95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB4194

 

Introduced , by Rep. Lou Lang - Robert S. Molaro

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Creates the Chicago Casino Development Authority Act. Creates the Chicago Casino Development Authority and vests its powers in the Chicago Casino Development Board. Provides that the Board shall select casino operators to develop and operate a land-based casino in Chicago. Amends the Illinois Horse Racing Act of 1975. Makes changes concerning the Illinois Racing Board. Allows advance deposit wagering. Adds provisions concerning drug testing for horses. Makes other changes. Amends the Illinois Horse Racing Act of 1975 and the Riverboat Gambling Act to provide for the conduct of electronic gaming at tracks. Makes other changes. Amends the Riverboat Gambling Act. Makes changes concerning the Illinois Gaming Board. Authorizes the issuance of an additional license to conduct riverboat gambling and a casino license to conduct casino gambling in Chicago. Contains provisions regarding the re-issuance of the 10th riverboat license. Allows the Authority to receive a casino license and requires the Authority to contract with a casino operator to conduct casino gambling within that municipality. Changes the short title to the Illinois Gambling Act and makes corresponding changes in other Acts. Provides for the conduct of electronic poker. Makes other changes. Effective immediately.


LRB095 15068 AMC 41028 b

CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY
FISCAL NOTE ACT MAY APPLY
HOME RULE NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE DEBT IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4194 LRB095 15068 AMC 41028 b

1     AN ACT concerning gaming.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4
ARTICLE 1.

 
5     Section 1-1. Short title. This Act may be cited as the
6 Chicago Casino Development Authority Act.
 
7     Section 1-5. Definitions. As used in this Act:
8     "Authority" means the Chicago Casino Development Authority
9 created by this Act.
10     "Board" means the board appointed pursuant to this Act to
11 govern and control the Authority.
12     "Casino" means one temporary land-based facility and a
13 permanent land-based facility, at each of which lawful gambling
14 is authorized and licensed as provided in the Illinois Gambling
15 Act.
16     "City" means the City of Chicago.
17     "Casino operator licensee" means any person or entity
18 selected by the Authority and approved and licensed by the
19 Gaming Board to manage and operate a casino within the City of
20 Chicago pursuant to a casino management contract.
21     "Casino management contract" means a legally binding
22 agreement between the Authority and a casino operator licensee

 

 

HB4194 - 2 - LRB095 15068 AMC 41028 b

1 to operate or manage a casino.
2     "Executive director" means the person appointed by the
3 Board to oversee the daily operations of the Authority.
4     "Gaming Board" means the Illinois Gaming Board created by
5 the Illinois Gambling Act.
6     "Mayor" means the Mayor of the City.
 
7     Section 1-12. Creation of the Authority. After the 5
8 members of the Illinois Gaming Board are appointed and
9 qualified pursuant to this amendatory Act of the 95th General
10 Assembly, there is hereby created a political subdivision, unit
11 of local government with only the powers authorized by law,
12 body politic, and municipal corporation, by the name and style
13 of the Chicago Casino Development Authority.
 
14     Section 1-13. Duties of the Authority. It shall be the duty
15 of the Authority, as a casino licensee under the Illinois
16 Gambling Act, to promote, operate, and maintain a casino in the
17 City. The Authority shall construct, equip, and maintain
18 grounds, buildings, and facilities for that purpose. The
19 Authority has the right to contract with a casino operator
20 licensee and other third parties in order to fulfill its
21 purpose. The Authority is granted all rights and powers
22 necessary to perform such duties.
 
23     Section 1-15. Board.

 

 

HB4194 - 3 - LRB095 15068 AMC 41028 b

1     (a) The governing and administrative powers of the
2 Authority shall be vested in a body known as the Chicago Casino
3 Development Board. The Board shall consist of 3 members
4 appointed by the Mayor. All appointees shall be subject to
5 background investigation and approval by the Gaming Board. One
6 of these members shall be designated by the Mayor to serve as
7 chairperson. All of the members appointed by the Mayor shall be
8 residents of the City.
9     (b) Board members shall receive $300 for each day the
10 Authority meets and shall be entitled to reimbursement of
11 reasonable expenses incurred in the performance of their
12 official duties. A Board member who serves in the office of
13 secretary-treasurer may also receive compensation for services
14 provided as that officer.
 
15     Section 1-20. Terms of appointments; resignation and
16 removal.
17     (a) The Mayor shall appoint one member of the Board for an
18 initial term expiring July 1 of the year following approval by
19 the Gaming Board, one member for an initial term expiring July
20 1 three years following approval by the Gaming Board, and one
21 member for an initial term expiring July 1 five years following
22 approval by the Gaming Board.
23     (b) All successors shall hold office for a term of 5 years
24 from the first day of July of the year in which they are
25 appointed, except in the case of an appointment to fill a

 

 

HB4194 - 4 - LRB095 15068 AMC 41028 b

1 vacancy. Each member, including the chairperson, shall hold
2 office until the expiration of his or her term and until his or
3 her successor is appointed and qualified. Nothing shall
4 preclude a member from serving consecutive terms. Any member
5 may resign from office, to take effect when a successor has
6 been appointed and qualified. A vacancy in office shall occur
7 in the case of a member's death or indictment, conviction, or
8 plea of guilty to a felony. A vacancy shall be filled for the
9 unexpired term by the Mayor with the approval of the Gaming
10 Board.
11     (c) The Mayor or the Gaming Board may remove any member of
12 the Board upon a finding of incompetence, neglect of duty, or
13 misfeasance or malfeasance in office or for a violation of this
14 Act. The Gaming Board may remove any member of the Board for
15 any violation of the Illinois Gambling Act or the rules and
16 regulations of the Gaming Board.
 
17     Section 1-25. Organization of Board; meetings. After
18 appointment by the Mayor and approval of the Gaming Board, the
19 Board shall organize for the transaction of business. The Board
20 shall prescribe the time and place for meetings, the manner in
21 which special meetings may be called, and the notice that must
22 be given to members. All actions and meetings of the Board
23 shall be subject to the provisions of the Open Meetings Act.
24 Two members of the Board shall constitute a quorum. All
25 substantive action of the Board shall be by resolution with an

 

 

HB4194 - 5 - LRB095 15068 AMC 41028 b

1 affirmative vote of a majority of the members.
 
