall be construed to require a child to

10 attend any particular public or nonpublic school to qualify for

11 the credit under this Section.

12 "Custodian" means, with respect to qualifying pupils, an

13 Illinois resident who is a parent, the parents, a legal

14 guardian, or the legal guardians of the qualifying pupils.

15 (n) River Edge Redevelopment Zone site remediation tax

16 credit.

17 (i) For tax years ending on or after December 31, 2006,

18 a taxpayer shall be allowed a credit against the tax

19 imposed by subsections (a) and (b) of this Section for

20 certain amounts paid for unreimbursed eligible remediation

21 costs, as specified in this subsection. For purposes of

22 this Section, "unreimbursed eligible remediation costs"

23 means costs approved by the Illinois Environmental

24 Protection Agency ("Agency") under Section 58.14a of the

25 Environmental Protection Act that were paid in performing

26 environmental remediation at a site within a River Edge

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1 Redevelopment Zone for which a No Further Remediation

2 Letter was issued by the Agency and recorded under Section

3 58.10 of the Environmental Protection Act. The credit must

4 be claimed for the taxable year in which Agency approval of

5 the eligible remediation costs is granted. The credit is

6 not available to any taxpayer if the taxpayer or any

7 related party caused or contributed to, in any material

8 respect, a release of regulated substances on, in, or under

9 the site that was identified and addressed by the remedial

10 action pursuant to the Site Remediation Program of the

11 Environmental Protection Act. Determinations as to credit

12 availability for purposes of this Section shall be made

13 consistent with rules adopted by the Pollution Control

14 Board pursuant to the Illinois Administrative Procedure

15 Act for the administration and enforcement of Section 58.9

16 of the Environmental Protection Act. For purposes of this

17 Section, "taxpayer" includes a person whose tax attributes

18 the taxpayer has succeeded to under Section 381 of the

19 Internal Revenue Code and "related party" includes the

20 persons disallowed a deduction for losses by paragraphs

21 (b), (c), and (f)(1) of Section 267 of the Internal Revenue

22 Code by virtue of being a related taxpayer, as well as any

23 of its partners. The credit allowed against the tax imposed

24 by subsections (a) and (b) shall be equal to 25% of the

25 unreimbursed eligible remediation costs in excess of

26 $100,000 per site.

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1 (ii) A credit allowed under this subsection that is

2 unused in the year the credit is earned may be carried

3 forward to each of the 5 taxable years following the year

4 for which the credit is first earned until it is used. This

5 credit shall be applied first to the earliest year for

6 which there is a liability. If there is a credit under this

7 subsection from more than one tax year that is available to

8 offset a liability, the earliest credit arising under this

9 subsection shall be applied first. A credit allowed under

10 this subsection may be sold to a buyer as part of a sale of

11 all or part of the remediation site for which the credit

12 was granted. The purchaser of a remediation site and the

13 tax credit shall succeed to the unused credit and remaining

14 carry-forward period of the seller. To perfect the

15 transfer, the assignor shall record the transfer in the

16 chain of title for the site and provide written notice to

17 the Director of the Illinois Department of Revenue of the

18 assignor's intent to sell the remediation site and the

19 amount of the tax credit to be transferred as a portion of

20 the sale. In no event may a credit be transferred to any

21 taxpayer if the taxpayer or a related party would not be

22 eligible under the provisions of subsection (i).

23 (iii) For purposes of this Section, the term "site"

24 shall have the same meaning as under Section 58.2 of the

25 Environmental Protection Act.

26 (o) For each of taxable years during the Compassionate Use

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1 of Medical Cannabis Pilot Program, a surcharge is imposed on

2 all taxpayers on income arising from the sale or exchange of

3 capital assets, depreciable business property, real property

4 used in the trade or business, and Section 197 intangibles of

5 an organization registrant under the Compassionate Use of

6 Medical Cannabis Pilot Program Act. The amount of the surcharge

7 is equal to the amount of federal income tax liability for the

8 taxable year attributable to those sales and exchanges. The

9 surcharge imposed does not apply if:

10 (1) the medical cannabis cultivation center

11 registration, medical cannabis dispensary registration, or

12 the property of a registration is transferred as a result

13 of any of the following:

14 (A) bankruptcy, a receivership, or a debt

15 adjustment initiated by or against the initial

16 registration or the substantial owners of the initial

17 registration;

18 (B) cancellation, revocation, or termination of

19 any registration by the Illinois Department of Public

20 Health;

21 (C) a determination by the Illinois Department of

22 Public Health that transfer of the registration is in

23 the best interests of Illinois qualifying patients as

24 defined by the Compassionate Use of Medical Cannabis

25 Pilot Program Act;

26 (D) the death of an owner of the equity interest in

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1 a registrant;

2 (E) the acquisition of a controlling interest in

3 the stock or substantially all of the assets of a

4 publicly traded company;

5 (F) a transfer by a parent company to a wholly

6 owned subsidiary; or

7 (G) the transfer or sale to or by one person to

8 another person where both persons were initial owners

9 of the registration when the registration was issued;

10 or

11 (2) the cannabis cultivation center registration,

12 medical cannabis dispensary registration, or the

13 controlling interest in a registrant's property is

14 transferred in a transaction to lineal descendants in which

15 no gain or loss is recognized or as a result of a

16 transaction in accordance with Section 351 of the Internal

17 Revenue Code in which no gain or loss is recognized.

18 (Source: P.A. 100-22, eff. 7-6-17.)

19 (35 ILCS 5/203) (from Ch. 120, par. 2-203)

20 Sec. 203. Base income defined.

21 (a) Individuals.

22 (1) In general. In the case of an individual, base

23 income means an amount equal to the taxpayer's adjusted

24 gross income for the taxable year as modified by paragraph

25 (2).

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1 (2) Modifications. The adjusted gross income referred

2 to in paragraph (1) shall be modified by adding thereto the

3 sum of the following amounts:

4 (A) An amount equal to all amounts paid or accrued

5 to the taxpayer as interest or dividends during the

6 taxable year to the extent excluded from gross income

7 in the computation of adjusted gross income, except

8 stock dividends of qualified public utilities

9 described in Section 305(e) of the Internal Revenue

10 Code;

11 (B) An amount equal to the amount of tax imposed by

12 this Act to the extent deducted from gross income in

13 the computation of adjusted gross income for the

14 taxable year;

15 (C) An amount equal to the amount received during

16 the taxable year as a recovery or refund of real

17 property taxes paid with respect to the taxpayer's

18 principal residence under the Revenue Act of 1939 and

19 for which a deduction was previously taken under

20 subparagraph (L) of this paragraph (2) prior to July 1,

21 1991, the retrospective application date of Article 4

22 of Public Act 87-17. In the case of multi-unit or

23 multi-use structures and farm dwellings, the taxes on

24 the taxpayer's principal residence shall be that

25 portion of the total taxes for the entire property

26 which is attributable to such principal residence;

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1 (D) An amount equal to the amount of the capital

2 gain deduction allowable under the Internal Revenue

3 Code, to the extent deducted from gross income in the

4 computation of adjusted gross income;

5 (D-5) An amount, to the extent not included in

6 adjusted gross income, equal to the amount of money

7 withdrawn by the taxpayer in the taxable year from a

8 medical care savings account and the interest earned on

9 the account in the taxable year of a withdrawal

10 pursuant to subsection (b) of Section 20 of the Medical

11 Care Savings Account Act or subsection (b) of Section

12 20 of the Medical Care Savings Account Act of 2000;

13 (D-10) For taxable years ending after December 31,

14 1997, an amount equal to any eligible remediation costs

15 that the individual deducted in computing adjusted

16 gross income and for which the individual claims a

17 credit under subsection (l) of Section 201;

18 (D-15) For taxable years 2001 and thereafter, an

19 amount equal to the bonus depreciation deduction taken

20 on the taxpayer's federal income tax return for the

21 taxable year under subsection (k) of Section 168 of the

22 Internal Revenue Code;

23 (D-16) If the taxpayer sells, transfers, abandons,

24 or otherwise disposes of property for which the

25 taxpayer was required in any taxable year to make an

26 addition modification under subparagraph (D-15), then

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1 an amount equal to the aggregate amount of the

2 deductions taken in all taxable years under

3 subparagraph (Z) with respect to that property.

4 If the taxpayer continues to own property through

5 the last day of the last tax year for which the

6 taxpayer may claim a depreciation deduction for

7 federal income tax purposes and for which the taxpayer

8 was allowed in any taxable year to make a subtraction

9 modification under subparagraph (Z), then an amount

10 equal to that subtraction modification.

11 The taxpayer is required to make the addition

12 modification under this subparagraph only once with

13 respect to any one piece of property;

14 (D-17) An amount equal to the amount otherwise

15 allowed as a deduction in computing base income for

16 interest paid, accrued, or incurred, directly or

17 indirectly, (i) for taxable years ending on or after

18 December 31, 2004, to a foreign person who would be a

19 member of the same unitary business group but for the

20 fact that foreign person's business activity outside

21 the United States is 80% or more of the foreign

22 person's total business activity and (ii) for taxable

23 years ending on or after December 31, 2008, to a person

24 who would be a member of the same unitary business

25 group but for the fact that the person is prohibited

26 under Section 1501(a)(27) from being included in the

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1 unitary business group because he or she is ordinarily

2 required to apportion business income under different

3 subsections of Section 304. The addition modification

4 required by this subparagraph shall be reduced to the

5 extent that dividends were included in base income of

6 the unitary group for the same taxable year and

7 received by the taxpayer or by a member of the

8 taxpayer's unitary business group (including amounts

9 included in gross income under Sections 951 through 964

10 of the Internal Revenue Code and amounts included in

11 gross income under Section 78 of the Internal Revenue

12 Code) with respect to the stock of the same person to

13 whom the interest was paid, accrued, or incurred.

14 This paragraph shall not apply to the following:

15 (i) an item of interest paid, accrued, or

16 incurred, directly or indirectly, to a person who

17 is subject in a foreign country or state, other

18 than a state which requires mandatory unitary

19 reporting, to a tax on or measured by net income

20 with respect to such interest; or

21 (ii) an item of interest paid, accrued, or

22 incurred, directly or indirectly, to a person if

23 the taxpayer can establish, based on a

24 preponderance of the evidence, both of the

25 following:

26 (a) the person, during the same taxable

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1 year, paid, accrued, or incurred, the interest

2 to a person that is not a related member, and

3 (b) the transaction giving rise to the

4 interest expense between the taxpayer and the

5 person did not have as a principal purpose the

6 avoidance of Illinois income tax, and is paid

7 pursuant to a contract or agreement that

8 reflects an arm's-length interest rate and

9 terms; or

10 (iii) the taxpayer can establish, based on

11 clear and convincing evidence, that the interest

12 paid, accrued, or incurred relates to a contract or

13 agreement entered into at arm's-length rates and

14 terms and the principal purpose for the payment is

15 not federal or Illinois tax avoidance; or

16 (iv) an item of interest paid, accrued, or

17 incurred, directly or indirectly, to a person if

18 the taxpayer establishes by clear and convincing

19 evidence that the adjustments are unreasonable; or

20 if the taxpayer and the Director agree in writing

21 to the application or use of an alternative method

22 of apportionment under Section 304(f).

23 Nothing in this subsection shall preclude the

24 Director from making any other adjustment

25 otherwise allowed under Section 404 of this Act for

26 any tax year beginning after the effective date of

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1 this amendment provided such adjustment is made

2 pursuant to regulation adopted by the Department

3 and such regulations provide methods and standards

4 by which the Department will utilize its authority

5 under Section 404 of this Act;

6 (D-18) An amount equal to the amount of intangible

7 expenses and costs otherwise allowed as a deduction in

8 computing base income, and that were paid, accrued, or

9 incurred, directly or indirectly, (i) for taxable

10 years ending on or after December 31, 2004, to a

11 foreign person who would be a member of the same

12 unitary business group but for the fact that the

13 foreign person's business activity outside the United

14 States is 80% or more of that person's total business

15 activity and (ii) for taxable years ending on or after

16 December 31, 2008, to a person who would be a member of

17 the same unitary business group but for the fact that

18 the person is prohibited under Section 1501(a)(27)

19 from being included in the unitary business group

20 because he or she is ordinarily required to apportion

21 business income under different subsections of Section

22 304. The addition modification required by this

23 subparagraph shall be reduced to the extent that

24 dividends were included in base income of the unitary

25 group for the same taxable year and received by the

26 taxpayer or by a member of the taxpayer's unitary

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1 business group (including amounts included in gross

2 income under Sections 951 through 964 of the Internal

3 Revenue Code and amounts included in gross income under

4 Section 78 of the Internal Revenue Code) with respect

5 to the stock of the same person to whom the intangible

6 expenses and costs were directly or indirectly paid,

7 incurred, or accrued. The preceding sentence does not

8 apply to the extent that the same dividends caused a

9 reduction to the addition modification required under

10 Section 203(a)(2)(D-17) of this Act. As used in this

11 subparagraph, the term "intangible expenses and costs"

12 includes (1) expenses, losses, and costs for, or

13 related to, the direct or indirect acquisition, use,

14 maintenance or management, ownership, sale, exchange,

15 or any other disposition of intangible property; (2)

16 losses incurred, directly or indirectly, from

17 factoring transactions or discounting transactions;

18 (3) royalty, patent, technical, and copyright fees;

19 (4) licensing fees; and (5) other similar expenses and

20 costs. For purposes of this subparagraph, "intangible

21 property" includes patents, patent applications, trade

22 names, trademarks, service marks, copyrights, mask

23 works, trade secrets, and similar types of intangible

24 assets.

25 This paragraph shall not apply to the following:

26 (i) any item of intangible expenses or costs

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1 paid, accrued, or incurred, directly or

2 indirectly, from a transaction with a person who is

3 subject in a foreign country or state, other than a

4 state which requires mandatory unitary reporting,

5 to a tax on or measured by net income with respect

6 to such item; or

7 (ii) any item of intangible expense or cost

8 paid, accrued, or incurred, directly or

9 indirectly, if the taxpayer can establish, based

10 on a preponderance of the evidence, both of the

11 following:

12 (a) the person during the same taxable

13 year paid, accrued, or incurred, the

14 intangible expense or cost to a person that is

15 not a related member, and

16 (b) the transaction giving rise to the

17 intangible expense or cost between the

18 taxpayer and the person did not have as a

19 principal purpose the avoidance of Illinois

20 income tax, and is paid pursuant to a contract

21 or agreement that reflects arm's-length terms;

22 or

23 (iii) any item of intangible expense or cost

24 paid, accrued, or incurred, directly or

25 indirectly, from a transaction with a person if the

26 taxpayer establishes by clear and convincing

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1 evidence, that the adjustments are unreasonable;

2 or if the taxpayer and the Director agree in

3 writing to the application or use of an alternative

4 method of apportionment under Section 304(f);

5 Nothing in this subsection shall preclude the

6 Director from making any other adjustment

7 otherwise allowed under Section 404 of this Act for

8 any tax year beginning after the effective date of

9 this amendment provided such adjustment is made

10 pursuant to regulation adopted by the Department

11 and such regulations provide methods and standards

12 by which the Department will utilize its authority

13 under Section 404 of this Act;

14 (D-19) For taxable years ending on or after

15 December 31, 2008, an amount equal to the amount of

16 insurance premium expenses and costs otherwise allowed

17 as a deduction in computing base income, and that were

18 paid, accrued, or incurred, directly or indirectly, to

19 a person who would be a member of the same unitary

20 business group but for the fact that the person is

21 prohibited under Section 1501(a)(27) from being

22 included in the unitary business group because he or

23 she is ordinarily required to apportion business

24 income under different subsections of Section 304. The

25 addition modification required by this subparagraph

26 shall be reduced to the extent that dividends were

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1 included in base income of the unitary group for the

2 same taxable year and received by the taxpayer or by a

3 member of the taxpayer's unitary business group

4 (including amounts included in gross income under

5 Sections 951 through 964 of the Internal Revenue Code

6 and amounts included in gross income under Section 78

7 of the Internal Revenue Code) with respect to the stock

8 of the same person to whom the premiums and costs were

9 directly or indirectly paid, incurred, or accrued. The

10 preceding sentence does not apply to the extent that

11 the same dividends caused a reduction to the addition

12 modification required under Section 203(a)(2)(D-17) or

13 Section 203(a)(2)(D-18) of this Act.

14 (D-20) For taxable years beginning on or after

15 January 1, 2002 and ending on or before December 31,

16 2006, in the case of a distribution from a qualified

17 tuition program under Section 529 of the Internal

18 Revenue Code, other than (i) a distribution from a

19 College Savings Pool created under Section 16.5 of the

20 State Treasurer Act or (ii) a distribution from the

21 Illinois Prepaid Tuition Trust Fund, an amount equal to

22 the amount excluded from gross income under Section

23 529(c)(3)(B). For taxable years beginning on or after

24 January 1, 2007, in the case of a distribution from a

25 qualified tuition program under Section 529 of the

26 Internal Revenue Code, other than (i) a distribution

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1 from a College Savings Pool created under Section 16.5

2 of the State Treasurer Act, (ii) a distribution from

3 the Illinois Prepaid Tuition Trust Fund, or (iii) a

4 distribution from a qualified tuition program under

5 Section 529 of the Internal Revenue Code that (I)

6 adopts and determines that its offering materials

7 comply with the College Savings Plans Network's

8 disclosure principles and (II) has made reasonable

9 efforts to inform in-state residents of the existence

10 of in-state qualified tuition programs by informing

11 Illinois residents directly and, where applicable, to

12 inform financial intermediaries distributing the

13 program to inform in-state residents of the existence

14 of in-state qualified tuition programs at least

15 annually, an amount equal to the amount excluded from

16 gross income under Section 529(c)(3)(B).

17 For the purposes of this subparagraph (D-20), a

18 qualified tuition program has made reasonable efforts

19 if it makes disclosures (which may use the term

20 "in-state program" or "in-state plan" and need not

21 specifically refer to Illinois or its qualified

22 programs by name) (i) directly to prospective

23 participants in its offering materials or makes a

24 public disclosure, such as a website posting; and (ii)

25 where applicable, to intermediaries selling the

26 out-of-state program in the same manner that the

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1 out-of-state program distributes its offering

2 materials;

3 (D-20.5) For taxable years beginning on or after

4 January 1, 2018, in the case of a distribution from a

5 qualified ABLE program under Section 529A of the

6 Internal Revenue Code, other than a distribution from a

7 qualified ABLE program created under Section 16.6 of

8 the State Treasurer Act, an amount equal to the amount

9 excluded from gross income under Section 529A(c)(1)(B)

10 of the Internal Revenue Code;

11 (D-21) For taxable years beginning on or after

12 January 1, 2007, in the case of transfer of moneys from

13 a qualified tuition program under Section 529 of the

14 Internal Revenue Code that is administered by the State

15 to an out-of-state program, an amount equal to the

16 amount of moneys previously deducted from base income

17 under subsection (a)(2)(Y) of this Section;

18 (D-21.5) For taxable years beginning on or after

19 January 1, 2018, in the case of the transfer of moneys

20 from a qualified tuition program under Section 529 or a

21 qualified ABLE program under Section 529A of the

22 Internal Revenue Code that is administered by this

23 State to an ABLE account established under an

24 out-of-state ABLE account program, an amount equal to

25 the contribution component of the transferred amount

26 that was previously deducted from base income under

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1 subsection (a)(2)(Y) or subsection (a)(2)(HH) of this

2 Section;

3 (D-22) For taxable years beginning on or after

4 January 1, 2009, and prior to January 1, 2018, in the

5 case of a nonqualified withdrawal or refund of moneys

6 from a qualified tuition program under Section 529 of

7 the Internal Revenue Code administered by the State

8 that is not used for qualified expenses at an eligible

9 education institution, an amount equal to the

10 contribution component of the nonqualified withdrawal

11 or refund that was previously deducted from base income

12 under subsection (a)(2)(y) of this Section, provided

13 that the withdrawal or refund did not result from the

14 beneficiary's death or disability. For taxable years

15 beginning on or after January 1, 2018: (1) in the case

16 of a nonqualified withdrawal or refund, as defined

17 under Section 16.5 of the State Treasurer Act, of

18 moneys from a qualified tuition program under Section

19 529 of the Internal Revenue Code administered by the

20 State, an amount equal to the contribution component of

21 the nonqualified withdrawal or refund that was

22 previously deducted from base income under subsection

23 (a)(2)(Y) of this Section, and (2) in the case of a

24 nonqualified withdrawal or refund from a qualified

25 ABLE program under Section 529A of the Internal Revenue

26 Code administered by the State that is not used for

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1 qualified disability expenses, an amount equal to the

2 contribution component of the nonqualified withdrawal

3 or refund that was previously deducted from base income

4 under subsection (a)(2)(HH) of this Section;

5 (D-23) An amount equal to the credit allowable to

6 the taxpayer under Section 218(a) of this Act,

7 determined without regard to Section 218(c) of this

8 Act;

9 (D-24) For taxable years ending on or after

10 December 31, 2017 and ending on or before December 31,

11 2018, an amount equal to the deduction allowed under

12 Section 199 of the Internal Revenue Code for the

13 taxable year;

14 and by deducting from the total so obtained the sum of the

15 following amounts:

16 (E) For taxable years ending before December 31,

17 2001, any amount included in such total in respect of

18 any compensation (including but not limited to any

19 compensation paid or accrued to a serviceman while a

20 prisoner of war or missing in action) paid to a

21 resident by reason of being on active duty in the Armed

22 Forces of the United States and in respect of any

23 compensation paid or accrued to a resident who as a

24 governmental employee was a prisoner of war or missing

25 in action, and in respect of any compensation paid to a

26 resident in 1971 or thereafter for annual training

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1 performed pursuant to Sections 502 and 503, Title 32,

2 United States Code as a member of the Illinois National

3 Guard or, beginning with taxable years ending on or

4 after December 31, 2007, the National Guard of any

5 other state. For taxable years ending on or after

6 December 31, 2001, any amount included in such total in

7 respect of any compensation (including but not limited

8 to any compensation paid or accrued to a serviceman

9 while a prisoner of war or missing in action) paid to a

10 resident by reason of being a member of any component

11 of the Armed Forces of the United States and in respect

12 of any compensation paid or accrued to a resident who

13 as a governmental employee was a prisoner of war or

14 missing in action, and in respect of any compensation

15 paid to a resident in 2001 or thereafter by reason of

16 being a member of the Illinois National Guard or,

17 beginning with taxable years ending on or after

18 December 31, 2007, the National Guard of any other

19 state. The provisions of this subparagraph (E) are

20 exempt from the provisions of Section 250;

21 (F) An amount equal to all amounts included in such

22 total pursuant to the provisions of Sections 402(a),

23 402(c), 403(a), 403(b), 406(a), 407(a), and 408 of the

24 Internal Revenue Code, or included in such total as

25 distributions under the provisions of any retirement

26 or disability plan for employees of any governmental

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1 agency or unit, or retirement payments to retired

2 partners, which payments are excluded in computing net

3 earnings from self employment by Section 1402 of the

4 Internal Revenue Code and regulations adopted pursuant

5 thereto;

6 (G) The valuation limitation amount;

7 (H) An amount equal to the amount of any tax

8 imposed by this Act which was refunded to the taxpayer

9 and included in such total for the taxable year;

10 (I) An amount equal to all amounts included in such

11 total pursuant to the provisions of Section 111 of the

12 Internal Revenue Code as a recovery of items previously

13 deducted from adjusted gross income in the computation

14 of taxable income;

15 (J) An amount equal to those dividends included in

16 such total which were paid by a corporation which

17 conducts business operations in a River Edge

18 Redevelopment Zone or zones created under the River

19 Edge Redevelopment Zone Act, and conducts

20 substantially all of its operations in a River Edge

21 Redevelopment Zone or zones. This subparagraph (J) is

22 exempt from the provisions of Section 250;

23 (K) An amount equal to those dividends included in

24 such total that were paid by a corporation that

25 conducts business operations in a federally designated

26 Foreign Trade Zone or Sub-Zone and that is designated a

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1 High Impact Business located in Illinois; provided

2 that dividends eligible for the deduction provided in

3 subparagraph (J) of paragraph (2) of this subsection

4 shall not be eligible for the deduction provided under

5 this subparagraph (K);

6 (L) For taxable years ending after December 31,

7 1983, an amount equal to all social security benefits

8 and railroad retirement benefits included in such

9 total pursuant to Sections 72(r) and 86 of the Internal

10 Revenue Code;

11 (M) With the exception of any amounts subtracted

12 under subparagraph (N), an amount equal to the sum of

13 all amounts disallowed as deductions by (i) Sections

14 171(a)(2), and 265(a)(2) ~~265(2)~~ of the Internal

15 Revenue Code, and all amounts of expenses allocable to

16 interest and disallowed as deductions by Section

17 265(a)(1) ~~265(1)~~of the Internal Revenue Code; and (ii)

18 for taxable years ending on or after August 13, 1999,

19 Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of

20 the Internal Revenue Code, plus, for taxable years

21 ending on or after December 31, 2011, Section 45G(e)(3)

22 of the Internal Revenue Code and, for taxable years

23 ending on or after December 31, 2008, any amount

24 included in gross income under Section 87 of the

25 Internal Revenue Code; the provisions of this

26 subparagraph are exempt from the provisions of Section

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1 250;

2 (N) An amount equal to all amounts included in such

3 total which are exempt from taxation by this State

4 either by reason of its statutes or Constitution or by

5 reason of the Constitution, treaties or statutes of the

6 United States; provided that, in the case of any

7 statute of this State that exempts income derived from

8 bonds or other obligations from the tax imposed under

9 this Act, the amount exempted shall be the interest net

10 of bond premium amortization;

11 (O) An amount equal to any contribution made to a

12 job training project established pursuant to the Tax

13 Increment Allocation Redevelopment Act;

14 (P) An amount equal to the amount of the deduction

15 used to compute the federal income tax credit for

16 restoration of substantial amounts held under claim of

17 right for the taxable year pursuant to Section 1341 of

18 the Internal Revenue Code or of any itemized deduction

19 taken from adjusted gross income in the computation of

20 taxable income for restoration of substantial amounts

21 held under claim of right for the taxable year;

22 (Q) An amount equal to any amounts included in such

23 total, received by the taxpayer as an acceleration in

24 the payment of life, endowment or annuity benefits in

25 advance of the time they would otherwise be payable as

26 an indemnity for a terminal illness;

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1 (R) An amount equal to the amount of any federal or

2 State bonus paid to veterans of the Persian Gulf War;

3 (S) An amount, to the extent included in adjusted

4 gross income, equal to the amount of a contribution

5 made in the taxable year on behalf of the taxpayer to a

6 medical care savings account established under the

7 Medical Care Savings Account Act or the Medical Care

8 Savings Account Act of 2000 to the extent the

9 contribution is accepted by the account administrator

10 as provided in that Act;

11 (T) An amount, to the extent included in adjusted

12 gross income, equal to the amount of interest earned in

13 the taxable year on a medical care savings account

14 established under the Medical Care Savings Account Act

15 or the Medical Care Savings Account Act of 2000 on

16 behalf of the taxpayer, other than interest added

17 pursuant to item (D-5) of this paragraph (2);

18 (U) For one taxable year beginning on or after

19 January 1, 1994, an amount equal to the total amount of

20 tax imposed and paid under subsections (a) and (b) of

21 Section 201 of this Act on grant amounts received by

22 the taxpayer under the Nursing Home Grant Assistance

23 Act during the taxpayer's taxable years 1992 and 1993;

24 (V) Beginning with tax years ending on or after

25 December 31, 1995 and ending with tax years ending on

26 or before December 31, 2004, an amount equal to the

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1 amount paid by a taxpayer who is a self-employed

2 taxpayer, a partner of a partnership, or a shareholder

3 in a Subchapter S corporation for health insurance or

4 long-term care insurance for that taxpayer or that

5 taxpayer's spouse or dependents, to the extent that the

6 amount paid for that health insurance or long-term care

7 insurance may be deducted under Section 213 of the

8 Internal Revenue Code, has not been deducted on the

9 federal income tax return of the taxpayer, and does not

10 exceed the taxable income attributable to that

11 taxpayer's income, self-employment income, or

12 Subchapter S corporation income; except that no

13 deduction shall be allowed under this item (V) if the

14 taxpayer is eligible to participate in any health

15 insurance or long-term care insurance plan of an

16 employer of the taxpayer or the taxpayer's spouse. The

17 amount of the health insurance and long-term care

18 insurance subtracted under this item (V) shall be

19 determined by multiplying total health insurance and

20 long-term care insurance premiums paid by the taxpayer

21 times a number that represents the fractional

22 percentage of eligible medical expenses under Section

23 213 of the Internal Revenue Code of 1986 not actually

24 deducted on the taxpayer's federal income tax return;

25 (W) For taxable years beginning on or after January

26 1, 1998, all amounts included in the taxpayer's federal

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1 gross income in the taxable year from amounts converted

2 from a regular IRA to a Roth IRA. This paragraph is

3 exempt from the provisions of Section 250;

4 (X) For taxable year 1999 and thereafter, an amount

5 equal to the amount of any (i) distributions, to the

6 extent includible in gross income for federal income

7 tax purposes, made to the taxpayer because of his or

8 her status as a victim of persecution for racial or

9 religious reasons by Nazi Germany or any other Axis

10 regime or as an heir of the victim and (ii) items of

11 income, to the extent includible in gross income for

12 federal income tax purposes, attributable to, derived

13 from or in any way related to assets stolen from,

14 hidden from, or otherwise lost to a victim of

15 persecution for racial or religious reasons by Nazi

16 Germany or any other Axis regime immediately prior to,

17 during, and immediately after World War II, including,

18 but not limited to, interest on the proceeds receivable

19 as insurance under policies issued to a victim of

20 persecution for racial or religious reasons by Nazi

21 Germany or any other Axis regime by European insurance

22 companies immediately prior to and during World War II;

23 provided, however, this subtraction from federal

24 adjusted gross income does not apply to assets acquired

25 with such assets or with the proceeds from the sale of

26 such assets; provided, further, this paragraph shall

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1 only apply to a taxpayer who was the first recipient of

2 such assets after their recovery and who is a victim of

3 persecution for racial or religious reasons by Nazi

4 Germany or any other Axis regime or as an heir of the

5 victim. The amount of and the eligibility for any

6 public assistance, benefit, or similar entitlement is

7 not affected by the inclusion of items (i) and (ii) of

8 this paragraph in gross income for federal income tax

9 purposes. This paragraph is exempt from the provisions

10 of Section 250;

11 (Y) For taxable years beginning on or after January

12 1, 2002 and ending on or before December 31, 2004,

13 moneys contributed in the taxable year to a College

14 Savings Pool account under Section 16.5 of the State

15 Treasurer Act, except that amounts excluded from gross

16 income under Section 529(c)(3)(C)(i) of the Internal

17 Revenue Code shall not be considered moneys

18 contributed under this subparagraph (Y). For taxable

19 years beginning on or after January 1, 2005, a maximum

20 of $10,000 contributed in the taxable year to (i) a

21 College Savings Pool account under Section 16.5 of the

22 State Treasurer Act or (ii) the Illinois Prepaid

23 Tuition Trust Fund, except that amounts excluded from

24 gross income under Section 529(c)(3)(C)(i) of the

25 Internal Revenue Code shall not be considered moneys

26 contributed under this subparagraph (Y). For purposes

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1 of this subparagraph, contributions made by an

2 employer on behalf of an employee, or matching

3 contributions made by an employee, shall be treated as

4 made by the employee. This subparagraph (Y) is exempt

5 from the provisions of Section 250;

6 (Z) For taxable years 2001 and thereafter, for the

7 taxable year in which the bonus depreciation deduction

8 is taken on the taxpayer's federal income tax return

9 under subsection (k) of Section 168 of the Internal

10 Revenue Code and for each applicable taxable year

11 thereafter, an amount equal to "x", where:

12 (1) "y" equals the amount of the depreciation

13 deduction taken for the taxable year on the

14 taxpayer's federal income tax return on property

15 for which the bonus depreciation deduction was

16 taken in any year under subsection (k) of Section

17 168 of the Internal Revenue Code, but not including

18 the bonus depreciation deduction;

19 (2) for taxable years ending on or before

20 December 31, 2005, "x" equals "y" multiplied by 30

21 and then divided by 70 (or "y" multiplied by

22 0.429); and

23 (3) for taxable years ending after December

24 31, 2005:

25 (i) for property on which a bonus

26 depreciation deduction of 30% of the adjusted

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1 basis was taken, "x" equals "y" multiplied by

2 30 and then divided by 70 (or "y" multiplied by

3 0.429); and

4 (ii) for property on which a bonus

5 depreciation deduction of 50% of the adjusted

6 basis was taken, "x" equals "y" multiplied by

7 1.0.

8 The aggregate amount deducted under this

9 subparagraph in all taxable years for any one piece of

10 property may not exceed the amount of the bonus

11 depreciation deduction taken on that property on the

12 taxpayer's federal income tax return under subsection

13 (k) of Section 168 of the Internal Revenue Code. This

14 subparagraph (Z) is exempt from the provisions of

15 Section 250;

16 (AA) If the taxpayer sells, transfers, abandons,

17 or otherwise disposes of property for which the

18 taxpayer was required in any taxable year to make an

19 addition modification under subparagraph (D-15), then

20 an amount equal to that addition modification.

21 If the taxpayer continues to own property through

22 the last day of the last tax year for which the

23 taxpayer may claim a depreciation deduction for

24 federal income tax purposes and for which the taxpayer

25 was required in any taxable year to make an addition

26 modification under subparagraph (D-15), then an amount

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1 equal to that addition modification.

2 The taxpayer is allowed to take the deduction under

3 this subparagraph only once with respect to any one

4 piece of property.

5 This subparagraph (AA) is exempt from the

6 provisions of Section 250;

7 (BB) Any amount included in adjusted gross income,

8 other than salary, received by a driver in a

9 ridesharing arrangement using a motor vehicle;

10 (CC) The amount of (i) any interest income (net of

11 the deductions allocable thereto) taken into account

12 for the taxable year with respect to a transaction with

13 a taxpayer that is required to make an addition

14 modification with respect to such transaction under

15 Section 203(a)(2)(D-17), 203(b)(2)(E-12),

16 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed

17 the amount of that addition modification, and (ii) any

18 income from intangible property (net of the deductions

19 allocable thereto) taken into account for the taxable

20 year with respect to a transaction with a taxpayer that

21 is required to make an addition modification with

22 respect to such transaction under Section

23 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or

24 203(d)(2)(D-8), but not to exceed the amount of that

25 addition modification. This subparagraph (CC) is

26 exempt from the provisions of Section 250;

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1 (DD) An amount equal to the interest income taken

2 into account for the taxable year (net of the

3 deductions allocable thereto) with respect to

4 transactions with (i) a foreign person who would be a

5 member of the taxpayer's unitary business group but for

6 the fact that the foreign person's business activity

7 outside the United States is 80% or more of that

8 person's total business activity and (ii) for taxable

9 years ending on or after December 31, 2008, to a person

10 who would be a member of the same unitary business

11 group but for the fact that the person is prohibited

12 under Section 1501(a)(27) from being included in the

13 unitary business group because he or she is ordinarily

14 required to apportion business income under different

15 subsections of Section 304, but not to exceed the

16 addition modification required to be made for the same

17 taxable year under Section 203(a)(2)(D-17) for

18 interest paid, accrued, or incurred, directly or

19 indirectly, to the same person. This subparagraph (DD)

20 is exempt from the provisions of Section 250;

21 (EE) An amount equal to the income from intangible

22 property taken into account for the taxable year (net

23 of the deductions allocable thereto) with respect to

24 transactions with (i) a foreign person who would be a

25 member of the taxpayer's unitary business group but for

26 the fact that the foreign person's business activity

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1 outside the United States is 80% or more of that

2 person's total business activity and (ii) for taxable

3 years ending on or after December 31, 2008, to a person

4 who would be a member of the same unitary business

5 group but for the fact that the person is prohibited

6 under Section 1501(a)(27) from being included in the

7 unitary business group because he or she is ordinarily

8 required to apportion business income under different

9 subsections of Section 304, but not to exceed the

10 addition modification required to be made for the same

11 taxable year under Section 203(a)(2)(D-18) for

12 intangible expenses and costs paid, accrued, or

13 incurred, directly or indirectly, to the same foreign

14 person. This subparagraph (EE) is exempt from the

15 provisions of Section 250;

16 (FF) An amount equal to any amount awarded to the

17 taxpayer during the taxable year by the Court of Claims

18 under subsection (c) of Section 8 of the Court of

19 Claims Act for time unjustly served in a State prison.

20 This subparagraph (FF) is exempt from the provisions of

21 Section 250;

22 (GG) For taxable years ending on or after December

23 31, 2011, in the case of a taxpayer who was required to

24 add back any insurance premiums under Section

25 203(a)(2)(D-19), such taxpayer may elect to subtract

26 that part of a reimbursement received from the

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1 insurance company equal to the amount of the expense or

2 loss (including expenses incurred by the insurance

3 company) that would have been taken into account as a

4 deduction for federal income tax purposes if the

5 expense or loss had been uninsured. If a taxpayer makes

6 the election provided for by this subparagraph (GG),

7 the insurer to which the premiums were paid must add

8 back to income the amount subtracted by the taxpayer

9 pursuant to this subparagraph (GG). This subparagraph

10 (GG) is exempt from the provisions of Section 250; and

11 (HH) For taxable years beginning on or after

12 January 1, 2018 and prior to January 1, 2023, a maximum

13 of $10,000 contributed in the taxable year to a

14 qualified ABLE account under Section 16.6 of the State

15 Treasurer Act, except that amounts excluded from gross

16 income under Section 529(c)(3)(C)(i) or Section

17 529A(c)(1)(C) of the Internal Revenue Code shall not be

18 considered moneys contributed under this subparagraph

19 (HH). For purposes of this subparagraph (HH),

20 contributions made by an employer on behalf of an

21 employee, or matching contributions made by an

22 employee, shall be treated as made by the employee.

23 (b) Corporations.

24 (1) In general. In the case of a corporation, base

25 income means an amount equal to the taxpayer's taxable

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1 income for the taxable year as modified by paragraph (2).

2 (2) Modifications. The taxable income referred to in

3 paragraph (1) shall be modified by adding thereto the sum

4 of the following amounts:

5 (A) An amount equal to all amounts paid or accrued

6 to the taxpayer as interest and all distributions

7 received from regulated investment companies during

8 the taxable year to the extent excluded from gross

9 income in the computation of taxable income;

10 (B) An amount equal to the amount of tax imposed by

11 this Act to the extent deducted from gross income in

12 the computation of taxable income for the taxable year;

13 (C) In the case of a regulated investment company,

14 an amount equal to the excess of (i) the net long-term

15 capital gain for the taxable year, over (ii) the amount

16 of the capital gain dividends designated as such in

17 accordance with Section 852(b)(3)(C) of the Internal

18 Revenue Code and any amount designated under Section

19 852(b)(3)(D) of the Internal Revenue Code,

20 attributable to the taxable year (this amendatory Act

21 of 1995 (Public Act 89-89) is declarative of existing

22 law and is not a new enactment);

23 (D) The amount of any net operating loss deduction

24 taken in arriving at taxable income, other than a net

25 operating loss carried forward from a taxable year

26 ending prior to December 31, 1986;

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1 (E) For taxable years in which a net operating loss

2 carryback or carryforward from a taxable year ending

3 prior to December 31, 1986 is an element of taxable

4 income under paragraph (1) of subsection (e) or

5 subparagraph (E) of paragraph (2) of subsection (e),

6 the amount by which addition modifications other than

7 those provided by this subparagraph (E) exceeded

8 subtraction modifications in such earlier taxable

9 year, with the following limitations applied in the

10 order that they are listed:

11 (i) the addition modification relating to the

12 net operating loss carried back or forward to the

13 taxable year from any taxable year ending prior to

14 December 31, 1986 shall be reduced by the amount of

15 addition modification under this subparagraph (E)

16 which related to that net operating loss and which

17 was taken into account in calculating the base

18 income of an earlier taxable year, and

19 (ii) the addition modification relating to the

20 net operating loss carried back or forward to the

21 taxable year from any taxable year ending prior to

22 December 31, 1986 shall not exceed the amount of

23 such carryback or carryforward;

24 For taxable years in which there is a net operating

25 loss carryback or carryforward from more than one other

26 taxable year ending prior to December 31, 1986, the

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1 addition modification provided in this subparagraph

2 (E) shall be the sum of the amounts computed

3 independently under the preceding provisions of this

4 subparagraph (E) for each such taxable year;

5 (E-5) For taxable years ending after December 31,

6 1997, an amount equal to any eligible remediation costs

7 that the corporation deducted in computing adjusted

8 gross income and for which the corporation claims a

9 credit under subsection (l) of Section 201;

10 (E-10) For taxable years 2001 and thereafter, an

11 amount equal to the bonus depreciation deduction taken

12 on the taxpayer's federal income tax return for the

13 taxable year under subsection (k) of Section 168 of the

14 Internal Revenue Code;

15 (E-11) If the taxpayer sells, transfers, abandons,

16 or otherwise disposes of property for which the

17 taxpayer was required in any taxable year to make an

18 addition modification under subparagraph (E-10), then

19 an amount equal to the aggregate amount of the

20 deductions taken in all taxable years under

21 subparagraph (T) with respect to that property.

22 If the taxpayer continues to own property through

23 the last day of the last tax year for which the

24 taxpayer may claim a depreciation deduction for

25 federal income tax purposes and for which the taxpayer

26 was allowed in any taxable year to make a subtraction

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1 modification under subparagraph (T), then an amount

2 equal to that subtraction modification.

3 The taxpayer is required to make the addition

4 modification under this subparagraph only once with

5 respect to any one piece of property;

6 (E-12) An amount equal to the amount otherwise

7 allowed as a deduction in computing base income for

8 interest paid, accrued, or incurred, directly or

9 indirectly, (i) for taxable years ending on or after

10 December 31, 2004, to a foreign person who would be a

11 member of the same unitary business group but for the

12 fact the foreign person's business activity outside

13 the United States is 80% or more of the foreign

14 person's total business activity and (ii) for taxable

15 years ending on or after December 31, 2008, to a person

16 who would be a member of the same unitary business

17 group but for the fact that the person is prohibited

18 under Section 1501(a)(27) from being included in the

19 unitary business group because he or she is ordinarily

20 required to apportion business income under different

21 subsections of Section 304. The addition modification

22 required by this subparagraph shall be reduced to the

23 extent that dividends were included in base income of

24 the unitary group for the same taxable year and

25 received by the taxpayer or by a member of the

26 taxpayer's unitary business group (including amounts

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1 included in gross income pursuant to Sections 951

2 through 964 of the Internal Revenue Code and amounts

3 included in gross income under Section 78 of the

4 Internal Revenue Code) with respect to the stock of the

5 same person to whom the interest was paid, accrued, or

6 incurred.

7 This paragraph shall not apply to the following:

8 (i) an item of interest paid, accrued, or

9 incurred, directly or indirectly, to a person who

10 is subject in a foreign country or state, other

11 than a state which requires mandatory unitary

12 reporting, to a tax on or measured by net income

13 with respect to such interest; or

14 (ii) an item of interest paid, accrued, or

15 incurred, directly or indirectly, to a person if

16 the taxpayer can establish, based on a

17 preponderance of the evidence, both of the

18 following:

19 (a) the person, during the same taxable

20 year, paid, accrued, or incurred, the interest

21 to a person that is not a related member, and

22 (b) the transaction giving rise to the

23 interest expense between the taxpayer and the

24 person did not have as a principal purpose the

25 avoidance of Illinois income tax, and is paid

26 pursuant to a contract or agreement that

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1 reflects an arm's-length interest rate and

2 terms; or

3 (iii) the taxpayer can establish, based on

4 clear and convincing evidence, that the interest

5 paid, accrued, or incurred relates to a contract or

6 agreement entered into at arm's-length rates and

7 terms and the principal purpose for the payment is

8 not federal or Illinois tax avoidance; or

9 (iv) an item of interest paid, accrued, or

10 incurred, directly or indirectly, to a person if

11 the taxpayer establishes by clear and convincing

12 evidence that the adjustments are unreasonable; or

13 if the taxpayer and the Director agree in writing

14 to the application or use of an alternative method

15 of apportionment under Section 304(f).

16 Nothing in this subsection shall preclude the

17 Director from making any other adjustment

18 otherwise allowed under Section 404 of this Act for

19 any tax year beginning after the effective date of

20 this amendment provided such adjustment is made

21 pursuant to regulation adopted by the Department

22 and such regulations provide methods and standards

23 by which the Department will utilize its authority

24 under Section 404 of this Act;

25 (E-13) An amount equal to the amount of intangible

26 expenses and costs otherwise allowed as a deduction in

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1 computing base income, and that were paid, accrued, or

2 incurred, directly or indirectly, (i) for taxable

3 years ending on or after December 31, 2004, to a

4 foreign person who would be a member of the same

5 unitary business group but for the fact that the

6 foreign person's business activity outside the United

7 States is 80% or more of that person's total business

8 activity and (ii) for taxable years ending on or after

9 December 31, 2008, to a person who would be a member of

10 the same unitary business group but for the fact that

11 the person is prohibited under Section 1501(a)(27)

12 from being included in the unitary business group

13 because he or she is ordinarily required to apportion

14 business income under different subsections of Section

15 304. The addition modification required by this

16 subparagraph shall be reduced to the extent that

17 dividends were included in base income of the unitary

18 group for the same taxable year and received by the

19 taxpayer or by a member of the taxpayer's unitary

20 business group (including amounts included in gross

21 income pursuant to Sections 951 through 964 of the

22 Internal Revenue Code and amounts included in gross

23 income under Section 78 of the Internal Revenue Code)

24 with respect to the stock of the same person to whom

25 the intangible expenses and costs were directly or

26 indirectly paid, incurred, or accrued. The preceding

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1 sentence shall not apply to the extent that the same

2 dividends caused a reduction to the addition

3 modification required under Section 203(b)(2)(E-12) of

4 this Act. As used in this subparagraph, the term

5 "intangible expenses and costs" includes (1) expenses,

6 losses, and costs for, or related to, the direct or

7 indirect acquisition, use, maintenance or management,

8 ownership, sale, exchange, or any other disposition of

9 intangible property; (2) losses incurred, directly or

10 indirectly, from factoring transactions or discounting

11 transactions; (3) royalty, patent, technical, and

12 copyright fees; (4) licensing fees; and (5) other

13 similar expenses and costs. For purposes of this

14 subparagraph, "intangible property" includes patents,

15 patent applications, trade names, trademarks, service

16 marks, copyrights, mask works, trade secrets, and

17 similar types of intangible assets.

18 This paragraph shall not apply to the following:

19 (i) any item of intangible expenses or costs

20 paid, accrued, or incurred, directly or

21 indirectly, from a transaction with a person who is

22 subject in a foreign country or state, other than a

23 state which requires mandatory unitary reporting,

24 to a tax on or measured by net income with respect

25 to such item; or

26 (ii) any item of intangible expense or cost

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1 paid, accrued, or incurred, directly or

2 indirectly, if the taxpayer can establish, based

3 on a preponderance of the evidence, both of the

4 following:

5 (a) the person during the same taxable

6 year paid, accrued, or incurred, the

7 intangible expense or cost to a person that is

8 not a related member, and

9 (b) the transaction giving rise to the

10 intangible expense or cost between the

11 taxpayer and the person did not have as a

12 principal purpose the avoidance of Illinois

13 income tax, and is paid pursuant to a contract

14 or agreement that reflects arm's-length terms;

15 or

16 (iii) any item of intangible expense or cost

17 paid, accrued, or incurred, directly or

18 indirectly, from a transaction with a person if the

19 taxpayer establishes by clear and convincing

20 evidence, that the adjustments are unreasonable;

21 or if the taxpayer and the Director agree in

22 writing to the application or use of an alternative

23 method of apportionment under Section 304(f);

24 Nothing in this subsection shall preclude the

25 Director from making any other adjustment

26 otherwise allowed under Section 404 of this Act for

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1 any tax year beginning after the effective date of

2 this amendment provided such adjustment is made

3 pursuant to regulation adopted by the Department

4 and such regulations provide methods and standards

5 by which the Department will utilize its authority

6 under Section 404 of this Act;

7 (E-14) For taxable years ending on or after

8 December 31, 2008, an amount equal to the amount of

9 insurance premium expenses and costs otherwise allowed

10 as a deduction in computing base income, and that were

11 paid, accrued, or incurred, directly or indirectly, to

12 a person who would be a member of the same unitary

13 business group but for the fact that the person is

14 prohibited under Section 1501(a)(27) from being

15 included in the unitary business group because he or

16 she is ordinarily required to apportion business

17 income under different subsections of Section 304. The

18 addition modification required by this subparagraph

19 shall be reduced to the extent that dividends were

20 included in base income of the unitary group for the

21 same taxable year and received by the taxpayer or by a

22 member of the taxpayer's unitary business group

23 (including amounts included in gross income under

24 Sections 951 through 964 of the Internal Revenue Code

25 and amounts included in gross income under Section 78

26 of the Internal Revenue Code) with respect to the stock

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1 of the same person to whom the premiums and costs were

2 directly or indirectly paid, incurred, or accrued. The

3 preceding sentence does not apply to the extent that

4 the same dividends caused a reduction to the addition

5 modification required under Section 203(b)(2)(E-12) or

6 Section 203(b)(2)(E-13) of this Act;

7 (E-15) For taxable years beginning after December

8 31, 2008, any deduction for dividends paid by a captive

9 real estate investment trust that is allowed to a real

10 estate investment trust under Section 857(b)(2)(B) of

11 the Internal Revenue Code for dividends paid;

12 (E-16) An amount equal to the credit allowable to

13 the taxpayer under Section 218(a) of this Act,

14 determined without regard to Section 218(c) of this

15 Act;

16 (E-17) For taxable years ending on or after

17 December 31, 2017 and ending on or before December 31,

18 2018, an amount equal to the deduction allowed under

19 Section 199 of the Internal Revenue Code for the

20 taxable year;

21 and by deducting from the total so obtained the sum of the

22 following amounts:

23 (F) An amount equal to the amount of any tax

24 imposed by this Act which was refunded to the taxpayer

25 and included in such total for the taxable year;

26 (G) An amount equal to any amount included in such

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1 total under Section 78 of the Internal Revenue Code;

2 (H) In the case of a regulated investment company,

3 an amount equal to the amount of exempt interest

4 dividends as defined in subsection (b)(5) of Section

5 852 of the Internal Revenue Code, paid to shareholders

6 for the taxable year;

7 (I) With the exception of any amounts subtracted

8 under subparagraph (J), an amount equal to the sum of

9 all amounts disallowed as deductions by (i) Sections

10 171(a)(2), and 265(a)(2) and amounts disallowed as

11 interest expense by Section 291(a)(3) of the Internal

12 Revenue Code, and all amounts of expenses allocable to

13 interest and disallowed as deductions by Section

14 265(a)(1) of the Internal Revenue Code; and (ii) for

15 taxable years ending on or after August 13, 1999,

16 Sections 171(a)(2), 265, 280C, 291(a)(3), and

17 832(b)(5)(B)(i) of the Internal Revenue Code, plus,

18 for tax years ending on or after December 31, 2011,

19 amounts disallowed as deductions by Section 45G(e)(3)

20 of the Internal Revenue Code and, for taxable years

21 ending on or after December 31, 2008, any amount

22 included in gross income under Section 87 of the

23 Internal Revenue Code and the policyholders' share of

24 tax-exempt interest of a life insurance company under

25 Section 807(a)(2)(B) of the Internal Revenue Code (in

26 the case of a life insurance company with gross income

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1 from a decrease in reserves for the tax year) or

2 Section 807(b)(1)(B) of the Internal Revenue Code (in

3 the case of a life insurance company allowed a

4 deduction for an increase in reserves for the tax

5 year); the provisions of this subparagraph are exempt

6 from the provisions of Section 250;

7 (J) An amount equal to all amounts included in such

8 total which are exempt from taxation by this State

9 either by reason of its statutes or Constitution or by

10 reason of the Constitution, treaties or statutes of the

11 United States; provided that, in the case of any

12 statute of this State that exempts income derived from

13 bonds or other obligations from the tax imposed under

14 this Act, the amount exempted shall be the interest net

15 of bond premium amortization;

16 (K) An amount equal to those dividends included in

17 such total which were paid by a corporation which

18 conducts business operations in a River Edge

19 Redevelopment Zone or zones created under the River

20 Edge Redevelopment Zone Act and conducts substantially

21 all of its operations in a River Edge Redevelopment

22 Zone or zones. This subparagraph (K) is exempt from the

23 provisions of Section 250;

24 (L) An amount equal to those dividends included in

25 such total that were paid by a corporation that

26 conducts business operations in a federally designated

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1 Foreign Trade Zone or Sub-Zone and that is designated a

2 High Impact Business located in Illinois; provided

3 that dividends eligible for the deduction provided in

4 subparagraph (K) of paragraph 2 of this subsection

5 shall not be eligible for the deduction provided under

6 this subparagraph (L);

7 (M) For any taxpayer that is a financial

8 organization within the meaning of Section 304(c) of

9 this Act, an amount included in such total as interest

10 income from a loan or loans made by such taxpayer to a

11 borrower, to the extent that such a loan is secured by

12 property which is eligible for the River Edge

13 Redevelopment Zone Investment Credit. To determine the

14 portion of a loan or loans that is secured by property

15 eligible for a Section 201(f) investment credit to the

16 borrower, the entire principal amount of the loan or

17 loans between the taxpayer and the borrower should be

18 divided into the basis of the Section 201(f) investment

19 credit property which secures the loan or loans, using

20 for this purpose the original basis of such property on

21 the date that it was placed in service in the River

22 Edge Redevelopment Zone. The subtraction modification

23 available to thetaxpayer in any year under this

24 subsection shall be that portion of the total interest

25 paid by the borrower with respect to such loan

26 attributable to the eligible property as calculated

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1 under the previous sentence. This subparagraph (M) is

2 exempt from the provisions of Section 250;

3 (M-1) For any taxpayer that is a financial

4 organization within the meaning of Section 304(c) of

5 this Act, an amount included in such total as interest

6 income from a loan or loans made by such taxpayer to a

7 borrower, to the extent that such a loan is secured by

8 property which is eligible for the High Impact Business

9 Investment Credit. To determine the portion of a loan

10 or loans that is secured by property eligible for a

11 Section 201(h) investment credit to the borrower, the

12 entire principal amount of the loan or loans between

13 the taxpayer and the borrower should be divided into

14 the basis of the Section 201(h) investment credit

15 property which secures the loan or loans, using for

16 this purpose the original basis of such property on the

17 date that it was placed in service in a federally

18 designated Foreign Trade Zone or Sub-Zone located in

19 Illinois. No taxpayer that is eligible for the

20 deduction provided in subparagraph (M) of paragraph

21 (2) of this subsection shall be eligible for the

22 deduction provided under this subparagraph (M-1). The

23 subtraction modification available to taxpayers in any

24 year under this subsection shall be that portion of the

25 total interest paid by the borrower with respect to

26 such loan attributable to the eligible property as

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1 calculated under the previous sentence;

2 (N) Two times any contribution made during the

3 taxable year to a designated zone organization to the

4 extent that the contribution (i) qualifies as a

5 charitable contribution under subsection (c) of

6 Section 170 of the Internal Revenue Code and (ii) must,

7 by its terms, be used for a project approved by the

8 Department of Commerce and Economic Opportunity under

9 Section 11 of the Illinois Enterprise Zone Act or under

10 Section 10-10 of the River Edge Redevelopment Zone Act.

11 This subparagraph (N) is exempt from the provisions of

12 Section 250;

13 (O) An amount equal to: (i) 85% for taxable years

14 ending on or before December 31, 1992, or, a percentage

15 equal to the percentage allowable under Section

16 243(a)(1) of the Internal Revenue Code of 1986 for

17 taxable years ending after December 31, 1992, of the

18 amount by which dividends included in taxable income

19 and received from a corporation that is not created or

20 organized under the laws of the United States or any

21 state or political subdivision thereof, including, for

22 taxable years ending on or after December 31, 1988,

23 dividends received or deemed received or paid or deemed

24 paid under Sections 951 through 965 of the Internal

25 Revenue Code, exceed the amount of the modification

26 provided under subparagraph (G) of paragraph (2) of

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1 this subsection (b) which is related to such dividends,

2 and including, for taxable years ending on or after

3 December 31, 2008, dividends received from a captive

4 real estate investment trust; plus (ii) 100% of the

5 amount by which dividends, included in taxable income

6 and received, including, for taxable years ending on or

7 after December 31, 1988, dividends received or deemed

8 received or paid or deemed paid under Sections 951

9 through 964 of the Internal Revenue Code and including,

10 for taxable years ending on or after December 31, 2008,

11 dividends received from a captive real estate

12 investment trust, from any such corporation specified

13 in clause (i) that would but for the provisions of

14 Section 1504(b)(3) of the Internal Revenue Code be

15 treated as a member of the affiliated group which

16 includes the dividend recipient, exceed the amount of

17 the modification provided under subparagraph (G) of

18 paragraph (2) of this subsection (b) which is related

19 to such dividends. This subparagraph (O) is exempt from

20 the provisions of Section 250 of this Act;

21 (P) An amount equal to any contribution made to a

22 job training project established pursuant to the Tax

23 Increment Allocation Redevelopment Act;

24 (Q) An amount equal to the amount of the deduction

25 used to compute the federal income tax credit for

26 restoration of substantial amounts held under claim of

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1 right for the taxable year pursuant to Section 1341 of

2 the Internal Revenue Code;

3 (R) On and after July 20, 1999, in the case of an

4 attorney-in-fact with respect to whom an interinsurer

5 or a reciprocal insurer has made the election under

6 Section 835 of the Internal Revenue Code, 26 U.S.C.

7 835, an amount equal to the excess, if any, of the

8 amounts paid or incurred by that interinsurer or

9 reciprocal insurer in the taxable year to the

10 attorney-in-fact over the deduction allowed to that

11 interinsurer or reciprocal insurer with respect to the

12 attorney-in-fact under Section 835(b) of the Internal

13 Revenue Code for the taxable year; the provisions of

14 this subparagraph are exempt from the provisions of

15 Section 250;

16 (S) For taxable years ending on or after December

17 31, 1997, in the case of a Subchapter S corporation, an

18 amount equal to all amounts of income allocable to a

19 shareholder subject to the Personal Property Tax

20 Replacement Income Tax imposed by subsections (c) and

21 (d) of Section 201 of this Act, including amounts

22 allocable to organizations exempt from federal income

23 tax by reason of Section 501(a) of the Internal Revenue

24 Code. This subparagraph (S) is exempt from the

25 provisions of Section 250;

26 (T) For taxable years 2001 and thereafter, for the

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1 taxable year in which the bonus depreciation deduction

2 is taken on the taxpayer's federal income tax return

3 under subsection (k) of Section 168 of the Internal

4 Revenue Code and for each applicable taxable year

5 thereafter, an amount equal to "x", where:

6 (1) "y" equals the amount of the depreciation

7 deduction taken for the taxable year on the

8 taxpayer's federal income tax return on property

9 for which the bonus depreciation deduction was

10 taken in any year under subsection (k) of Section

11 168 of the Internal Revenue Code, but not including

12 the bonus depreciation deduction;

13 (2) for taxable years ending on or before

14 December 31, 2005, "x" equals "y" multiplied by 30

15 and then divided by 70 (or "y" multiplied by

16 0.429); and

17 (3) for taxable years ending after December

18 31, 2005:

19 (i) for property on which a bonus

20 depreciation deduction of 30% of the adjusted

21 basis was taken, "x" equals "y" multiplied by

22 30 and then divided by 70 (or "y" multiplied by

23 0.429); and

24 (ii) for property on which a bonus

25 depreciation deduction of 50% of the adjusted

26 basis was taken, "x" equals "y" multiplied by

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1 1.0.

2 The aggregate amount deducted under this

3 subparagraph in all taxable years for any one piece of

4 property may not exceed the amount of the bonus

5 depreciation deduction taken on that property on the

6 taxpayer's federal income tax return under subsection

7 (k) of Section 168 of the Internal Revenue Code. This

8 subparagraph (T) is exempt from the provisions of

9 Section 250;

10 (U) If the taxpayer sells, transfers, abandons, or

11 otherwise disposes of property for which the taxpayer

12 was required in any taxable year to make an addition

13 modification under subparagraph (E-10), then an amount

14 equal to that addition modification.

15 If the taxpayer continues to own property through

16 the last day of the last tax year for which the

17 taxpayer may claim a depreciation deduction for

18 federal income tax purposes and for which the taxpayer

19 was required in any taxable year to make an addition

20 modification under subparagraph (E-10), then an amount

21 equal to that addition modification.

22 The taxpayer is allowed to take the deduction under

23 this subparagraph only once with respect to any one

24 piece of property.

25 This subparagraph (U) is exempt from the

26 provisions of Section 250;

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1 (V) The amount of: (i) any interest income (net of

2 the deductions allocable thereto) taken into account

3 for the taxable year with respect to a transaction with

4 a taxpayer that is required to make an addition

5 modification with respect to such transaction under

6 Section 203(a)(2)(D-17), 203(b)(2)(E-12),

7 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed

8 the amount of such addition modification, (ii) any

9 income from intangible property (net of the deductions

10 allocable thereto) taken into account for the taxable

11 year with respect to a transaction with a taxpayer that

12 is required to make an addition modification with

13 respect to such transaction under Section

14 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or

15 203(d)(2)(D-8), but not to exceed the amount of such

16 addition modification, and (iii) any insurance premium

17 income (net of deductions allocable thereto) taken

18 into account for the taxable year with respect to a

19 transaction with a taxpayer that is required to make an

20 addition modification with respect to such transaction

21 under Section 203(a)(2)(D-19), Section

22 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section

23 203(d)(2)(D-9), but not to exceed the amount of that

24 addition modification. This subparagraph (V) is exempt

25 from the provisions of Section 250;

26 (W) An amount equal to the interest income taken

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1 into account for the taxable year (net of the

2 deductions allocable thereto) with respect to

3 transactions with (i) a foreign person who would be a

4 member of the taxpayer's unitary business group but for

5 the fact that the foreign person's business activity

6 outside the United States is 80% or more of that

7 person's total business activity and (ii) for taxable

8 years ending on or after December 31, 2008, to a person

9 who would be a member of the same unitary business

10 group but for the fact that the person is prohibited

11 under Section 1501(a)(27) from being included in the

12 unitary business group because he or she is ordinarily

13 required to apportion business income under different

14 subsections of Section 304, but not to exceed the

15 addition modification required to be made for the same

16 taxable year under Section 203(b)(2)(E-12) for

17 interest paid, accrued, or incurred, directly or

18 indirectly, to the same person. This subparagraph (W)

19 is exempt from the provisions of Section 250;

20 (X) An amount equal to the income from intangible

21 property taken into account for the taxable year (net

22 of the deductions allocable thereto) with respect to

23 transactions with (i) a foreign person who would be a

24 member of the taxpayer's unitary business group but for

25 the fact that the foreign person's business activity

26 outside the United States is 80% or more of that

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1 person's total business activity and (ii) for taxable

2 years ending on or after December 31, 2008, to a person

3 who would be a member of the same unitary business

4 group but for the fact that the person is prohibited

5 under Section 1501(a)(27) from being included in the

6 unitary business group because he or she is ordinarily

7 required to apportion business income under different

8 subsections of Section 304, but not to exceed the

9 addition modification required to be made for the same

10 taxable year under Section 203(b)(2)(E-13) for

11 intangible expenses and costs paid, accrued, or

12 incurred, directly or indirectly, to the same foreign

13 person. This subparagraph (X) is exempt from the

14 provisions of Section 250;

15 (Y) For taxable years ending on or after December

16 31, 2011, in the case of a taxpayer who was required to

17 add back any insurance premiums under Section

18 203(b)(2)(E-14), such taxpayer may elect to subtract

19 that part of a reimbursement received from the

20 insurance company equal to the amount of the expense or

21 loss (including expenses incurred by the insurance

22 company) that would have been taken into account as a

23 deduction for federal income tax purposes if the

24 expense or loss had been uninsured. If a taxpayer makes

25 the election provided for by this subparagraph (Y), the

26 insurer to which the premiums were paid must add back

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1 to income the amount subtracted by the taxpayer

2 pursuant to this subparagraph (Y). This subparagraph

3 (Y) is exempt from the provisions of Section 250; and

4 (Z) The difference between the nondeductible

5 controlled foreign corporation dividends under Section

6 965(e)(3) of the Internal Revenue Code over the taxable

7 income of the taxpayer, computed without regard to

8 Section 965(e)(2)(A) of the Internal Revenue Code, and

9 without regard to any net operating loss deduction.

10 This subparagraph (Z) is exempt from the provisions of

11 Section 250.

12 (3) Special rule. For purposes of paragraph (2)(A),

13 "gross income" in the case of a life insurance company, for

14 tax years ending on and after December 31, 1994, and prior

15 to December 31, 2011, shall mean the gross investment

16 income for the taxable year and, for tax years ending on or

17 after December 31, 2011, shall mean all amounts included in

18 life insurance gross income under Section 803(a)(3) of the

19 Internal Revenue Code.

20 (c) Trusts and estates.

21 (1) In general. In the case of a trust or estate, base

22 income means an amount equal to the taxpayer's taxable

23 income for the taxable year as modified by paragraph (2).

24 (2) Modifications. Subject to the provisions of

25 paragraph (3), the taxable income referred to in paragraph

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1 (1) shall be modified by adding thereto the sum of the

2 following amounts:

3 (A) An amount equal to all amounts paid or accrued

4 to the taxpayer as interest or dividends during the

5 taxable year to the extent excluded from gross income

6 in the computation of taxable income;

7 (B) In the case of (i) an estate, $600; (ii) a

8 trust which, under its governing instrument, is

9 required to distribute all of its income currently,

10 $300; and (iii) any other trust, $100, but in each such

11 case, only to the extent such amount was deducted in

12 the computation of taxable income;

13 (C) An amount equal to the amount of tax imposed by

14 this Act to the extent deducted from gross income in

15 the computation of taxable income for the taxable year;

16 (D) The amount of any net operating loss deduction

17 taken in arriving at taxable income, other than a net

18 operating loss carried forward from a taxable year

19 ending prior to December 31, 1986;

20 (E) For taxable years in which a net operating loss

21 carryback or carryforward from a taxable year ending

22 prior to December 31, 1986 is an element of taxable

23 income under paragraph (1) of subsection (e) or

24 subparagraph (E) of paragraph (2) of subsection (e),

25 the amount by which addition modifications other than

26 those provided by this subparagraph (E) exceeded

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1 subtraction modifications in such taxable year, with

2 the following limitations applied in the order that

3 they are listed:

4 (i) the addition modification relating to the

5 net operating loss carried back or forward to the

6 taxable year from any taxable year ending prior to

7 December 31, 1986 shall be reduced by the amount of

8 addition modification under this subparagraph (E)

9 which related to that net operating loss and which

10 was taken into account in calculating the base

11 income of an earlier taxable year, and

12 (ii) the addition modification relating to the

13 net operating loss carried back or forward to the

14 taxable year from any taxable year ending prior to

15 December 31, 1986 shall not exceed the amount of

16 such carryback or carryforward;

17 For taxable years in which there is a net operating

18 loss carryback or carryforward from more than one other

19 taxable year ending prior to December 31, 1986, the

20 addition modification provided in this subparagraph

21 (E) shall be the sum of the amounts computed

22 independently under the preceding provisions of this

23 subparagraph (E) for each such taxable year;

24 (F) For taxable years ending on or after January 1,

25 1989, an amount equal to the tax deducted pursuant to

26 Section 164 of the Internal Revenue Code if the trust

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1 or estate is claiming the same tax for purposes of the

2 Illinois foreign tax credit under Section 601 of this

3 Act;

4 (G) An amount equal to the amount of the capital

5 gain deduction allowable under the Internal Revenue

6 Code, to the extent deducted from gross income in the

7 computation of taxable income;

8 (G-5) For taxable years ending after December 31,

9 1997, an amount equal to any eligible remediation costs

10 that the trust or estate deducted in computing adjusted

11 gross income and for which the trust or estate claims a

12 credit under subsection (l) of Section 201;

13 (G-10) For taxable years 2001 and thereafter, an

14 amount equal to the bonus depreciation deduction taken

15 on the taxpayer's federal income tax return for the

16 taxable year under subsection (k) of Section 168 of the

17 Internal Revenue Code; and

18 (G-11) If the taxpayer sells, transfers, abandons,

19 or otherwise disposes of property for which the

20 taxpayer was required in any taxable year to make an

21 addition modification under subparagraph (G-10), then

22 an amount equal to the aggregate amount of the

23 deductions taken in all taxable years under

24 subparagraph (R) with respect to that property.

25 If the taxpayer continues to own property through

26 the last day of the last tax year for which the

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1 taxpayer may claim a depreciation deduction for

2 federal income tax purposes and for which the taxpayer

3 was allowed in any taxable year to make a subtraction

4 modification under subparagraph (R), then an amount

5 equal to that subtraction modification.

6 The taxpayer is required to make the addition

7 modification under this subparagraph only once with

8 respect to any one piece of property;

9 (G-12) An amount equal to the amount otherwise

10 allowed as a deduction in computing base income for

11 interest paid, accrued, or incurred, directly or

12 indirectly, (i) for taxable years ending on or after

13 December 31, 2004, to a foreign person who would be a

14 member of the same unitary business group but for the

15 fact that the foreign person's business activity

16 outside the United States is 80% or more of the foreign

17 person's total business activity and (ii) for taxable

18 years ending on or after December 31, 2008, to a person

19 who would be a member of the same unitary business

20 group but for the fact that the person is prohibited

21 under Section 1501(a)(27) from being included in the

22 unitary business group because he or she is ordinarily

23 required to apportion business income under different

24 subsections of Section 304. The addition modification

25 required by this subparagraph shall be reduced to the

26 extent that dividends were included in base income of

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1 the unitary group for the same taxable year and

2 received by the taxpayer or by a member of the

3 taxpayer's unitary business group (including amounts

4 included in gross income pursuant to Sections 951

5 through 964 of the Internal Revenue Code and amounts

6 included in gross income under Section 78 of the

7 Internal Revenue Code) with respect to the stock of the

8 same person to whom the interest was paid, accrued, or

9 incurred.

10 This paragraph shall not apply to the following:

11 (i) an item of interest paid, accrued, or

12 incurred, directly or indirectly, to a person who

13 is subject in a foreign country or state, other

14 than a state which requires mandatory unitary

15 reporting, to a tax on or measured by net income

16 with respect to such interest; or

17 (ii) an item of interest paid, accrued, or

18 incurred, directly or indirectly, to a person if

19 the taxpayer can establish, based on a

20 preponderance of the evidence, both of the

21 following:

22 (a) the person, during the same taxable

23 year, paid, accrued, or incurred, the interest

24 to a person that is not a related member, and

25 (b) the transaction giving rise to the

26 interest expense between the taxpayer and the

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1 person did not have as a principal purpose the

2 avoidance of Illinois income tax, and is paid

3 pursuant to a contract or agreement that

4 reflects an arm's-length interest rate and

5 terms; or

6 (iii) the taxpayer can establish, based on

7 clear and convincing evidence, that the interest

8 paid, accrued, or incurred relates to a contract or

9 agreement entered into at arm's-length rates and

10 terms and the principal purpose for the payment is

11 not federal or Illinois tax avoidance; or

12 (iv) an item of interest paid, accrued, or

13 incurred, directly or indirectly, to a person if

14 the taxpayer establishes by clear and convincing

15 evidence that the adjustments are unreasonable; or

16 if the taxpayer and the Director agree in writing

17 to the application or use of an alternative method

18 of apportionment under Section 304(f).

19 Nothing in this subsection shall preclude the

20 Director from making any other adjustment

21 otherwise allowed under Section 404 of this Act for

22 any tax year beginning after the effective date of

23 this amendment provided such adjustment is made

24 pursuant to regulation adopted by the Department

25 and such regulations provide methods and standards

26 by which the Department will utilize its authority

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1 under Section 404 of this Act;

2 (G-13) An amount equal to the amount of intangible

3 expenses and costs otherwise allowed as a deduction in

4 computing base income, and that were paid, accrued, or

5 incurred, directly or indirectly, (i) for taxable

6 years ending on or after December 31, 2004, to a

7 foreign person who would be a member of the same

8 unitary business group but for the fact that the

9 foreign person's business activity outside the United

10 States is 80% or more of that person's total business

11 activity and (ii) for taxable years ending on or after

12 December 31, 2008, to a person who would be a member of

13 the same unitary business group but for the fact that

14 the person is prohibited under Section 1501(a)(27)

15 from being included in the unitary business group

16 because he or she is ordinarily required to apportion

17 business income under different subsections of Section

18 304. The addition modification required by this

19 subparagraph shall be reduced to the extent that

20 dividends were included in base income of the unitary

21 group for the same taxable year and received by the

22 taxpayer or by a member of the taxpayer's unitary

23 business group (including amounts included in gross

24 income pursuant to Sections 951 through 964 of the

25 Internal Revenue Code and amounts included in gross

26 income under Section 78 of the Internal Revenue Code)

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1 with respect to the stock of the same person to whom

2 the intangible expenses and costs were directly or

3 indirectly paid, incurred, or accrued. The preceding

4 sentence shall not apply to the extent that the same

5 dividends caused a reduction to the addition

6 modification required under Section 203(c)(2)(G-12) of

7 this Act. As used in this subparagraph, the term

8 "intangible expenses and costs" includes: (1)

9 expenses, losses, and costs for or related to the

10 direct or indirect acquisition, use, maintenance or

11 management, ownership, sale, exchange, or any other

12 disposition of intangible property; (2) losses

13 incurred, directly or indirectly, from factoring

14 transactions or discounting transactions; (3) royalty,

15 patent, technical, and copyright fees; (4) licensing

16 fees; and (5) other similar expenses and costs. For

17 purposes of this subparagraph, "intangible property"

18 includes patents, patent applications, trade names,

19 trademarks, service marks, copyrights, mask works,

20 trade secrets, and similar types of intangible assets.