2     Section 1-30. Executive director; officers.
3     (a) The Board shall appoint an executive director, subject
4 to completion of a background investigation and approval by the
5 Gaming Board, who shall be the chief executive officer of the
6 Authority. The Board shall fix the compensation of the
7 executive director. Subject to the general control of the
8 Board, the executive director shall be responsible for the
9 management of the business, properties, and employees of the
10 Authority. The executive director shall direct the enforcement
11 of all resolutions, rules, and regulations of the Board, and
12 shall perform such other duties as may be prescribed from time
13 to time by the Board. All employees and independent
14 contractors, consultants, engineers, architects, accountants,
15 attorneys, financial experts, construction experts and
16 personnel, superintendents, managers, and other personnel
17 appointed or employed pursuant to this Act shall report to the
18 executive director. In addition to any other duties set forth
19 in this Act, the executive director shall do all of the
20 following:
21         (1) Direct and supervise the administrative affairs
22     and activities of the Authority in accordance with its
23     rules, regulations, and policies.
24         (2) Attend meetings of the Board.
25         (3) Keep minutes of all proceedings of the Board.

 

 

HB4194 - 6 - LRB095 15068 AMC 41028 b

1         (4) Approve all accounts for salaries, per diem
2     payments, and allowable expenses of the Board and its
3     employees and consultants.
4         (5) Report and make recommendations to the Board
5     concerning the terms and conditions of any casino
6     management contract.
7         (6) Perform any other duty that the Board requires for
8     carrying out the provisions of this Act.
9         (7) Devote his or her full time to the duties of the
10     office and not hold any other office or employment.
11     (b) The Board may select a secretary-treasurer to hold
12 office at the pleasure of the Board. The Board shall fix the
13 duties of such officer.
 
14     Section 1-31. General rights and powers of the Authority.
15 In addition to the duties and powers set forth in this Act, the
16 Authority shall have the following rights and powers:
17         (1) Adopt and alter an official seal.
18         (2) Establish and change its fiscal year.
19         (3) Sue and be sued, plead and be impleaded, all in its
20     own name, and agree to binding arbitration of any dispute
21     to which it is a party.
22         (4) Adopt, amend, and repeal by-laws, rules, and
23     regulations consistent with the furtherance of the powers
24     and duties provided for.
25         (5) Maintain its principal office within the City and

 

 

HB4194 - 7 - LRB095 15068 AMC 41028 b

1     such other offices as the Board may designate.
2         (6) Select locations in the City for a temporary and a
3     permanent casino, subject to final approval by the Gaming
4     Board.
5         (7) Conduct background investigations of potential
6     casino operator licensees, including its principals or
7     shareholders, and Authority staff. The Authority may
8     request the assistance of the Office of Gaming Enforcement.
9         (8) Employ, either as regular employees or independent
10     contractors, consultants, engineers, architects,
11     accountants, attorneys, financial experts, construction
12     experts and personnel, superintendents, managers and other
13     professional personnel, and such other personnel as may be
14     necessary in the judgment of the Board, and fix their
15     compensation.
16         (9) Own, acquire, construct, equip, lease, operate,
17     and maintain grounds, buildings, and facilities to carry
18     out its corporate purposes and duties.
19         (10) Enter into, revoke, and modify contracts, subject
20     to final approval of the Gaming Board.
21         (11) Enter into a casino management contract subject to
22     the final approval of the Gaming Board.
23         (12) Develop, or cause to be developed by a third
24     party, a master plan for the design, planning, and
25     development of a casino.
26         (13) Negotiate and enter into intergovernmental

 

 

HB4194 - 8 - LRB095 15068 AMC 41028 b

1     agreements with the State and its agencies, the City, and
2     other unites of local government, in furtherance of the
3     powers and duties of the Board. However, the Authority may
4     not enter into an agreement with the State Police.
5         (14) Receive and disburse funds for its own corporate
6     purposes or as otherwise specified in this Act.
7         (15) Borrow money from any source, public or private,
8     for any corporate purpose, including, without limitation,
9     working capital for its operations, reserve funds, or
10     payment of interest, and to mortgage, pledge, or otherwise
11     encumber the property or funds of the Authority and to
12     contract with or engage the services of any person in
13     connection with any financing, including financial
14     institutions, issuers of letters of credit, or insurers and
15     enter into reimbursement agreements with this person or
16     entity which may be secured as if money were borrowed from
17     the person or entity.
18         (16) Issue bonds as provided for under this Act.
19         (17) Receive and accept from any source, private or
20     public, contributions, gifts, or grants of money or
21     property to the Authority.
22         (18) Provide for the insurance of any property,
23     operations, officers, members, agents, or employees of the
24     Authority against any risk or hazard, to self-insure or
25     participate in joint self-insurance pools or entities to
26     insure against such risk or hazard, and to provide for the

 

 

HB4194 - 9 - LRB095 15068 AMC 41028 b

1     indemnification of its officers, members, employees,
2     contractors, or agents against any and all risks.
3         (19) Exercise all the corporate powers granted
4     Illinois corporations under the Business Corporation Act
5     of 1983, except to the extent that powers are inconsistent
6     with those of a body politic and corporate of the State.
7         (20) Do all things necessary or convenient to carry out
8     the powers granted by this Act.
 