21 This paragraph shall not apply to the following:

22 (i) any item of intangible expenses or costs

23 paid, accrued, or incurred, directly or

24 indirectly, from a transaction with a person who is

25 subject in a foreign country or state, other than a

26 state which requires mandatory unitary reporting,

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1 to a tax on or measured by net income with respect

2 to such item; or

3 (ii) any item of intangible expense or cost

4 paid, accrued, or incurred, directly or

5 indirectly, if the taxpayer can establish, based

6 on a preponderance of the evidence, both of the

7 following:

8 (a) the person during the same taxable

9 year paid, accrued, or incurred, the

10 intangible expense or cost to a person that is

11 not a related member, and

12 (b) the transaction giving rise to the

13 intangible expense or cost between the

14 taxpayer and the person did not have as a

15 principal purpose the avoidance of Illinois

16 income tax, and is paid pursuant to a contract

17 or agreement that reflects arm's-length terms;

18 or

19 (iii) any item of intangible expense or cost

20 paid, accrued, or incurred, directly or

21 indirectly, from a transaction with a person if the

22 taxpayer establishes by clear and convincing

23 evidence, that the adjustments are unreasonable;

24 or if the taxpayer and the Director agree in

25 writing to the application or use of an alternative

26 method of apportionment under Section 304(f);

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1 Nothing in this subsection shall preclude the

2 Director from making any other adjustment

3 otherwise allowed under Section 404 of this Act for

4 any tax year beginning after the effective date of

5 this amendment provided such adjustment is made

6 pursuant to regulation adopted by the Department

7 and such regulations provide methods and standards

8 by which the Department will utilize its authority

9 under Section 404 of this Act;

10 (G-14) For taxable years ending on or after

11 December 31, 2008, an amount equal to the amount of

12 insurance premium expenses and costs otherwise allowed

13 as a deduction in computing base income, and that were

14 paid, accrued, or incurred, directly or indirectly, to

15 a person who would be a member of the same unitary

16 business group but for the fact that the person is

17 prohibited under Section 1501(a)(27) from being

18 included in the unitary business group because he or

19 she is ordinarily required to apportion business

20 income under different subsections of Section 304. The

21 addition modification required by this subparagraph

22 shall be reduced to the extent that dividends were

23 included in base income of the unitary group for the

24 same taxable year and received by the taxpayer or by a

25 member of the taxpayer's unitary business group

26 (including amounts included in gross income under

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1 Sections 951 through 964 of the Internal Revenue Code

2 and amounts included in gross income under Section 78

3 of the Internal Revenue Code) with respect to the stock

4 of the same person to whom the premiums and costs were

5 directly or indirectly paid, incurred, or accrued. The

6 preceding sentence does not apply to the extent that

7 the same dividends caused a reduction to the addition

8 modification required under Section 203(c)(2)(G-12) or

9 Section 203(c)(2)(G-13) of this Act;

10 (G-15) An amount equal to the credit allowable to

11 the taxpayer under Section 218(a) of this Act,

12 determined without regard to Section 218(c) of this

13 Act;

14 (G-16) For taxable years ending on or after

15 December 31, 2017 and ending on or before December 31,

16 2018, an amount equal to the deduction allowed under

17 Section 199 of the Internal Revenue Code for the

18 taxable year;

19 and by deducting from the total so obtained the sum of the

20 following amounts:

21 (H) An amount equal to all amounts included in such

22 total pursuant to the provisions of Sections 402(a),

23 402(c), 403(a), 403(b), 406(a), 407(a) and 408 of the

24 Internal Revenue Code or included in such total as

25 distributions under the provisions of any retirement

26 or disability plan for employees of any governmental

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1 agency or unit, or retirement payments to retired

2 partners, which payments are excluded in computing net

3 earnings from self employment by Section 1402 of the

4 Internal Revenue Code and regulations adopted pursuant

5 thereto;

6 (I) The valuation limitation amount;

7 (J) An amount equal to the amount of any tax

8 imposed by this Act which was refunded to the taxpayer

9 and included in such total for the taxable year;

10 (K) An amount equal to all amounts included in

11 taxable income as modified by subparagraphs (A), (B),

12 (C), (D), (E), (F) and (G) which are exempt from

13 taxation by this State either by reason of its statutes

14 or Constitution or by reason of the Constitution,

15 treaties or statutes of the United States; provided

16 that, in the case of any statute of this State that

17 exempts income derived from bonds or other obligations

18 from the tax imposed under this Act, the amount

19 exempted shall be the interest net of bond premium

20 amortization;

21 (L) With the exception of any amounts subtracted

22 under subparagraph (K), an amount equal to the sum of

23 all amounts disallowed as deductions by (i) Sections

24 171(a)(2) and 265(a)(2) of the Internal Revenue Code,

25 and all amounts of expenses allocable to interest and

26 disallowed as deductions by Section 265(a)(1) ~~265(1)~~

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1 of the Internal Revenue Code; and (ii) for taxable

2 years ending on or after August 13, 1999, Sections

3 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the

4 Internal Revenue Code, plus, (iii) for taxable years

5 ending on or after December 31, 2011, Section 45G(e)(3)

6 of the Internal Revenue Code and, for taxable years

7 ending on or after December 31, 2008, any amount

8 included in gross income under Section 87 of the

9 Internal Revenue Code; the provisions of this

10 subparagraph are exempt from the provisions of Section

11 250;

12 (M) An amount equal to those dividends included in

13 such total which were paid by a corporation which

14 conducts business operations in a River Edge

15 Redevelopment Zone or zones created under the River

16 Edge Redevelopment Zone Act and conducts substantially

17 all of its operations in a River Edge Redevelopment

18 Zone or zones. This subparagraph (M) is exempt from the

19 provisions of Section 250;

20 (N) An amount equal to any contribution made to a

21 job training project established pursuant to the Tax

22 Increment Allocation Redevelopment Act;

23 (O) An amount equal to those dividends included in

24 such total that were paid by a corporation that

25 conducts business operations in a federally designated

26 Foreign Trade Zone or Sub-Zone and that is designated a

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1 High Impact Business located in Illinois; provided

2 that dividends eligible for the deduction provided in

3 subparagraph (M) of paragraph (2) of this subsection

4 shall not be eligible for the deduction provided under

5 this subparagraph (O);

6 (P) An amount equal to the amount of the deduction

7 used to compute the federal income tax credit for

8 restoration of substantial amounts held under claim of

9 right for the taxable year pursuant to Section 1341 of

10 the Internal Revenue Code;

11 (Q) For taxable year 1999 and thereafter, an amount

12 equal to the amount of any (i) distributions, to the

13 extent includible in gross income for federal income

14 tax purposes, made to the taxpayer because of his or

15 her status as a victim of persecution for racial or

16 religious reasons by Nazi Germany or any other Axis

17 regime or as an heir of the victim and (ii) items of

18 income, to the extent includible in gross income for

19 federal income tax purposes, attributable to, derived

20 from or in any way related to assets stolen from,

21 hidden from, or otherwise lost to a victim of

22 persecution for racial or religious reasons by Nazi

23 Germany or any other Axis regime immediately prior to,

24 during, and immediately after World War II, including,

25 but not limited to, interest on the proceeds receivable

26 as insurance under policies issued to a victim of

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1 persecution for racial or religious reasons by Nazi

2 Germany or any other Axis regime by European insurance

3 companies immediately prior to and during World War II;

4 provided, however, this subtraction from federal

5 adjusted gross income does not apply to assets acquired

6 with such assets or with the proceeds from the sale of

7 such assets; provided, further, this paragraph shall

8 only apply to a taxpayer who was the first recipient of

9 such assets after their recovery and who is a victim of

10 persecution for racial or religious reasons by Nazi

11 Germany or any other Axis regime or as an heir of the

12 victim. The amount of and the eligibility for any

13 public assistance, benefit, or similar entitlement is

14 not affected by the inclusion of items (i) and (ii) of

15 this paragraph in gross income for federal income tax

16 purposes. This paragraph is exempt from the provisions

17 of Section 250;

18 (R) For taxable years 2001 and thereafter, for the

19 taxable year in which the bonus depreciation deduction

20 is taken on the taxpayer's federal income tax return

21 under subsection (k) of Section 168 of the Internal

22 Revenue Code and for each applicable taxable year

23 thereafter, an amount equal to "x", where:

24 (1) "y" equals the amount of the depreciation

25 deduction taken for the taxable year on the

26 taxpayer's federal income tax return on property

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1 for which the bonus depreciation deduction was

2 taken in any year under subsection (k) of Section

3 168 of the Internal Revenue Code, but not including

4 the bonus depreciation deduction;

5 (2) for taxable years ending on or before

6 December 31, 2005, "x" equals "y" multiplied by 30

7 and then divided by 70 (or "y" multiplied by

8 0.429); and

9 (3) for taxable years ending after December

10 31, 2005:

11 (i) for property on which a bonus

12 depreciation deduction of 30% of the adjusted

13 basis was taken, "x" equals "y" multiplied by

14 30 and then divided by 70 (or "y" multiplied by

15 0.429); and

16 (ii) for property on which a bonus

17 depreciation deduction of 50% of the adjusted

18 basis was taken, "x" equals "y" multiplied by

19 1.0.

20 The aggregate amount deducted under this

21 subparagraph in all taxable years for any one piece of

22 property may not exceed the amount of the bonus

23 depreciation deduction taken on that property on the

24 taxpayer's federal income tax return under subsection

25 (k) of Section 168 of the Internal Revenue Code. This

26 subparagraph (R) is exempt from the provisions of

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1 Section 250;

2 (S) If the taxpayer sells, transfers, abandons, or

3 otherwise disposes of property for which the taxpayer

4 was required in any taxable year to make an addition

5 modification under subparagraph (G-10), then an amount

6 equal to that addition modification.

7 If the taxpayer continues to own property through

8 the last day of the last tax year for which the

9 taxpayer may claim a depreciation deduction for

10 federal income tax purposes and for which the taxpayer

11 was required in any taxable year to make an addition

12 modification under subparagraph (G-10), then an amount

13 equal to that addition modification.

14 The taxpayer is allowed to take the deduction under

15 this subparagraph only once with respect to any one

16 piece of property.

17 This subparagraph (S) is exempt from the

18 provisions of Section 250;

19 (T) The amount of (i) any interest income (net of

20 the deductions allocable thereto) taken into account

21 for the taxable year with respect to a transaction with

22 a taxpayer that is required to make an addition

23 modification with respect to such transaction under

24 Section 203(a)(2)(D-17), 203(b)(2)(E-12),

25 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed

26 the amount of such addition modification and (ii) any

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1 income from intangible property (net of the deductions

2 allocable thereto) taken into account for the taxable

3 year with respect to a transaction with a taxpayer that

4 is required to make an addition modification with

5 respect to such transaction under Section

6 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or

7 203(d)(2)(D-8), but not to exceed the amount of such

8 addition modification. This subparagraph (T) is exempt

9 from the provisions of Section 250;

10 (U) An amount equal to the interest income taken

11 into account for the taxable year (net of the

12 deductions allocable thereto) with respect to

13 transactions with (i) a foreign person who would be a

14 member of the taxpayer's unitary business group but for

15 the fact the foreign person's business activity

16 outside the United States is 80% or more of that

17 person's total business activity and (ii) for taxable

18 years ending on or after December 31, 2008, to a person

19 who would be a member of the same unitary business

20 group but for the fact that the person is prohibited

21 under Section 1501(a)(27) from being included in the

22 unitary business group because he or she is ordinarily

23 required to apportion business income under different

24 subsections of Section 304, but not to exceed the

25 addition modification required to be made for the same

26 taxable year under Section 203(c)(2)(G-12) for

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1 interest paid, accrued, or incurred, directly or

2 indirectly, to the same person. This subparagraph (U)

3 is exempt from the provisions of Section 250;

4 (V) An amount equal to the income from intangible

5 property taken into account for the taxable year (net

6 of the deductions allocable thereto) with respect to

7 transactions with (i) a foreign person who would be a

8 member of the taxpayer's unitary business group but for

9 the fact that the foreign person's business activity

10 outside the United States is 80% or more of that

11 person's total business activity and (ii) for taxable

12 years ending on or after December 31, 2008, to a person

13 who would be a member of the same unitary business

14 group but for the fact that the person is prohibited

15 under Section 1501(a)(27) from being included in the

16 unitary business group because he or she is ordinarily

17 required to apportion business income under different

18 subsections of Section 304, but not to exceed the

19 addition modification required to be made for the same

20 taxable year under Section 203(c)(2)(G-13) for

21 intangible expenses and costs paid, accrued, or

22 incurred, directly or indirectly, to the same foreign

23 person. This subparagraph (V) is exempt from the

24 provisions of Section 250;

25 (W) in the case of an estate, an amount equal to

26 all amounts included in such total pursuant to the

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1 provisions of Section 111 of the Internal Revenue Code

2 as a recovery of items previously deducted by the

3 decedent from adjusted gross income in the computation

4 of taxable income. This subparagraph (W) is exempt from

5 Section 250;

6 (X) an amount equal to the refund included in such

7 total of any tax deducted for federal income tax

8 purposes, to the extent that deduction was added back

9 under subparagraph (F). This subparagraph (X) is

10 exempt from the provisions of Section 250; and

11 (Y) For taxable years ending on or after December

12 31, 2011, in the case of a taxpayer who was required to

13 add back any insurance premiums under Section

14 203(c)(2)(G-14), such taxpayer may elect to subtract

15 that part of a reimbursement received from the

16 insurance company equal to the amount of the expense or

17 loss (including expenses incurred by the insurance

18 company) that would have been taken into account as a

19 deduction for federal income tax purposes if the

20 expense or loss had been uninsured. If a taxpayer makes

21 the election provided for by this subparagraph (Y), the

22 insurer to which the premiums were paid must add back

23 to income the amount subtracted by the taxpayer

24 pursuant to this subparagraph (Y). This subparagraph

25 (Y) is exempt from the provisions of Section 250.

26 (3) Limitation. The amount of any modification

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1 otherwise required under this subsection shall, under

2 regulations prescribed by the Department, be adjusted by

3 any amounts included therein which were properly paid,

4 credited, or required to be distributed, or permanently set

5 aside for charitable purposes pursuant to Internal Revenue

6 Code Section 642(c) during the taxable year.

7 (d) Partnerships.

8 (1) In general. In the case of a partnership, base

9 income means an amount equal to the taxpayer's taxable

10 income for the taxable year as modified by paragraph (2).

11 (2) Modifications. The taxable income referred to in

12 paragraph (1) shall be modified by adding thereto the sum

13 of the following amounts:

14 (A) An amount equal to all amounts paid or accrued

15 to the taxpayer as interest or dividends during the

16 taxable year to the extent excluded from gross income

17 in the computation of taxable income;

18 (B) An amount equal to the amount of tax imposed by

19 this Act to the extent deducted from gross income for

20 the taxable year;

21 (C) The amount of deductions allowed to the

22 partnership pursuant to Section 707 (c) of the Internal

23 Revenue Code in calculating its taxable income;

24 (D) An amount equal to the amount of the capital

25 gain deduction allowable under the Internal Revenue

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1 Code, to the extent deducted from gross income in the

2 computation of taxable income;

3 (D-5) For taxable years 2001 and thereafter, an

4 amount equal to the bonus depreciation deduction taken

5 on the taxpayer's federal income tax return for the

6 taxable year under subsection (k) of Section 168 of the

7 Internal Revenue Code;

8 (D-6) If the taxpayer sells, transfers, abandons,

9 or otherwise disposes of property for which the

10 taxpayer was required in any taxable year to make an

11 addition modification under subparagraph (D-5), then

12 an amount equal to the aggregate amount of the

13 deductions taken in all taxable years under

14 subparagraph (O) with respect to that property.

15 If the taxpayer continues to own property through

16 the last day of the last tax year for which the

17 taxpayer may claim a depreciation deduction for

18 federal income tax purposes and for which the taxpayer

19 was allowed in any taxable year to make a subtraction

20 modification under subparagraph (O), then an amount

21 equal to that subtraction modification.

22 The taxpayer is required to make the addition

23 modification under this subparagraph only once with

24 respect to any one piece of property;

25 (D-7) An amount equal to the amount otherwise

26 allowed as a deduction in computing base income for

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1 interest paid, accrued, or incurred, directly or

2 indirectly, (i) for taxable years ending on or after

3 December 31, 2004, to a foreign person who would be a

4 member of the same unitary business group but for the

5 fact the foreign person's business activity outside

6 the United States is 80% or more of the foreign

7 person's total business activity and (ii) for taxable

8 years ending on or after December 31, 2008, to a person

9 who would be a member of the same unitary business

10 group but for the fact that the person is prohibited

11 under Section 1501(a)(27) from being included in the

12 unitary business group because he or she is ordinarily

13 required to apportion business income under different

14 subsections of Section 304. The addition modification

15 required by this subparagraph shall be reduced to the

16 extent that dividends were included in base income of

17 the unitary group for the same taxable year and

18 received by the taxpayer or by a member of the

19 taxpayer's unitary business group (including amounts

20 included in gross income pursuant to Sections 951

21 through 964 of the Internal Revenue Code and amounts

22 included in gross income under Section 78 of the

23 Internal Revenue Code) with respect to the stock of the

24 same person to whom the interest was paid, accrued, or

25 incurred.

26 This paragraph shall not apply to the following:

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1 (i) an item of interest paid, accrued, or

2 incurred, directly or indirectly, to a person who

3 is subject in a foreign country or state, other

4 than a state which requires mandatory unitary

5 reporting, to a tax on or measured by net income

6 with respect to such interest; or

7 (ii) an item of interest paid, accrued, or

8 incurred, directly or indirectly, to a person if

9 the taxpayer can establish, based on a

10 preponderance of the evidence, both of the

11 following:

12 (a) the person, during the same taxable

13 year, paid, accrued, or incurred, the interest

14 to a person that is not a related member, and

15 (b) the transaction giving rise to the

16 interest expense between the taxpayer and the

17 person did not have as a principal purpose the

18 avoidance of Illinois income tax, and is paid

19 pursuant to a contract or agreement that

20 reflects an arm's-length interest rate and

21 terms; or

22 (iii) the taxpayer can establish, based on

23 clear and convincing evidence, that the interest

24 paid, accrued, or incurred relates to a contract or

25 agreement entered into at arm's-length rates and

26 terms and the principal purpose for the payment is

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1 not federal or Illinois tax avoidance; or

2 (iv) an item of interest paid, accrued, or

3 incurred, directly or indirectly, to a person if

4 the taxpayer establishes by clear and convincing

5 evidence that the adjustments are unreasonable; or

6 if the taxpayer and the Director agree in writing

7 to the application or use of an alternative method

8 of apportionment under Section 304(f).

9 Nothing in this subsection shall preclude the

10 Director from making any other adjustment

11 otherwise allowed under Section 404 of this Act for

12 any tax year beginning after the effective date of

13 this amendment provided such adjustment is made

14 pursuant to regulation adopted by the Department

15 and such regulations provide methods and standards

16 by which the Department will utilize its authority

17 under Section 404 of this Act; and

18 (D-8) An amount equal to the amount of intangible

19 expenses and costs otherwise allowed as a deduction in

20 computing base income, and that were paid, accrued, or

21 incurred, directly or indirectly, (i) for taxable

22 years ending on or after December 31, 2004, to a

23 foreign person who would be a member of the same

24 unitary business group but for the fact that the

25 foreign person's business activity outside the United

26 States is 80% or more of that person's total business

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1 activity and (ii) for taxable years ending on or after

2 December 31, 2008, to a person who would be a member of

3 the same unitary business group but for the fact that

4 the person is prohibited under Section 1501(a)(27)

5 from being included in the unitary business group

6 because he or she is ordinarily required to apportion

7 business income under different subsections of Section

8 304. The addition modification required by this

9 subparagraph shall be reduced to the extent that

10 dividends were included in base income of the unitary

11 group for the same taxable year and received by the

12 taxpayer or by a member of the taxpayer's unitary

13 business group (including amounts included in gross

14 income pursuant to Sections 951 through 964 of the

15 Internal Revenue Code and amounts included in gross

16 income under Section 78 of the Internal Revenue Code)

17 with respect to the stock of the same person to whom

18 the intangible expenses and costs were directly or

19 indirectly paid, incurred or accrued. The preceding

20 sentence shall not apply to the extent that the same

21 dividends caused a reduction to the addition

22 modification required under Section 203(d)(2)(D-7) of

23 this Act. As used in this subparagraph, the term

24 "intangible expenses and costs" includes (1) expenses,

25 losses, and costs for, or related to, the direct or

26 indirect acquisition, use, maintenance or management,

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1 ownership, sale, exchange, or any other disposition of

2 intangible property; (2) losses incurred, directly or

3 indirectly, from factoring transactions or discounting

4 transactions; (3) royalty, patent, technical, and

5 copyright fees; (4) licensing fees; and (5) other

6 similar expenses and costs. For purposes of this

7 subparagraph, "intangible property" includes patents,

8 patent applications, trade names, trademarks, service

9 marks, copyrights, mask works, trade secrets, and

10 similar types of intangible assets;

11 This paragraph shall not apply to the following:

12 (i) any item of intangible expenses or costs

13 paid, accrued, or incurred, directly or

14 indirectly, from a transaction with a person who is

15 subject in a foreign country or state, other than a

16 state which requires mandatory unitary reporting,

17 to a tax on or measured by net income with respect

18 to such item; or

19 (ii) any item of intangible expense or cost

20 paid, accrued, or incurred, directly or

21 indirectly, if the taxpayer can establish, based

22 on a preponderance of the evidence, both of the

23 following:

24 (a) the person during the same taxable

25 year paid, accrued, or incurred, the

26 intangible expense or cost to a person that is

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1 not a related member, and

2 (b) the transaction giving rise to the

3 intangible expense or cost between the

4 taxpayer and the person did not have as a

5 principal purpose the avoidance of Illinois

6 income tax, and is paid pursuant to a contract

7 or agreement that reflects arm's-length terms;

8 or

9 (iii) any item of intangible expense or cost

10 paid, accrued, or incurred, directly or

11 indirectly, from a transaction with a person if the

12 taxpayer establishes by clear and convincing

13 evidence, that the adjustments are unreasonable;

14 or if the taxpayer and the Director agree in

15 writing to the application or use of an alternative

16 method of apportionment under Section 304(f);

17 Nothing in this subsection shall preclude the

18 Director from making any other adjustment

19 otherwise allowed under Section 404 of this Act for

20 any tax year beginning after the effective date of

21 this amendment provided such adjustment is made

22 pursuant to regulation adopted by the Department

23 and such regulations provide methods and standards

24 by which the Department will utilize its authority

25 under Section 404 of this Act;

26 (D-9) For taxable years ending on or after December

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1 31, 2008, an amount equal to the amount of insurance

2 premium expenses and costs otherwise allowed as a

3 deduction in computing base income, and that were paid,

4 accrued, or incurred, directly or indirectly, to a

5 person who would be a member of the same unitary

6 business group but for the fact that the person is

7 prohibited under Section 1501(a)(27) from being

8 included in the unitary business group because he or

9 she is ordinarily required to apportion business

10 income under different subsections of Section 304. The

11 addition modification required by this subparagraph

12 shall be reduced to the extent that dividends were

13 included in base income of the unitary group for the

14 same taxable year and received by the taxpayer or by a

15 member of the taxpayer's unitary business group

16 (including amounts included in gross income under

17 Sections 951 through 964 of the Internal Revenue Code

18 and amounts included in gross income under Section 78

19 of the Internal Revenue Code) with respect to the stock

20 of the same person to whom the premiums and costs were

21 directly or indirectly paid, incurred, or accrued. The

22 preceding sentence does not apply to the extent that

23 the same dividends caused a reduction to the addition

24 modification required under Section 203(d)(2)(D-7) or

25 Section 203(d)(2)(D-8) of this Act;

26 (D-10) An amount equal to the credit allowable to

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1 the taxpayer under Section 218(a) of this Act,

2 determined without regard to Section 218(c) of this

3 Act;

4 (D-11) For taxable years ending on or after

5 December 31, 2017 and ending on or before December 31,

6 2018, an amount equal to the deduction allowed under

7 Section 199 of the Internal Revenue Code for the

8 taxable year;

9 and by deducting from the total so obtained the following

10 amounts:

11 (E) The valuation limitation amount;

12 (F) An amount equal to the amount of any tax

13 imposed by this Act which was refunded to the taxpayer

14 and included in such total for the taxable year;

15 (G) An amount equal to all amounts included in

16 taxable income as modified by subparagraphs (A), (B),

17 (C) and (D) which are exempt from taxation by this

18 State either by reason of its statutes or Constitution

19 or by reason of the Constitution, treaties or statutes

20 of the United States; provided that, in the case of any

21 statute of this State that exempts income derived from

22 bonds or other obligations from the tax imposed under

23 this Act, the amount exempted shall be the interest net

24 of bond premium amortization;

25 (H) Any income of the partnership which

26 constitutes personal service income as defined in

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1 Section 1348(b)(1) of the Internal Revenue Code (as in

2 effect December 31, 1981) or a reasonable allowance for

3 compensation paid or accrued for services rendered by

4 partners to the partnership, whichever is greater;

5 this subparagraph (H) is exempt from the provisions of

6 Section 250;

7 (I) An amount equal to all amounts of income

8 distributable to an entity subject to the Personal

9 Property Tax Replacement Income Tax imposed by

10 subsections (c) and (d) of Section 201 of this Act

11 including amounts distributable to organizations

12 exempt from federal income tax by reason of Section

13 501(a) of the Internal Revenue Code; this subparagraph

14 (I) is exempt from the provisions of Section 250;

15 (J) With the exception of any amounts subtracted

16 under subparagraph (G), an amount equal to the sum of

17 all amounts disallowed as deductions by (i) Sections

18 171(a)(2), and 265(a)(2) ~~265(2)~~ of the Internal

19 Revenue Code, and all amounts of expenses allocable to

20 interest and disallowed as deductions by Section

21 265(a)(1) ~~265(1)~~of the Internal Revenue Code; and (ii)

22 for taxable years ending on or after August 13, 1999,

23 Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of

24 the Internal Revenue Code, plus, (iii) for taxable

25 years ending on or after December 31, 2011, Section

26 45G(e)(3) of the Internal Revenue Code and, for taxable

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1 years ending on or after December 31, 2008, any amount

2 included in gross income under Section 87 of the

3 Internal Revenue Code; the provisions of this

4 subparagraph are exempt from the provisions of Section

5 250;

6 (K) An amount equal to those dividends included in

7 such total which were paid by a corporation which

8 conducts business operations in a River Edge

9 Redevelopment Zone or zones created under the River

10 Edge Redevelopment Zone Act and conducts substantially

11 all of its operations from a River Edge Redevelopment

12 Zone or zones. This subparagraph (K) is exempt from the

13 provisions of Section 250;

14 (L) An amount equal to any contribution made to a

15 job training project established pursuant to the Real

16 Property Tax Increment Allocation Redevelopment Act;

17 (M) An amount equal to those dividends included in

18 such total that were paid by a corporation that

19 conducts business operations in a federally designated

20 Foreign Trade Zone or Sub-Zone and that is designated a

21 High Impact Business located in Illinois; provided

22 that dividends eligible for the deduction provided in

23 subparagraph (K) of paragraph (2) of this subsection

24 shall not be eligible for the deduction provided under

25 this subparagraph (M);

26 (N) An amount equal to the amount of the deduction

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1 used to compute the federal income tax credit for

2 restoration of substantial amounts held under claim of

3 right for the taxable year pursuant to Section 1341 of

4 the Internal Revenue Code;

5 (O) For taxable years 2001 and thereafter, for the

6 taxable year in which the bonus depreciation deduction

7 is taken on the taxpayer's federal income tax return

8 under subsection (k) of Section 168 of the Internal

9 Revenue Code and for each applicable taxable year

10 thereafter, an amount equal to "x", where:

11 (1) "y" equals the amount of the depreciation

12 deduction taken for the taxable year on the

13 taxpayer's federal income tax return on property

14 for which the bonus depreciation deduction was

15 taken in any year under subsection (k) of Section

16 168 of the Internal Revenue Code, but not including

17 the bonus depreciation deduction;

18 (2) for taxable years ending on or before

19 December 31, 2005, "x" equals "y" multiplied by 30

20 and then divided by 70 (or "y" multiplied by

21 0.429); and

22 (3) for taxable years ending after December

23 31, 2005:

24 (i) for property on which a bonus

25 depreciation deduction of 30% of the adjusted

26 basis was taken, "x" equals "y" multiplied by

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1 30 and then divided by 70 (or "y" multiplied by

2 0.429); and

3 (ii) for property on which a bonus

4 depreciation deduction of 50% of the adjusted

5 basis was taken, "x" equals "y" multiplied by

6 1.0.

7 The aggregate amount deducted under this

8 subparagraph in all taxable years for any one piece of

9 property may not exceed the amount of the bonus

10 depreciation deduction taken on that property on the

11 taxpayer's federal income tax return under subsection

12 (k) of Section 168 of the Internal Revenue Code. This

13 subparagraph (O) is exempt from the provisions of

14 Section 250;

15 (P) If the taxpayer sells, transfers, abandons, or

16 otherwise disposes of property for which the taxpayer

17 was required in any taxable year to make an addition

18 modification under subparagraph (D-5), then an amount

19 equal to that addition modification.

20 If the taxpayer continues to own property through

21 the last day of the last tax year for which the

22 taxpayer may claim a depreciation deduction for

23 federal income tax purposes and for which the taxpayer

24 was required in any taxable year to make an addition

25 modification under subparagraph (D-5), then an amount

26 equal to that addition modification.

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1 The taxpayer is allowed to take the deduction under

2 this subparagraph only once with respect to any one

3 piece of property.

4 This subparagraph (P) is exempt from the

5 provisions of Section 250;

6 (Q) The amount of (i) any interest income (net of

7 the deductions allocable thereto) taken into account

8 for the taxable year with respect to a transaction with

9 a taxpayer that is required to make an addition

10 modification with respect to such transaction under

11 Section 203(a)(2)(D-17), 203(b)(2)(E-12),

12 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed

13 the amount of such addition modification and (ii) any

14 income from intangible property (net of the deductions

15 allocable thereto) taken into account for the taxable

16 year with respect to a transaction with a taxpayer that

17 is required to make an addition modification with

18 respect to such transaction under Section

19 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or

20 203(d)(2)(D-8), but not to exceed the amount of such

21 addition modification. This subparagraph (Q) is exempt

22 from Section 250;

23 (R) An amount equal to the interest income taken

24 into account for the taxable year (net of the

25 deductions allocable thereto) with respect to

26 transactions with (i) a foreign person who would be a

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1 member of the taxpayer's unitary business group but for

2 the fact that the foreign person's business activity

3 outside the United States is 80% or more of that

4 person's total business activity and (ii) for taxable

5 years ending on or after December 31, 2008, to a person

6 who would be a member of the same unitary business

7 group but for the fact that the person is prohibited

8 under Section 1501(a)(27) from being included in the

9 unitary business group because he or she is ordinarily

10 required to apportion business income under different

11 subsections of Section 304, but not to exceed the

12 addition modification required to be made for the same

13 taxable year under Section 203(d)(2)(D-7) for interest

14 paid, accrued, or incurred, directly or indirectly, to

15 the same person. This subparagraph (R) is exempt from

16 Section 250;

17 (S) An amount equal to the income from intangible

18 property taken into account for the taxable year (net

19 of the deductions allocable thereto) with respect to

20 transactions with (i) a foreign person who would be a

21 member of the taxpayer's unitary business group but for

22 the fact that the foreign person's business activity

23 outside the United States is 80% or more of that

24 person's total business activity and (ii) for taxable

25 years ending on or after December 31, 2008, to a person

26 who would be a member of the same unitary business

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1 group but for the fact that the person is prohibited

2 under Section 1501(a)(27) from being included in the

3 unitary business group because he or she is ordinarily

4 required to apportion business income under different

5 subsections of Section 304, but not to exceed the

6 addition modification required to be made for the same

7 taxable year under Section 203(d)(2)(D-8) for

8 intangible expenses and costs paid, accrued, or

9 incurred, directly or indirectly, to the same person.

10 This subparagraph (S) is exempt from Section 250; and

11 (T) For taxable years ending on or after December

12 31, 2011, in the case of a taxpayer who was required to

13 add back any insurance premiums under Section

14 203(d)(2)(D-9), such taxpayer may elect to subtract

15 that part of a reimbursement received from the

16 insurance company equal to the amount of the expense or

17 loss (including expenses incurred by the insurance

18 company) that would have been taken into account as a

19 deduction for federal income tax purposes if the

20 expense or loss had been uninsured. If a taxpayer makes

21 the election provided for by this subparagraph (T), the

22 insurer to which the premiums were paid must add back

23 to income the amount subtracted by the taxpayer

24 pursuant to this subparagraph (T). This subparagraph

25 (T) is exempt from the provisions of Section 250.

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1 (e) Gross income; adjusted gross income; taxable income.

2 (1) In general. Subject to the provisions of paragraph

3 (2) and subsection (b)(3), for purposes of this Section and

4 Section 803(e), a taxpayer's gross income, adjusted gross

5 income, or taxable income for the taxable year shall mean

6 the amount of gross income, adjusted gross income or

7 taxable income properly reportable for federal income tax

8 purposes for the taxable year under the provisions of the

9 Internal Revenue Code. Taxable income may be less than

10 zero. However, for taxable years ending on or after

11 December 31, 1986, net operating loss carryforwards from

12 taxable years ending prior to December 31, 1986, may not

13 exceed the sum of federal taxable income for the taxable

14 year before net operating loss deduction, plus the excess

15 of addition modifications over subtraction modifications

16 for the taxable year. For taxable years ending prior to

17 December 31, 1986, taxable income may never be an amount in

18 excess of the net operating loss for the taxable year as

19 defined in subsections (c) and (d) of Section 172 of the

20 Internal Revenue Code, provided that when taxable income of

21 a corporation (other than a Subchapter S corporation),

22 trust, or estate is less than zero and addition

23 modifications, other than those provided by subparagraph

24 (E) of paragraph (2) of subsection (b) for corporations or

25 subparagraph (E) of paragraph (2) of subsection (c) for

26 trusts and estates, exceed subtraction modifications, an

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1 addition modification must be made under those

2 subparagraphs for any other taxable year to which the

3 taxable income less than zero (net operating loss) is

4 applied under Section 172 of the Internal Revenue Code or

5 under subparagraph (E) of paragraph (2) of this subsection

6 (e) applied in conjunction with Section 172 of the Internal

7 Revenue Code.

8 (2) Special rule. For purposes of paragraph (1) of this

9 subsection, the taxable income properly reportable for

10 federal income tax purposes shall mean:

11 (A) Certain life insurance companies. In the case

12 of a life insurance company subject to the tax imposed

13 by Section 801 of the Internal Revenue Code, life

14 insurance company taxable income, plus the amount of

15 distribution from pre-1984 policyholder surplus

16 accounts as calculated under Section 815a of the

17 Internal Revenue Code;

18 (B) Certain other insurance companies. In the case

19 of mutual insurance companies subject to the tax

20 imposed by Section 831 of the Internal Revenue Code,

21 insurance company taxable income;

22 (C) Regulated investment companies. In the case of

23 a regulated investment company subject to the tax

24 imposed by Section 852 of the Internal Revenue Code,

25 investment company taxable income;

26 (D) Real estate investment trusts. In the case of a

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1 real estate investment trust subject to the tax imposed

2 by Section 857 of the Internal Revenue Code, real

3 estate investment trust taxable income;

4 (E) Consolidated corporations. In the case of a

5 corporation which is a member of an affiliated group of

6 corporations filing a consolidated income tax return

7 for the taxable year for federal income tax purposes,

8 taxable income determined as if such corporation had

9 filed a separate return for federal income tax purposes

10 for the taxable year and each preceding taxable year

11 for which it was a member of an affiliated group. For

12 purposes of this subparagraph, the taxpayer's separate

13 taxable income shall be determined as if the election

14 provided by Section 243(b)(2) of the Internal Revenue

15 Code had been in effect for all such years;

16 (F) Cooperatives. In the case of a cooperative

17 corporation or association, the taxable income of such

18 organization determined in accordance with the

19 provisions of Section 1381 through 1388 of the Internal

20 Revenue Code, but without regard to the prohibition

21 against offsetting losses from patronage activities

22 against income from nonpatronage activities; except

23 that a cooperative corporation or association may make

24 an election to follow its federal income tax treatment

25 of patronage losses and nonpatronage losses. In the

26 event such election is made, such losses shall be

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1 computed and carried over in a manner consistent with

2 subsection (a) of Section 207 of this Act and

3 apportioned by the apportionment factor reported by

4 the cooperative on its Illinois income tax return filed

5 for the taxable year in which the losses are incurred.

6 The election shall be effective for all taxable years

7 with original returns due on or after the date of the

8 election. In addition, the cooperative may file an

9 amended return or returns, as allowed under this Act,

10 to provide that the election shall be effective for

11 losses incurred or carried forward for taxable years

12 occurring prior to the date of the election. Once made,

13 the election may only be revoked upon approval of the

14 Director. The Department shall adopt rules setting

15 forth requirements for documenting the elections and

16 any resulting Illinois net loss and the standards to be

17 used by the Director in evaluating requests to revoke

18 elections. Public Act 96-932 is declaratory of

19 existing law;

20 (G) Subchapter S corporations. In the case of: (i)

21 a Subchapter S corporation for which there is in effect

22 an election for the taxable year under Section 1362 of

23 the Internal Revenue Code, the taxable income of such

24 corporation determined in accordance with Section

25 1363(b) of the Internal Revenue Code, except that

26 taxable income shall take into account those items

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1 which are required by Section 1363(b)(1) of the

2 Internal Revenue Code to be separately stated; and (ii)

3 a Subchapter S corporation for which there is in effect

4 a federal election to opt out of the provisions of the

5 Subchapter S Revision Act of 1982 and have applied

6 instead the prior federal Subchapter S rules as in

7 effect on July 1, 1982, the taxable income of such

8 corporation determined in accordance with the federal

9 Subchapter S rules as in effect on July 1, 1982; and

10 (H) Partnerships. In the case of a partnership,

11 taxable income determined in accordance with Section

12 703 of the Internal Revenue Code, except that taxable

13 income shall take into account those items which are

14 required by Section 703(a)(1) to be separately stated

15 but which would be taken into account by an individual

16 in calculating his taxable income.

17 (3) Recapture of business expenses on disposition of

18 asset or business. Notwithstanding any other law to the

19 contrary, if in prior years income from an asset or

20 business has been classified as business income and in a

21 later year is demonstrated to be non-business income, then

22 all expenses, without limitation, deducted in such later

23 year and in the 2 immediately preceding taxable years

24 related to that asset or business that generated the

25 non-business income shall be added back and recaptured as

26 business income in the year of the disposition of the asset

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1 or business. Such amount shall be apportioned to Illinois

2 using the greater of the apportionment fraction computed

3 for the business under Section 304 of this Act for the

4 taxable year or the average of the apportionment fractions

5 computed for the business under Section 304 of this Act for

6 the taxable year and for the 2 immediately preceding

7 taxable years.

8 (f) Valuation limitation amount.

9 (1) In general. The valuation limitation amount

10 referred to in subsections (a)(2)(G), (c)(2)(I) and

11 (d)(2)(E) is an amount equal to:

12 (A) The sum of the pre-August 1, 1969 appreciation

13 amounts (to the extent consisting of gain reportable

14 under the provisions of Section 1245 or 1250 of the

15 Internal Revenue Code) for all property in respect of

16 which such gain was reported for the taxable year; plus

17 (B) The lesser of (i) the sum of the pre-August 1,

18 1969 appreciation amounts (to the extent consisting of

19 capital gain) for all property in respect of which such

20 gain was reported for federal income tax purposes for

21 the taxable year, or (ii) the net capital gain for the

22 taxable year, reduced in either case by any amount of

23 such gain included in the amount determined under

24 subsection (a)(2)(F) or (c)(2)(H).

25 (2) Pre-August 1, 1969 appreciation amount.

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1 (A) If the fair market value of property referred

2 to in paragraph (1) was readily ascertainable on August

3 1, 1969, the pre-August 1, 1969 appreciation amount for

4 such property is the lesser of (i) the excess of such

5 fair market value over the taxpayer's basis (for

6 determining gain) for such property on that date

7 (determined under the Internal Revenue Code as in

8 effect on that date), or (ii) the total gain realized

9 and reportable for federal income tax purposes in

10 respect of the sale, exchange or other disposition of

11 such property.

12 (B) If the fair market value of property referred

13 to in paragraph (1) was not readily ascertainable on

14 August 1, 1969, the pre-August 1, 1969 appreciation

15 amount for such property is that amount which bears the

16 same ratio to the total gain reported in respect of the

17 property for federal income tax purposes for the

18 taxable year, as the number of full calendar months in

19 that part of the taxpayer's holding period for the

20 property ending July 31, 1969 bears to the number of

21 full calendar months in the taxpayer's entire holding

22 period for the property.

23 (C) The Department shall prescribe such

24 regulations as may be necessary to carry out the

25 purposes of this paragraph.

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1 (g) Double deductions. Unless specifically provided

2 otherwise, nothing in this Section shall permit the same item

3 to be deducted more than once.

4 (h) Legislative intention. Except as expressly provided by

5 this Section there shall be no modifications or limitations on

6 the amounts of income, gain, loss or deduction taken into

7 account in determining gross income, adjusted gross income or

8 taxable income for federal income tax purposes for the taxable

9 year, or in the amount of such items entering into the

10 computation of base income and net income under this Act for

11 such taxable year, whether in respect of property values as of

12 August 1, 1969 or otherwise.

13 (Source: P.A. 100-22, eff. 7-6-17; 100-905, eff. 8-17-18;

14 revised 10-29-18.)

15 (35 ILCS 5/204) (from Ch. 120, par. 2-204)

16 Sec. 204. Standard exemption.

17 (a) Allowance of exemption. In computing net income under

18 this Act, there shall be allowed as an exemption the sum of the

19 amounts determined under subsections (b), (c) and (d),

20 multiplied by a fraction the numerator of which is the amount

21 of the taxpayer's base income allocable to this State for the

22 taxable year and the denominator of which is the taxpayer's

23 total base income for the taxable year.

24 (b) Basic amount. For the purpose of subsection (a) of this

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1 Section, except as provided by subsection (a) of Section 205

2 and in this subsection, each taxpayer shall be allowed a basic

3 amount of $1000, except that for corporations the basic amount

4 shall be zero for tax years ending on or after December 31,

5 2003, and for individuals the basic amount shall be:

6 (1) for taxable years ending on or after December 31,

7 1998 and prior to December 31, 1999, $1,300;

8 (2) for taxable years ending on or after December 31,

9 1999 and prior to December 31, 2000, $1,650;

10 (3) for taxable years ending on or after December 31,

11 2000 and prior to December 31, 2012, $2,000;

12 (4) for taxable years ending on or after December 31,

13 2012 and prior to December 31, 2013, $2,050;

14 (5) for taxable years ending on or after December 31,

15 2013 and on or before December 31, 2023, $2,050 plus the

16 cost-of-living adjustment under subsection (d-5).

17 For taxable years ending on or after December 31, 1992, a

18 taxpayer whose Illinois base income exceeds the basic amount

19 and who is claimed as a dependent on another person's tax

20 return under the Internal Revenue Code shall not be allowed any

21 basic amount under this subsection.

22 (c) Additional amount for individuals. In the case of an

23 individual taxpayer, there shall be allowed for the purpose of

24 subsection (a), in addition to the basic amount provided by

25 subsection (b), an additional exemption equal to the basic

26 amount for each exemption in excess of one allowable to such

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1 individual taxpayer for the taxable year under Section 151 of

2 the Internal Revenue Code.

3 (d) Additional exemptions for an individual taxpayer and

4 his or her spouse. In the case of an individual taxpayer and

5 his or her spouse, he or she shall each be allowed additional

6 exemptions as follows:

7 (1) Additional exemption for taxpayer or spouse 65

8 years of age or older.

9 (A) For taxpayer. An additional exemption of

10 $1,000 for the taxpayer if he or she has attained the

11 age of 65 before the end of the taxable year.

12 (B) For spouse when a joint return is not filed. An

13 additional exemption of $1,000 for the spouse of the

14 taxpayer if a joint return is not made by the taxpayer

15 and his spouse, and if the spouse has attained the age

16 of 65 before the end of such taxable year, and, for the

17 calendar year in which the taxable year of the taxpayer

18 begins, has no gross income and is not the dependent of

19 another taxpayer.

20 (2) Additional exemption for blindness of taxpayer or

21 spouse.

22 (A) For taxpayer. An additional exemption of

23 $1,000 for the taxpayer if he or she is blind at the

24 end of the taxable year.

25 (B) For spouse when a joint return is not filed. An

26 additional exemption of $1,000 for the spouse of the

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1 taxpayer if a separate return is made by the taxpayer,

2 and if the spouse is blind and, for the calendar year

3 in which the taxable year of the taxpayer begins, has

4 no gross income and is not the dependent of another

5 taxpayer. For purposes of this paragraph, the

6 determination of whether the spouse is blind shall be

7 made as of the end of the taxable year of the taxpayer;

8 except that if the spouse dies during such taxable year

9 such determination shall be made as of the time of such

10 death.

11 (C) Blindness defined. For purposes of this

12 subsection, an individual is blind only if his or her

13 central visual acuity does not exceed 20/200 in the

14 better eye with correcting lenses, or if his or her

15 visual acuity is greater than 20/200 but is accompanied

16 by a limitation in the fields of vision such that the

17 widest diameter of the visual fields subtends an angle

18 no greater than 20 degrees.

19 (d-5) Cost-of-living adjustment. For purposes of item (5)

20 of subsection (b), the cost-of-living adjustment for any

21 calendar year and for taxable years ending prior to the end of

22 the subsequent calendar year is equal to $2,050 times the

23 percentage (if any) by which:

24 (1) the Consumer Price Index for the preceding calendar

25 year, exceeds

26 (2) the Consumer Price Index for the calendar year

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1 2011.

2 The Consumer Price Index for any calendar year is the

3 average of the Consumer Price Index as of the close of the

4 12-month period ending on August 31 of that calendar year.

5 The term "Consumer Price Index" means the last Consumer

6 Price Index for All Urban Consumers published by the United

7 States Department of Labor or any successor agency.

8 If any cost-of-living adjustment is not a multiple of $25,

9 that adjustment shall be rounded to the next lowest multiple of

10 $25.

11 (e) Cross reference. See Article 3 for the manner of

12 determining base income allocable to this State.

13 (f) Application of Section 250. Section 250 does not apply

14 to the amendments to this Section made by Public Act 90-613.

15 (g) Notwithstanding any other provision of law, for taxable

16 years beginning on or after January 1, 2017 and beginning prior

17 to January 1, 2019, no taxpayer may claim an exemption under

18 this Section if the taxpayer's adjusted gross income for the

19 taxable year exceeds (i) $500,000, in the case of spouses

20 filing a joint federal tax return or (ii) $250,000, in the case

21 of all other taxpayers.

22 (Source: P.A. 100-22, eff. 7-6-17; 100-865, eff. 8-14-18.)

23 (35 ILCS 5/208) (from Ch. 120, par. 2-208)

24 Sec. 208. Tax credit for residential real property taxes.

25 Beginning with tax years ending on or after December 31, 1991,

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1 every individual taxpayer shall be entitled to a tax credit

2 equal to 5% of real property taxes paid by such taxpayer during

3 the taxable year on the principal residence of the taxpayer. In

4 the case of multi-unit or multi-use structures and farm

5 dwellings, the taxes on the taxpayer's principal residence

6 shall be that portion of the total taxes which is attributable

7 to such principal residence. Notwithstanding any other

8 provision of law, for taxable years beginning on or after

9 January 1, 2017 and beginning prior to January 1, 2019, no

10 taxpayer may claim a credit under this Section if the

11 taxpayer's adjusted gross income for the taxable year exceeds

12 (i) $500,000, in the case of spouses filing a joint federal tax

13 return, or (ii) $250,000, in the case of all other taxpayers.

14 (Source: P.A. 100-22, eff. 7-6-17.)

15 (35 ILCS 5/212)

16 Sec. 212. Earned income tax credit.

17 (a) With respect to the federal earned income tax credit

18 allowed for the taxable year under Section 32 of the federal

19 Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer

20 is entitled to a credit against the tax imposed by subsections

21 (a) and (b) of Section 201 in an amount equal to (i) 5% of the

22 federal tax credit for each taxable year beginning on or after

23 January 1, 2000 and ending prior to December 31, 2012, (ii)

24 7.5% of the federal tax credit for each taxable year beginning

25 on or after January 1, 2012 and ending prior to December 31,

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1 2013, (iii) 10% of the federal tax credit for each taxable year

2 beginning on or after January 1, 2013 and beginning prior to

3 January 1, 2017, (iv) 14% of the federal tax credit for each

4 taxable year beginning on or after January 1, 2017 and

5 beginning prior to January 1, 2018, ~~and~~ (v) 18% of the federal

6 tax credit for each taxable year beginning on or after January

7 1, 2018 and beginning prior to January 1, 2019, and (vi) 10% of

8 the of the federal tax credit for each taxable year beginning

9 on or after January 1, 2019.

10 For a non-resident or part-year resident, the amount of the

11 credit under this Section shall be in proportion to the amount

12 of income attributable to this State.

13 (b) For taxable years beginning before January 1, 2003, in

14 no event shall a credit under this Section reduce the

15 taxpayer's liability to less than zero. For each taxable year

16 beginning on or after January 1, 2003, if the amount of the

17 credit exceeds the income tax liability for the applicable tax

18 year, then the excess credit shall be refunded to the taxpayer.

19 The amount of a refund shall not be included in the taxpayer's

20 income or resources for the purposes of determining eligibility

21 or benefit level in any means-tested benefit program

22 administered by a governmental entity unless required by

23 federal law.

24 (c) This Section is exempt from the provisions of Section

25 250.

26 (Source: P.A. 100-22, eff. 7-6-17.)

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1 (35 ILCS 5/901) (from Ch. 120, par. 9-901)

2 Sec. 901. Collection authority.

3 (a) In general. The Department shall collect the taxes

4 imposed by this Act. The Department shall collect certified

5 past due child support amounts under Section 2505-650 of the

6 Department of Revenue Law of the Civil Administrative Code of

7 Illinois. Except as provided in subsections (b), (c), (e), (f),

8 (g), and (h) of this Section, money collected pursuant to

9 subsections (a) and (b) of Section 201 of this Act shall be

10 paid into the General Revenue Fund in the State treasury; money

11 collected pursuant to subsections (c) and (d) of Section 201 of

12 this Act shall be paid into the Personal Property Tax

13 Replacement Fund, a special fund in the State Treasury; and

14 money collected under Section 2505-650 of the Department of

15 Revenue Law of the Civil Administrative Code of Illinois shall

16 be paid into the Child Support Enforcement Trust Fund, a

17 special fund outside the State Treasury, or to the State

18 Disbursement Unit established under Section 10-26 of the

19 Illinois Public Aid Code, as directed by the Department of

20 Healthcare and Family Services.

21 (b) Local Government Distributive Fund. Beginning August

22 1, 1969, and continuing through June 30, 1994, the Treasurer

23 shall transfer each month from the General Revenue Fund to a

24 special fund in the State treasury, to be known as the "Local

25 Government Distributive Fund", an amount equal to 1/12 of the

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1 net revenue realized from the tax imposed by subsections (a)

2 and (b) of Section 201 of this Act during the preceding month.

3 Beginning July 1, 1994, and continuing through June 30, 1995,

4 the Treasurer shall transfer each month from the General

5 Revenue Fund to the Local Government Distributive Fund an

6 amount equal to 1/11 of the net revenue realized from the tax

7 imposed by subsections (a) and (b) of Section 201 of this Act

8 during the preceding month. Beginning July 1, 1995 and

9 continuing through January 31, 2011, the Treasurer shall

10 transfer each month from the General Revenue Fund to the Local

11 Government Distributive Fund an amount equal to the net of (i)

12 1/10 of the net revenue realized from the tax imposed by

13 subsections (a) and (b) of Section 201 of the Illinois Income

14 Tax Act during the preceding month (ii) minus, beginning July

15 1, 2003 and ending June 30, 2004, $6,666,666, and beginning

16 July 1, 2004, zero. Beginning February 1, 2011, and continuing

17 through January 31, 2015, the Treasurer shall transfer each

18 month from the General Revenue Fund to the Local Government

19 Distributive Fund an amount equal to the sum of (i) 6% (10% of

20 the ratio of the 3% individual income tax rate prior to 2011 to

21 the 5% individual income tax rate after 2010) of the net

22 revenue realized from the tax imposed by subsections (a) and

23 (b) of Section 201 of this Act upon individuals, trusts, and

24 estates during the preceding month and (ii) 6.86% (10% of the

25 ratio of the 4.8% corporate income tax rate prior to 2011 to

26 the 7% corporate income tax rate after 2010) of the net revenue

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1 realized from the tax imposed by subsections (a) and (b) of

2 Section 201 of this Act upon corporations during the preceding

3 month. Beginning February 1, 2015 and continuing through July

4 31, 2017, the Treasurer shall transfer each month from the

5 General Revenue Fund to the Local Government Distributive Fund

6 an amount equal to the sum of (i) 8% (10% of the ratio of the 3%

7 individual income tax rate prior to 2011 to the 3.75%

8 individual income tax rate after 2014) of the net revenue

9 realized from the tax imposed by subsections (a) and (b) of

10 Section 201 of this Act upon individuals, trusts, and estates

11 during the preceding month and (ii) 9.14% (10% of the ratio of

12 the 4.8% corporate income tax rate prior to 2011 to the 5.25%

13 corporate income tax rate after 2014) of the net revenue

14 realized from the tax imposed by subsections (a) and (b) of

15 Section 201 of this Act upon corporations during the preceding

16 month. Beginning August 1, 2017 and continuing through January

17 31, 2019, the Treasurer shall transfer each month from the

18 General Revenue Fund to the Local Government Distributive Fund

19 an amount equal to the sum of (i) 6.06% (10% of the ratio of the

20 3% individual income tax rate prior to 2011 to the 4.95%

21 individual income tax rate after July 1, 2017) of the net

22 revenue realized from the tax imposed by subsections (a) and

23 (b) of Section 201 of this Act upon individuals, trusts, and

24 estates during the preceding month and (ii) 6.85% (10% of the

25 ratio of the 4.8% corporate income tax rate prior to 2011 to

26 the 7% corporate income tax rate after July 1, 2017) of the net

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1 revenue realized from the tax imposed by subsections (a) and

2 (b) of Section 201 of this Act upon corporations during the

3 preceding month. Beginning on February 1, 2019 and continuing

4 through January 31, 2025, the Treasurer shall transfer each

5 month from the General Revenue Fund to the Local Government

6 Distributive Fund an amount equal to the sum of (i) 8% (10% of

7 the ratio of the 3% individual income tax rate prior to 2011 to

8 the 3.75% individual income tax rate after January 1, 2019) of

9 the net revenue realized from the tax imposed by subsections

10 (a) and (b) of Section 201 of this Act upon individuals,

11 trusts, and estates during the preceding month and (ii) 9.14%

12 (10% of the ratio of the 4.8% corporate income tax rate prior

13 to 2011 to the 5.25% corporate income tax rate after 2019) of

14 the net revenue realized from the tax imposed by subsections

15 (a) and (b) of Section 201 of this Act upon corporations during

16 the preceding month. Beginning on February 1, 2025, the

17 Treasurer shall transfer each month from the General Revenue

18 Fund to the Local Government Distributive Fund an amount equal

19 to 1/10 of the net revenue realized from the tax imposed on

20 individuals, trusts, estates, and corporations by subsections

21 (a) and (b) of Section 201 during the preceding month. Net

22 revenue realized for a month shall be defined as the revenue

23 from the tax imposed by subsections (a) and (b) of Section 201

24 of this Act which is deposited in the General Revenue Fund, the

25 Education Assistance Fund, the Income Tax Surcharge Local

26 Government Distributive Fund, the Fund for the Advancement of

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1 Education, and the Commitment to Human Services Fund during the

2 month minus the amount paid out of the General Revenue Fund in

3 State warrants during that same month as refunds to taxpayers

4 for overpayment of liability under the tax imposed by

5 subsections (a) and (b) of Section 201 of this Act.

6 Notwithstanding any provision of law to the contrary,

7 beginning on July 6, 2017 (the effective date of Public Act

8 100-23), those amounts required under this subsection (b) to be

9 transferred by the Treasurer into the Local Government

10 Distributive Fund from the General Revenue Fund shall be

11 directly deposited into the Local Government Distributive Fund

12 as the revenue is realized from the tax imposed by subsections

13 (a) and (b) of Section 201 of this Act.

14 For State fiscal year 2018 only, notwithstanding any

15 provision of law to the contrary, the total amount of revenue

16 and deposits under this Section attributable to revenues

17 realized during State fiscal year 2018 shall be reduced by 10%.

18 For State fiscal year 2019 only, notwithstanding any

19 provision of law to the contrary, the total amount of revenue

20 and deposits under this Section attributable to revenues

21 realized during State fiscal year 2019 shall be reduced by 5%.

22 (c) Deposits Into Income Tax Refund Fund.

23 (1) Beginning on January 1, 1989 and thereafter, the

24 Department shall deposit a percentage of the amounts

25 collected pursuant to subsections (a) and (b)(1), (2), and

26 (3) of Section 201 of this Act into a fund in the State

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1 treasury known as the Income Tax Refund Fund. The

2 Department shall deposit 6% of such amounts during the

3 period beginning January 1, 1989 and ending on June 30,

4 1989. Beginning with State fiscal year 1990 and for each

5 fiscal year thereafter, the percentage deposited into the

6 Income Tax Refund Fund during a fiscal year shall be the

7 Annual Percentage. For fiscal years 1999 through 2001, the

8 Annual Percentage shall be 7.1%. For fiscal year 2003, the

9 Annual Percentage shall be 8%. For fiscal year 2004, the

10 Annual Percentage shall be 11.7%. Upon the effective date

11 of Public Act 93-839 (July 30, 2004), the Annual Percentage

12 shall be 10% for fiscal year 2005. For fiscal year 2006,

13 the Annual Percentage shall be 9.75%. For fiscal year 2007,

14 the Annual Percentage shall be 9.75%. For fiscal year 2008,

15 the Annual Percentage shall be 7.75%. For fiscal year 2009,

16 the Annual Percentage shall be 9.75%. For fiscal year 2010,

17 the Annual Percentage shall be 9.75%. For fiscal year 2011,

18 the Annual Percentage shall be 8.75%. For fiscal year 2012,

19 the Annual Percentage shall be 8.75%. For fiscal year 2013,

20 the Annual Percentage shall be 9.75%. For fiscal year 2014,

21 the Annual Percentage shall be 9.5%. For fiscal year 2015,

22 the Annual Percentage shall be 10%. For fiscal year 2018,

23 the Annual Percentage shall be 9.8%. For fiscal year 2019,

24 the Annual Percentage shall be 9.7%. For all other fiscal

25 years, the Annual Percentage shall be calculated as a

26 fraction, the numerator of which shall be the amount of

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1 refunds approved for payment by the Department during the

2 preceding fiscal year as a result of overpayment of tax

3 liability under subsections (a) and (b)(1), (2), and (3) of

4 Section 201 of this Act plus the amount of such refunds

5 remaining approved but unpaid at the end of the preceding

6 fiscal year, minus the amounts transferred into the Income

7 Tax Refund Fund from the Tobacco Settlement Recovery Fund,

8 and the denominator of which shall be the amounts which

9 will be collected pursuant to subsections (a) and (b)(1),

10 (2), and (3) of Section 201 of this Act during the

11 preceding fiscal year; except that in State fiscal year

12 2002, the Annual Percentage shall in no event exceed 7.6%.

13 The Director of Revenue shall certify the Annual Percentage

14 to the Comptroller on the last business day of the fiscal

15 year immediately preceding the fiscal year for which it is

16 to be effective.

17 (2) Beginning on January 1, 1989 and thereafter, the

18 Department shall deposit a percentage of the amounts

19 collected pursuant to subsections (a) and (b)(6), (7), and

20 (8), (c) and (d) of Section 201 of this Act into a fund in

21 the State treasury known as the Income Tax Refund Fund. The

22 Department shall deposit 18% of such amounts during the

23 period beginning January 1, 1989 and ending on June 30,

24 1989. Beginning with State fiscal year 1990 and for each

25 fiscal year thereafter, the percentage deposited into the

26 Income Tax Refund Fund during a fiscal year shall be the

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1 Annual Percentage. For fiscal years 1999, 2000, and 2001,

2 the Annual Percentage shall be 19%. For fiscal year 2003,

3 the Annual Percentage shall be 27%. For fiscal year 2004,

4 the Annual Percentage shall be 32%. Upon the effective date

5 of Public Act 93-839 (July 30, 2004), the Annual Percentage

6 shall be 24% for fiscal year 2005. For fiscal year 2006,

7 the Annual Percentage shall be 20%. For fiscal year 2007,

8 the Annual Percentage shall be 17.5%. For fiscal year 2008,

9 the Annual Percentage shall be 15.5%. For fiscal year 2009,

10 the Annual Percentage shall be 17.5%. For fiscal year 2010,

11 the Annual Percentage shall be 17.5%. For fiscal year 2011,

12 the Annual Percentage shall be 17.5%. For fiscal year 2012,

13 the Annual Percentage shall be 17.5%. For fiscal year 2013,

14 the Annual Percentage shall be 14%. For fiscal year 2014,

15 the Annual Percentage shall be 13.4%. For fiscal year 2015,

16 the Annual Percentage shall be 14%. For fiscal year 2018,

17 the Annual Percentage shall be 17.5%. For fiscal year 2019,

18 the Annual Percentage shall be 15.5%. For all other fiscal

19 years, the Annual Percentage shall be calculated as a

20 fraction, the numerator of which shall be the amount of

21 refunds approved for payment by the Department during the

22 preceding fiscal year as a result of overpayment of tax

23 liability under subsections (a) and (b)(6), (7), and (8),

24 (c) and (d) of Section 201 of this Act plus the amount of

25 such refunds remaining approved but unpaid at the end of

26 the preceding fiscal year, and the denominator of which

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1 shall be the amounts which will be collected pursuant to

2 subsections (a) and (b)(6), (7), and (8), (c) and (d) of

3 Section 201 of this Act during the preceding fiscal year;

4 except that in State fiscal year 2002, the Annual

5 Percentage shall in no event exceed 23%. The Director of

6 Revenue shall certify the Annual Percentage to the

7 Comptroller on the last business day of the fiscal year

8 immediately preceding the fiscal year for which it is to be

9 effective.

10 (3) The Comptroller shall order transferred and the

11 Treasurer shall transfer from the Tobacco Settlement

12 Recovery Fund to the Income Tax Refund Fund (i) $35,000,000

13 in January, 2001, (ii) $35,000,000 in January, 2002, and

14 (iii) $35,000,000 in January, 2003.

15 (d) Expenditures from Income Tax Refund Fund.

16 (1) Beginning January 1, 1989, money in the Income Tax

17 Refund Fund shall be expended exclusively for the purpose

18 of paying refunds resulting from overpayment of tax

19 liability under Section 201 of this Act and for making

20 transfers pursuant to this subsection (d).

21 (2) The Director shall order payment of refunds

22 resulting from overpayment of tax liability under Section

23 201 of this Act from the Income Tax Refund Fund only to the

24 extent that amounts collected pursuant to Section 201 of

25 this Act and transfers pursuant to this subsection (d) and

26 item (3) of subsection (c) have been deposited and retained

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1 in the Fund.

2 (3) As soon as possible after the end of each fiscal

3 year, the Director shall order transferred and the State

4 Treasurer and State Comptroller shall transfer from the

5 Income Tax Refund Fund to the Personal Property Tax

6 Replacement Fund an amount, certified by the Director to

7 the Comptroller, equal to the excess of the amount

8 collected pursuant to subsections (c) and (d) of Section

9 201 of this Act deposited into the Income Tax Refund Fund

10 during the fiscal year over the amount of refunds resulting

11 from overpayment of tax liability under subsections (c) and

12 (d) of Section 201 of this Act paid from the Income Tax

13 Refund Fund during the fiscal year.

14 (4) As soon as possible after the end of each fiscal

15 year, the Director shall order transferred and the State

16 Treasurer and State Comptroller shall transfer from the

17 Personal Property Tax Replacement Fund to the Income Tax

18 Refund Fund an amount, certified by the Director to the

19 Comptroller, equal to the excess of the amount of refunds

20 resulting from overpayment of tax liability under

21 subsections (c) and (d) of Section 201 of this Act paid

22 from the Income Tax Refund Fund during the fiscal year over

23 the amount collected pursuant to subsections (c) and (d) of

24 Section 201 of this Act deposited into the Income Tax

25 Refund Fund during the fiscal year.

26 (4.5) As soon as possible after the end of fiscal year

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1 1999 and of each fiscal year thereafter, the Director shall

2 order transferred and the State Treasurer and State

3 Comptroller shall transfer from the Income Tax Refund Fund

4 to the General Revenue Fund any surplus remaining in the

5 Income Tax Refund Fund as of the end of such fiscal year;

6 excluding for fiscal years 2000, 2001, and 2002 amounts

7 attributable to transfers under item (3) of subsection (c)

8 less refunds resulting from the earned income tax credit.

9 (5) This Act shall constitute an irrevocable and

10 continuing appropriation from the Income Tax Refund Fund

11 for the purpose of paying refunds upon the order of the

12 Director in accordance with the provisions of this Section.

13 (e) Deposits into the Education Assistance Fund and the

14 Income Tax Surcharge Local Government Distributive Fund. On

15 July 1, 1991, and thereafter, of the amounts collected pursuant

16 to subsections (a) and (b) of Section 201 of this Act, minus

17 deposits into the Income Tax Refund Fund, the Department shall

18 deposit 7.3% into the Education Assistance Fund in the State

19 Treasury. Beginning July 1, 1991, and continuing through

20 January 31, 1993, of the amounts collected pursuant to

21 subsections (a) and (b) of Section 201 of the Illinois Income

22 Tax Act, minus deposits into the Income Tax Refund Fund, the

23 Department shall deposit 3.0% into the Income Tax Surcharge

24 Local Government Distributive Fund in the State Treasury.

25 Beginning February 1, 1993 and continuing through June 30,

26 1993, of the amounts collected pursuant to subsections (a) and

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1 (b) of Section 201 of the Illinois Income Tax Act, minus

2 deposits into the Income Tax Refund Fund, the Department shall

3 deposit 4.4% into the Income Tax Surcharge Local Government

4 Distributive Fund in the State Treasury. Beginning July 1,

5 1993, and continuing through June 30, 1994, of the amounts

6 collected under subsections (a) and (b) of Section 201 of this

7 Act, minus deposits into the Income Tax Refund Fund, the

8 Department shall deposit 1.475% into the Income Tax Surcharge

9 Local Government Distributive Fund in the State Treasury.

10 (f) Deposits into the Fund for the Advancement of

11 Education. Beginning February 1, 2015, the Department shall

12 deposit the following portions of the revenue realized from the

13 tax imposed upon individuals, trusts, and estates by

14 subsections (a) and (b) of Section 201 of this Act during the

15 preceding month, minus deposits into the Income Tax Refund

16 Fund, into the Fund for the Advancement of Education:

17 (1) beginning February 1, 2015, and prior to February

18 1, 2025, 1/30; and

19 (2) beginning February 1, 2025, 1/26.

20 If the rate of tax imposed by subsection (a) and (b) of

21 Section 201 is reduced pursuant to Section 201.5 of this Act,

22 the Department shall not make the deposits required by this

23 subsection (f) on or after the effective date of the reduction.

24 (g) Deposits into the Commitment to Human Services Fund.

25 Beginning February 1, 2015, the Department shall deposit the

26 following portions of the revenue realized from the tax imposed

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1 upon individuals, trusts, and estates by subsections (a) and

2 (b) of Section 201 of this Act during the preceding month,

3 minus deposits into the Income Tax Refund Fund, into the

4 Commitment to Human Services Fund:

5 (1) beginning February 1, 2015, and prior to February

6 1, 2025, 1/30; and

7 (2) beginning February 1, 2025, 1/26.

8 If the rate of tax imposed by subsection (a) and (b) of

9 Section 201 is reduced pursuant to Section 201.5 of this Act,

10 the Department shall not make the deposits required by this

11 subsection (g) on or after the effective date of the reduction.

12 (h) Deposits into the Tax Compliance and Administration

13 Fund. Beginning on the first day of the first calendar month to

14 occur on or after August 26, 2014 (the effective date of Public

15 Act 98-1098), each month the Department shall pay into the Tax

16 Compliance and Administration Fund, to be used, subject to

17 appropriation, to fund additional auditors and compliance

18 personnel at the Department, an amount equal to 1/12 of 5% of

19 the cash receipts collected during the preceding fiscal year by

20 the Audit Bureau of the Department from the tax imposed by

21 subsections (a), (b), (c), and (d) of Section 201 of this Act,

22 net of deposits into the Income Tax Refund Fund made from those

23 cash receipts.

24 (Source: P.A. 99-78, eff. 7-20-15; 100-22, eff. 7-6-17; 100-23,

25 eff. 7-6-17; 100-587, eff. 6-4-18; 100-621, eff. 7-20-18;

26 100-863, eff. 8-14-18; revised 10-12-18.)

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1 (35 ILCS 5/1102) (from Ch. 120, par. 11-1102)

2 Sec. 1102. Jeopardy assessments.

3 (a) Jeopardy assessment and lien.

4 (1) Assessment. If the Department finds that a taxpayer

5 is about to depart from the State, or to conceal himself or

6 his property, or to do any other act tending to prejudice

7 or to render wholly or partly ineffectual proceedings to

8 collect any amount of tax or penalties imposed under this

9 Act unless court proceedings are brought without delay, or

10 if the Department finds that the collection of such amount

11 will be jeopardized by delay, the Department shall give the

12 taxpayer notice of such findings and shall make demand for

13 immediate return and payment of such amount, whereupon such

14 amount shall be deemed assessed and shall become

15 immediately due and payable.

16 (2) Filing of lien. If the taxpayer, within 5 days

17 after such notice (or within such extension of time as the

18 Department may grant), does not comply with such notice or

19 show to the Department that the findings in such notice are

20 erroneous, the Department may file a notice of jeopardy

21 assessment lien in the office of the recorder of the county

22 in which any property of the taxpayer may be located ~~State~~

23 ~~Tax Lien Registry~~and shall notify the taxpayer of such

24 filing. Such jeopardy assessment lien shall have the same

25 scope and effect as a statutory lien under this Act. The

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1 taxpayer is liable for the filing fee incurred by the

2 Department for filing the lien and the filing fee incurred

3 by the Department to file the release of that lien ~~any~~

4 ~~administrative fee imposed by the Department by rule in~~

5 ~~connection with the State Tax Lien Registry~~. The filing

6 fees shall be paid to the Department in addition to payment

7 of the tax, penalty, and interest included in the amount of

8 the lien.

9 (b) Termination of taxable year. In the case of a tax for a

10 current taxable year, the Director shall declare the taxable

11 period of the taxpayer immediately terminated and his notice

12 and demand for a return and immediate payment of the tax shall

13 relate to the period declared terminated, including therein

14 income accrued and deductions incurred up to the date of

15 termination if not otherwise properly includible or deductible

16 in respect of such taxable year.

17 (c) Protest. If the taxpayer believes that he does not owe

18 some or all of the amount for which the jeopardy assessment

19 lien against him has been filed, or that no jeopardy to the

20 revenue in fact exists, he may protest within 20 days after

21 being notified by the Department of the filing of such jeopardy

22 assessment lien and request a hearing, whereupon the Department

23 shall hold a hearing in conformity with the provisions of

24 Section 908 and, pursuant thereto, shall notify the taxpayer of

25 its decision as to whether or not such jeopardy assessment lien

26 will be released.

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1 (Source: P.A. 100-22, eff. 1-1-18.)

2 (35 ILCS 5/1103) (from Ch. 120, par. 11-1103)

3 Sec. 1103. Filing and priority of liens.

4 (a) Filing with Recorder ~~in the State Tax Lien Registry~~.

5 Nothing in this Article shall be construed to give the

6 Department a preference over the rights of any bona fide

7 purchaser, holder of a security interest, mechanics lienor,

8 mortgagee, or judgment lien creditor arising prior to the

9 filing of a regular notice of lien or a notice of jeopardy

10 assessment lien in the office of the recorder in the county in

11 which the property subject to the lien is located ~~State Tax~~

12 ~~Lien Registry~~. For purposes of this Section, the term "bona

13 fide," shall not include any mortgage of real or personal

14 property or any other credit transaction that results in the

15 mortgagee or the holder of the security acting as trustee for

16 unsecured creditors of the taxpayer mentioned in the notice of

17 lien who executed such chattel or real property mortgage or the

18 document evidencing such credit transaction. Such lien shall be

19 inferior to the lien of general taxes, special assessments and

20 special taxes heretofore or hereafter levied by any political

21 subdivision of this State.

22 (b) Filing with Registrar ~~in the State Tax Lien Registry~~.

23 In case title to land to be affected by the notice of lien or

24 notice of jeopardy assessment lien is registered under the

25 provisions of "An Act concerning land titles," approved May 1,

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1 1897, as amended, such notice shall ~~also~~ be filed in the office

2 of the Registrar of Titles of the county within which the

3 property subject to the lien is situated and shall be entered

4 upon the register of titles as a memorial of charge upon each

5 folium of the register of titles affected by such notice ~~State~~

6 ~~Tax Lien Registry~~, and the Department shall not have a

7 preference over the rights of any bona fide purchaser,

8 mortgagee, judgment creditor or other lien holder arising prior

9 to the registration of such notice.

10 (c) Index. The recorder of each county shall procure a file

11 labeled "State Tax Lien Notices" and an index book labeled

12 "State Tax Lien Index." When notice of any lien or jeopardy

13 assessment lien is presented to him for filing, he shall file

14 it in numerical order in the file and shall enter it

15 alphabetically in the index. The entry shall show the name and

16 last known address of the person named in the notice, the

17 serial number of the notice, the date and hour of filing,

18 whether it is a regular lien or a jeopardy assessment lien, and

19 the amount of tax and penalty due and unpaid, plus the amount

20 of interest due at the time when the notice of lien or jeopardy

21 assessment is filed. ~~The Department of Revenue shall maintain a~~

22 ~~State Tax Lien Index of all tax liens filed in the State Tax~~

23 ~~Lien Registry as provided for by the State Tax Lien~~

24 ~~Registration Act.~~

25 (d) No recorder or registrar of titles of any county shall

26 require that the Department pay any costs or fees in connection

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1 with recordation of any notice or other document filed by the

2 Department under this Act at the time such notice or other

3 document is presented for recordation. The recorder or

4 registrar of each county, in order to receive payment for fees

5 or costs incurred by the Department, shall present the

6 Department with monthly statements indicating the amount of

7 fees and costs incurred by the Department and for which no

8 payment has been received. This amendatory Act of 1987 applies

9 to all liens heretofore or hereafter filed. ~~(Blank).~~

10 (e) The taxpayer is liable for the ~~any~~ filing fee incurred

11 ~~fees imposed~~by the Department for filing the lien~~in the State~~

12 ~~Tax Lien Registry~~ and the ~~any~~ filing fee incurred ~~fees imposed~~

13 by the Department to file ~~for~~the release of that lien. The

14 filing fees shall be paid to the Department in addition to

15 payment of the tax, penalty, and interest included in the

16 amount of the lien.

17 (Source: P.A. 100-22, eff. 1-1-18.)

18 (35 ILCS 5/1105) (from Ch. 120, par. 11-1105)

19 Sec. 1105. Release of liens.

20 (a) In general. Upon payment by the taxpayer to the

21 Department in cash or by guaranteed remittance of an amount

22 representing the filing fees and charges for the lien and the

23 filing fees and charges for the release of that lien, the

24 Department shall release all or any portion of the property

25 subject to any lien provided for in this Act and file that

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1 complete or partial release of lien with the recorder of the

2 county where the lien was filed ~~in the State Tax Lien Registry~~

3 if it determines that the release will not endanger or

4 jeopardize the collection of the amount secured thereby.