9     Section 1-32. Ethical Conduct.
10     (a) Board members and employees of the Authority must carry
11 out their duties and responsibilities in such a manner as to
12 promote and preserve public trust and confidence in the
13 integrity and conduct of gaming.
14     (b) Except as may be required in the conduct of official
15 duties, Board members and employees of the Authority shall not
16 engage in gambling on any riverboat, in any casino, or in an
17 electronic gaming facility licensed by the Illinois Gaming
18 Board or engage in legalized gambling in any establishment
19 identified by Board action that, in the judgment of the Board,
20 could represent a potential for a conflict of interest.
21     (c) A Board member or employee of the Authority shall not
22 use or attempt to use his or her official position to secure or
23 attempt to secure any privilege, advantage, favor, or influence
24 for himself or herself or others.
25     (d) Board members and employees of the Authority shall not

 

 

HB4194 - 10 - LRB095 15068 AMC 41028 b

1 hold or pursue employment, office, position, business, or
2 occupation that may conflict with his or her official duties.
3 Employees may engage in other gainful employment so long as
4 that employment does not interfere or conflict with their
5 duties. Such employment must be disclosed to the Executive
6 Director and approved by the Board.
7     (e) Board members and employees of the Authority may not
8 engage in employment, communications, or any activity that may
9 be deemed a conflict of interest. This prohibition shall extend
10 to any act identified by Board action or Gaming Board action
11 that, in the judgment of the either entity, could represent the
12 potential for or the appearance of a conflict of interest.
13     (f) Board members and employees of the Authority may not
14 have a financial interest, directly or indirectly, in his or
15 her own name or in the name of any other person, partnership,
16 association, trust, corporation, or other entity in any
17 contract or subcontract for the performance of any work for the
18 Authority. This prohibition shall extend to the holding or
19 acquisition of an interest in any entity identified by Board
20 action or Gaming Board action that, in the judgment of the
21 either entity, could represent the potential for or the
22 appearance of a financial interest. The holding or acquisition
23 of an interest in such entities through an indirect means, such
24 as through a mutual fund, shall not be prohibited, expect that
25 the Gaming Board may identify specific investments or funds
26 that, in its judgment, are so influenced by gaming holdings as

 

 

HB4194 - 11 - LRB095 15068 AMC 41028 b

1 to represent the potential for or the appearance of a conflict
2 of interest.
3     (g) Board members and employees of the Authority may not
4 accept any gift, gratuity, service, compensation, travel,
5 lodging, or thing of value, with the exception of unsolicited
6 items of an incidental nature, from any person, corporation, or
7 entity doing business with the Authority.
8     (h) No Board member or employee of the Authority may,
9 within a period of 2 years immediately after termination of
10 employment, knowingly accept employment or receive
11 compensation or fees for services from a person or entity, or
12 its parent or affiliate, that has engaged in business with the
13 Authority that resulted in contracts with an aggregate value of
14 at least $25,000 or made a decision that directly applied to
15 the person or entity, or its parent or affiliate.
16     (i) A spouse, child, or parent of a Board member or
17 employee of the Authority may not have a financial interest,
18 directly or indirectly, in his or her own name or in the name
19 of any other person, partnership, association, trust,
20 corporation, or other entity in any contract or subcontract for
21 the performance of any work for the Authority. This prohibition
22 shall extend to the holding or acquisition of an interest in
23 any entity identified by Board action or Gaming Board action
24 that, in the judgment of the either entity, could represent the
25 potential for or the appearance of a conflict of interest. The
26 holding or acquisition of an interest in such entities through

 

 

HB4194 - 12 - LRB095 15068 AMC 41028 b

1 an indirect means, such as through a mutual fund, shall not be
2 prohibited, expect that the Gaming Board may identify specific
3 investments or funds that, in its judgment, are so influenced
4 by gaming holdings as to represent the potential for or the
5 appearance of a conflict of interest.
6     (j) A spouse, child, or parent of a Board member or
7 employee of the Authority may not accept any gift, gratuity,
8 service, compensation, travel, lodging, or thing of value, with
9 the exception of unsolicited items of an incidental nature,
10 from any person, corporation, or entity doing business with the
11 Authority.
12     (k) A spouse, child, or parent of a Board member or
13 employee of the Authority may not, within a period of 2 years
14 immediately after termination of employment, knowingly accept
15 employment or receive compensation or fees for services from a
16 person or entity, or its parent or affiliate, that has engaged
17 in business with the Authority that resulted in contracts with
18 an aggregate value of at least $25,000 or made a decision that
19 directly applied to the person or entity, or its parent or
20 affiliate.
21     (l) No Board member or employee of the Authority may
22 attempt, in any way, to influence any person or corporation
23 doing business with the Authority or any officer, agent, or
24 employee thereof to hire or contract with any person or
25 corporation for any compensated work.
26     (m) Any communication between an elected official of the

 

 

HB4194 - 13 - LRB095 15068 AMC 41028 b

1 City and any applicant for or party to a casino management
2 contract with the Authority, or an officer, director, or
3 employee thereof, concerning any manner relating in any way to
4 gaming or the Authority shall be disclosed to the Board and the
5 Gaming Board. Such disclosure shall be in writing by the
6 official within 30 days of the communication and shall be filed
7 with the Board. Disclosure must consist of the date of the
8 communication, the identity and job title of the person with
9 whom the communication was made, a brief summary of the
10 communication, the action requested or recommended, all
11 responses made, the identity and job title of the person making
12 the response, and any other pertinent information.
13     (n) Any Board member or employee of the Authority who
14 violates any provision of this Section is guilty of a Class 4
15 felony.
 
16     Section 1-45. Casino management contracts.
17     (a) The Board shall develop and administer a competitive
18 sealed bidding process for the selection of a potential casino
19 operator licensee to develop or operate a casino within the
20 City. The Board shall issue one or more requests for proposals.
21 The Board may establish minimum financial and investment
22 requirements to determine the eligibility of persons to respond
23 to the Board's requests for proposal, and may establish and
24 consider such other criteria as it deems appropriate. The Board
25 may impose a fee upon persons who respond to requests for

 

 

HB4194 - 14 - LRB095 15068 AMC 41028 b

1 proposal, in order to reimburse the Board for its costs in
2 preparing and issuing the requests and reviewing the proposals.
3     (b) Within 5 days after the time limit for submitting bids
4 and proposals has passed, the Board shall make all bids and
5 proposals public. Thereafter, the Board shall evaluate the
6 responses to its requests for proposal and the ability of all
7 persons or entities responding to its request for proposal to
8 meet the requirements of this Act and to undertake and perform
9 the obligations set forth in its requests for proposal.
10     (c) After reviewing proposals and subject to Gaming Board
11 approval, the Board shall enter into a casino management
12 contract authorizing the development, construction, or
13 operation of a casino. Validity of the casino management
14 contract is contingent upon the issuance of a casino operator
15 license to the successful bidder. If the Gaming Board approves
16 the contract and grants a casino operator license, the Board
17 shall transmit a copy of the executed casino management
18 contract to the Gaming Board.
19     (d) After the Authority has been issued a casino license,
20 the Gaming Board has issued a casino operator license, and the
21 Gaming Board has approved the location of a temporary facility,
22 the Authority may conduct gaming operations at a temporary
23 facility for no longer than 12 months after gaming operations
24 begin. The Gaming Board may, after holding a public hearing,
25 grant an extension so long as a permanent facility is not
26 operational and the Authority is working in good faith to

 

 

HB4194 - 15 - LRB095 15068 AMC 41028 b

1 complete the permanent facility. The Gaming Board may grant
2 additional extensions following a public hearing. Each
3 extension may be for a period of no longer than 6 months.
4     (e) Fifty percent of the total amount received by the
5 Authority pursuant to a bid for a casino management contract or
6 an executed casino management contract must be transmitted to
7 the State and deposited into the GROW Fund.
 