5 (b) Judicial determination. If on judicial review the final

6 judgment of the court is that the taxpayer does not owe some or

7 all of the amount secured by the lien against him, or that no

8 jeopardy to the revenue exists, the Department shall release

9 its lien to the extent of such finding of nonliability, or to

10 the extent of such finding of no jeopardy to the revenue. The

11 taxpayer shall, however, be liable for the filing fee paid

12 ~~imposed~~by the Department to file the lien and the filing fee

13 required to file a release of ~~imposed to release~~the lien. The

14 filing fees shall be paid to the Department.

15 (c) Payment. The Department shall also release its jeopardy

16 assessment lien against the taxpayer whenever the tax and

17 penalty covered by such lien, plus any interest which may be

18 due and an amount representing the filing fee to file the lien

19 and the filing feerequired to file a release of ~~imposed to~~

20 ~~release~~that lien, are paid by the taxpayer to the Department

21 in cash or by guaranteed remittance.

22 (d) Certificate of release. The Department shall issue a

23 certificate of complete or partial release of the lien upon

24 payment by the taxpayer to the Department in cash or by

25 guaranteed remittance of an amount representing the filing fee

26 paid ~~imposed~~by the Department to file the lien and the filing

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1 fee required to file the ~~imposed to~~ release of that lien:

2 (1) to the extent that the fair market value of any

3 property subject to the lien exceeds the amount of the lien

4 plus the amount of all prior liens upon such property;

5 (2) to the extent that such lien shall become

6 unenforceable;

7 (3) to the extent that the amount of such lien is paid

8 by the person whose property is subject to such lien,

9 together with any interest and penalty which may become due

10 under this Act between the date when the notice of lien is

11 filed and the date when the amount of such lien is paid;

12 (4) to the extent that there is furnished to the

13 Department on a form to be approved and with a surety or

14 sureties satisfactory to the Department a bond that is

15 conditioned upon the payment of the amount of such lien,

16 together with any interest which may become due under this

17 Act after the notice of lien is filed, but before the

18 amount thereof is fully paid;

19 (5) to the extent and under the circumstances specified

20 in this Section.

21 A certificate of complete or partial release of any lien

22 shall be held conclusive that the lien upon the property

23 covered by the certificate is extinguished to the extent

24 indicated by such certificate.

25 Such release of lien shall be issued to the person, or his

26 agent, against whom the lien was obtained and shall contain in

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1 legible letters a statement as follows:

2 FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL

3 BE FILED WITH THE RECORDER OF THE REGISTRAR OF TITLES IN

4 WHOSE OFFICE THE LIEN WAS FILED ~~IN THE STATE TAX LIEN REGISTRY~~.

5 (e) Filing. When a certificate of complete or partial

6 release of lien issued by the Department ispresented for

7 filing in the office of the recorder or Registrar of Titles

8 where a notice of lien or notice of jeopardy assessment lien

9 was filed:

10 (1) the recorder, in the case of nonregistered

11 property, ~~filed in the State Tax Lien Registry, the~~

12 ~~Department~~shall permanently attach the certificate of

13 release to the notice of lien or notice of jeopardy

14 assessment lien and shall enter the certificate of release

15 and the date in the "State Tax Lien Index" on the line

16 where the notice of lien or notice of jeopardy assessment

17 lien is entered; and ~~.~~

18 (2) in the case of registered property, the Registrar

19 of Titles shall file and enter upon each folium of the

20 register of titles affected thereby a memorial of the

21 certificate of release which memorial when so entered shall

22 act as a release pro tanto of any memorial of such notice

23 of lien or notice of jeopardy assessment lien previously

24 filed and registered.

25 (Source: P.A. 100-22, eff. 1-1-18.)

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1 (35 ILCS 5/1501) (from Ch. 120, par. 15-1501)

2 Sec. 1501. Definitions.

3 (a) In general. When used in this Act, where not otherwise

4 distinctly expressed or manifestly incompatible with the

5 intent thereof:

6 (1) Business income. The term "business income" means

7 all income that may be treated as apportionable business

8 income under the Constitution of the United States.

9 Business income is net of the deductions allocable thereto.

10 Such term does not include compensation or the deductions

11 allocable thereto. For each taxable year beginning on or

12 after January 1, 2003, a taxpayer may elect to treat all

13 income other than compensation as business income. This

14 election shall be made in accordance with rules adopted by

15 the Department and, once made, shall be irrevocable.

16 (1.5) Captive real estate investment trust:

17 (A) The term "captive real estate investment

18 trust" means a corporation, trust, or association:

19 (i) that is considered a real estate

20 investment trust for the taxable year under

21 Section 856 of the Internal Revenue Code;

22 (ii) the certificates of beneficial interest

23 or shares of which are not regularly traded on an

24 established securities market; and

25 (iii) of which more than 50% of the voting

26 power or value of the beneficial interest or

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1 shares, at any time during the last half of the

2 taxable year, is owned or controlled, directly,

3 indirectly, or constructively, by a single

4 corporation.

5 (B) The term "captive real estate investment

6 trust" does not include:

7 (i) a real estate investment trust of which

8 more than 50% of the voting power or value of the

9 beneficial interest or shares is owned or

10 controlled, directly, indirectly, or

11 constructively, by:

12 (a) a real estate investment trust, other

13 than a captive real estate investment trust;

14 (b) a person who is exempt from taxation

15 under Section 501 of the Internal Revenue Code,

16 and who is not required to treat income

17 received from the real estate investment trust

18 as unrelated business taxable income under

19 Section 512 of the Internal Revenue Code;

20 (c) a listed Australian property trust, if

21 no more than 50% of the voting power or value

22 of the beneficial interest or shares of that

23 trust, at any time during the last half of the

24 taxable year, is owned or controlled, directly

25 or indirectly, by a single person;

26 (d) an entity organized as a trust,

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1 provided a listed Australian property trust

2 described in subparagraph (c) owns or

3 controls, directly or indirectly, or

4 constructively, 75% or more of the voting power

5 or value of the beneficial interests or shares

6 of such entity; or

7 (e) an entity that is organized outside of

8 the laws of the United States and that

9 satisfies all of the following criteria:

10 (1) at least 75% of the entity's total

11 asset value at the close of its taxable

12 year is represented by real estate assets

13 (as defined in Section 856(c)(5)(B) of the

14 Internal Revenue Code, thereby including

15 shares or certificates of beneficial

16 interest in any real estate investment

17 trust), cash and cash equivalents, and

18 U.S. Government securities;

19 (2) the entity is not subject to tax on

20 amounts that are distributed to its

21 beneficial owners or is exempt from

22 entity-level taxation;

23 (3) the entity distributes at least

24 85% of its taxable income (as computed in

25 the jurisdiction in which it is organized)

26 to the holders of its shares or

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1 certificates of beneficial interest on an

2 annual basis;

3 (4) either (i) the shares or

4 beneficial interests of the entity are

5 regularly traded on an established

6 securities market or (ii) not more than 10%

7 of the voting power or value in the entity

8 is held, directly, indirectly, or

9 constructively, by a single entity or

10 individual; and

11 (5) the entity is organized in a

12 country that has entered into a tax treaty

13 with the United States; or

14 (ii) during its first taxable year for which it

15 elects to be treated as a real estate investment

16 trust under Section 856(c)(1) of the Internal

17 Revenue Code, a real estate investment trust the

18 certificates of beneficial interest or shares of

19 which are not regularly traded on an established

20 securities market, but only if the certificates of

21 beneficial interest or shares of the real estate

22 investment trust are regularly traded on an

23 established securities market prior to the earlier

24 of the due date (including extensions) for filing

25 its return under this Act for that first taxable

26 year or the date it actually files that return.

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1 (C) For the purposes of this subsection (1.5), the

2 constructive ownership rules prescribed under Section

3 318(a) of the Internal Revenue Code, as modified by

4 Section 856(d)(5) of the Internal Revenue Code, apply

5 in determining the ownership of stock, assets, or net

6 profits of any person.

7 (D) For the purposes of this item (1.5), for

8 taxable years ending on or after August 16, 2007, the

9 voting power or value of the beneficial interest or

10 shares of a real estate investment trust does not

11 include any voting power or value of beneficial

12 interest or shares in a real estate investment trust

13 held directly or indirectly in a segregated asset

14 account by a life insurance company (as described in

15 Section 817 of the Internal Revenue Code) to the extent

16 such voting power or value is for the benefit of

17 entities or persons who are either immune from taxation

18 or exempt from taxation under subtitle A of the

19 Internal Revenue Code.

20 (2) Commercial domicile. The term "commercial

21 domicile" means the principal place from which the trade or

22 business of the taxpayer is directed or managed.

23 (3) Compensation. The term "compensation" means wages,

24 salaries, commissions and any other form of remuneration

25 paid to employees for personal services.

26 (4) Corporation. The term "corporation" includes

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1 associations, joint-stock companies, insurance companies

2 and cooperatives. Any entity, including a limited

3 liability company formed under the Illinois Limited

4 Liability Company Act, shall be treated as a corporation if

5 it is so classified for federal income tax purposes.

6 (5) Department. The term "Department" means the

7 Department of Revenue of this State.

8 (6) Director. The term "Director" means the Director of

9 Revenue of this State.

10 (7) Fiduciary. The term "fiduciary" means a guardian,

11 trustee, executor, administrator, receiver, or any person

12 acting in any fiduciary capacity for any person.

13 (8) Financial organization.

14 (A) The term "financial organization" means any

15 bank, bank holding company, trust company, savings

16 bank, industrial bank, land bank, safe deposit

17 company, private banker, savings and loan association,

18 building and loan association, credit union, currency

19 exchange, cooperative bank, small loan company, sales

20 finance company, investment company, or any person

21 which is owned by a bank or bank holding company. For

22 the purpose of this Section a "person" will include

23 only those persons which a bank holding company may

24 acquire and hold an interest in, directly or

25 indirectly, under the provisions of the Bank Holding

26 Company Act of 1956 (12 U.S.C. 1841, et seq.), except

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1 where interests in any person must be disposed of

2 within certain required time limits under the Bank

3 Holding Company Act of 1956.

4 (B) For purposes of subparagraph (A) of this

5 paragraph, the term "bank" includes (i) any entity that

6 is regulated by the Comptroller of the Currency under

7 the National Bank Act, or by the Federal Reserve Board,

8 or by the Federal Deposit Insurance Corporation and

9 (ii) any federally or State chartered bank operating as

10 a credit card bank.

11 (C) For purposes of subparagraph (A) of this

12 paragraph, the term "sales finance company" has the

13 meaning provided in the following item (i) or (ii):

14 (i) A person primarily engaged in one or more

15 of the following businesses: the business of

16 purchasing customer receivables, the business of

17 making loans upon the security of customer

18 receivables, the business of making loans for the

19 express purpose of funding purchases of tangible

20 personal property or services by the borrower, or

21 the business of finance leasing. For purposes of

22 this item (i), "customer receivable" means:

23 (a) a retail installment contract or

24 retail charge agreement within the meaning of

25 the Sales Finance Agency Act, the Retail

26 Installment Sales Act, or the Motor Vehicle

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1 Retail Installment Sales Act;

2 (b) an installment, charge, credit, or

3 similar contract or agreement arising from the

4 sale of tangible personal property or services

5 in a transaction involving a deferred payment

6 price payable in one or more installments

7 subsequent to the sale; or

8 (c) the outstanding balance of a contract

9 or agreement described in provisions (a) or (b)

10 of this item (i).

11 A customer receivable need not provide for

12 payment of interest on deferred payments. A sales

13 finance company may purchase a customer receivable

14 from, or make a loan secured by a customer

15 receivable to, the seller in the original

16 transaction or to a person who purchased the

17 customer receivable directly or indirectly from

18 that seller.

19 (ii) A corporation meeting each of the

20 following criteria:

21 (a) the corporation must be a member of an

22 "affiliated group" within the meaning of

23 Section 1504(a) of the Internal Revenue Code,

24 determined without regard to Section 1504(b)

25 of the Internal Revenue Code;

26 (b) more than 50% of the gross income of

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1 the corporation for the taxable year must be

2 interest income derived from qualifying loans.

3 A "qualifying loan" is a loan made to a member

4 of the corporation's affiliated group that

5 originates customer receivables (within the

6 meaning of item (i)) or to whom customer

7 receivables originated by a member of the

8 affiliated group have been transferred, to the

9 extent the average outstanding balance of

10 loans from that corporation to members of its

11 affiliated group during the taxable year do not

12 exceed the limitation amount for that

13 corporation. The "limitation amount" for a

14 corporation is the average outstanding

15 balances during the taxable year of customer

16 receivables (within the meaning of item (i))

17 originated by all members of the affiliated

18 group. If the average outstanding balances of

19 the loans made by a corporation to members of

20 its affiliated group exceed the limitation

21 amount, the interest income of that

22 corporation from qualifying loans shall be

23 equal to its interest income from loans to

24 members of its affiliated groups times a

25 fraction equal to the limitation amount

26 divided by the average outstanding balances of

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1 the loans made by that corporation to members

2 of its affiliated group;

3 (c) the total of all shareholder's equity

4 (including, without limitation, paid-in

5 capital on common and preferred stock and

6 retained earnings) of the corporation plus the

7 total of all of its loans, advances, and other

8 obligations payable or owed to members of its

9 affiliated group may not exceed 20% of the

10 total assets of the corporation at any time

11 during the tax year; and

12 (d) more than 50% of all interest-bearing

13 obligations of the affiliated group payable to

14 persons outside the group determined in

15 accordance with generally accepted accounting

16 principles must be obligations of the

17 corporation.

18 This amendatory Act of the 91st General Assembly is

19 declaratory of existing law.

20 (D) Subparagraphs (B) and (C) of this paragraph are

21 declaratory of existing law and apply retroactively,

22 for all tax years beginning on or before December 31,

23 1996, to all original returns, to all amended returns

24 filed no later than 30 days after the effective date of

25 this amendatory Act of 1996, and to all notices issued

26 on or before the effective date of this amendatory Act

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1 of 1996 under subsection (a) of Section 903, subsection

2 (a) of Section 904, subsection (e) of Section 909, or

3 Section 912. A taxpayer that is a "financial

4 organization" that engages in any transaction with an

5 affiliate shall be a "financial organization" for all

6 purposes of this Act.

7 (E) For all tax years beginning on or before

8 December 31, 1996, a taxpayer that falls within the

9 definition of a "financial organization" under

10 subparagraphs (B) or (C) of this paragraph, but who

11 does not fall within the definition of a "financial

12 organization" under the Proposed Regulations issued by

13 the Department of Revenue on July 19, 1996, may

14 irrevocably elect to apply the Proposed Regulations

15 for all of those years as though the Proposed

16 Regulations had been lawfully promulgated, adopted,

17 and in effect for all of those years. For purposes of

18 applying subparagraphs (B) or (C) of this paragraph to

19 all of those years, the election allowed by this

20 subparagraph applies only to the taxpayer making the

21 election and to those members of the taxpayer's unitary

22 business group who are ordinarily required to

23 apportion business income under the same subsection of

24 Section 304 of this Act as the taxpayer making the

25 election. No election allowed by this subparagraph

26 shall be made under a claim filed under subsection (d)

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1 of Section 909 more than 30 days after the effective

2 date of this amendatory Act of 1996.

3 (F) Finance Leases. For purposes of this

4 subsection, a finance lease shall be treated as a loan

5 or other extension of credit, rather than as a lease,

6 regardless of how the transaction is characterized for

7 any other purpose, including the purposes of any

8 regulatory agency to which the lessor is subject. A

9 finance lease is any transaction in the form of a lease

10 in which the lessee is treated as the owner of the

11 leased asset entitled to any deduction for

12 depreciation allowed under Section 167 of the Internal

13 Revenue Code.

14 (9) Fiscal year. The term "fiscal year" means an

15 accounting period of 12 months ending on the last day of

16 any month other than December.

17 (9.5) Fixed place of business. The term "fixed place of

18 business" has the same meaning as that term is given in

19 Section 864 of the Internal Revenue Code and the related

20 Treasury regulations.

21 (10) Includes and including. The terms "includes" and

22 "including" when used in a definition contained in this Act

23 shall not be deemed to exclude other things otherwise

24 within the meaning of the term defined.

25 (11) Internal Revenue Code. The term "Internal Revenue

26 Code" means the United States Internal Revenue Code of 1954

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1 or any successor law or laws relating to federal income

2 taxes in effect for the taxable year.

3 (11.5) Investment partnership.

4 (A) The term "investment partnership" means any

5 entity that is treated as a partnership for federal

6 income tax purposes that meets the following

7 requirements:

8 (i) no less than 90% of the partnership's cost

9 of its total assets consists of qualifying

10 investment securities, deposits at banks or other

11 financial institutions, and office space and

12 equipment reasonably necessary to carry on its

13 activities as an investment partnership;

14 (ii) no less than 90% of its gross income

15 consists of interest, dividends, and gains from

16 the sale or exchange of qualifying investment

17 securities; and

18 (iii) the partnership is not a dealer in

19 qualifying investment securities.

20 (B) For purposes of this paragraph (11.5), the term

21 "qualifying investment securities" includes all of the

22 following:

23 (i) common stock, including preferred or debt

24 securities convertible into common stock, and

25 preferred stock;

26 (ii) bonds, debentures, and other debt

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1 securities;

2 (iii) foreign and domestic currency deposits

3 secured by federal, state, or local governmental

4 agencies;

5 (iv) mortgage or asset-backed securities

6 secured by federal, state, or local governmental

7 agencies;

8 (v) repurchase agreements and loan

9 participations;

10 (vi) foreign currency exchange contracts and

11 forward and futures contracts on foreign

12 currencies;

13 (vii) stock and bond index securities and

14 futures contracts and other similar financial

15 securities and futures contracts on those

16 securities;

17 (viii) options for the purchase or sale of any

18 of the securities, currencies, contracts, or

19 financial instruments described in items (i) to

20 (vii), inclusive;

21 (ix) regulated futures contracts;

22 (x) commodities (not described in Section

23 1221(a)(1) of the Internal Revenue Code) or

24 futures, forwards, and options with respect to

25 such commodities, provided, however, that any item

26 of a physical commodity to which title is actually

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1 acquired in the partnership's capacity as a dealer

2 in such commodity shall not be a qualifying

3 investment security;

4 (xi) derivatives; and

5 (xii) a partnership interest in another

6 partnership that is an investment partnership.

7 (12) Mathematical error. The term "mathematical error"

8 includes the following types of errors, omissions, or

9 defects in a return filed by a taxpayer which prevents

10 acceptance of the return as filed for processing:

11 (A) arithmetic errors or incorrect computations on

12 the return or supporting schedules;

13 (B) entries on the wrong lines;

14 (C) omission of required supporting forms or

15 schedules or the omission of the information in whole

16 or in part called for thereon; and

17 (D) an attempt to claim, exclude, deduct, or

18 improperly report, in a manner directly contrary to the

19 provisions of the Act and regulations thereunder any

20 item of income, exemption, deduction, or credit.

21 (13) Nonbusiness income. The term "nonbusiness income"

22 means all income other than business income or

23 compensation.

24 (14) Nonresident. The term "nonresident" means a

25 person who is not a resident.

26 (15) Paid, incurred and accrued. The terms "paid",

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1 "incurred" and "accrued" shall be construed according to

2 the method of accounting upon the basis of which the

3 person's base income is computed under this Act.

4 (16) Partnership and partner. The term "partnership"

5 includes a syndicate, group, pool, joint venture or other

6 unincorporated organization, through or by means of which

7 any business, financial operation, or venture is carried

8 on, and which is not, within the meaning of this Act, a

9 trust or estate or a corporation; and the term "partner"

10 includes a member in such syndicate, group, pool, joint

11 venture or organization.

12 The term "partnership" includes any entity, including

13 a limited liability company formed under the Illinois

14 Limited Liability Company Act, classified as a partnership

15 for federal income tax purposes.

16 The term "partnership" does not include a syndicate,

17 group, pool, joint venture, or other unincorporated

18 organization established for the sole purpose of playing

19 the Illinois State Lottery.

20 (17) Part-year resident. The term "part-year resident"

21 means an individual who became a resident during the

22 taxable year or ceased to be a resident during the taxable

23 year. Under Section 1501(a)(20)(A)(i) residence commences

24 with presence in this State for other than a temporary or

25 transitory purpose and ceases with absence from this State

26 for other than a temporary or transitory purpose. Under

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1 Section 1501(a)(20)(A)(ii) residence commences with the

2 establishment of domicile in this State and ceases with the

3 establishment of domicile in another State.

4 (18) Person. The term "person" shall be construed to

5 mean and include an individual, a trust, estate,

6 partnership, association, firm, company, corporation,

7 limited liability company, or fiduciary. For purposes of

8 Section 1301 and 1302 of this Act, a "person" means (i) an

9 individual, (ii) a corporation, (iii) an officer, agent, or

10 employee of a corporation, (iv) a member, agent or employee

11 of a partnership, or (v) a member, manager, employee,

12 officer, director, or agent of a limited liability company

13 who in such capacity commits an offense specified in

14 Section 1301 and 1302.

15 (18A) Records. The term "records" includes all data

16 maintained by the taxpayer, whether on paper, microfilm,

17 microfiche, or any type of machine-sensible data

18 compilation.

19 (19) Regulations. The term "regulations" includes

20 rules promulgated and forms prescribed by the Department.

21 (20) Resident. The term "resident" means:

22 (A) an individual (i) who is in this State for

23 other than a temporary or transitory purpose during the

24 taxable year; or (ii) who is domiciled in this State

25 but is absent from the State for a temporary or

26 transitory purpose during the taxable year;

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1 (B) The estate of a decedent who at his or her

2 death was domiciled in this State;

3 (C) A trust created by a will of a decedent who at

4 his death was domiciled in this State; and

5 (D) An irrevocable trust, the grantor of which was

6 domiciled in this State at the time such trust became

7 irrevocable. For purpose of this subparagraph, a trust

8 shall be considered irrevocable to the extent that the

9 grantor is not treated as the owner thereof under

10 Sections 671 through 678 of the Internal Revenue Code.

11 (21) Sales. The term "sales" means all gross receipts

12 of the taxpayer not allocated under Sections 301, 302 and

13 303.

14 (22) State. The term "state" when applied to a

15 jurisdiction other than this State means any state of the

16 United States, the District of Columbia, the Commonwealth

17 of Puerto Rico, any Territory or Possession of the United

18 States, and any foreign country, or any political

19 subdivision of any of the foregoing. For purposes of the

20 foreign tax credit under Section 601, the term "state"

21 means any state of the United States, the District of

22 Columbia, the Commonwealth of Puerto Rico, and any

23 territory or possession of the United States, or any

24 political subdivision of any of the foregoing, effective

25 for tax years ending on or after December 31, 1989.

26 (23) Taxable year. The term "taxable year" means the

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1 calendar year, or the fiscal year ending during such

2 calendar year, upon the basis of which the base income is

3 computed under this Act. "Taxable year" means, in the case

4 of a return made for a fractional part of a year under the

5 provisions of this Act, the period for which such return is

6 made.

7 (24) Taxpayer. The term "taxpayer" means any person

8 subject to the tax imposed by this Act.

9 (25) International banking facility. The term

10 international banking facility shall have the same meaning

11 as is set forth in the Illinois Banking Act or as is set

12 forth in the laws of the United States or regulations of

13 the Board of Governors of the Federal Reserve System.

14 (26) Income Tax Return Preparer.

15 (A) The term "income tax return preparer" means any

16 person who prepares for compensation, or who employs

17 one or more persons to prepare for compensation, any

18 return of tax imposed by this Act or any claim for

19 refund of tax imposed by this Act. The preparation of a

20 substantial portion of a return or claim for refund

21 shall be treated as the preparation of that return or

22 claim for refund.

23 (B) A person is not an income tax return preparer

24 if all he or she does is

25 (i) furnish typing, reproducing, or other

26 mechanical assistance;

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1 (ii) prepare returns or claims for refunds for

2 the employer by whom he or she is regularly and

3 continuously employed;

4 (iii) prepare as a fiduciary returns or claims

5 for refunds for any person; or

6 (iv) prepare claims for refunds for a taxpayer

7 in response to any notice of deficiency issued to

8 that taxpayer or in response to any waiver of

9 restriction after the commencement of an audit of

10 that taxpayer or of another taxpayer if a

11 determination in the audit of the other taxpayer

12 directly or indirectly affects the tax liability

13 of the taxpayer whose claims he or she is

14 preparing.

15 (27) Unitary business group.

16 (A) The term "unitary business group" means a group

17 of persons related through common ownership whose

18 business activities are integrated with, dependent

19 upon and contribute to each other. The group will not

20 include those members whose business activity outside

21 the United States is 80% or more of any such member's

22 total business activity; for purposes of this

23 paragraph and clause (a)(3)(B)(ii) of Section 304,

24 business activity within the United States shall be

25 measured by means of the factors ordinarily applicable

26 under subsections (a), (b), (c), (d), or (h) of Section

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1 304 except that, in the case of members ordinarily

2 required to apportion business income by means of the 3

3 factor formula of property, payroll and sales

4 specified in subsection (a) of Section 304, including

5 the formula as weighted in subsection (h) of Section

6 304, such members shall not use the sales factor in the

7 computation and the results of the property and payroll

8 factor computations of subsection (a) of Section 304

9 shall be divided by 2 (by one if either the property or

10 payroll factor has a denominator of zero). The

11 computation required by the preceding sentence shall,

12 in each case, involve the division of the member's

13 property, payroll, or revenue miles in the United

14 States, insurance premiums on property or risk in the

15 United States, or financial organization business

16 income from sources within the United States, as the

17 case may be, by the respective worldwide figures for

18 such items. Common ownership in the case of

19 corporations is the direct or indirect control or

20 ownership of more than 50% of the outstanding voting

21 stock of the persons carrying on unitary business

22 activity. Unitary business activity can ordinarily be

23 illustrated where the activities of the members are:

24 (1) in the same general line (such as manufacturing,

25 wholesaling, retailing of tangible personal property,

26 insurance, transportation or finance); or (2) are

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1 steps in a vertically structured enterprise or process

2 (such as the steps involved in the production of

3 natural resources, which might include exploration,

4 mining, refining, and marketing); and, in either

5 instance, the members are functionally integrated

6 through the exercise of strong centralized management

7 (where, for example, authority over such matters as

8 purchasing, financing, tax compliance, product line,

9 personnel, marketing and capital investment is not

10 left to each member).

11 (B) In no event, for taxable years ending prior to

12 December 31, 2017 or ending after December 31, 2018,

13 shall any unitary business group include members which

14 are ordinarily required to apportion business income

15 under different subsections of Section 304 except that

16 for tax years ending on or after December 31, 1987 this

17 prohibition shall not apply to a holding company that

18 would otherwise be a member of a unitary business group

19 with taxpayers that apportion business income under

20 any of subsections (b), (c), (c-1), or (d) of Section

21 304. If a unitary business group would, but for the

22 preceding sentence, include members that are

23 ordinarily required to apportion business income under

24 different subsections of Section 304, then for each

25 subsection of Section 304 for which there are two or

26 more members, there shall be a separate unitary

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1 business group composed of such members. For purposes

2 of the preceding two sentences, a member is "ordinarily

3 required to apportion business income" under a

4 particular subsection of Section 304 if it would be

5 required to use the apportionment method prescribed by

6 such subsection except for the fact that it derives

7 business income solely from Illinois. As used in this

8 paragraph, for taxable years ending before December

9 31, 2017 or ending after December 31, 2018, the phrase

10 "United States" means only the 50 states and the

11 District of Columbia, but does not include any

12 territory or possession of the United States or any

13 area over which the United States has asserted

14 jurisdiction or claimed exclusive rights with respect

15 to the exploration for or exploitation of natural

16 resources. For taxable years ending on or after

17 December 31, 2017 and ending on or before December 31,

18 2018, the phrase "United States", as used in this

19 paragraph, means only the 50 states, the District of

20 Columbia, and any area over which the United States has

21 asserted jurisdiction or claimed exclusive rights with

22 respect to the exploration for or exploitation of

23 natural resources, but does not include any territory

24 or possession of the United States.

25 (C) Holding companies.

26 (i) For purposes of this subparagraph, a

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1 "holding company" is a corporation (other than a

2 corporation that is a financial organization under

3 paragraph (8) of this subsection (a) of Section

4 1501 because it is a bank holding company under the

5 provisions of the Bank Holding Company Act of 1956

6 (12 U.S.C. 1841, et seq.) or because it is owned by

7 a bank or a bank holding company) that owns a

8 controlling interest in one or more other

9 taxpayers ("controlled taxpayers"); that, during

10 the period that includes the taxable year and the 2

11 immediately preceding taxable years or, if the

12 corporation was formed during the current or

13 immediately preceding taxable year, the taxable

14 years in which the corporation has been in

15 existence, derived substantially all its gross

16 income from dividends, interest, rents, royalties,

17 fees or other charges received from controlled

18 taxpayers for the provision of services, and gains

19 on the sale or other disposition of interests in

20 controlled taxpayers or in property leased or

21 licensed to controlled taxpayers or used by the

22 taxpayer in providing services to controlled

23 taxpayers; and that incurs no substantial expenses

24 other than expenses (including interest and other

25 costs of borrowing) incurred in connection with

26 the acquisition and holding of interests in

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1 controlled taxpayers and in the provision of

2 services to controlled taxpayers or in the leasing

3 or licensing of property to controlled taxpayers.

4 (ii) The income of a holding company which is a

5 member of more than one unitary business group

6 shall be included in each unitary business group of

7 which it is a member on a pro rata basis, by

8 including in each unitary business group that

9 portion of the base income of the holding company

10 that bears the same proportion to the total base

11 income of the holding company as the gross receipts

12 of the unitary business group bears to the combined

13 gross receipts of all unitary business groups (in

14 both cases without regard to the holding company)

15 or on any other reasonable basis, consistently

16 applied.

17 (iii) A holding company shall apportion its

18 business income under the subsection of Section

19 304 used by the other members of its unitary

20 business group. The apportionment factors of a

21 holding company which would be a member of more

22 than one unitary business group shall be included

23 with the apportionment factors of each unitary

24 business group of which it is a member on a pro

25 rata basis using the same method used in clause

26 (ii).

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1 (iv) The provisions of this subparagraph (C)

2 are intended to clarify existing law.

3 (D) If including the base income and factors of a

4 holding company in more than one unitary business group

5 under subparagraph (C) does not fairly reflect the

6 degree of integration between the holding company and

7 one or more of the unitary business groups, the

8 dependence of the holding company and one or more of

9 the unitary business groups upon each other, or the

10 contributions between the holding company and one or

11 more of the unitary business groups, the holding

12 company may petition the Director, under the

13 procedures provided under Section 304(f), for

14 permission to include all base income and factors of

15 the holding company only with members of a unitary

16 business group apportioning their business income

17 under one subsection of subsections (a), (b), (c), or

18 (d) of Section 304. If the petition is granted, the

19 holding company shall be included in a unitary business

20 group only with persons apportioning their business

21 income under the selected subsection of Section 304

22 until the Director grants a petition of the holding

23 company either to be included in more than one unitary

24 business group under subparagraph (C) or to include its

25 base income and factors only with members of a unitary

26 business group apportioning their business income

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1 under a different subsection of Section 304.

2 (E) If the unitary business group members'

3 accounting periods differ, the common parent's

4 accounting period or, if there is no common parent, the

5 accounting period of the member that is expected to

6 have, on a recurring basis, the greatest Illinois

7 income tax liability must be used to determine whether

8 to use the apportionment method provided in subsection

9 (a) or subsection (h) of Section 304. The prohibition

10 against membership in a unitary business group for

11 taxpayers ordinarily required to apportion income

12 under different subsections of Section 304 does not

13 apply to taxpayers required to apportion income under

14 subsection (a) and subsection (h) of Section 304. The

15 provisions of this amendatory Act of 1998 apply to tax

16 years ending on or after December 31, 1998.

17 (28) Subchapter S corporation. The term "Subchapter S

18 corporation" means a corporation for which there is in

19 effect an election under Section 1362 of the Internal

20 Revenue Code, or for which there is a federal election to

21 opt out of the provisions of the Subchapter S Revision Act

22 of 1982 and have applied instead the prior federal

23 Subchapter S rules as in effect on July 1, 1982.

24 (30) Foreign person. The term "foreign person" means

25 any person who is a nonresident alien individual and any

26 nonindividual entity, regardless of where created or

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1 organized, whose business activity outside the United

2 States is 80% or more of the entity's total business

3 activity.

4 (b) Other definitions.

5 (1) Words denoting number, gender, and so forth, when

6 used in this Act, where not otherwise distinctly expressed

7 or manifestly incompatible with the intent thereof:

8 (A) Words importing the singular include and apply

9 to several persons, parties or things;

10 (B) Words importing the plural include the

11 singular; and

12 (C) Words importing the masculine gender include

13 the feminine as well.

14 (2) "Company" or "association" as including successors

15 and assigns. The word "company" or "association", when used

16 in reference to a corporation, shall be deemed to embrace

17 the words "successors and assigns of such company or

18 association", and in like manner as if these last-named

19 words, or words of similar import, were expressed.

20 (3) Other terms. Any term used in any Section of this

21 Act with respect to the application of, or in connection

22 with, the provisions of any other Section of this Act shall

23 have the same meaning as in such other Section.

24 (Source: P.A. 99-213, eff. 7-31-15; 100-22, eff. 7-6-17.)

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1 Section 130. The Retailers' Occupation Tax Act is amended

2 by changing Sections 5a, 5b, and 5c as follows:

3 (35 ILCS 120/5a) (from Ch. 120, par. 444a)

4 Sec. 5a. The Department shall have a lien for the tax

5 herein imposed or any portion thereof, or for any penalty

6 provided for in this Act, or for any amount of interest which

7 may be due as provided for in Section 5 of this Act, upon all

8 the real and personal property of any person to whom a final

9 assessment or revised final assessment has been issued as

10 provided in this Act, or whenever a return is filed without

11 payment of the tax or penalty shown therein to be due,

12 including all such property of such persons acquired after

13 receipt of such assessment or filing of such return. The

14 taxpayer is liable for the filing fee incurred ~~imposed~~ by the

15 Department for filing the lien and the filing feeincurred

16 ~~imposed~~by the Department tofile the release of that ~~the~~ lien.

17 The filing fees shall be paid to the Department in addition to

18 payment of the tax, penalty, and interest included in the

19 amount of the lien.

20 However, where the lien arises because of the issuance of a

21 final assessment or revised final assessment by the Department,

22 such lien shall not attach and the notice hereinafter referred

23 to in this Section shall not be filed until all proceedings in

24 court for review of such final assessment or revised final

25 assessment have terminated or the time for the taking thereof

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1 has expired without such proceedings being instituted.

2 Upon the granting of a rehearing or departmental review

3 pursuant to Section 4 or Section 5 of this Act after a lien has

4 attached, such lien shall remain in full force except to the

5 extent to which the final assessment may be reduced by a

6 revised final assessment following such rehearing or review.

7 The lien created by the issuance of a final assessment

8 shall terminate unless a notice of lien is filed, as provided

9 in Section 5b hereof, within 3 years from the date all

10 proceedings in court for the review of such final assessment

11 have terminated or the time for the taking thereof has expired

12 without such proceedings being instituted, or (in the case of a

13 revised final assessment issued pursuant to a rehearing or

14 departmental review) within 3 years from the date all

15 proceedings in court for the review of such revised final

16 assessment have terminated or the time for the taking thereof

17 has expired without such proceedings being instituted; and

18 where the lien results from the filing of a return without

19 payment of the tax or penalty shown therein to be due, the lien

20 shall terminate unless a notice of lien is filed, as provided

21 in Section 5b hereof, within 3 years from the date when such

22 return is filed with the Department: Provided that the time

23 limitation period on the Department's right to file a notice of

24 lien shall not run (1) during any period of time in which the

25 order of any court has the effect of enjoining or restraining

26 the Department from filing such notice of lien, or (2) during

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1 the term of a repayment plan that taxpayer has entered into

2 with the Department, as long as taxpayer remains in compliance

3 with the terms of the repayment plan.

4 If the Department finds that a taxpayer is about to depart

5 from the State, or to conceal himself or his property, or to do

6 any other act tending to prejudice or to render wholly or

7 partly ineffectual proceedings to collect such tax unless such

8 proceedings are brought without delay, or if the Department

9 finds that the collection of the amount due from any taxpayer

10 will be jeopardized by delay, the Department shall give the

11 taxpayer notice of such findings and shall make demand for

12 immediate return and payment of such tax, whereupon such tax

13 shall become immediately due and payable. If the taxpayer,

14 within 5 days after such notice (or within such extension of

15 time as the Department may grant), does not comply with such

16 notice or show to the Department that the findings in such

17 notice are erroneous, the Department may file a notice of

18 jeopardy assessment lien in theoffice of the recorder of the

19 county in which any property of the taxpayer may be located

20 ~~State Tax Lien Registry~~ and shall notify the taxpayer of such

21 filing. Such jeopardy assessment lien shall have the same scope

22 and effect as the statutory lien hereinbefore provided for in

23 this Section.

24 If the taxpayer believes that he does not owe some or all

25 of the tax for which the jeopardy assessment lien against him

26 has been filed, or that no jeopardy to the revenue in fact

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1 exists, he may protest within 20 days after being notified by

2 the Department of the filing of such jeopardy assessment lien

3 and request a hearing, whereupon the Department shall hold a

4 hearing in conformity with the provisions of this Act and,

5 pursuant thereto, shall notify the taxpayer of its findings as

6 to whether or not such jeopardy assessment lien will be

7 released. If not, and if the taxpayer is aggrieved by this

8 decision, he may file an action for judicial review of such

9 final determination of the Department in accordance with

10 Section 12 of this Act and the Administrative Review Law.

11 On and after July 1, 2013, protests concerning matters that

12 are subject to the jurisdiction of the Illinois Independent Tax

13 Tribunal shall be filed with the Tribunal, and hearings on

14 those matters shall be held before the Tribunal in accordance

15 with the Illinois Independent Tax Tribunal Act of 2012. The

16 Tribunal shall notify the taxpayer of its findings as to

17 whether or not such jeopardy assessment lien will be released.