8     Section 1-50. Transfer of funds. The revenues received by
9 the Authority (other than amounts required to be paid pursuant
10 to the Illinois Gambling Act and amounts required to pay the
11 operating expenses of the Authority, to pay amounts due the
12 casino operator licensee pursuant to a casino management
13 contract, to repay any borrowing of the Authority made pursuant
14 to Section 1-35, to pay debt service on any bonds issued under
15 Section 1-75, and to pay any expenses in connection with the
16 issuance of such bonds pursuant to Section 1-75 or derivative
17 products pursuant to Section 1-85) shall be transferred to the
18 City by the Authority.
 
19     Section 1-55. Municipal distributions of proceeds from a
20 casino; gaming endowment funds. At least 70% of the moneys that
21 a municipality in which a casino is located receives pursuant
22 to Section 1-50 of this Act shall be described as "gaming
23 endowment funds" and be expended or obligated by the
24 municipality for the following purposes and in the following

 

 

HB4194 - 16 - LRB095 15068 AMC 41028 b

1 amounts:
2         (1) 40% of such gaming endowment funds shall be used
3     for or pledged for the construction and maintenance of
4     infrastructure within the municipality, including but not
5     limited to roads, bridges, transit infrastructure, and
6     municipal facilities.
7         (2) 60% of such gaming endowment funds shall be used
8     for or pledged for the construction and maintenance of
9     schools, parks and cultural institution facilities, and
10     museums within the municipality.
 
11     Section 1-60. Auditor General.
12     (a) Prior to the issuance of bonds under this Act, the
13 Authority shall submit to the Auditor General a certification
14 that:
15         (1) it is legally authorized to issue bonds;
16         (2) scheduled annual payments of principal and
17     interest on the bonds to be issued meet the requirements of
18     Section 1-75 of this Act;
19         (3) no bond shall mature later than 25 years; and
20         (4) after payment of costs of issuance and necessary
21     deposits to funds and accounts established with respect to
22     debt service on the bonds, the net bond proceeds (exclusive
23     of any proceeds to be used to refund outstanding bonds)
24     will be used only for the purposes set forth in this Act.
25     The Authority also shall submit to the Auditor General its

 

 

HB4194 - 17 - LRB095 15068 AMC 41028 b

1 projections on revenues to be generated and pledged to
2 repayment of the bonds as scheduled and such other information
3 as the Auditor General may reasonably request.
4     The Auditor General shall examine the certifications and
5 information submitted and submit a report to the Authority and
6 the Gaming Board indicating whether the required
7 certifications, projections, and other information have been
8 submitted by the Authority and that the assumptions underlying
9 the projections are not unreasonable in the aggregate. The
10 Auditor General shall submit the report no later than 60 days
11 after receiving the information required to be submitted by the
12 Authority.
13     The Authority shall not issue bonds until it receives the
14 report from the Auditor General indicating the requirements of
15 this Section have been met. The Auditor General's report shall
16 not be in the nature of a post-audit or examination and shall
17 not lead to the issuance of an opinion, as that term is defined
18 in generally accepted government auditing standards. The
19 Auditor General shall submit a bill to the Authority for costs
20 associated with the examinations and report required under this
21 Section. The Authority shall reimburse in a timely manner.
22     (b) The Auditor General has the authority and is required
23 to conduct a financial and management audit of the Authority
24 every 2 years. The Auditor General shall also conduct one
25 post-construction and financing audit of the casino after it is
26 completed and in operation. The Auditor General's audits must

 

 

HB4194 - 18 - LRB095 15068 AMC 41028 b

1 be posted on his or her Internet website. The Auditor General
2 shall submit a bill to the Authority for costs associated with
3 the audits required under this Section. The Authority shall
4 reimburse in a timely manner.
 
5     Section 1-65. Acquisition of property; eminent domain
6 proceedings. For the lawful purposes of this Act, the City or
7 the Authority may acquire by eminent domain or by condemnation
8 proceedings in the manner provided by the Eminent Domain Act,
9 real or personal property or interests in real or personal
10 property located in the City, and the City may convey to the
11 Authority property so acquired. The acquisition of property
12 under this Section is declared to be for a public use.
 
13     Section 1-70. Local regulation. The casino facilities and
14 operations therein shall be subject to all ordinances and
15 regulations of the City. The construction, development, and
16 operation of the casino shall comply with all ordinances,
17 regulations, rules, and controls of the City, including but not
18 limited to those relating to zoning and planned development,
19 building, fire prevention, and land use. However, the
20 regulation of gaming operations is subject to the exclusive
21 jurisdiction of the Gaming Board.
 
22     Section 1-75. Borrowing.
23     (a) The Authority may borrow money and issue bonds as

 

 

HB4194 - 19 - LRB095 15068 AMC 41028 b

1 provided in this Section. Bonds of the Authority may be issued
2 to provide funds for land acquisition, site assembly and
3 preparation, and the design and construction of the casino, as
4 defined in the Illinois Gambling Act, all ancillary and related
5 facilities comprising the casino complex, and all on-site and
6 off-site infrastructure improvements required in connection
7 with the development of the casino; to refund (at the time or
8 in advance of any maturity or redemption) or redeem any bonds
9 of the Authority; to provide or increase a debt service reserve
10 fund or other reserves with respect to any or all of its bonds;
11 or to pay the legal, financial, administrative, bond insurance,
12 credit enhancement, and other legal expenses of the
13 authorization, issuance, or delivery of bonds. In this Act, the
14 term "bonds" also includes notes of any kind, interim
15 certificates, refunding bonds, or any other evidence of
16 obligation for borrowed money issued under this Section. Bonds
17 may be issued in one or more series and may be payable and
18 secured either on a parity with or separately from other bonds.
19     (b) The bonds of the Authority shall be payable from one or
20 more of the following sources: (i) the property or revenues of
21 the Authority; (ii) revenues derived from the casino; (iii)
22 revenues derived from any casino operator licensee; (iv) fees,
23 bid proceeds, charges, lease payments, payments required
24 pursuant to any casino management contract or other revenues
25 payable to the Authority, or any receipts of the Authority; (v)
26 payments by financial institutions, insurance companies, or

 

 

HB4194 - 20 - LRB095 15068 AMC 41028 b

1 others pursuant to letters or lines of credit, policies of
2 insurance, or purchase agreements; (vi) investment earnings
3 from funds or accounts maintained pursuant to a bond resolution
4 or trust indenture; (vii) proceeds of refunding bonds; (viii)
5 any other revenues derived from or payments by the City; and
6 (ix) any payments by any casino operator licensee or others
7 pursuant to any guaranty agreement.
8     (c) Bonds shall be authorized by a resolution of the
9 Authority and may be secured by a trust indenture by and
10 between the Authority and a corporate trustee or trustees,
11 which may be any trust company or bank having the powers of a
12 trust company within or without the State. Bonds shall meet the
13 following requirements:
14         (1) Bonds shall bear interest at a rate not to exceed
15     the maximum rate authorized by the Bond Authorization Act.
16         (2) Bonds issued pursuant to this Section must be
17     issued with principal or mandatory redemption amounts in
18     equal amounts, with the first maturity issued occurring
19     within the fiscal year in which the bonds are issued or
20     within the next succeeding fiscal year, and with bonds
21     maturing or subject to mandatory redemption each fiscal
22     year thereafter up to 25 years.
23         (3) At least 25%, based on total principal amount, of
24     all bonds issued pursuant to this Section shall be sold
25     pursuant to notice of sale and public bid. No more than
26     75%, based on total principal amount, of all bonds issued

 

 

HB4194 - 21 - LRB095 15068 AMC 41028 b

1     pursuant to this Section shall be sold by negotiated sale.
2         (4) Bonds shall be payable at a time or times, in the
3     denominations and form, including book entry form, either
4     coupon, registered, or both, and carry the registration and
5     privileges as to exchange, transfer or conversion, and
6     replacement of mutilated, lost, or destroyed bonds as the
7     resolution or trust indenture may provide.
8         (5) Bonds shall be payable in lawful money of the
9     United States at a designated place.
10         (6) Bonds shall be subject to the terms of purchase,
11     payment, redemption, refunding, or refinancing that the
12     resolution or trust indenture provides.
13         (7) Bonds shall be executed by the manual or facsimile
14     signatures of the officers of the Authority designated by
15     the Board, which signatures shall be valid at delivery even
16     for one who has ceased to hold office.
17         (8) Bonds shall be sold at public or private sale in
18     the manner and upon the terms determined by the Authority.
19         (9) Bonds shall be issued in accordance with the
20     provisions of the Local Government Debt Reform Act.
21     (d) The Authority shall adopt a procurement program with
22 respect to contracts relating to underwriters, bond counsel,
23 financial advisors, and accountants. The program shall include
24 goals for the payment of not less than 30% of the total dollar
25 value of the fees from these contracts to minority owned
26 businesses and female owned businesses as defined in the

 

 

HB4194 - 22 - LRB095 15068 AMC 41028 b

1 Business Enterprise for Minorities, Females, and Persons with
2 Disabilities Act. The Authority shall conduct outreach to
3 minority owned businesses and female owned businesses.
4 Outreach shall include, but is not limited to, advertisements
5 in periodicals and newspapers, mailings, and other appropriate
6 media. The Authority shall submit to the General Assembly a
7 comprehensive report that shall include, at a minimum, the
8 details of the procurement plan, outreach efforts, and the
9 results of the efforts to achieve goals for the payment of
10 fees.
11     (e) Subject to the Illinois Gambling Act and rules of the
12 Gaming Board regarding pledging of interests in holders of
13 owners licenses, any resolution or trust indenture may contain
14 provisions that may be a part of the contract with the holders
15 of the bonds as to the following:
16         (1) Pledging, assigning, or directing the use,
17     investment, or disposition of revenues of the Authority or
18     proceeds or benefits of any contract, including without
19     limitation, any rights in any casino management contract.
20         (2) The setting aside of loan funding deposits, debt
21     service reserves, replacement or operating reserves, cost
22     of issuance accounts and sinking funds, and the regulation,
23     investment, and disposition thereof.
24         (3) Limitations on the purposes to which or the
25     investments in which the proceeds of sale of any issue of
26     bonds or the Authority's revenues and receipts may be

 

 

HB4194 - 23 - LRB095 15068 AMC 41028 b

1     applied or made.
2         (4) Limitations on the issue of additional bonds, the
3     terms upon which additional bonds may be issued and
4     secured, the terms upon which additional bonds may rank on
5     a parity with, or be subordinate or superior to, other
6     bonds.
7         (5) The refunding, advance refunding, or refinancing
8     of outstanding bonds.
9         (6) The procedure, if any, by which the terms of any
10     contract with bondholders may be altered or amended and the
11     amount of bonds and holders of which must consent thereto
12     and the manner in which consent shall be given.
13         (7) Defining the acts or omissions which shall
14     constitute a default in the duties of the Authority to
15     holders of bonds and providing the rights or remedies of
16     such holders in the event of a default, which may include
17     provisions restricting individual rights of action by
18     bondholders.
19         (8) Providing for guarantees, pledges of property,
20     letters of credit, or other security, or insurance for the
21     benefit of bondholders.
22     (f) No member of the Board, nor any person executing the
23 bonds, shall be liable personally on the bonds or subject to
24 any personal liability by reason of the issuance of the bonds.
25     (g) The Authority may issue and secure bonds in accordance
26 with the provisions of the Local Government Credit Enhancement