18 If not, and if the taxpayer is aggrieved by this decision, he

19 may file an action for judicial review of such final

20 determination of the Department in accordance with Section 12

21 of this Act and the Illinois Independent Tax Tribunal Act of

22 2012.

23 With respect to protests filed with the Department prior to

24 July 1, 2013 that would otherwise be subject to the

25 jurisdiction of the Illinois Independent Tax Tribunal, the

26 taxpayer may elect to be subject to the provisions of the

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1 Illinois Independent Tax Tribunal Act of 2012 at any time on or

2 after July 1, 2013, but not later than 30 days after the date

3 on which the protest was filed. If made, the election shall be

4 irrevocable.

5 If, pursuant to such hearing (or after an independent

6 determination of the facts by the Department without a

7 hearing), the Department or the Tribunal determines that some

8 or all of the tax covered by the jeopardy assessment lien is

9 not owed by the taxpayer, or that no jeopardy to the revenue

10 exists, or if on judicial review the final judgment of the

11 court is that the taxpayer does not owe some or all of the tax

12 covered by the jeopardy assessment lien against him, or that no

13 jeopardy to the revenue exists, the Department shall release

14 its jeopardy assessment lien to the extent of such finding of

15 nonliability for the tax, or to the extent of such finding of

16 no jeopardy to the revenue.

17 The Department shall also release its jeopardy assessment

18 lien against the taxpayer whenever the tax and penalty covered

19 by such lien, plus any interest which may be due, are paid and

20 the taxpayer has paid the Department in cash or by guaranteed

21 remittance an amount representing the filing fee for the lien

22 and the filing fee for the release of that lien. The Department

23 shall file that release of lien with the recorder of the county

24 where that lien was filed ~~in the State Tax Lien Registry~~.

25 Nothing in this Section shall be construed to give the

26 Department a preference over the rights of any bona fide

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1 purchaser, holder of a security interest, mechanics

2 lienholder, mortgagee, or judgment lien creditor arising prior

3 to the filing of a regular notice of lien or a notice of

4 jeopardy assessment lien in the office of the recorder in the

5 county in which the property subject to the lien is located

6 ~~State Tax Lien Registry~~: Provided, however, that the word "bona

7 fide", as used in this Section shall not include any mortgage

8 of real or personal property or any other credit transaction

9 that results in the mortgagee or the holder of the security

10 acting as trustee for unsecured creditors of the taxpayer

11 mentioned in the notice of lien who executed such chattel or

12 real property mortgage or the document evidencing such credit

13 transaction. Such lien shall be inferior to the lien of general

14 taxes, special assessments and special taxes heretofore or

15 hereafter levied by any political subdivision of this State.

16 In case title to land to be affected by the notice of lien

17 or notice of jeopardy assessment lien is registered under the

18 provisions of "An Act concerning land titles", approved May 1,

19 1897, as amended, such notice shall~~also~~ be filed in the office

20 of the Registrar of Titles of the county within which the

21 property subject to the lien is situated and shall be entered

22 upon the register of titles as a memorial or charge upon each

23 folium of the register of titles affected by such notice ~~State~~

24 ~~Tax Lien Registry~~, and the Department shall not have a

25 preference over the rights of any bona fide purchaser,

26 mortgagee, judgment creditor or other lien holder arising prior

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1 to the registration of such notice: Provided, however, that the

2 word "bona fide" shall not include any mortgage of real or

3 personal property or any other credit transaction that results

4 in the mortgagee or the holder of the security acting as

5 trustee for unsecured creditors of the taxpayer mentioned in

6 the notice of lien who executed such chattel or real property

7 mortgage or the document evidencing such credit transaction.

8 Such regular lien or jeopardy assessment lien shall not be

9 effective against any purchaser with respect to any item in a

10 retailer's stock in trade purchased from the retailer in the

11 usual course of such retailer's business.

12 (Source: P.A. 100-22, eff. 1-1-18.)

13 (35 ILCS 120/5b) (from Ch. 120, par. 444b)

14 Sec. 5b. Notice of lien ~~State Tax Lien Index~~. The recorder

15 of each county shall procure a file labeled "State Tax Lien

16 Notices" and an index book labeled "State Tax Lien Index". When

17 notice of any lien or jeopardy assessment lien is presented to

18 him for filing, he shall file it in numerical order in the file

19 and shall enter it alphabetically in the index. The entry shall

20 show the name and last known business address of the person

21 named in the notice, the serial number of the notice, the date

22 and hour of filing, whether it is a regular lien or a jeopardy

23 assessment lien, and the amount of tax and penalty due and

24 unpaid, plus the amount of interest due under Section 5 of this

25 Act at the time when the notice of lien or jeopardy assessment

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1 lien is filed.

2 No recorder or registrar of titles of any county shall

3 require that the Department pay any costs or fees in connection

4 with recordation of any notice or other document filed by the

5 Department under this Act at the time such notice or other

6 document is presented for recordation. The recorder or

7 registrar of each county, in order to receive payment for fees

8 or costs incurred by the Department, shall present the

9 Department with monthly statements indicating the amount of

10 fees and costs incurred by the Department and for which no

11 payment has been received. ~~The Department of Revenue shall~~

12 ~~maintain a State Tax Lien Index of all tax liens filed in the~~

13 ~~State Tax Lien Registry as provided for by the State Tax Lien~~

14 ~~Registration Act.~~

15 A notice of lien may be filed after the issuance of a

16 revised final assessment pursuant to a rehearing or

17 departmental review under Section 4 or Section 5 of this Act.

18 When the lien obtained pursuant to this Act has been

19 satisfied and the taxpayer has paid the Department in cash or

20 by guaranteed remittance an amount representing the filing fee

21 for the lien and the filing fee for the release of that lien,

22 the Department shall issue a release of lien and file that

23 release of lien with the recorder of the county where that lien

24 was filed ~~in the State Tax Lien Registry~~. The release of lien

25 shall contain in legible letters a statement as follows:

26 FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL

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1 BE FILED WITH THE RECORDER OR THE REGISTRAR OF TITLES IN

2 WHOSE OFFICE THE LIEN WAS FILED ~~IN THE STATE TAX LIEN REGISTRY~~.

3 When a certificate of complete or partial release of lien

4 issued by the Department ispresented for filing in the office

5 of the recorder or Registrar of Titles where a notice of lien

6 or notice of jeopardy assessment lien was filed, the recorder,

7 in the case of nonregistered property, ~~filed in the State Tax~~

8 ~~Lien Registry, the Department of Revenue~~ shall permanently

9 attach the certificate of release to the notice of lien or

10 notice of jeopardy assessment lien and shall enter the

11 certificate of release and the date in the "State Tax Lien

12 Index" on the line where the notice of lien or notice of

13 jeopardy assessment lien is entered.

14 In the case of registered property, the Registrar of Titles

15 shall file and enter upon each folium of the register of titles

16 affected thereby a memorial of the certificate of release which

17 memorial when so entered shall act as a release pro tanto of

18 any memorial of such notice of lien or notice of jeopardy

19 assessment lien previously filed and registered.

20 (Source: P.A. 100-22, eff. 1-1-18.)

21 (35 ILCS 120/5c) (from Ch. 120, par. 444c)

22 Sec. 5c. Upon payment by the taxpayer to the Department in

23 cash or by guaranteed remittance of an amount representing the

24 filing fee for the lien and the filing fee for the release of

25 that lien, the Department shall issue a certificate of complete

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1 or partial release of the lien and file that complete or

2 partial release of lien with the recorder of the county where

3 the lien was filed ~~in the State Tax Lien Registry~~:

4 (a) to the extent that the fair market value of any

5 property subject to the lien exceeds the amount of the lien

6 plus the amount of all prior liens upon such property;

7 (b) to the extent that such lien shall become

8 unenforceable;

9 (c) to the extent that the amount of such lien is paid

10 by the retailer whose property is subject to such lien,

11 together with any interest which may become due under

12 Section 5 of this Act between the date when the notice of

13 lien is filed and the date when the amount of such lien is

14 paid;

15 (d) to the extent that there is furnished to the

16 Department on a form to be approved and with a surety or

17 sureties satisfactory to the Department a bond that is

18 conditioned upon the payment of the amount of such lien,

19 together with any interest which may become due under

20 Section 5 of this Act after the notice of lien is filed,

21 but before the amount thereof is fully paid;

22 (e) to the extent and under the circumstances specified

23 in Section 5a of this Act in the case of jeopardy

24 assessment liens;

25 (f) to the extent to which an assessment is reduced

26 pursuant to a rehearing or departmental review under

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1 Section 4 or Section 5 of this Act.

2 A certificate of complete or partial release of any lien

3 shall be held conclusive that the lien upon the property

4 covered by the certificate is extinguished to the extent

5 indicated by such certificate.

6 (Source: P.A. 100-22, eff. 1-1-18.)

7 Section 135. The Cannabis and Controlled Substances Tax Act

8 is amended by changing Sections 16, 17, and 19 as follows:

9 (35 ILCS 520/16) (from Ch. 120, par. 2166)

10 Sec. 16. All assessments are jeopardy assessments - lien.

11 (a) Assessment. An assessment for a dealer not possessing

12 valid stamps or other official indicia showing that the tax has

13 been paid shall be considered a jeopardy assessment or

14 collection, as provided by Section 1102 of the Illinois Income

15 Tax Act. The Department shall determine and assess a tax and

16 applicable penalties and interest according to the best

17 judgment and information available to the Department, which

18 amount so fixed by the Department shall be prima facie correct

19 and shall be prima facie evidence of the correctness of the

20 amount of tax due, as shown in such determination. When,

21 according to the best judgment and information available to the

22 Department with regard to all real and personal property and

23 rights to property of the dealer, there is no reasonable

24 expectation of collection of the amount of tax and penalty to

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1 be assessed, the Department may issue an assessment under this

2 Section for the amount of tax without penalty.

3 (b) Filing of lien. Upon issuance of a jeopardy assessment

4 as provided by subsection (a) of this Section, the Department

5 may file a notice of jeopardy assessment lien in theoffice of

6 the recorder of the county in which any property of the

7 taxpayer may be located ~~State Tax Lien Registry~~and shall

8 notify the taxpayer of such filing.

9 (c) Protest. If the taxpayer believes that he does not owe

10 some or all of the amount for which the jeopardy assessment

11 lien against him has been filed, he may protest within 20 days

12 after being notified by the Department of the filing of such

13 jeopardy assessment lien and request a hearing, whereupon the

14 Department shall hold a hearing in conformity with the

15 provisions of Section 908 of the Illinois Income Tax Act and,

16 pursuant thereto, shall notify the taxpayer of its decision as

17 to whether or not such jeopardy assessment lien will be

18 released.

19 After the expiration of the period within which the person

20 assessed may file an action for judicial review without such

21 action being filed, a certified copy of the final assessment or

22 revised final assessment of the Department may be filed with

23 the Circuit Court of the county in which the dealer resides, or

24 of Cook County in the case of a dealer who does not reside in

25 this State, or in the county where the violation of this Act

26 took place. The certified copy of the final assessment or

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1 revised final assessment shall be accompanied by a

2 certification which recites facts that are sufficient to show

3 that the Department complied with the jurisdictional

4 requirements of the Act in arriving at its final assessment or

5 its revised final assessment and that the dealer had this

6 opportunity for an administrative hearing and for judicial

7 review, whether he availed himself or herself of either or both

8 of these opportunities or not. If the court is satisfied that

9 the Department complied with the jurisdictional requirements

10 of the Act in arriving at its final assessment or its revised

11 final assessment and that the taxpayer had his opportunity for

12 an administrative hearing and for judicial review, whether he

13 availed himself of either or both of these opportunities or

14 not, the court shall render judgment in favor of the Department

15 and against the taxpayer for the amount shown to be due by the

16 final assessment or the revised final assessment, plus any

17 interest which may be due, and such judgment shall be entered

18 in the judgment docket of the court. Such judgment shall bear

19 the same rate of interest and shall have the same effect as

20 other judgments. The judgment may be enforced, and all laws

21 applicable to sales for the enforcement of a judgment shall be

22 applicable to sales made under such judgments. The Department

23 shall file the certified copy of its assessment, as herein

24 provided, with the Circuit Court within 2 years after such

25 assessment becomes final except when the taxpayer consents in

26 writing to an extension of such filing period, and except that

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1 the time limitation period on the Department's right to file

2 the certified copy of its assessment with the Circuit Court

3 shall not run during any period of time in which the order of

4 any court has the effect of enjoining or restraining the

5 Department from filing such certified copy of its assessment

6 with the Circuit Court.

7 If, when the cause of action for a proceeding in court

8 accrues against a person, he or she is out of the State, the

9 action may be commenced within the times herein limited, after

10 his or her coming into or returning to the State; and if, after

11 the cause of action accrues, he or she departs from and remains

12 out of the State, the time of his or her absence from the

13 State, the time of his or her absence is no part of the time

14 limited for the commencement of the action; but the foregoing

15 provisions concerning absence from the State shall not apply to

16 any case in which, at the time the cause of action accrues, the

17 party against whom the cause of action accrues is not a

18 resident of this State. The time within which a court action is

19 to be commenced by the Department hereunder shall not run from

20 the date the taxpayer files a petition in bankruptcy under the

21 Federal Bankruptcy Act until 30 days after notice of

22 termination or expiration of the automatic stay imposed by the

23 Federal Bankruptcy Act.

24 No claim shall be filed against the estate of any deceased

25 person or any person under legal disability for any tax or

26 penalty or part of either, or interest, except in the manner

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1 prescribed and within the time limited by the Probate Act of

2 1975, as amended.

3 The collection of tax or penalty or interest by any means

4 provided for herein shall not be a bar to any prosecution under

5 this Act.

6 In addition to any penalty provided for in this Act, any

7 amount of tax which is not paid when due shall bear interest at

8 the rate determined in accordance with the Uniform Penalty and

9 Interest Act, per month or fraction thereof from the date when

10 such tax becomes past due until such tax is paid or a judgment

11 therefor is obtained by the Department. If the time for making

12 or completing an audit of a taxpayer's books and records is

13 extended with the taxpayer's consent, at the request of and for

14 the convenience of the Department, beyond the date on which the

15 statute of limitations upon the issuance of a notice of tax

16 liability by the Department otherwise run, no interest shall

17 accrue during the period of such extension. Interest shall be

18 collected in the same manner and as part of the tax.

19 If the Department determines that an amount of tax or

20 penalty or interest was incorrectly assessed, whether as the

21 result of a mistake of fact or an error of law, the Department

22 shall waive the amount of tax or penalty or interest that

23 accrued due to the incorrect assessment.

24 (Source: P.A. 100-22, eff. 1-1-18.)

25 (35 ILCS 520/17) (from Ch. 120, par. 2167)

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1 Sec. 17. Filing and priority of liens.

2 (a) Filing with Recorder ~~in the State Tax Lien Registry~~.

3 Nothing in this Act shall be construed to give the Department a

4 preference over the rights of any bona fide purchaser, holder

5 of a security interest, mechanics lienholder, mortgagee, or

6 judgment lien creditor arising prior to the filing of a regular

7 notice of lien or a notice of jeopardy assessment lien in the

8 office of the recorder in the county in which the property

9 subject to the lien is located ~~State Tax Lien Registry~~. For

10 purposes of this section, the term "bona fide," shall not

11 include any mortgage of real or personal property or any other

12 credit transaction that results in the mortgagee or the holder

13 of the security acting as trustee for unsecured creditors of

14 the taxpayer mentioned in the notice of lien who executed such

15 chattel or real property mortgage or the document evidencing

16 such credit transaction. Such lien shall be inferior to the

17 lien of general taxes, special assessments and special taxes

18 heretofore or hereafter levied by any political subdivision of

19 this State.

20 (b) Filing with Registrar. In case title to land to be

21 affected by the notice of lien or notice of jeopardy assessment

22 lien is registered under the provisions of "An Act concerning

23 land titles," approved May 1, 1897, as amended, such notice

24 shall ~~also~~ be filed in the office of the Registrar of Titles of

25 the county within which the property subject to the lien is

26 situated and shall be entered upon the register of titles as a

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1 memorial of charge upon each folium of the register of titles

2 affected by such notice ~~State Tax Lien Registry~~, and the

3 Department shall not have a preference over the rights of any

4 bona fide purchaser, mortgagee, judgment creditor or other lien

5 holder arising prior to the registration of such notice.

6 (c) No recorder or registrar of titles of any county shall

7 require that the Department pay any costs or fees in connection

8 with recordation of any notice or other document filed by the

9 Department under this Act at the time such notice or other

10 document is presented for recordation. ~~(Blank).~~

11 (Source: P.A. 100-22, eff. 1-1-18.)

12 (35 ILCS 520/19) (from Ch. 120, par. 2169)

13 Sec. 19. Release of liens.

14 (a) In general. The Department shall release all or any

15 portion of the property subject to any lien provided for in

16 this Act if it determines that the release will not endanger or

17 jeopardize the collection of the amount secured thereby. The

18 Department shall release its lien on property which is the

19 subject of forfeiture proceedings under the Narcotics Profit

20 Forfeiture Act, the Criminal Code of 2012, or the Drug Asset

21 Forfeiture Procedure Act until all forfeiture proceedings are

22 concluded. Property forfeited shall not be subject to a lien

23 under this Act.

24 (b) Judicial determination. If on judicial review the final

25 judgment of the court is that the taxpayer does not owe some or

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1 all of the amount secured by the lien against him, or that no

2 jeopardy to the revenue exists, the Department shall release

3 its lien to the extent of such finding of nonliability, or to

4 the extent of such finding of no jeopardy to the revenue.

5 (c) Payment. The Department shall also release its jeopardy

6 assessment lien against the taxpayer whenever the tax and

7 penalty covered by such lien, plus any interest which may be

8 due, are paid.

9 (d) Certificate of release. The Department shall issue a

10 certificate of complete or partial release of the lien:

11 (1) To the extent that the fair market value of any

12 property subject to the lien exceeds the amount of the lien

13 plus the amount of all prior liens upon such property;

14 (2) To the extent that such lien shall become

15 unenforceable;

16 (3) To the extent that the amount of such lien is paid

17 by the person whose property is subject to such lien,

18 together with any interest and penalty which may become due

19 under this Act between the date when the notice of lien is

20 filed and the date when the amount of such lien is paid;

21 (4) To the extent and under the circumstances specified

22 in this Section. A certificate of complete or partial

23 release of any lien shall be held conclusive that the lien

24 upon the property covered by the certificate is

25 extinguished to the extent indicated by such certificate.

26 Such release of lien shall be issued to the person, or his

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1 agent, against whom the lien was obtained and shall contain in

2 legible letters a statement as follows:

3 FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL

4 BE FILED WITH THE RECORDER OR THE REGISTRAR OF TITLES IN

5 WHOSE OFFICE THE LIEN WAS FILED ~~IN THE STATE TAX LIEN REGISTRY~~.

6 (e) Filing. When a certificate of complete or partial

7 release of lien issued by the Department ispresented for

8 filing in the office of the recorder or Registrar of Titles

9 where a notice of lien or notice of jeopardy assessment lien

10 was filed: ~~filed in the State Tax Lien Registry, the Department~~

11 (1) The recorder, in the case of nonregistered

12 property,shall permanently attach the certificate of

13 release to the notice of lien or notice of jeopardy

14 assessment lien and shall enter the certificate of release

15 and the date in the "State Tax Lien Index" on the line

16 where the notice of lien or notice of jeopardy assessment

17 lien is entered; and ~~.~~

18 (2) In the case of registered property, the Registrar

19 of Titles shall file and enter upon each folium of the

20 register of titles affected thereby a memorial of the

21 certificate of release which memorial when so entered shall

22 act as a release pro tanto of any memorial of such notice

23 of lien or notice of jeopardy assessment lien previously

24 filed and registered.

25 (Source: P.A. 100-22, eff. 1-1-18.)

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1 Section 140. The Illinois Municipal Code is amended by

2 changing Section 8-3-15 as follows:

3 (65 ILCS 5/8-3-15) (from Ch. 24, par. 8-3-15)

4 Sec. 8-3-15. The corporate authorities of each

5 municipality shall have all powers necessary to enforce the

6 collection of any tax imposed and collected by such

7 municipality, whether such tax was imposed pursuant to its home

8 rule powers or statutory authorization, including but not

9 limited to subpoena power and the power to create and enforce

10 liens. No such lien shall affect the rights of bona fide

11 purchasers, mortgagees, judgment creditors or other

12 lienholders who acquire their interests in such property prior

13 to the time a notice of such lien is placed on record in the

14 office of the recorder or the registrar of titles of the county

15 in which the property is located. However, nothing in this

16 Section shall permit a municipality to place a lien upon

17 property not located or found within its corporate boundaries.

18 A municipality creating a lien may provide that the procedures

19 for its notice and enforcement shall be the same as that

20 provided in the Retailers' Occupation Tax Act, asnow or

21 hereafter amended ~~that Act existed prior to the adoption of the~~

22 ~~State Tax Lien Registration Act~~, for State tax liens, and any

23 recorder or registrar of titles with whom a notice of such lien

24 is filed shall treat such lien as a State tax lien for

25 recording purposes.

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1 (Source: P.A. 100-22, eff. 1-1-18.)

2 Section 145. The Title Insurance Act is amended by changing

3 Section 22 as follows:

4 (215 ILCS 155/22) (from Ch. 73, par. 1422)

5 Sec. 22. Tax indemnity; notice.A corporation authorized to

6 do business under this Act shall notify the Director of Revenue

7 of the State of Illinois, by notice directed to his office in

8 the City of Chicago, of each trust account or similar account

9 established which relates to title exceptions due to a judgment

10 lien or any other lien arising under any tax Act administered

11 by the Illinois Department of Revenue, when notice of such lien

12 has been filed with the registrar of titles or recorder~~or in~~

13 ~~the State Tax Lien Registry~~, as the case may be, in the manner

14 prescribed by law. Such notice shall contain the name, address,

15 and tax identification number of the debtor, the permanent real

16 estate index numbers, if any, and the address and legal

17 description of the property, the type of lien claimed by the

18 Department and identification of any trust fund or similar

19 account held by such corporation or any agent thereof relating

20 to such lien. Any trust fund or similar account established by

21 such corporation or agent relating to any such lien shall

22 include provisions requiring such corporation or agent to apply

23 such fund in satisfaction or release of such lien upon written

24 demand therefor by the Department of Revenue.

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1 (Source: P.A. 100-22, eff. 1-1-18.)

2 Section 150. The Use Tax Act is amended by changing

3 Sections 3-5 and 3-50 as follows:

4 (35 ILCS 105/3-5)

5 Sec. 3-5. Exemptions. Use of the following tangible

6 personal property is exempt from the tax imposed by this Act:

7 (1) Personal property purchased from a corporation,

8 society, association, foundation, institution, or

9 organization, other than a limited liability company, that is

10 organized and operated as a not-for-profit service enterprise

11 for the benefit of persons 65 years of age or older if the

12 personal property was not purchased by the enterprise for the

13 purpose of resale by the enterprise.

14 (2) Personal property purchased by a not-for-profit

15 Illinois county fair association for use in conducting,

16 operating, or promoting the county fair.

17 (3) Personal property purchased by a not-for-profit arts or

18 cultural organization that establishes, by proof required by

19 the Department by rule, that it has received an exemption under

20 Section 501(c)(3) of the Internal Revenue Code and that is

21 organized and operated primarily for the presentation or

22 support of arts or cultural programming, activities, or

23 services. These organizations include, but are not limited to,

24 music and dramatic arts organizations such as symphony

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1 orchestras and theatrical groups, arts and cultural service

2 organizations, local arts councils, visual arts organizations,

3 and media arts organizations. On and after July 1, 2001 (the

4 effective date of Public Act 92-35), however, an entity

5 otherwise eligible for this exemption shall not make tax-free

6 purchases unless it has an active identification number issued

7 by the Department.

8 (4) Personal property purchased by a governmental body, by

9 a corporation, society, association, foundation, or

10 institution organized and operated exclusively for charitable,

11 religious, or educational purposes, or by a not-for-profit

12 corporation, society, association, foundation, institution, or

13 organization that has no compensated officers or employees and

14 that is organized and operated primarily for the recreation of

15 persons 55 years of age or older. A limited liability company

16 may qualify for the exemption under this paragraph only if the

17 limited liability company is organized and operated

18 exclusively for educational purposes. On and after July 1,

19 1987, however, no entity otherwise eligible for this exemption

20 shall make tax-free purchases unless it has an active exemption

21 identification number issued by the Department.

22 (5) Until July 1, 2003, a passenger car that is a

23 replacement vehicle to the extent that the purchase price of

24 the car is subject to the Replacement Vehicle Tax.

25 (6) Until July 1, 2003 and beginning again on September 1,

26 2004 through August 30, 2014, graphic arts machinery and

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1 equipment, including repair and replacement parts, both new and

2 used, and including that manufactured on special order,

3 certified by the purchaser to be used primarily for graphic

4 arts production, and including machinery and equipment

5 purchased for lease. Equipment includes chemicals or chemicals

6 acting as catalysts but only if the chemicals or chemicals

7 acting as catalysts effect a direct and immediate change upon a

8 graphic arts product. Beginning on July 1, 2017 and until July

9 1, 2019, graphic arts machinery and equipment is included in

10 the manufacturing and assembling machinery and equipment

11 exemption under paragraph (18).

12 (7) Farm chemicals.

13 (8) Legal tender, currency, medallions, or gold or silver

14 coinage issued by the State of Illinois, the government of the

15 United States of America, or the government of any foreign

16 country, and bullion.

17 (9) Personal property purchased from a teacher-sponsored

18 student organization affiliated with an elementary or

19 secondary school located in Illinois.

20 (10) A motor vehicle that is used for automobile renting,

21 as defined in the Automobile Renting Occupation and Use Tax

22 Act.

23 (11) Farm machinery and equipment, both new and used,

24 including that manufactured on special order, certified by the

25 purchaser to be used primarily for production agriculture or

26 State or federal agricultural programs, including individual

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1 replacement parts for the machinery and equipment, including

2 machinery and equipment purchased for lease, and including

3 implements of husbandry defined in Section 1-130 of the

4 Illinois Vehicle Code, farm machinery and agricultural

5 chemical and fertilizer spreaders, and nurse wagons required to

6 be registered under Section 3-809 of the Illinois Vehicle Code,

7 but excluding other motor vehicles required to be registered

8 under the Illinois Vehicle Code. Horticultural polyhouses or

9 hoop houses used for propagating, growing, or overwintering

10 plants shall be considered farm machinery and equipment under

11 this item (11). Agricultural chemical tender tanks and dry

12 boxes shall include units sold separately from a motor vehicle

13 required to be licensed and units sold mounted on a motor

14 vehicle required to be licensed if the selling price of the

15 tender is separately stated.

16 Farm machinery and equipment shall include precision

17 farming equipment that is installed or purchased to be

18 installed on farm machinery and equipment including, but not

19 limited to, tractors, harvesters, sprayers, planters, seeders,

20 or spreaders. Precision farming equipment includes, but is not

21 limited to, soil testing sensors, computers, monitors,

22 software, global positioning and mapping systems, and other

23 such equipment.

24 Farm machinery and equipment also includes computers,

25 sensors, software, and related equipment used primarily in the

26 computer-assisted operation of production agriculture

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1 facilities, equipment, and activities such as, but not limited

2 to, the collection, monitoring, and correlation of animal and

3 crop data for the purpose of formulating animal diets and

4 agricultural chemicals. This item (11) is exempt from the

5 provisions of Section 3-90.

6 (12) Until June 30, 2013, fuel and petroleum products sold

7 to or used by an air common carrier, certified by the carrier

8 to be used for consumption, shipment, or storage in the conduct

9 of its business as an air common carrier, for a flight destined

10 for or returning from a location or locations outside the

11 United States without regard to previous or subsequent domestic

12 stopovers.

13 Beginning July 1, 2013, fuel and petroleum products sold to

14 or used by an air carrier, certified by the carrier to be used

15 for consumption, shipment, or storage in the conduct of its

16 business as an air common carrier, for a flight that (i) is

17 engaged in foreign trade or is engaged in trade between the

18 United States and any of its possessions and (ii) transports at

19 least one individual or package for hire from the city of

20 origination to the city of final destination on the same

21 aircraft, without regard to a change in the flight number of

22 that aircraft.

23 (13) Proceeds of mandatory service charges separately

24 stated on customers' bills for the purchase and consumption of

25 food and beverages purchased at retail from a retailer, to the

26 extent that the proceeds of the service charge are in fact

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1 turned over as tips or as a substitute for tips to the

2 employees who participate directly in preparing, serving,

3 hosting or cleaning up the food or beverage function with

4 respect to which the service charge is imposed.

5 (14) Until July 1, 2003, oil field exploration, drilling,

6 and production equipment, including (i) rigs and parts of rigs,

7 rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and

8 tubular goods, including casing and drill strings, (iii) pumps

9 and pump-jack units, (iv) storage tanks and flow lines, (v) any

10 individual replacement part for oil field exploration,

11 drilling, and production equipment, and (vi) machinery and

12 equipment purchased for lease; but excluding motor vehicles

13 required to be registered under the Illinois Vehicle Code.

14 (15) Photoprocessing machinery and equipment, including

15 repair and replacement parts, both new and used, including that

16 manufactured on special order, certified by the purchaser to be

17 used primarily for photoprocessing, and including

18 photoprocessing machinery and equipment purchased for lease.

19 (16) Until July 1, 2023, coal and aggregate exploration,

20 mining, off-highway hauling, processing, maintenance, and

21 reclamation equipment, including replacement parts and

22 equipment, and including equipment purchased for lease, but

23 excluding motor vehicles required to be registered under the

24 Illinois Vehicle Code. The changes made to this Section by

25 Public Act 97-767 apply on and after July 1, 2003, but no claim

26 for credit or refund is allowed on or after August 16, 2013

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1 (the effective date of Public Act 98-456) for such taxes paid

2 during the period beginning July 1, 2003 and ending on August

3 16, 2013 (the effective date of Public Act 98-456).

4 (17) Until July 1, 2003, distillation machinery and

5 equipment, sold as a unit or kit, assembled or installed by the

6 retailer, certified by the user to be used only for the

7 production of ethyl alcohol that will be used for consumption

8 as motor fuel or as a component of motor fuel for the personal

9 use of the user, and not subject to sale or resale.

10 (18) Manufacturing and assembling machinery and equipment

11 used primarily in the process of manufacturing or assembling

12 tangible personal property for wholesale or retail sale or

13 lease, whether that sale or lease is made directly by the

14 manufacturer or by some other person, whether the materials

15 used in the process are owned by the manufacturer or some other

16 person, or whether that sale or lease is made apart from or as

17 an incident to the seller's engaging in the service occupation

18 of producing machines, tools, dies, jigs, patterns, gauges, or

19 other similar items of no commercial value on special order for

20 a particular purchaser. The exemption provided by this

21 paragraph (18) does not include machinery and equipment used in

22 (i) the generation of electricity for wholesale or retail sale;

23 (ii) the generation or treatment of natural or artificial gas

24 for wholesale or retail sale that is delivered to customers

25 through pipes, pipelines, or mains; or (iii) the treatment of

26 water for wholesale or retail sale that is delivered to

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1 customers through pipes, pipelines, or mains. The provisions of

2 Public Act 98-583 are declaratory of existing law as to the

3 meaning and scope of this exemption. Beginning on July 1, 2017

4 and until July 1, 2019, the exemption provided by this

5 paragraph (18) includes, but is not limited to, graphic arts

6 machinery and equipment, as defined in paragraph (6) of this

7 Section.

8 (19) Personal property delivered to a purchaser or

9 purchaser's donee inside Illinois when the purchase order for

10 that personal property was received by a florist located

11 outside Illinois who has a florist located inside Illinois

12 deliver the personal property.

13 (20) Semen used for artificial insemination of livestock

14 for direct agricultural production.

15 (21) Horses, or interests in horses, registered with and

16 meeting the requirements of any of the Arabian Horse Club

17 Registry of America, Appaloosa Horse Club, American Quarter

18 Horse Association, United States Trotting Association, or

19 Jockey Club, as appropriate, used for purposes of breeding or

20 racing for prizes. This item (21) is exempt from the provisions

21 of Section 3-90, and the exemption provided for under this item

22 (21) applies for all periods beginning May 30, 1995, but no

23 claim for credit or refund is allowed on or after January 1,

24 2008 for such taxes paid during the period beginning May 30,

25 2000 and ending on January 1, 2008.

26 (22) Computers and communications equipment utilized for

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1 any hospital purpose and equipment used in the diagnosis,

2 analysis, or treatment of hospital patients purchased by a

3 lessor who leases the equipment, under a lease of one year or

4 longer executed or in effect at the time the lessor would

5 otherwise be subject to the tax imposed by this Act, to a

6 hospital that has been issued an active tax exemption

7 identification number by the Department under Section 1g of the

8 Retailers' Occupation Tax Act. If the equipment is leased in a

9 manner that does not qualify for this exemption or is used in

10 any other non-exempt manner, the lessor shall be liable for the

11 tax imposed under this Act or the Service Use Tax Act, as the

12 case may be, based on the fair market value of the property at

13 the time the non-qualifying use occurs. No lessor shall collect

14 or attempt to collect an amount (however designated) that

15 purports to reimburse that lessor for the tax imposed by this

16 Act or the Service Use Tax Act, as the case may be, if the tax

17 has not been paid by the lessor. If a lessor improperly

18 collects any such amount from the lessee, the lessee shall have

19 a legal right to claim a refund of that amount from the lessor.

20 If, however, that amount is not refunded to the lessee for any

21 reason, the lessor is liable to pay that amount to the

22 Department.

23 (23) Personal property purchased by a lessor who leases the

24 property, under a lease of one year or longer executed or in

25 effect at the time the lessor would otherwise be subject to the

26 tax imposed by this Act, to a governmental body that has been

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1 issued an active sales tax exemption identification number by

2 the Department under Section 1g of the Retailers' Occupation

3 Tax Act. If the property is leased in a manner that does not

4 qualify for this exemption or used in any other non-exempt

5 manner, the lessor shall be liable for the tax imposed under

6 this Act or the Service Use Tax Act, as the case may be, based

7 on the fair market value of the property at the time the

8 non-qualifying use occurs. No lessor shall collect or attempt

9 to collect an amount (however designated) that purports to

10 reimburse that lessor for the tax imposed by this Act or the

11 Service Use Tax Act, as the case may be, if the tax has not been

12 paid by the lessor. If a lessor improperly collects any such

13 amount from the lessee, the lessee shall have a legal right to

14 claim a refund of that amount from the lessor. If, however,

15 that amount is not refunded to the lessee for any reason, the

16 lessor is liable to pay that amount to the Department.

17 (24) Beginning with taxable years ending on or after

18 December 31, 1995 and ending with taxable years ending on or

19 before December 31, 2004, personal property that is donated for

20 disaster relief to be used in a State or federally declared

21 disaster area in Illinois or bordering Illinois by a

22 manufacturer or retailer that is registered in this State to a

23 corporation, society, association, foundation, or institution

24 that has been issued a sales tax exemption identification

25 number by the Department that assists victims of the disaster

26 who reside within the declared disaster area.

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1 (25) Beginning with taxable years ending on or after

2 December 31, 1995 and ending with taxable years ending on or

3 before December 31, 2004, personal property that is used in the

4 performance of infrastructure repairs in this State, including

5 but not limited to municipal roads and streets, access roads,

6 bridges, sidewalks, waste disposal systems, water and sewer

7 line extensions, water distribution and purification

8 facilities, storm water drainage and retention facilities, and

9 sewage treatment facilities, resulting from a State or

10 federally declared disaster in Illinois or bordering Illinois

11 when such repairs are initiated on facilities located in the

12 declared disaster area within 6 months after the disaster.

13 (26) Beginning July 1, 1999, game or game birds purchased

14 at a "game breeding and hunting preserve area" as that term is

15 used in the Wildlife Code. This paragraph is exempt from the

16 provisions of Section 3-90.

17 (27) A motor vehicle, as that term is defined in Section

18 1-146 of the Illinois Vehicle Code, that is donated to a

19 corporation, limited liability company, society, association,

20 foundation, or institution that is determined by the Department

21 to be organized and operated exclusively for educational

22 purposes. For purposes of this exemption, "a corporation,

23 limited liability company, society, association, foundation,

24 or institution organized and operated exclusively for

25 educational purposes" means all tax-supported public schools,

26 private schools that offer systematic instruction in useful

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1 branches of learning by methods common to public schools and

2 that compare favorably in their scope and intensity with the

3 course of study presented in tax-supported schools, and

4 vocational or technical schools or institutes organized and

5 operated exclusively to provide a course of study of not less

6 than 6 weeks duration and designed to prepare individuals to

7 follow a trade or to pursue a manual, technical, mechanical,

8 industrial, business, or commercial occupation.

9 (28) Beginning January 1, 2000, personal property,

10 including food, purchased through fundraising events for the

11 benefit of a public or private elementary or secondary school,

12 a group of those schools, or one or more school districts if

13 the events are sponsored by an entity recognized by the school

14 district that consists primarily of volunteers and includes

15 parents and teachers of the school children. This paragraph

16 does not apply to fundraising events (i) for the benefit of

17 private home instruction or (ii) for which the fundraising

18 entity purchases the personal property sold at the events from

19 another individual or entity that sold the property for the

20 purpose of resale by the fundraising entity and that profits

21 from the sale to the fundraising entity. This paragraph is

22 exempt from the provisions of Section 3-90.