 

 

HB4194 - 24 - LRB095 15068 AMC 41028 b

1 Act.
2     (h) A pledge by the Authority of revenues and receipts as
3 security for an issue of bonds or for the performance of its
4 obligations under any casino management contract shall be valid
5 and binding from the time when the pledge is made. The revenues
6 and receipts pledged shall immediately be subject to the lien
7 of the pledge without any physical delivery or further act, and
8 the lien of any pledge shall be valid and binding against any
9 person having any claim of any kind in tort, contract, or
10 otherwise against the Authority, irrespective of whether the
11 person has notice. No resolution, trust indenture, management
12 agreement or financing statement, continuation statement, or
13 other instrument adopted or entered into by the Authority need
14 be filed or recorded in any public record other than the
15 records of the Authority in order to perfect the lien against
16 third persons, regardless of any contrary provision of law.
17     (i) Bonds that are being paid or retired by issuance, sale,
18 or delivery of bonds, and bonds for which sufficient funds have
19 been deposited with the paying agent or trustee to provide for
20 payment of principal and interest thereon, and any redemption
21 premium, as provided in the authorizing resolution, shall not
22 be considered outstanding for the purposes of this subsection.
23     (j) The bonds of the Authority shall not be indebtedness of
24 the State. The bonds of the Authority are not general
25 obligations of the State and are not secured by a pledge of the
26 full faith and credit of the State and the holders of bonds of

 

 

HB4194 - 25 - LRB095 15068 AMC 41028 b

1 the Authority may not require, except as provided in this Act,
2 the application of State revenues or funds to the payment of
3 bonds of the Authority.
4     (k) The State of Illinois pledges and agrees with the
5 owners of the bonds that it will not limit or alter the rights
6 and powers vested in the Authority by this Act so as to impair
7 the terms of any contract made by the Authority with the owners
8 or in any way impair the rights and remedies of the owners
9 until the bonds, together with interest on them, and all costs
10 and expenses in connection with any action or proceedings by or
11 on behalf of the owners, are fully met and discharged. The
12 Authority is authorized to include this pledge and agreement in
13 any contract with the owners of bonds issued under this
14 Section.
15     (l) No person holding an elective office in this State,
16 holding a seat in the General Assembly, or serving as a board
17 member, trustee, officer, or employee of the Authority,
18 including the spouse of that person, may receive a legal,
19 banking, consulting, or other fee related to the issuance of
20 bonds.
 
21     Section 1-85. Derivative products. With respect to all or
22 part of any issue of its bonds, the Authority may enter into
23 agreements or contracts with any necessary or appropriate
24 person, which will have the benefit of providing to the
25 Authority an interest rate basis, cash flow basis, or other

 

 

HB4194 - 26 - LRB095 15068 AMC 41028 b

1 basis different from that provided in the bonds for the payment
2 of interest. Such agreements or contracts may include, without
3 limitation, agreements or contracts commonly known as
4 "interest rate swap agreements", "forward payment conversion
5 agreements", "futures", "options", "puts", or "calls" and
6 agreements or contracts providing for payments based on levels
7 of or changes in interest rates, agreements or contracts to
8 exchange cash flows or a series of payments, or to hedge
9 payment, rate spread, or similar exposure.
 
10     Section 1-90. Legality for investment. The State of
11 Illinois, all governmental entities, all public officers,
12 banks, bankers, trust companies, savings banks and
13 institutions, building and loan associations, savings and loan
14 associations, investment companies, and other persons carrying
15 on a banking business, insurance companies, insurance
16 associations, and other persons carrying on an insurance
17 business, and all executors, administrators, guardians,
18 trustees, and other fiduciaries may legally invest any sinking
19 funds, moneys, or other funds belonging to them or within their
20 control in any bonds issued under this Act. However, nothing in
21 this Section shall be construed as relieving any person, firm,
22 or corporation from any duty of exercising reasonable care in
23 selecting securities for purchase or investment.
 
24     Section 1-95. Tax exemption. The Authority and all of its

 

 

HB4194 - 27 - LRB095 15068 AMC 41028 b

1 operations and property used for public purposes shall be
2 exempt from all taxation of any kind imposed by the State of
3 Illinois or any political subdivision, school district,
4 municipal corporation, or unit of local government of the State
5 of Illinois. However, nothing in this Act prohibits the
6 imposition of any other taxes where such imposition is not
7 prohibited by Section 21 of the Illinois Gambling Act.
 
8     Section 1-105. Budgets and reporting.
9     (a) The Board shall annually adopt a budget for each fiscal
10 year. The budget may be modified from time to time in the same
11 manner and upon the same vote as it may be adopted. The budget
12 shall include the Authority's available funds and estimated
13 revenues and shall provide for payment of its obligations and
14 estimated expenditures for the fiscal year, including, without
15 limitation, expenditures for administration, operation,
16 maintenance and repairs, debt service, and deposits into
17 reserve and other funds and capital projects.
18     (b) The Board shall annually cause the finances of the
19 Authority to be audited by a firm of certified public
20 accountants and post the firm's audits of the Authority on the
21 Authority's Internet website.
22     (c) The Board shall, for each fiscal year, prepare an
23 annual report setting forth information concerning its
24 activities in the fiscal year and the status of the development
25 of the casino. The annual report shall include the audited

 

 

HB4194 - 28 - LRB095 15068 AMC 41028 b

1 financial statements of the Authority for the fiscal year, the
2 budget for the succeeding fiscal year, and the current capital
3 plan as of the date of the report. Copies of the annual report
4 shall be made available to persons who request them and shall
5 be submitted not later than 120 days after the end of the
6 Authority's fiscal year to the Governor, the Mayor, the General
7 Assembly, and the Commission on Government Forecasting and
8 Accountability.
 