23 (29) Beginning January 1, 2000 and through December 31,

24 2001, new or used automatic vending machines that prepare and

25 serve hot food and beverages, including coffee, soup, and other

26 items, and replacement parts for these machines. Beginning

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1 January 1, 2002 and through June 30, 2003, machines and parts

2 for machines used in commercial, coin-operated amusement and

3 vending business if a use or occupation tax is paid on the

4 gross receipts derived from the use of the commercial,

5 coin-operated amusement and vending machines. This paragraph

6 is exempt from the provisions of Section 3-90.

7 (30) Beginning January 1, 2001 and through June 30, 2016,

8 food for human consumption that is to be consumed off the

9 premises where it is sold (other than alcoholic beverages, soft

10 drinks, and food that has been prepared for immediate

11 consumption) and prescription and nonprescription medicines,

12 drugs, medical appliances, and insulin, urine testing

13 materials, syringes, and needles used by diabetics, for human

14 use, when purchased for use by a person receiving medical

15 assistance under Article V of the Illinois Public Aid Code who

16 resides in a licensed long-term care facility, as defined in

17 the Nursing Home Care Act, or in a licensed facility as defined

18 in the ID/DD Community Care Act, the MC/DD Act, or the

19 Specialized Mental Health Rehabilitation Act of 2013.

20 (31) Beginning on August 2, 2001 (the effective date of

21 Public Act 92-227), computers and communications equipment

22 utilized for any hospital purpose and equipment used in the

23 diagnosis, analysis, or treatment of hospital patients

24 purchased by a lessor who leases the equipment, under a lease

25 of one year or longer executed or in effect at the time the

26 lessor would otherwise be subject to the tax imposed by this

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1 Act, to a hospital that has been issued an active tax exemption

2 identification number by the Department under Section 1g of the

3 Retailers' Occupation Tax Act. If the equipment is leased in a

4 manner that does not qualify for this exemption or is used in

5 any other nonexempt manner, the lessor shall be liable for the

6 tax imposed under this Act or the Service Use Tax Act, as the

7 case may be, based on the fair market value of the property at

8 the time the nonqualifying use occurs. No lessor shall collect

9 or attempt to collect an amount (however designated) that

10 purports to reimburse that lessor for the tax imposed by this

11 Act or the Service Use Tax Act, as the case may be, if the tax

12 has not been paid by the lessor. If a lessor improperly

13 collects any such amount from the lessee, the lessee shall have

14 a legal right to claim a refund of that amount from the lessor.

15 If, however, that amount is not refunded to the lessee for any

16 reason, the lessor is liable to pay that amount to the

17 Department. This paragraph is exempt from the provisions of

18 Section 3-90.

19 (32) Beginning on August 2, 2001 (the effective date of

20 Public Act 92-227), personal property purchased by a lessor who

21 leases the property, under a lease of one year or longer

22 executed or in effect at the time the lessor would otherwise be

23 subject to the tax imposed by this Act, to a governmental body

24 that has been issued an active sales tax exemption

25 identification number by the Department under Section 1g of the

26 Retailers' Occupation Tax Act. If the property is leased in a

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1 manner that does not qualify for this exemption or used in any

2 other nonexempt manner, the lessor shall be liable for the tax

3 imposed under this Act or the Service Use Tax Act, as the case

4 may be, based on the fair market value of the property at the

5 time the nonqualifying use occurs. No lessor shall collect or

6 attempt to collect an amount (however designated) that purports

7 to reimburse that lessor for the tax imposed by this Act or the

8 Service Use Tax Act, as the case may be, if the tax has not been

9 paid by the lessor. If a lessor improperly collects any such

10 amount from the lessee, the lessee shall have a legal right to

11 claim a refund of that amount from the lessor. If, however,

12 that amount is not refunded to the lessee for any reason, the

13 lessor is liable to pay that amount to the Department. This

14 paragraph is exempt from the provisions of Section 3-90.

15 (33) On and after July 1, 2003 and through June 30, 2004,

16 the use in this State of motor vehicles of the second division

17 with a gross vehicle weight in excess of 8,000 pounds and that

18 are subject to the commercial distribution fee imposed under

19 Section 3-815.1 of the Illinois Vehicle Code. Beginning on July

20 1, 2004 and through June 30, 2005, the use in this State of

21 motor vehicles of the second division: (i) with a gross vehicle

22 weight rating in excess of 8,000 pounds; (ii) that are subject

23 to the commercial distribution fee imposed under Section

24 3-815.1 of the Illinois Vehicle Code; and (iii) that are

25 primarily used for commercial purposes. Through June 30, 2005,

26 this exemption applies to repair and replacement parts added

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1 after the initial purchase of such a motor vehicle if that

2 motor vehicle is used in a manner that would qualify for the

3 rolling stock exemption otherwise provided for in this Act. For

4 purposes of this paragraph, the term "used for commercial

5 purposes" means the transportation of persons or property in

6 furtherance of any commercial or industrial enterprise,

7 whether for-hire or not.

8 (34) Beginning January 1, 2008, tangible personal property

9 used in the construction or maintenance of a community water

10 supply, as defined under Section 3.145 of the Environmental

11 Protection Act, that is operated by a not-for-profit

12 corporation that holds a valid water supply permit issued under

13 Title IV of the Environmental Protection Act. This paragraph is

14 exempt from the provisions of Section 3-90.

15 (35) Beginning January 1, 2010, materials, parts,

16 equipment, components, and furnishings incorporated into or

17 upon an aircraft as part of the modification, refurbishment,

18 completion, replacement, repair, or maintenance of the

19 aircraft. This exemption includes consumable supplies used in

20 the modification, refurbishment, completion, replacement,

21 repair, and maintenance of aircraft, but excludes any

22 materials, parts, equipment, components, and consumable

23 supplies used in the modification, replacement, repair, and

24 maintenance of aircraft engines or power plants, whether such

25 engines or power plants are installed or uninstalled upon any

26 such aircraft. "Consumable supplies" include, but are not

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1 limited to, adhesive, tape, sandpaper, general purpose

2 lubricants, cleaning solution, latex gloves, and protective

3 films. This exemption applies only to the use of qualifying

4 tangible personal property by persons who modify, refurbish,

5 complete, repair, replace, or maintain aircraft and who (i)

6 hold an Air Agency Certificate and are empowered to operate an

7 approved repair station by the Federal Aviation

8 Administration, (ii) have a Class IV Rating, and (iii) conduct

9 operations in accordance with Part 145 of the Federal Aviation

10 Regulations. The exemption does not include aircraft operated

11 by a commercial air carrier providing scheduled passenger air

12 service pursuant to authority issued under Part 121 or Part 129

13 of the Federal Aviation Regulations. The changes made to this

14 paragraph (35) by Public Act 98-534 are declarative of existing

15 law.

16 (36) Tangible personal property purchased by a

17 public-facilities corporation, as described in Section

18 11-65-10 of the Illinois Municipal Code, for purposes of

19 constructing or furnishing a municipal convention hall, but

20 only if the legal title to the municipal convention hall is

21 transferred to the municipality without any further

22 consideration by or on behalf of the municipality at the time

23 of the completion of the municipal convention hall or upon the

24 retirement or redemption of any bonds or other debt instruments

25 issued by the public-facilities corporation in connection with

26 the development of the municipal convention hall. This

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1 exemption includes existing public-facilities corporations as

2 provided in Section 11-65-25 of the Illinois Municipal Code.

3 This paragraph is exempt from the provisions of Section 3-90.

4 (37) Beginning January 1, 2017, menstrual pads, tampons,

5 and menstrual cups.

6 (38) Merchandise that is subject to the Rental Purchase

7 Agreement Occupation and Use Tax. The purchaser must certify

8 that the item is purchased to be rented subject to a rental

9 purchase agreement, as defined in the Rental Purchase Agreement

10 Act, and provide proof of registration under the Rental

11 Purchase Agreement Occupation and Use Tax Act. This paragraph

12 is exempt from the provisions of Section 3-90.

13 (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;

14 100-22, eff. 7-6-17; 100-437, eff. 1-1-18; 100-594, eff.

15 6-29-18; 100-863, eff. 8-14-18.)

16 (35 ILCS 105/3-50) (from Ch. 120, par. 439.3-50)

17 Sec. 3-50. Manufacturing and assembly exemption. The

18 manufacturing and assembling machinery and equipment exemption

19 includes machinery and equipment that replaces machinery and

20 equipment in an existing manufacturing facility as well as

21 machinery and equipment that are for use in an expanded or new

22 manufacturing facility. The machinery and equipment exemption

23 also includes machinery and equipment used in the general

24 maintenance or repair of exempt machinery and equipment or for

25 in-house manufacture of exempt machinery and equipment.

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1 Beginning on July 1, 2017 and until July 1, 2019, the

2 manufacturing and assembling machinery and equipment exemption

3 also includes graphic arts machinery and equipment, as defined

4 in paragraph (6) of Section 3-5. The machinery and equipment

5 exemption does not include machinery and equipment used in (i)

6 the generation of electricity for wholesale or retail sale;

7 (ii) the generation or treatment of natural or artificial gas

8 for wholesale or retail sale that is delivered to customers

9 through pipes, pipelines, or mains; or (iii) the treatment of

10 water for wholesale or retail sale that is delivered to

11 customers through pipes, pipelines, or mains. The provisions of

12 this amendatory Act of the 98th General Assembly are

13 declaratory of existing law as to the meaning and scope of this

14 exemption. For the purposes of this exemption, terms have the

15 following meanings:

16 (1) "Manufacturing process" means the production of an

17 article of tangible personal property, whether the article

18 is a finished product or an article for use in the process

19 of manufacturing or assembling a different article of

20 tangible personal property, by a procedure commonly

21 regarded as manufacturing, processing, fabricating, or

22 refining that changes some existing material into a

23 material with a different form, use, or name. In relation

24 to a recognized integrated business composed of a series of

25 operations that collectively constitute manufacturing, or

26 individually constitute manufacturing operations, the

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1 manufacturing process commences with the first operation

2 or stage of production in the series and does not end until

3 the completion of the final product in the last operation

4 or stage of production in the series. For purposes of this

5 exemption, photoprocessing is a manufacturing process of

6 tangible personal property for wholesale or retail sale.

7 (2) "Assembling process" means the production of an

8 article of tangible personal property, whether the article

9 is a finished product or an article for use in the process

10 of manufacturing or assembling a different article of

11 tangible personal property, by the combination of existing

12 materials in a manner commonly regarded as assembling that

13 results in an article or material of a different form, use,

14 or name.

15 (3) "Machinery" means major mechanical machines or

16 major components of those machines contributing to a

17 manufacturing or assembling process.

18 (4) "Equipment" includes an independent device or tool

19 separate from machinery but essential to an integrated

20 manufacturing or assembly process; including computers

21 used primarily in a manufacturer's computer assisted

22 design, computer assisted manufacturing (CAD/CAM) system;

23 any subunit or assembly comprising a component of any

24 machinery or auxiliary, adjunct, or attachment parts of

25 machinery, such as tools, dies, jigs, fixtures, patterns,

26 and molds; and any parts that require periodic replacement

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1 in the course of normal operation; but does not include

2 hand tools. Equipment includes chemicals or chemicals

3 acting as catalysts but only if the chemicals or chemicals

4 acting as catalysts effect a direct and immediate change

5 upon a product being manufactured or assembled for

6 wholesale or retail sale or lease.

7 (5) "Production related tangible personal property"

8 means all tangible personal property that is used or

9 consumed by the purchaser in a manufacturing facility in

10 which a manufacturing process takes place and includes,

11 without limitation, tangible personal property that is

12 purchased for incorporation into real estate within a

13 manufacturing facility and tangible personal property that

14 is used or consumed in activities such as research and

15 development, preproduction material handling, receiving,

16 quality control, inventory control, storage, staging, and

17 packaging for shipping and transportation purposes.

18 "Production related tangible personal property" does not

19 include (i) tangible personal property that is used, within

20 or without a manufacturing facility, in sales, purchasing,

21 accounting, fiscal management, marketing, personnel

22 recruitment or selection, or landscaping or (ii) tangible

23 personal property that is required to be titled or

24 registered with a department, agency, or unit of federal,

25 State, or local government.

26 The manufacturing and assembling machinery and equipment

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1 exemption includes production related tangible personal

2 property that is purchased on or after July 1, 2007 and on or

3 before June 30, 2008. The exemption for production related

4 tangible personal property is subject to both of the following

5 limitations:

6 (1) The maximum amount of the exemption for any one

7 taxpayer may not exceed 5% of the purchase price of

8 production related tangible personal property that is

9 purchased on or after July 1, 2007 and on or before June

10 30, 2008. A credit under Section 3-85 of this Act may not

11 be earned by the purchase of production related tangible

12 personal property for which an exemption is received under

13 this Section.

14 (2) The maximum aggregate amount of the exemptions for

15 production related tangible personal property awarded

16 under this Act and the Retailers' Occupation Tax Act to all

17 taxpayers may not exceed $10,000,000. If the claims for the

18 exemption exceed $10,000,000, then the Department shall

19 reduce the amount of the exemption to each taxpayer on a

20 pro rata basis.

21 The Department may adopt rules to implement and administer the

22 exemption for production related tangible personal property.

23 The manufacturing and assembling machinery and equipment

24 exemption includes the sale of materials to a purchaser who

25 produces exempted types of machinery, equipment, or tools and

26 who rents or leases that machinery, equipment, or tools to a

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1 manufacturer of tangible personal property. This exemption

2 also includes the sale of materials to a purchaser who

3 manufactures those materials into an exempted type of

4 machinery, equipment, or tools that the purchaser uses himself

5 or herself in the manufacturing of tangible personal property.

6 This exemption includes the sale of exempted types of machinery

7 or equipment to a purchaser who is not the manufacturer, but

8 who rents or leases the use of the property to a manufacturer.

9 The purchaser of the machinery and equipment who has an active

10 resale registration number shall furnish that number to the

11 seller at the time of purchase. A user of the machinery,

12 equipment, or tools without an active resale registration

13 number shall prepare a certificate of exemption for each

14 transaction stating facts establishing the exemption for that

15 transaction, and that certificate shall be available to the

16 Department for inspection or audit. The Department shall

17 prescribe the form of the certificate. Informal rulings,

18 opinions, or letters issued by the Department in response to an

19 inquiry or request for an opinion from any person regarding the

20 coverage and applicability of this exemption to specific

21 devices shall be published, maintained as a public record, and

22 made available for public inspection and copying. If the

23 informal ruling, opinion, or letter contains trade secrets or

24 other confidential information, where possible, the Department

25 shall delete that information before publication. Whenever

26 informal rulings, opinions, or letters contain a policy of

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1 general applicability, the Department shall formulate and

2 adopt that policy as a rule in accordance with the Illinois

3 Administrative Procedure Act.

4 ~~The manufacturing and assembling machinery and equipment~~

5 ~~exemption is exempt from the provisions of Section 3-90.~~

6 (Source: P.A. 100-22, eff. 7-6-17.)

7 Section 155. The Service Use Tax Act is amended by changing

8 Sections 2 and 3-5 as follows:

9 (35 ILCS 110/2) (from Ch. 120, par. 439.32)

10 Sec. 2. Definitions. In this Act:

11 "Use" means the exercise by any person of any right or

12 power over tangible personal property incident to the ownership

13 of that property, but does not include the sale or use for

14 demonstration by him of that property in any form as tangible

15 personal property in the regular course of business. "Use" does

16 not mean the interim use of tangible personal property nor the

17 physical incorporation of tangible personal property, as an

18 ingredient or constituent, into other tangible personal

19 property, (a) which is sold in the regular course of business

20 or (b) which the person incorporating such ingredient or

21 constituent therein has undertaken at the time of such purchase

22 to cause to be transported in interstate commerce to

23 destinations outside the State of Illinois.

24 "Purchased from a serviceman" means the acquisition of the

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1 ownership of, or title to, tangible personal property through a

2 sale of service.

3 "Purchaser" means any person who, through a sale of

4 service, acquires the ownership of, or title to, any tangible

5 personal property.

6 "Cost price" means the consideration paid by the serviceman

7 for a purchase valued in money, whether paid in money or

8 otherwise, including cash, credits and services, and shall be

9 determined without any deduction on account of the supplier's

10 cost of the property sold or on account of any other expense

11 incurred by the supplier. When a serviceman contracts out part

12 or all of the services required in his sale of service, it

13 shall be presumed that the cost price to the serviceman of the

14 property transferred to him or her by his or her subcontractor

15 is equal to 50% of the subcontractor's charges to the

16 serviceman in the absence of proof of the consideration paid by

17 the subcontractor for the purchase of such property.

18 "Selling price" means the consideration for a sale valued

19 in money whether received in money or otherwise, including

20 cash, credits and service, and shall be determined without any

21 deduction on account of the serviceman's cost of the property

22 sold, the cost of materials used, labor or service cost or any

23 other expense whatsoever, but does not include interest or

24 finance charges which appear as separate items on the bill of

25 sale or sales contract nor charges that are added to prices by

26 sellers on account of the seller's duty to collect, from the

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1 purchaser, the tax that is imposed by this Act.

2 "Department" means the Department of Revenue.

3 "Person" means any natural individual, firm, partnership,

4 association, joint stock company, joint venture, public or

5 private corporation, limited liability company, and any

6 receiver, executor, trustee, guardian or other representative

7 appointed by order of any court.

8 "Sale of service" means any transaction except:

9 (1) a retail sale of tangible personal property taxable

10 under the Retailers' Occupation Tax Act or under the Use

11 Tax Act.

12 (2) a sale of tangible personal property for the

13 purpose of resale made in compliance with Section 2c of the

14 Retailers' Occupation Tax Act.

15 (3) except as hereinafter provided, a sale or transfer

16 of tangible personal property as an incident to the

17 rendering of service for or by any governmental body, or

18 for or by any corporation, society, association,

19 foundation or institution organized and operated

20 exclusively for charitable, religious or educational

21 purposes or any not-for-profit corporation, society,

22 association, foundation, institution or organization which

23 has no compensated officers or employees and which is

24 organized and operated primarily for the recreation of

25 persons 55 years of age or older. A limited liability

26 company may qualify for the exemption under this paragraph

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1 only if the limited liability company is organized and

2 operated exclusively for educational purposes.

3 (4) (blank).

4 (4a) a sale or transfer of tangible personal property

5 as an incident to the rendering of service for owners,

6 lessors, or shippers of tangible personal property which is

7 utilized by interstate carriers for hire for use as rolling

8 stock moving in interstate commerce so long as so used by

9 interstate carriers for hire, and equipment operated by a

10 telecommunications provider, licensed as a common carrier

11 by the Federal Communications Commission, which is

12 permanently installed in or affixed to aircraft moving in

13 interstate commerce.

14 (4a-5) on and after July 1, 2003 and through June 30,

15 2004, a sale or transfer of a motor vehicle of the second

16 division with a gross vehicle weight in excess of 8,000

17 pounds as an incident to the rendering of service if that

18 motor vehicle is subject to the commercial distribution fee

19 imposed under Section 3-815.1 of the Illinois Vehicle Code.

20 Beginning on July 1, 2004 and through June 30, 2005, the

21 use in this State of motor vehicles of the second division:

22 (i) with a gross vehicle weight rating in excess of 8,000

23 pounds; (ii) that are subject to the commercial

24 distribution fee imposed under Section 3-815.1 of the

25 Illinois Vehicle Code; and (iii) that are primarily used

26 for commercial purposes. Through June 30, 2005, this

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1 exemption applies to repair and replacement parts added

2 after the initial purchase of such a motor vehicle if that

3 motor vehicle is used in a manner that would qualify for

4 the rolling stock exemption otherwise provided for in this

5 Act. For purposes of this paragraph, "used for commercial

6 purposes" means the transportation of persons or property

7 in furtherance of any commercial or industrial enterprise

8 whether for-hire or not.

9 (5) a sale or transfer of machinery and equipment used

10 primarily in the process of the manufacturing or

11 assembling, either in an existing, an expanded or a new

12 manufacturing facility, of tangible personal property for

13 wholesale or retail sale or lease, whether such sale or

14 lease is made directly by the manufacturer or by some other

15 person, whether the materials used in the process are owned

16 by the manufacturer or some other person, or whether such

17 sale or lease is made apart from or as an incident to the

18 seller's engaging in a service occupation and the

19 applicable tax is a Service Use Tax or Service Occupation

20 Tax, rather than Use Tax or Retailers' Occupation Tax. The

21 exemption provided by this paragraph (5) does not include

22 machinery and equipment used in (i) the generation of

23 electricity for wholesale or retail sale; (ii) the

24 generation or treatment of natural or artificial gas for

25 wholesale or retail sale that is delivered to customers

26 through pipes, pipelines, or mains; or (iii) the treatment

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1 of water for wholesale or retail sale that is delivered to

2 customers through pipes, pipelines, or mains. The

3 provisions of Public Act 98-583 are declaratory of existing

4 law as to the meaning and scope of this exemption. ~~The~~

5 ~~exemption under this paragraph (5) is exempt from the~~

6 ~~provisions of Section 3-75.~~

7 (5a) the repairing, reconditioning or remodeling, for

8 a common carrier by rail, of tangible personal property

9 which belongs to such carrier for hire, and as to which

10 such carrier receives the physical possession of the

11 repaired, reconditioned or remodeled item of tangible

12 personal property in Illinois, and which such carrier

13 transports, or shares with another common carrier in the

14 transportation of such property, out of Illinois on a

15 standard uniform bill of lading showing the person who

16 repaired, reconditioned or remodeled the property to a

17 destination outside Illinois, for use outside Illinois.

18 (5b) a sale or transfer of tangible personal property

19 which is produced by the seller thereof on special order in

20 such a way as to have made the applicable tax the Service

21 Occupation Tax or the Service Use Tax, rather than the

22 Retailers' Occupation Tax or the Use Tax, for an interstate

23 carrier by rail which receives the physical possession of

24 such property in Illinois, and which transports such

25 property, or shares with another common carrier in the

26 transportation of such property, out of Illinois on a

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1 standard uniform bill of lading showing the seller of the

2 property as the shipper or consignor of such property to a

3 destination outside Illinois, for use outside Illinois.

4 (6) until July 1, 2003, a sale or transfer of

5 distillation machinery and equipment, sold as a unit or kit

6 and assembled or installed by the retailer, which machinery

7 and equipment is certified by the user to be used only for

8 the production of ethyl alcohol that will be used for

9 consumption as motor fuel or as a component of motor fuel

10 for the personal use of such user and not subject to sale

11 or resale.

12 (7) at the election of any serviceman not required to

13 be otherwise registered as a retailer under Section 2a of

14 the Retailers' Occupation Tax Act, made for each fiscal

15 year sales of service in which the aggregate annual cost

16 price of tangible personal property transferred as an

17 incident to the sales of service is less than 35%, or 75%

18 in the case of servicemen transferring prescription drugs

19 or servicemen engaged in graphic arts production, of the

20 aggregate annual total gross receipts from all sales of

21 service. The purchase of such tangible personal property by

22 the serviceman shall be subject to tax under the Retailers'

23 Occupation Tax Act and the Use Tax Act. However, if a

24 primary serviceman who has made the election described in

25 this paragraph subcontracts service work to a secondary

26 serviceman who has also made the election described in this

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1 paragraph, the primary serviceman does not incur a Use Tax

2 liability if the secondary serviceman (i) has paid or will

3 pay Use Tax on his or her cost price of any tangible

4 personal property transferred to the primary serviceman

5 and (ii) certifies that fact in writing to the primary

6 serviceman.

7 Tangible personal property transferred incident to the

8 completion of a maintenance agreement is exempt from the tax

9 imposed pursuant to this Act.

10 Exemption (5) also includes machinery and equipment used in

11 the general maintenance or repair of such exempt machinery and

12 equipment or for in-house manufacture of exempt machinery and

13 equipment. On and after July 1, 2017 and until July 1, 2019,

14 exemption (5) also includes graphic arts machinery and

15 equipment, as defined in paragraph (5) of Section 3-5. The

16 machinery and equipment exemption does not include machinery

17 and equipment used in (i) the generation of electricity for

18 wholesale or retail sale; (ii) the generation or treatment of

19 natural or artificial gas for wholesale or retail sale that is

20 delivered to customers through pipes, pipelines, or mains; or

21 (iii) the treatment of water for wholesale or retail sale that

22 is delivered to customers through pipes, pipelines, or mains.

23 The provisions of Public Act 98-583 are declaratory of existing

24 law as to the meaning and scope of this exemption. For the

25 purposes of exemption (5), each of these terms shall have the

26 following meanings: (1) "manufacturing process" shall mean the

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1 production of any article of tangible personal property,

2 whether such article is a finished product or an article for

3 use in the process of manufacturing or assembling a different

4 article of tangible personal property, by procedures commonly

5 regarded as manufacturing, processing, fabricating, or

6 refining which changes some existing material or materials into

7 a material with a different form, use or name. In relation to a

8 recognized integrated business composed of a series of

9 operations which collectively constitute manufacturing, or

10 individually constitute manufacturing operations, the

11 manufacturing process shall be deemed to commence with the

12 first operation or stage of production in the series, and shall

13 not be deemed to end until the completion of the final product

14 in the last operation or stage of production in the series; and

15 further, for purposes of exemption (5), photoprocessing is

16 deemed to be a manufacturing process of tangible personal

17 property for wholesale or retail sale; (2) "assembling process"

18 shall mean the production of any article of tangible personal

19 property, whether such article is a finished product or an

20 article for use in the process of manufacturing or assembling a

21 different article of tangible personal property, by the

22 combination of existing materials in a manner commonly regarded

23 as assembling which results in a material of a different form,

24 use or name; (3) "machinery" shall mean major mechanical

25 machines or major components of such machines contributing to a

26 manufacturing or assembling process; and (4) "equipment" shall

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1 include any independent device or tool separate from any

2 machinery but essential to an integrated manufacturing or

3 assembly process; including computers used primarily in a

4 manufacturer's computer assisted design, computer assisted

5 manufacturing (CAD/CAM) system; or any subunit or assembly

6 comprising a component of any machinery or auxiliary, adjunct

7 or attachment parts of machinery, such as tools, dies, jigs,

8 fixtures, patterns and molds; or any parts which require

9 periodic replacement in the course of normal operation; but

10 shall not include hand tools. Equipment includes chemicals or

11 chemicals acting as catalysts but only if the chemicals or

12 chemicals acting as catalysts effect a direct and immediate

13 change upon a product being manufactured or assembled for

14 wholesale or retail sale or lease. The purchaser of such

15 machinery and equipment who has an active resale registration

16 number shall furnish such number to the seller at the time of

17 purchase. The user of such machinery and equipment and tools

18 without an active resale registration number shall prepare a

19 certificate of exemption for each transaction stating facts

20 establishing the exemption for that transaction, which

21 certificate shall be available to the Department for inspection

22 or audit. The Department shall prescribe the form of the

23 certificate.

24 Any informal rulings, opinions or letters issued by the

25 Department in response to an inquiry or request for any opinion

26 from any person regarding the coverage and applicability of

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1 exemption (5) to specific devices shall be published,

2 maintained as a public record, and made available for public

3 inspection and copying. If the informal ruling, opinion or

4 letter contains trade secrets or other confidential

5 information, where possible the Department shall delete such

6 information prior to publication. Whenever such informal

7 rulings, opinions, or letters contain any policy of general

8 applicability, the Department shall formulate and adopt such

9 policy as a rule in accordance with the provisions of the

10 Illinois Administrative Procedure Act.

11 On and after July 1, 1987, no entity otherwise eligible

12 under exemption (3) of this Section shall make tax-free

13 purchases unless it has an active exemption identification

14 number issued by the Department.

15 The purchase, employment and transfer of such tangible

16 personal property as newsprint and ink for the primary purpose

17 of conveying news (with or without other information) is not a

18 purchase, use or sale of service or of tangible personal

19 property within the meaning of this Act.

20 "Serviceman" means any person who is engaged in the

21 occupation of making sales of service.

22 "Sale at retail" means "sale at retail" as defined in the

23 Retailers' Occupation Tax Act.

24 "Supplier" means any person who makes sales of tangible

25 personal property to servicemen for the purpose of resale as an

26 incident to a sale of service.

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1 "Serviceman maintaining a place of business in this State",

2 or any like term, means and includes any serviceman:

3 (1) having or maintaining within this State, directly

4 or by a subsidiary, an office, distribution house, sales

5 house, warehouse or other place of business, or any agent

6 or other representative operating within this State under

7 the authority of the serviceman or its subsidiary,

8 irrespective of whether such place of business or agent or

9 other representative is located here permanently or

10 temporarily, or whether such serviceman or subsidiary is

11 licensed to do business in this State;

12 (1.1) having a contract with a person located in this

13 State under which the person, for a commission or other

14 consideration based on the sale of service by the

15 serviceman, directly or indirectly refers potential

16 customers to the serviceman by providing to the potential

17 customers a promotional code or other mechanism that allows

18 the serviceman to track purchases referred by such persons.

19 Examples of mechanisms that allow the serviceman to track

20 purchases referred by such persons include but are not

21 limited to the use of a link on the person's Internet

22 website, promotional codes distributed through the

23 person's hand-delivered or mailed material, and

24 promotional codes distributed by the person through radio

25 or other broadcast media. The provisions of this paragraph

26 (1.1) shall apply only if the cumulative gross receipts

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1 from sales of service by the serviceman to customers who

2 are referred to the serviceman by all persons in this State

3 under such contracts exceed $10,000 during the preceding 4

4 quarterly periods ending on the last day of March, June,

5 September, and December; a serviceman meeting the

6 requirements of this paragraph (1.1) shall be presumed to

7 be maintaining a place of business in this State but may

8 rebut this presumption by submitting proof that the

9 referrals or other activities pursued within this State by

10 such persons were not sufficient to meet the nexus

11 standards of the United States Constitution during the

12 preceding 4 quarterly periods;

13 (1.2) beginning July 1, 2011, having a contract with a

14 person located in this State under which:

15 (A) the serviceman sells the same or substantially

16 similar line of services as the person located in this

17 State and does so using an identical or substantially

18 similar name, trade name, or trademark as the person

19 located in this State; and

20 (B) the serviceman provides a commission or other

21 consideration to the person located in this State based

22 upon the sale of services by the serviceman.

23 The provisions of this paragraph (1.2) shall apply only if

24 the cumulative gross receipts from sales of service by the

25 serviceman to customers in this State under all such

26 contracts exceed $10,000 during the preceding 4 quarterly

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1 periods ending on the last day of March, June, September,

2 and December;

3 (2) soliciting orders for tangible personal property

4 by means of a telecommunication or television shopping

5 system (which utilizes toll free numbers) which is intended

6 by the retailer to be broadcast by cable television or

7 other means of broadcasting, to consumers located in this

8 State;

9 (3) pursuant to a contract with a broadcaster or

10 publisher located in this State, soliciting orders for

11 tangible personal property by means of advertising which is

12 disseminated primarily to consumers located in this State

13 and only secondarily to bordering jurisdictions;

14 (4) soliciting orders for tangible personal property

15 by mail if the solicitations are substantial and recurring

16 and if the retailer benefits from any banking, financing,

17 debt collection, telecommunication, or marketing

18 activities occurring in this State or benefits from the

19 location in this State of authorized installation,

20 servicing, or repair facilities;

21 (5) being owned or controlled by the same interests

22 which own or control any retailer engaging in business in

23 the same or similar line of business in this State;

24 (6) having a franchisee or licensee operating under its

25 trade name if the franchisee or licensee is required to

26 collect the tax under this Section;

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1 (7) pursuant to a contract with a cable television

2 operator located in this State, soliciting orders for

3 tangible personal property by means of advertising which is

4 transmitted or distributed over a cable television system

5 in this State;

6 (8) engaging in activities in Illinois, which

7 activities in the state in which the supply business

8 engaging in such activities is located would constitute

9 maintaining a place of business in that state; or

10 (9) beginning October 1, 2018, making sales of service

11 to purchasers in Illinois from outside of Illinois if:

12 (A) the cumulative gross receipts from sales of

13 service to purchasers in Illinois are $100,000 or more;

14 or

15 (B) the serviceman enters into 200 or more separate

16 transactions for sales of service to purchasers in

17 Illinois.

18 The serviceman shall determine on a quarterly basis,

19 ending on the last day of March, June, September, and

20 December, whether he or she meets the criteria of either

21 subparagraph (A) or (B) of this paragraph (9) for the

22 preceding 12-month period. If the serviceman meets the

23 criteria of either subparagraph (A) or (B) for a 12-month

24 period, he or she is considered a serviceman maintaining a

25 place of business in this State and is required to collect

26 and remit the tax imposed under this Act and file returns

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1 for one year. At the end of that one-year period, the

2 serviceman shall determine whether the serviceman met the

3 criteria of either subparagraph (A) or (B) during the

4 preceding 12-month period. If the serviceman met the

5 criteria in either subparagraph (A) or (B) for the

6 preceding 12-month period, he or she is considered a

7 serviceman maintaining a place of business in this State

8 and is required to collect and remit the tax imposed under

9 this Act and file returns for the subsequent year. If at

10 the end of a one-year period a serviceman that was required

11 to collect and remit the tax imposed under this Act

12 determines that he or she did not meet the criteria in

13 either subparagraph (A) or (B) during the preceding

14 12-month period, the serviceman subsequently shall

15 determine on a quarterly basis, ending on the last day of

16 March, June, September, and December, whether he or she

17 meets the criteria of either subparagraph (A) or (B) for

18 the preceding 12-month period.

19 (Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;

20 100-587, eff. 6-4-18; 100-863, eff. 8-14-18.)

21 (35 ILCS 110/3-5)

22 Sec. 3-5. Exemptions. Use of the following tangible

23 personal property is exempt from the tax imposed by this Act:

24 (1) Personal property purchased from a corporation,

25 society, association, foundation, institution, or

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1 organization, other than a limited liability company, that is

2 organized and operated as a not-for-profit service enterprise

3 for the benefit of persons 65 years of age or older if the

4 personal property was not purchased by the enterprise for the

5 purpose of resale by the enterprise.

6 (2) Personal property purchased by a non-profit Illinois

7 county fair association for use in conducting, operating, or

8 promoting the county fair.

9 (3) Personal property purchased by a not-for-profit arts or

10 cultural organization that establishes, by proof required by

11 the Department by rule, that it has received an exemption under

12 Section 501(c)(3) of the Internal Revenue Code and that is

13 organized and operated primarily for the presentation or

14 support of arts or cultural programming, activities, or

15 services. These organizations include, but are not limited to,

16 music and dramatic arts organizations such as symphony

17 orchestras and theatrical groups, arts and cultural service

18 organizations, local arts councils, visual arts organizations,

19 and media arts organizations. On and after the effective date

20 of this amendatory Act of the 92nd General Assembly, however,

21 an entity otherwise eligible for this exemption shall not make

22 tax-free purchases unless it has an active identification

23 number issued by the Department.

24 (4) Legal tender, currency, medallions, or gold or silver

25 coinage issued by the State of Illinois, the government of the

26 United States of America, or the government of any foreign

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1 country, and bullion.

2 (5) Until July 1, 2003 and beginning again on September 1,

3 2004 through August 30, 2014, graphic arts machinery and

4 equipment, including repair and replacement parts, both new and

5 used, and including that manufactured on special order or

6 purchased for lease, certified by the purchaser to be used

7 primarily for graphic arts production. Equipment includes

8 chemicals or chemicals acting as catalysts but only if the

9 chemicals or chemicals acting as catalysts effect a direct and

10 immediate change upon a graphic arts product. Beginning on July

11 1, 2017 and until July 1, 2019, graphic arts machinery and

12 equipment is included in the manufacturing and assembling

13 machinery and equipment exemption under Section 2 of this Act.

14 (6) Personal property purchased from a teacher-sponsored

15 student organization affiliated with an elementary or

16 secondary school located in Illinois.

17 (7) Farm machinery and equipment, both new and used,

18 including that manufactured on special order, certified by the

19 purchaser to be used primarily for production agriculture or

20 State or federal agricultural programs, including individual

21 replacement parts for the machinery and equipment, including

22 machinery and equipment purchased for lease, and including

23 implements of husbandry defined in Section 1-130 of the

24 Illinois Vehicle Code, farm machinery and agricultural

25 chemical and fertilizer spreaders, and nurse wagons required to

26 be registered under Section 3-809 of the Illinois Vehicle Code,

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1 but excluding other motor vehicles required to be registered

2 under the Illinois Vehicle Code. Horticultural polyhouses or

3 hoop houses used for propagating, growing, or overwintering

4 plants shall be considered farm machinery and equipment under

5 this item (7). Agricultural chemical tender tanks and dry boxes

6 shall include units sold separately from a motor vehicle

7 required to be licensed and units sold mounted on a motor

8 vehicle required to be licensed if the selling price of the

9 tender is separately stated.

10 Farm machinery and equipment shall include precision

11 farming equipment that is installed or purchased to be

12 installed on farm machinery and equipment including, but not

13 limited to, tractors, harvesters, sprayers, planters, seeders,

14 or spreaders. Precision farming equipment includes, but is not

15 limited to, soil testing sensors, computers, monitors,

16 software, global positioning and mapping systems, and other

17 such equipment.

18 Farm machinery and equipment also includes computers,

19 sensors, software, and related equipment used primarily in the

20 computer-assisted operation of production agriculture

21 facilities, equipment, and activities such as, but not limited

22 to, the collection, monitoring, and correlation of animal and

23 crop data for the purpose of formulating animal diets and

24 agricultural chemicals. This item (7) is exempt from the

25 provisions of Section 3-75.

26 (8) Until June 30, 2013, fuel and petroleum products sold

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1 to or used by an air common carrier, certified by the carrier

2 to be used for consumption, shipment, or storage in the conduct

3 of its business as an air common carrier, for a flight destined

4 for or returning from a location or locations outside the

5 United States without regard to previous or subsequent domestic

6 stopovers.