9     Section 1-110. Deposit and withdrawal of funds.
10     (a) All funds deposited by the Authority in any bank or
11 savings and loan association shall be placed in the name of the
12 Authority and shall be withdrawn or paid out only by check or
13 draft upon the bank or savings and loan association, signed by
14 2 officers or employees designated by the Board.
15 Notwithstanding any other provision of this Section, the Board
16 may designate any of its members or any officer or employee of
17 the Authority to authorize the wire transfer of funds deposited
18 by the secretary-treasurer of funds in a bank or savings and
19 loan association for the payment of payroll and employee
20 benefits-related expenses.
21     No bank or savings and loan association shall receive
22 public funds as permitted by this Section unless it has
23 complied with the requirements established pursuant to Section
24 6 of the Public Funds Investment Act.
25     (b) If any officer or employee whose signature appears upon

 

 

HB4194 - 29 - LRB095 15068 AMC 41028 b

1 any check or draft issued pursuant to this Act ceases (after
2 attaching his signature) to hold his or her office before the
3 delivery of such a check or draft to the payee, his or her
4 signature shall nevertheless be valid and sufficient for all
5 purposes with the same effect as if he or she had remained in
6 office until delivery thereof.
 
7     Section 1-112. Contracts with the Authority or casino
8 operator licensee; disclosure requirements.
9     (a) A bidder, offeror, or contractor must disclose the
10 names of all officers and directors. A bidder, offeror, or
11 contractor for contracts with the Authority or casino operator
12 licensee shall disclose the identity of every owner,
13 beneficiary, or person with beneficial interest of more than
14 1%, or shareholder entitled to receive more than 1% of the
15 total distributable income of any corporation, having any
16 interest in the contract in the bidder, offeror, or contractor.
17 The disclosure shall be in writing and attested to by an owner,
18 trustee, corporate official, or agent. If stock in a
19 corporation is publicly traded and there is no readily known
20 individual having greater than a 1% interest, then a statement
21 to that affect attested to by an officer or agent of the
22 corporation or shall fulfill the disclosure statement
23 requirement of this Section. A bidder, offeror, or contractor
24 shall notify the Authority of any changes in officers,
25 directors, ownership, or individuals having a beneficial

 

 

HB4194 - 30 - LRB095 15068 AMC 41028 b

1 interest of more than 1%.
2     (b) A bidder, offeror, or contractor for contracts with an
3 annual value of $10,000 or for a period to exceed one year
4 shall disclose all political contributions of the bidder,
5 offeror, or contractor and any affiliated person or entity.
6 Disclosure shall include at least the names and addresses of
7 the contributors and the dollar amounts of any contributions to
8 any political committee made within the previous 2 years. The
9 disclosure must be submitted to the Gaming Board with a copy of
10 the contract prior to Gaming Board approval of the contract.
11 The Gaming Board shall refuse to approve any contract that does
12 not include the required disclosure.
13     (c) As used in this Section:
14     "Contribution" means contribution as defined in Section
15 9-1.4 of the Election Code.
16     "Affiliated person" means (i) any person with any ownership
17 interest or distributive share of the bidding or contracting
18 entity in excess of 1%, (ii) executive employees of the bidding
19 or contracting entity, and (iii) the spouse and minor children
20 of any such persons.
21     "Affiliated entity" means (i) any parent or subsidiary of
22 the bidding or contracting entity, (ii) any member of the same
23 unitary business group, or (iii) any political committee for
24 which the bidding or contracting entity is the sponsoring
25 entity.
26     (d) The Gaming Board may direct the Authority or a casino

 

 

HB4194 - 31 - LRB095 15068 AMC 41028 b

1 operator licensee to void a contract if a violation of this
2 Section occurs. The Authority may direct a casino operator
3 licensee to void a contract if a violation of this Section
4 occurs.
 
5     Section 1-115. Purchasing.
6     (a) All construction contracts and contracts for supplies,
7 materials, equipment, and services, when the cost thereof to
8 the Authority exceeds $25,000, shall be let to the lowest
9 responsible bidder, after advertising for bids, except for the
10 following:
11         (1) When repair parts, accessories, equipment, or
12     services are required for equipment or services previously
13     furnished or contracted for;
14         (2) Professional services;
15         (3) When services such as water, light, heat, power,
16     telephone (other than long-distance service), or telegraph
17     are required;
18         (4) When contracts for the use, purchase, delivery,
19     movement, or installation of data processing equipment,
20     software, or services and telecommunications equipment,
21     software, and services are required;
22         (5) Casino management contracts, which shall be
23     awarded as set forth in Section 1-45 of this Act.
24     (b) All contracts involving less than $25,000 shall be let
25 by competitive bidding whenever possible, and in any event in a

 

 

HB4194 - 32 - LRB095 15068 AMC 41028 b

1 manner calculated to ensure the best interests of the public.
2     (c) In determining the responsibility of any bidder, the
3 Authority may take into account the bidder's (or an individual
4 having a beneficial interest, directly or indirectly, of more
5 than 1% in such bidding entity) past record of dealings with
6 the Authority, the bidder's experience, adequacy of equipment,
7 and ability to complete performance within the time set, and
8 other factors besides financial responsibility. No such
9 contract shall be awarded to any bidder other than the lowest
10 bidder (in case of purchase or expenditure) unless authorized
11 or approved by a vote of at least 2 members of the Board and
12 such action is accompanied by a written statement setting forth
13 the reasons for not awarding the contract to the highest or
14 lowest bidder, as the case may be. The statement shall be kept
15 on file in the principal office of the Authority and open to
16 public inspection.
17     (d) The Authority shall have the right to reject all bids
18 and to re-advertise for bids. If after any such
19 re-advertisement, no responsible and satisfactory bid, within
20 the terms of the re-advertisement, is received, the Authority
21 may award such contract without competitive bidding, provided
22 that the Gaming Board must approve the contract prior to its
23 execution. The contract must not be less advantageous to the
24 Authority than any valid bid received pursuant to
25 advertisement.
26     (e) Advertisements for bids and re-bids shall be published

 

 