7 Beginning July 1, 2013, fuel and petroleum products sold to

8 or used by an air carrier, certified by the carrier to be used

9 for consumption, shipment, or storage in the conduct of its

10 business as an air common carrier, for a flight that (i) is

11 engaged in foreign trade or is engaged in trade between the

12 United States and any of its possessions and (ii) transports at

13 least one individual or package for hire from the city of

14 origination to the city of final destination on the same

15 aircraft, without regard to a change in the flight number of

16 that aircraft.

17 (9) Proceeds of mandatory service charges separately

18 stated on customers' bills for the purchase and consumption of

19 food and beverages acquired as an incident to the purchase of a

20 service from a serviceman, to the extent that the proceeds of

21 the service charge are in fact turned over as tips or as a

22 substitute for tips to the employees who participate directly

23 in preparing, serving, hosting or cleaning up the food or

24 beverage function with respect to which the service charge is

25 imposed.

26 (10) Until July 1, 2003, oil field exploration, drilling,

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1 and production equipment, including (i) rigs and parts of rigs,

2 rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and

3 tubular goods, including casing and drill strings, (iii) pumps

4 and pump-jack units, (iv) storage tanks and flow lines, (v) any

5 individual replacement part for oil field exploration,

6 drilling, and production equipment, and (vi) machinery and

7 equipment purchased for lease; but excluding motor vehicles

8 required to be registered under the Illinois Vehicle Code.

9 (11) Proceeds from the sale of photoprocessing machinery

10 and equipment, including repair and replacement parts, both new

11 and used, including that manufactured on special order,

12 certified by the purchaser to be used primarily for

13 photoprocessing, and including photoprocessing machinery and

14 equipment purchased for lease.

15 (12) Until July 1, 2023, coal and aggregate exploration,

16 mining, off-highway hauling, processing, maintenance, and

17 reclamation equipment, including replacement parts and

18 equipment, and including equipment purchased for lease, but

19 excluding motor vehicles required to be registered under the

20 Illinois Vehicle Code. The changes made to this Section by

21 Public Act 97-767 apply on and after July 1, 2003, but no claim

22 for credit or refund is allowed on or after August 16, 2013

23 (the effective date of Public Act 98-456) for such taxes paid

24 during the period beginning July 1, 2003 and ending on August

25 16, 2013 (the effective date of Public Act 98-456).

26 (13) Semen used for artificial insemination of livestock

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1 for direct agricultural production.

2 (14) Horses, or interests in horses, registered with and

3 meeting the requirements of any of the Arabian Horse Club

4 Registry of America, Appaloosa Horse Club, American Quarter

5 Horse Association, United States Trotting Association, or

6 Jockey Club, as appropriate, used for purposes of breeding or

7 racing for prizes. This item (14) is exempt from the provisions

8 of Section 3-75, and the exemption provided for under this item

9 (14) applies for all periods beginning May 30, 1995, but no

10 claim for credit or refund is allowed on or after the effective

11 date of this amendatory Act of the 95th General Assembly for

12 such taxes paid during the period beginning May 30, 2000 and

13 ending on the effective date of this amendatory Act of the 95th

14 General Assembly.

15 (15) Computers and communications equipment utilized for

16 any hospital purpose and equipment used in the diagnosis,

17 analysis, or treatment of hospital patients purchased by a

18 lessor who leases the equipment, under a lease of one year or

19 longer executed or in effect at the time the lessor would

20 otherwise be subject to the tax imposed by this Act, to a

21 hospital that has been issued an active tax exemption

22 identification number by the Department under Section 1g of the

23 Retailers' Occupation Tax Act. If the equipment is leased in a

24 manner that does not qualify for this exemption or is used in

25 any other non-exempt manner, the lessor shall be liable for the

26 tax imposed under this Act or the Use Tax Act, as the case may

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1 be, based on the fair market value of the property at the time

2 the non-qualifying use occurs. No lessor shall collect or

3 attempt to collect an amount (however designated) that purports

4 to reimburse that lessor for the tax imposed by this Act or the

5 Use Tax Act, as the case may be, if the tax has not been paid by

6 the lessor. If a lessor improperly collects any such amount

7 from the lessee, the lessee shall have a legal right to claim a

8 refund of that amount from the lessor. If, however, that amount

9 is not refunded to the lessee for any reason, the lessor is

10 liable to pay that amount to the Department.

11 (16) Personal property purchased by a lessor who leases the

12 property, under a lease of one year or longer executed or in

13 effect at the time the lessor would otherwise be subject to the

14 tax imposed by this Act, to a governmental body that has been

15 issued an active tax exemption identification number by the

16 Department under Section 1g of the Retailers' Occupation Tax

17 Act. If the property is leased in a manner that does not

18 qualify for this exemption or is used in any other non-exempt

19 manner, the lessor shall be liable for the tax imposed under

20 this Act or the Use Tax Act, as the case may be, based on the

21 fair market value of the property at the time the

22 non-qualifying use occurs. No lessor shall collect or attempt

23 to collect an amount (however designated) that purports to

24 reimburse that lessor for the tax imposed by this Act or the

25 Use Tax Act, as the case may be, if the tax has not been paid by

26 the lessor. If a lessor improperly collects any such amount

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1 from the lessee, the lessee shall have a legal right to claim a

2 refund of that amount from the lessor. If, however, that amount

3 is not refunded to the lessee for any reason, the lessor is

4 liable to pay that amount to the Department.

5 (17) Beginning with taxable years ending on or after

6 December 31, 1995 and ending with taxable years ending on or

7 before December 31, 2004, personal property that is donated for

8 disaster relief to be used in a State or federally declared

9 disaster area in Illinois or bordering Illinois by a

10 manufacturer or retailer that is registered in this State to a

11 corporation, society, association, foundation, or institution

12 that has been issued a sales tax exemption identification

13 number by the Department that assists victims of the disaster

14 who reside within the declared disaster area.

15 (18) Beginning with taxable years ending on or after

16 December 31, 1995 and ending with taxable years ending on or

17 before December 31, 2004, personal property that is used in the

18 performance of infrastructure repairs in this State, including

19 but not limited to municipal roads and streets, access roads,

20 bridges, sidewalks, waste disposal systems, water and sewer

21 line extensions, water distribution and purification

22 facilities, storm water drainage and retention facilities, and

23 sewage treatment facilities, resulting from a State or

24 federally declared disaster in Illinois or bordering Illinois

25 when such repairs are initiated on facilities located in the

26 declared disaster area within 6 months after the disaster.

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1 (19) Beginning July 1, 1999, game or game birds purchased

2 at a "game breeding and hunting preserve area" as that term is

3 used in the Wildlife Code. This paragraph is exempt from the

4 provisions of Section 3-75.

5 (20) A motor vehicle, as that term is defined in Section

6 1-146 of the Illinois Vehicle Code, that is donated to a

7 corporation, limited liability company, society, association,

8 foundation, or institution that is determined by the Department

9 to be organized and operated exclusively for educational

10 purposes. For purposes of this exemption, "a corporation,

11 limited liability company, society, association, foundation,

12 or institution organized and operated exclusively for

13 educational purposes" means all tax-supported public schools,

14 private schools that offer systematic instruction in useful

15 branches of learning by methods common to public schools and

16 that compare favorably in their scope and intensity with the

17 course of study presented in tax-supported schools, and

18 vocational or technical schools or institutes organized and

19 operated exclusively to provide a course of study of not less

20 than 6 weeks duration and designed to prepare individuals to

21 follow a trade or to pursue a manual, technical, mechanical,

22 industrial, business, or commercial occupation.

23 (21) Beginning January 1, 2000, personal property,

24 including food, purchased through fundraising events for the

25 benefit of a public or private elementary or secondary school,

26 a group of those schools, or one or more school districts if

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1 the events are sponsored by an entity recognized by the school

2 district that consists primarily of volunteers and includes

3 parents and teachers of the school children. This paragraph

4 does not apply to fundraising events (i) for the benefit of

5 private home instruction or (ii) for which the fundraising

6 entity purchases the personal property sold at the events from

7 another individual or entity that sold the property for the

8 purpose of resale by the fundraising entity and that profits

9 from the sale to the fundraising entity. This paragraph is

10 exempt from the provisions of Section 3-75.

11 (22) Beginning January 1, 2000 and through December 31,

12 2001, new or used automatic vending machines that prepare and

13 serve hot food and beverages, including coffee, soup, and other

14 items, and replacement parts for these machines. Beginning

15 January 1, 2002 and through June 30, 2003, machines and parts

16 for machines used in commercial, coin-operated amusement and

17 vending business if a use or occupation tax is paid on the

18 gross receipts derived from the use of the commercial,

19 coin-operated amusement and vending machines. This paragraph

20 is exempt from the provisions of Section 3-75.

21 (23) Beginning August 23, 2001 and through June 30, 2016,

22 food for human consumption that is to be consumed off the

23 premises where it is sold (other than alcoholic beverages, soft

24 drinks, and food that has been prepared for immediate

25 consumption) and prescription and nonprescription medicines,

26 drugs, medical appliances, and insulin, urine testing

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1 materials, syringes, and needles used by diabetics, for human

2 use, when purchased for use by a person receiving medical

3 assistance under Article V of the Illinois Public Aid Code who

4 resides in a licensed long-term care facility, as defined in

5 the Nursing Home Care Act, or in a licensed facility as defined

6 in the ID/DD Community Care Act, the MC/DD Act, or the

7 Specialized Mental Health Rehabilitation Act of 2013.

8 (24) Beginning on the effective date of this amendatory Act

9 of the 92nd General Assembly, computers and communications

10 equipment utilized for any hospital purpose and equipment used

11 in the diagnosis, analysis, or treatment of hospital patients

12 purchased by a lessor who leases the equipment, under a lease

13 of one year or longer executed or in effect at the time the

14 lessor would otherwise be subject to the tax imposed by this

15 Act, to a hospital that has been issued an active tax exemption

16 identification number by the Department under Section 1g of the

17 Retailers' Occupation Tax Act. If the equipment is leased in a

18 manner that does not qualify for this exemption or is used in

19 any other nonexempt manner, the lessor shall be liable for the

20 tax imposed under this Act or the Use Tax Act, as the case may

21 be, based on the fair market value of the property at the time

22 the nonqualifying use occurs. No lessor shall collect or

23 attempt to collect an amount (however designated) that purports

24 to reimburse that lessor for the tax imposed by this Act or the

25 Use Tax Act, as the case may be, if the tax has not been paid by

26 the lessor. If a lessor improperly collects any such amount

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1 from the lessee, the lessee shall have a legal right to claim a

2 refund of that amount from the lessor. If, however, that amount

3 is not refunded to the lessee for any reason, the lessor is

4 liable to pay that amount to the Department. This paragraph is

5 exempt from the provisions of Section 3-75.

6 (25) Beginning on the effective date of this amendatory Act

7 of the 92nd General Assembly, personal property purchased by a

8 lessor who leases the property, under a lease of one year or

9 longer executed or in effect at the time the lessor would

10 otherwise be subject to the tax imposed by this Act, to a

11 governmental body that has been issued an active tax exemption

12 identification number by the Department under Section 1g of the

13 Retailers' Occupation Tax Act. If the property is leased in a

14 manner that does not qualify for this exemption or is used in

15 any other nonexempt manner, the lessor shall be liable for the

16 tax imposed under this Act or the Use Tax Act, as the case may

17 be, based on the fair market value of the property at the time

18 the nonqualifying use occurs. No lessor shall collect or

19 attempt to collect an amount (however designated) that purports

20 to reimburse that lessor for the tax imposed by this Act or the

21 Use Tax Act, as the case may be, if the tax has not been paid by

22 the lessor. If a lessor improperly collects any such amount

23 from the lessee, the lessee shall have a legal right to claim a

24 refund of that amount from the lessor. If, however, that amount

25 is not refunded to the lessee for any reason, the lessor is

26 liable to pay that amount to the Department. This paragraph is

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1 exempt from the provisions of Section 3-75.

2 (26) Beginning January 1, 2008, tangible personal property

3 used in the construction or maintenance of a community water

4 supply, as defined under Section 3.145 of the Environmental

5 Protection Act, that is operated by a not-for-profit

6 corporation that holds a valid water supply permit issued under

7 Title IV of the Environmental Protection Act. This paragraph is

8 exempt from the provisions of Section 3-75.

9 (27) Beginning January 1, 2010, materials, parts,

10 equipment, components, and furnishings incorporated into or

11 upon an aircraft as part of the modification, refurbishment,

12 completion, replacement, repair, or maintenance of the

13 aircraft. This exemption includes consumable supplies used in

14 the modification, refurbishment, completion, replacement,

15 repair, and maintenance of aircraft, but excludes any

16 materials, parts, equipment, components, and consumable

17 supplies used in the modification, replacement, repair, and

18 maintenance of aircraft engines or power plants, whether such

19 engines or power plants are installed or uninstalled upon any

20 such aircraft. "Consumable supplies" include, but are not

21 limited to, adhesive, tape, sandpaper, general purpose

22 lubricants, cleaning solution, latex gloves, and protective

23 films. This exemption applies only to the use of qualifying

24 tangible personal property transferred incident to the

25 modification, refurbishment, completion, replacement, repair,

26 or maintenance of aircraft by persons who (i) hold an Air

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1 Agency Certificate and are empowered to operate an approved

2 repair station by the Federal Aviation Administration, (ii)

3 have a Class IV Rating, and (iii) conduct operations in

4 accordance with Part 145 of the Federal Aviation Regulations.

5 The exemption does not include aircraft operated by a

6 commercial air carrier providing scheduled passenger air

7 service pursuant to authority issued under Part 121 or Part 129

8 of the Federal Aviation Regulations. The changes made to this

9 paragraph (27) by Public Act 98-534 are declarative of existing

10 law.

11 (28) Tangible personal property purchased by a

12 public-facilities corporation, as described in Section

13 11-65-10 of the Illinois Municipal Code, for purposes of

14 constructing or furnishing a municipal convention hall, but

15 only if the legal title to the municipal convention hall is

16 transferred to the municipality without any further

17 consideration by or on behalf of the municipality at the time

18 of the completion of the municipal convention hall or upon the

19 retirement or redemption of any bonds or other debt instruments

20 issued by the public-facilities corporation in connection with

21 the development of the municipal convention hall. This

22 exemption includes existing public-facilities corporations as

23 provided in Section 11-65-25 of the Illinois Municipal Code.

24 This paragraph is exempt from the provisions of Section 3-75.

25 (29) Beginning January 1, 2017, menstrual pads, tampons,

26 and menstrual cups.

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1 (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;

2 100-22, eff. 7-6-17; 100-594, eff. 6-29-18.)

3 Section 160. The Service Occupation Tax Act is amended by

4 changing Sections 2 and 3-5 as follows:

5 (35 ILCS 115/2) (from Ch. 120, par. 439.102)

6 Sec. 2. In this Act:

7 "Transfer" means any transfer of the title to property or

8 of the ownership of property whether or not the transferor

9 retains title as security for the payment of amounts due him

10 from the transferee.

11 "Cost Price" means the consideration paid by the serviceman

12 for a purchase valued in money, whether paid in money or

13 otherwise, including cash, credits and services, and shall be

14 determined without any deduction on account of the supplier's

15 cost of the property sold or on account of any other expense

16 incurred by the supplier. When a serviceman contracts out part

17 or all of the services required in his sale of service, it

18 shall be presumed that the cost price to the serviceman of the

19 property transferred to him by his or her subcontractor is

20 equal to 50% of the subcontractor's charges to the serviceman

21 in the absence of proof of the consideration paid by the

22 subcontractor for the purchase of such property.

23 "Department" means the Department of Revenue.

24 "Person" means any natural individual, firm, partnership,

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1 association, joint stock company, joint venture, public or

2 private corporation, limited liability company, and any

3 receiver, executor, trustee, guardian or other representative

4 appointed by order of any court.

5 "Sale of Service" means any transaction except:

6 (a) A retail sale of tangible personal property taxable

7 under the Retailers' Occupation Tax Act or under the Use Tax

8 Act.

9 (b) A sale of tangible personal property for the purpose of

10 resale made in compliance with Section 2c of the Retailers'

11 Occupation Tax Act.

12 (c) Except as hereinafter provided, a sale or transfer of

13 tangible personal property as an incident to the rendering of

14 service for or by any governmental body or for or by any

15 corporation, society, association, foundation or institution

16 organized and operated exclusively for charitable, religious

17 or educational purposes or any not-for-profit corporation,

18 society, association, foundation, institution or organization

19 which has no compensated officers or employees and which is

20 organized and operated primarily for the recreation of persons

21 55 years of age or older. A limited liability company may

22 qualify for the exemption under this paragraph only if the

23 limited liability company is organized and operated

24 exclusively for educational purposes.

25 (d) (Blank).

26 (d-1) A sale or transfer of tangible personal property as

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1 an incident to the rendering of service for owners, lessors or

2 shippers of tangible personal property which is utilized by

3 interstate carriers for hire for use as rolling stock moving in

4 interstate commerce, and equipment operated by a

5 telecommunications provider, licensed as a common carrier by

6 the Federal Communications Commission, which is permanently

7 installed in or affixed to aircraft moving in interstate

8 commerce.

9 (d-1.1) On and after July 1, 2003 and through June 30,

10 2004, a sale or transfer of a motor vehicle of the second

11 division with a gross vehicle weight in excess of 8,000 pounds

12 as an incident to the rendering of service if that motor

13 vehicle is subject to the commercial distribution fee imposed

14 under Section 3-815.1 of the Illinois Vehicle Code. Beginning

15 on July 1, 2004 and through June 30, 2005, the use in this

16 State of motor vehicles of the second division: (i) with a

17 gross vehicle weight rating in excess of 8,000 pounds; (ii)

18 that are subject to the commercial distribution fee imposed

19 under Section 3-815.1 of the Illinois Vehicle Code; and (iii)

20 that are primarily used for commercial purposes. Through June

21 30, 2005, this exemption applies to repair and replacement

22 parts added after the initial purchase of such a motor vehicle

23 if that motor vehicle is used in a manner that would qualify

24 for the rolling stock exemption otherwise provided for in this

25 Act. For purposes of this paragraph, "used for commercial

26 purposes" means the transportation of persons or property in

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1 furtherance of any commercial or industrial enterprise whether

2 for-hire or not.

3 (d-2) The repairing, reconditioning or remodeling, for a

4 common carrier by rail, of tangible personal property which

5 belongs to such carrier for hire, and as to which such carrier

6 receives the physical possession of the repaired,

7 reconditioned or remodeled item of tangible personal property

8 in Illinois, and which such carrier transports, or shares with

9 another common carrier in the transportation of such property,

10 out of Illinois on a standard uniform bill of lading showing

11 the person who repaired, reconditioned or remodeled the

12 property as the shipper or consignor of such property to a

13 destination outside Illinois, for use outside Illinois.

14 (d-3) A sale or transfer of tangible personal property

15 which is produced by the seller thereof on special order in

16 such a way as to have made the applicable tax the Service

17 Occupation Tax or the Service Use Tax, rather than the

18 Retailers' Occupation Tax or the Use Tax, for an interstate

19 carrier by rail which receives the physical possession of such

20 property in Illinois, and which transports such property, or

21 shares with another common carrier in the transportation of

22 such property, out of Illinois on a standard uniform bill of

23 lading showing the seller of the property as the shipper or

24 consignor of such property to a destination outside Illinois,

25 for use outside Illinois.

26 (d-4) Until January 1, 1997, a sale, by a registered

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1 serviceman paying tax under this Act to the Department, of

2 special order printed materials delivered outside Illinois and

3 which are not returned to this State, if delivery is made by

4 the seller or agent of the seller, including an agent who

5 causes the product to be delivered outside Illinois by a common

6 carrier or the U.S. postal service.

7 (e) A sale or transfer of machinery and equipment used

8 primarily in the process of the manufacturing or assembling,

9 either in an existing, an expanded or a new manufacturing

10 facility, of tangible personal property for wholesale or retail

11 sale or lease, whether such sale or lease is made directly by

12 the manufacturer or by some other person, whether the materials

13 used in the process are owned by the manufacturer or some other

14 person, or whether such sale or lease is made apart from or as

15 an incident to the seller's engaging in a service occupation

16 and the applicable tax is a Service Occupation Tax or Service

17 Use Tax, rather than Retailers' Occupation Tax or Use Tax. The

18 exemption provided by this paragraph (e) does not include

19 machinery and equipment used in (i) the generation of

20 electricity for wholesale or retail sale; (ii) the generation

21 or treatment of natural or artificial gas for wholesale or

22 retail sale that is delivered to customers through pipes,

23 pipelines, or mains; or (iii) the treatment of water for

24 wholesale or retail sale that is delivered to customers through

25 pipes, pipelines, or mains. The provisions of Public Act 98-583

26 are declaratory of existing law as to the meaning and scope of

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1 this exemption. ~~The exemption under this subsection (e) is~~

2 ~~exempt from the provisions of Section 3-75.~~

3 (f) Until July 1, 2003, the sale or transfer of

4 distillation machinery and equipment, sold as a unit or kit and

5 assembled or installed by the retailer, which machinery and

6 equipment is certified by the user to be used only for the

7 production of ethyl alcohol that will be used for consumption

8 as motor fuel or as a component of motor fuel for the personal

9 use of such user and not subject to sale or resale.

10 (g) At the election of any serviceman not required to be

11 otherwise registered as a retailer under Section 2a of the

12 Retailers' Occupation Tax Act, made for each fiscal year sales

13 of service in which the aggregate annual cost price of tangible

14 personal property transferred as an incident to the sales of

15 service is less than 35% (75% in the case of servicemen

16 transferring prescription drugs or servicemen engaged in

17 graphic arts production) of the aggregate annual total gross

18 receipts from all sales of service. The purchase of such

19 tangible personal property by the serviceman shall be subject

20 to tax under the Retailers' Occupation Tax Act and the Use Tax

21 Act. However, if a primary serviceman who has made the election

22 described in this paragraph subcontracts service work to a

23 secondary serviceman who has also made the election described

24 in this paragraph, the primary serviceman does not incur a Use

25 Tax liability if the secondary serviceman (i) has paid or will

26 pay Use Tax on his or her cost price of any tangible personal

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1 property transferred to the primary serviceman and (ii)

2 certifies that fact in writing to the primary serviceman.

3 Tangible personal property transferred incident to the

4 completion of a maintenance agreement is exempt from the tax

5 imposed pursuant to this Act.

6 Exemption (e) also includes machinery and equipment used in

7 the general maintenance or repair of such exempt machinery and

8 equipment or for in-house manufacture of exempt machinery and

9 equipment. On and after July 1, 2017and until July 1, 2019,

10 exemption (e) also includes graphic arts machinery and

11 equipment, as defined in paragraph (5) of Section 3-5. The

12 machinery and equipment exemption does not include machinery

13 and equipment used in (i) the generation of electricity for

14 wholesale or retail sale; (ii) the generation or treatment of

15 natural or artificial gas for wholesale or retail sale that is

16 delivered to customers through pipes, pipelines, or mains; or

17 (iii) the treatment of water for wholesale or retail sale that

18 is delivered to customers through pipes, pipelines, or mains.

19 The provisions of Public Act 98-583 are declaratory of existing

20 law as to the meaning and scope of this exemption. For the

21 purposes of exemption (e), each of these terms shall have the

22 following meanings: (1) "manufacturing process" shall mean the

23 production of any article of tangible personal property,

24 whether such article is a finished product or an article for

25 use in the process of manufacturing or assembling a different

26 article of tangible personal property, by procedures commonly

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1 regarded as manufacturing, processing, fabricating, or

2 refining which changes some existing material or materials into

3 a material with a different form, use or name. In relation to a

4 recognized integrated business composed of a series of

5 operations which collectively constitute manufacturing, or

6 individually constitute manufacturing operations, the

7 manufacturing process shall be deemed to commence with the

8 first operation or stage of production in the series, and shall

9 not be deemed to end until the completion of the final product

10 in the last operation or stage of production in the series; and

11 further for purposes of exemption (e), photoprocessing is

12 deemed to be a manufacturing process of tangible personal

13 property for wholesale or retail sale; (2) "assembling process"

14 shall mean the production of any article of tangible personal

15 property, whether such article is a finished product or an

16 article for use in the process of manufacturing or assembling a

17 different article of tangible personal property, by the

18 combination of existing materials in a manner commonly regarded

19 as assembling which results in a material of a different form,

20 use or name; (3) "machinery" shall mean major mechanical

21 machines or major components of such machines contributing to a

22 manufacturing or assembling process; and (4) "equipment" shall

23 include any independent device or tool separate from any

24 machinery but essential to an integrated manufacturing or

25 assembly process; including computers used primarily in a

26 manufacturer's computer assisted design, computer assisted

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1 manufacturing (CAD/CAM) system; or any subunit or assembly

2 comprising a component of any machinery or auxiliary, adjunct

3 or attachment parts of machinery, such as tools, dies, jigs,

4 fixtures, patterns and molds; or any parts which require

5 periodic replacement in the course of normal operation; but

6 shall not include hand tools. Equipment includes chemicals or

7 chemicals acting as catalysts but only if the chemicals or

8 chemicals acting as catalysts effect a direct and immediate

9 change upon a product being manufactured or assembled for

10 wholesale or retail sale or lease. The purchaser of such

11 machinery and equipment who has an active resale registration

12 number shall furnish such number to the seller at the time of

13 purchase. The purchaser of such machinery and equipment and

14 tools without an active resale registration number shall

15 furnish to the seller a certificate of exemption for each

16 transaction stating facts establishing the exemption for that

17 transaction, which certificate shall be available to the

18 Department for inspection or audit.

19 Except as provided in Section 2d of this Act, the rolling

20 stock exemption applies to rolling stock used by an interstate

21 carrier for hire, even just between points in Illinois, if such

22 rolling stock transports, for hire, persons whose journeys or

23 property whose shipments originate or terminate outside

24 Illinois.

25 Any informal rulings, opinions or letters issued by the

26 Department in response to an inquiry or request for any opinion

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1 from any person regarding the coverage and applicability of

2 exemption (e) to specific devices shall be published,

3 maintained as a public record, and made available for public

4 inspection and copying. If the informal ruling, opinion or

5 letter contains trade secrets or other confidential

6 information, where possible the Department shall delete such

7 information prior to publication. Whenever such informal

8 rulings, opinions, or letters contain any policy of general

9 applicability, the Department shall formulate and adopt such

10 policy as a rule in accordance with the provisions of the

11 Illinois Administrative Procedure Act.

12 On and after July 1, 1987, no entity otherwise eligible

13 under exemption (c) of this Section shall make tax-free

14 purchases unless it has an active exemption identification

15 number issued by the Department.

16 "Serviceman" means any person who is engaged in the

17 occupation of making sales of service.

18 "Sale at Retail" means "sale at retail" as defined in the

19 Retailers' Occupation Tax Act.

20 "Supplier" means any person who makes sales of tangible

21 personal property to servicemen for the purpose of resale as an

22 incident to a sale of service.

23 (Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;

24 100-863, eff. 8-14-18.)

25 (35 ILCS 115/3-5)

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1 Sec. 3-5. Exemptions. The following tangible personal

2 property is exempt from the tax imposed by this Act:

3 (1) Personal property sold by a corporation, society,

4 association, foundation, institution, or organization, other

5 than a limited liability company, that is organized and

6 operated as a not-for-profit service enterprise for the benefit

7 of persons 65 years of age or older if the personal property

8 was not purchased by the enterprise for the purpose of resale

9 by the enterprise.

10 (2) Personal property purchased by a not-for-profit

11 Illinois county fair association for use in conducting,

12 operating, or promoting the county fair.

13 (3) Personal property purchased by any not-for-profit arts

14 or cultural organization that establishes, by proof required by

15 the Department by rule, that it has received an exemption under

16 Section 501(c)(3) of the Internal Revenue Code and that is

17 organized and operated primarily for the presentation or

18 support of arts or cultural programming, activities, or

19 services. These organizations include, but are not limited to,

20 music and dramatic arts organizations such as symphony

21 orchestras and theatrical groups, arts and cultural service

22 organizations, local arts councils, visual arts organizations,

23 and media arts organizations. On and after the effective date

24 of this amendatory Act of the 92nd General Assembly, however,

25 an entity otherwise eligible for this exemption shall not make

26 tax-free purchases unless it has an active identification

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1 number issued by the Department.

2 (4) Legal tender, currency, medallions, or gold or silver

3 coinage issued by the State of Illinois, the government of the

4 United States of America, or the government of any foreign

5 country, and bullion.

6 (5) Until July 1, 2003 and beginning again on September 1,

7 2004 through August 30, 2014, graphic arts machinery and

8 equipment, including repair and replacement parts, both new and

9 used, and including that manufactured on special order or

10 purchased for lease, certified by the purchaser to be used

11 primarily for graphic arts production. Equipment includes

12 chemicals or chemicals acting as catalysts but only if the

13 chemicals or chemicals acting as catalysts effect a direct and

14 immediate change upon a graphic arts product. Beginning on July

15 1, 2017 and until July 1, 2019, graphic arts machinery and

16 equipment is included in the manufacturing and assembling

17 machinery and equipment exemption under Section 2 of this Act.

18 (6) Personal property sold by a teacher-sponsored student

19 organization affiliated with an elementary or secondary school

20 located in Illinois.

21 (7) Farm machinery and equipment, both new and used,

22 including that manufactured on special order, certified by the

23 purchaser to be used primarily for production agriculture or

24 State or federal agricultural programs, including individual

25 replacement parts for the machinery and equipment, including

26 machinery and equipment purchased for lease, and including

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1 implements of husbandry defined in Section 1-130 of the

2 Illinois Vehicle Code, farm machinery and agricultural

3 chemical and fertilizer spreaders, and nurse wagons required to

4 be registered under Section 3-809 of the Illinois Vehicle Code,

5 but excluding other motor vehicles required to be registered

6 under the Illinois Vehicle Code. Horticultural polyhouses or

7 hoop houses used for propagating, growing, or overwintering

8 plants shall be considered farm machinery and equipment under

9 this item (7). Agricultural chemical tender tanks and dry boxes

10 shall include units sold separately from a motor vehicle

11 required to be licensed and units sold mounted on a motor

12 vehicle required to be licensed if the selling price of the

13 tender is separately stated.

14 Farm machinery and equipment shall include precision

15 farming equipment that is installed or purchased to be

16 installed on farm machinery and equipment including, but not

17 limited to, tractors, harvesters, sprayers, planters, seeders,

18 or spreaders. Precision farming equipment includes, but is not

19 limited to, soil testing sensors, computers, monitors,

20 software, global positioning and mapping systems, and other

21 such equipment.

22 Farm machinery and equipment also includes computers,

23 sensors, software, and related equipment used primarily in the

24 computer-assisted operation of production agriculture

25 facilities, equipment, and activities such as, but not limited

26 to, the collection, monitoring, and correlation of animal and

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1 crop data for the purpose of formulating animal diets and

2 agricultural chemicals. This item (7) is exempt from the

3 provisions of Section 3-55.

4 (8) Until June 30, 2013, fuel and petroleum products sold

5 to or used by an air common carrier, certified by the carrier

6 to be used for consumption, shipment, or storage in the conduct

7 of its business as an air common carrier, for a flight destined

8 for or returning from a location or locations outside the

9 United States without regard to previous or subsequent domestic

10 stopovers.

11 Beginning July 1, 2013, fuel and petroleum products sold to

12 or used by an air carrier, certified by the carrier to be used

13 for consumption, shipment, or storage in the conduct of its

14 business as an air common carrier, for a flight that (i) is

15 engaged in foreign trade or is engaged in trade between the

16 United States and any of its possessions and (ii) transports at

17 least one individual or package for hire from the city of

18 origination to the city of final destination on the same

19 aircraft, without regard to a change in the flight number of

20 that aircraft.

21 (9) Proceeds of mandatory service charges separately

22 stated on customers' bills for the purchase and consumption of

23 food and beverages, to the extent that the proceeds of the

24 service charge are in fact turned over as tips or as a

25 substitute for tips to the employees who participate directly

26 in preparing, serving, hosting or cleaning up the food or

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1 beverage function with respect to which the service charge is

2 imposed.

3 (10) Until July 1, 2003, oil field exploration, drilling,

4 and production equipment, including (i) rigs and parts of rigs,

5 rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and

6 tubular goods, including casing and drill strings, (iii) pumps

7 and pump-jack units, (iv) storage tanks and flow lines, (v) any

8 individual replacement part for oil field exploration,

9 drilling, and production equipment, and (vi) machinery and

10 equipment purchased for lease; but excluding motor vehicles

11 required to be registered under the Illinois Vehicle Code.

12 (11) Photoprocessing machinery and equipment, including

13 repair and replacement parts, both new and used, including that

14 manufactured on special order, certified by the purchaser to be

15 used primarily for photoprocessing, and including

16 photoprocessing machinery and equipment purchased for lease.

17 (12) Until July 1, 2023, coal and aggregate exploration,

18 mining, off-highway hauling, processing, maintenance, and

19 reclamation equipment, including replacement parts and

20 equipment, and including equipment purchased for lease, but

21 excluding motor vehicles required to be registered under the

22 Illinois Vehicle Code. The changes made to this Section by

23 Public Act 97-767 apply on and after July 1, 2003, but no claim

24 for credit or refund is allowed on or after August 16, 2013

25 (the effective date of Public Act 98-456) for such taxes paid

26 during the period beginning July 1, 2003 and ending on August

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1 16, 2013 (the effective date of Public Act 98-456).

2 (13) Beginning January 1, 1992 and through June 30, 2016,

3 food for human consumption that is to be consumed off the

4 premises where it is sold (other than alcoholic beverages, soft

5 drinks and food that has been prepared for immediate

6 consumption) and prescription and non-prescription medicines,

7 drugs, medical appliances, and insulin, urine testing

8 materials, syringes, and needles used by diabetics, for human

9 use, when purchased for use by a person receiving medical

10 assistance under Article V of the Illinois Public Aid Code who

11 resides in a licensed long-term care facility, as defined in

12 the Nursing Home Care Act, or in a licensed facility as defined

13 in the ID/DD Community Care Act, the MC/DD Act, or the

14 Specialized Mental Health Rehabilitation Act of 2013.

15 (14) Semen used for artificial insemination of livestock

16 for direct agricultural production.

17 (15) Horses, or interests in horses, registered with and

18 meeting the requirements of any of the Arabian Horse Club

19 Registry of America, Appaloosa Horse Club, American Quarter

20 Horse Association, United States Trotting Association, or

21 Jockey Club, as appropriate, used for purposes of breeding or

22 racing for prizes. This item (15) is exempt from the provisions

23 of Section 3-55, and the exemption provided for under this item

24 (15) applies for all periods beginning May 30, 1995, but no

25 claim for credit or refund is allowed on or after January 1,

26 2008 (the effective date of Public Act 95-88) for such taxes

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1 paid during the period beginning May 30, 2000 and ending on

2 January 1, 2008 (the effective date of Public Act 95-88).

3 (16) Computers and communications equipment utilized for

4 any hospital purpose and equipment used in the diagnosis,

5 analysis, or treatment of hospital patients sold to a lessor

6 who leases the equipment, under a lease of one year or longer

7 executed or in effect at the time of the purchase, to a

8 hospital that has been issued an active tax exemption

9 identification number by the Department under Section 1g of the

10 Retailers' Occupation Tax Act.

11 (17) Personal property sold to a lessor who leases the

12 property, under a lease of one year or longer executed or in

13 effect at the time of the purchase, to a governmental body that

14 has been issued an active tax exemption identification number

15 by the Department under Section 1g of the Retailers' Occupation

16 Tax Act.

17 (18) Beginning with taxable years ending on or after

18 December 31, 1995 and ending with taxable years ending on or

19 before December 31, 2004, personal property that is donated for

20 disaster relief to be used in a State or federally declared

21 disaster area in Illinois or bordering Illinois by a

22 manufacturer or retailer that is registered in this State to a

23 corporation, society, association, foundation, or institution

24 that has been issued a sales tax exemption identification

25 number by the Department that assists victims of the disaster

26 who reside within the declared disaster area.

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1 (19) Beginning with taxable years ending on or after

2 December 31, 1995 and ending with taxable years ending on or

3 before December 31, 2004, personal property that is used in the

4 performance of infrastructure repairs in this State, including

5 but not limited to municipal roads and streets, access roads,

6 bridges, sidewalks, waste disposal systems, water and sewer

7 line extensions, water distribution and purification

8 facilities, storm water drainage and retention facilities, and

9 sewage treatment facilities, resulting from a State or

10 federally declared disaster in Illinois or bordering Illinois

11 when such repairs are initiated on facilities located in the

12 declared disaster area within 6 months after the disaster.

13 (20) Beginning July 1, 1999, game or game birds sold at a

14 "game breeding and hunting preserve area" as that term is used

15 in the Wildlife Code. This paragraph is exempt from the

16 provisions of Section 3-55.

17 (21) A motor vehicle, as that term is defined in Section

18 1-146 of the Illinois Vehicle Code, that is donated to a

19 corporation, limited liability company, society, association,

20 foundation, or institution that is determined by the Department

21 to be organized and operated exclusively for educational

22 purposes. For purposes of this exemption, "a corporation,

23 limited liability company, society, association, foundation,

24 or institution organized and operated exclusively for

25 educational purposes" means all tax-supported public schools,

26 private schools that offer systematic instruction in useful

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1 branches of learning by methods common to public schools and

2 that compare favorably in their scope and intensity with the

3 course of study presented in tax-supported schools, and

4 vocational or technical schools or institutes organized and

5 operated exclusively to provide a course of study of not less

6 than 6 weeks duration and designed to prepare individuals to

7 follow a trade or to pursue a manual, technical, mechanical,

8 industrial, business, or commercial occupation.

9 (22) Beginning January 1, 2000, personal property,