HB4194 - 33 - LRB095 15068 AMC 41028 b

1 at least once in a daily newspaper of general circulation
2 published in the City at least 10 calendar days before the time
3 for receiving bids, and such advertisements shall also be
4 posted on readily accessible bulletin boards in the principal
5 office of the Authority. Such advertisements shall state the
6 time and place for receiving and opening of bids and, by
7 reference to plans and specifications on file at the time of
8 the first publication or in the advertisement itself, shall
9 describe the character of the proposed contract in sufficient
10 detail to fully advise prospective bidders of their obligations
11 and to ensure free and open competitive bidding.
12     (f) All bids in response to advertisements shall be sealed
13 and shall be publicly opened by the Authority. All bidders
14 shall be entitled to be present in person or by
15 representatives. Cash or a certified or satisfactory cashier's
16 check, as a deposit of good faith, in a reasonable amount to be
17 fixed by the Authority before advertising for bids, shall be
18 required with the proposal of each bidder. A bond for faithful
19 performance of the contract with surety or sureties
20 satisfactory to the Authority and adequate insurance may be
21 required in reasonable amounts to be fixed by the Authority
22 before advertising for bids.
23     (g) The contract shall be awarded as promptly as possible
24 after the opening of bids. The bid of the successful bidder, as
25 well as the bids of the unsuccessful bidders, shall be placed
26 on file and be open to public inspection. All bids shall be

 

 

HB4194 - 34 - LRB095 15068 AMC 41028 b

1 void if any disclosure of the terms of any bid in response to
2 an advertisement is made or permitted to be made by the
3 Authority before the time fixed for opening bids.
4     (h) Notice of each and every contract that is offered,
5 including renegotiated contracts and change orders, shall be
6 published in an online bulletin. The online bulletin must
7 include at least the date first offered, the date submission of
8 offers is due, the location that offers are to be submitted to,
9 a brief purchase description, the method of source selection,
10 information of how to obtain a comprehensive purchase
11 description and any disclosure and contract forms, and
12 encouragement to prospective vendors to hire qualified
13 veterans, as defined by Section 45-67 of the Illinois
14 Procurement Code, and Illinois residents discharged from any
15 Illinois adult correctional center. Notice of each and every
16 contract that is let or awarded, including renegotiated
17 contracts and change orders, shall be published in the online
18 bulletin and must include at least all of the information
19 specified in this item (j), as well as the name of the
20 successful responsible bidder or offeror, the contract price,
21 and the number of unsuccessful responsive bidders and any other
22 disclosure specified in this Section. This notice must be
23 posted in the online electronic bulletin prior to execution of
24 the contract.
 
25
ARTICLE 90.

 

 

 

HB4194 - 35 - LRB095 15068 AMC 41028 b

1     Section 90-1. The State Officials and Employees Ethics Act
2 is amended by changing Sections 5-50, 20-10, and 20-15 as
3 follows:
 
4     (5 ILCS 430/5-50)
5     Sec. 5-50. Ex parte communications; special government
6 agents.
7     (a) This Section applies to ex parte communications made to
8 any agency listed in subsection (e).
9     (b) "Ex parte communication" means any written or oral
10 communication by any person that imparts or requests material
11 information or makes a material argument regarding potential
12 action concerning regulatory, quasi-adjudicatory, investment,
13 or licensing matters pending before or under consideration by
14 the agency. "Ex parte communication" does not include the
15 following: (i) statements by a person publicly made in a public
16 forum; (ii) statements regarding matters of procedure and
17 practice, such as format, the number of copies required, the
18 manner of filing, and the status of a matter; and (iii)
19 statements made by a State employee of the agency to the agency
20 head or other employees of that agency.
21     (b-5) An ex parte communication received by an agency,
22 agency head, or other agency employee from an interested party
23 or his or her official representative or attorney shall
24 promptly be memorialized and made a part of the record.

 

 

HB4194 - 36 - LRB095 15068 AMC 41028 b

1     (c) An ex parte communication received by any agency,
2 agency head, or other agency employee, other than an ex parte
3 communication described in subsection (b-5), shall immediately
4 be reported to that agency's ethics officer by the recipient of
5 the communication and by any other employee of that agency who
6 responds to the communication. The ethics officer shall require
7 that the ex parte communication be promptly made a part of the
8 record. The ethics officer shall promptly file the ex parte
9 communication with the Executive Ethics Commission, including
10 all written communications, all written responses to the
11 communications, and a memorandum prepared by the ethics officer
12 stating the nature and substance of all oral communications,
13 the identity and job title of the person to whom each
14 communication was made, all responses made, the identity and
15 job title of the person making each response, the identity of
16 each person from whom the written or oral ex parte
17 communication was received, the individual or entity
18 represented by that person, any action the person requested or
19 recommended, and any other pertinent information. The
20 disclosure shall also contain the date of any ex parte
21 communication.
22     (d) "Interested party" means a person or entity whose
23 rights, privileges, or interests are the subject of or are
24 directly affected by a regulatory, quasi-adjudicatory,
25 investment, or licensing matter.
26     (e) This Section applies to the following agencies:

 

 

HB4194 - 37 - LRB095 15068 AMC 41028 b

1 Executive Ethics Commission
2 Illinois Commerce Commission
3 Educational Labor Relations Board
4 State Board of Elections
5 Illinois Gaming Board
6 Health Facilities Planning Board
7 Illinois Workers' Compensation Commission
8 Illinois Labor Relations Board
9 Illinois Liquor Control Commission
10 Pollution Control Board
11 Property Tax Appeal Board
12 Illinois Racing Board
13 Illinois Purchased Care Review Board
14 Department of State Police Merit Board
15 Motor Vehicle Review Board
16 Prisoner Review Board
17 Civil Service Commission
18 Personnel Review Board for the Treasurer
19 Merit Commission for the Secretary of State
20 Merit Commission for the Office of the Comptroller
21 Court of Claims
22 Board of Review of the Department of Employment Security
23 Department of Insurance
24 Department of Professional Regulation and licensing boards
25   under the Department
26 Department of Public Health and licensing boards under the

 

 

HB4194 - 38 - LRB095 15068 AMC 41028 b

1   Department
2 Office of Banks and Real Estate and licensing boards under
3   the Office
4 State Employees Retirement System Board of Trustees
5 Judges Retirement System Board of Trustees
6 General Assembly Retirement System Board of Trustees
7 Illinois Board of Investment
8 State Universities Retirement System Board of Trustees
9 Teachers Retirement System Officers Board of Trustees
10     (f) Any person who fails to (i) report an ex parte
11 communication to an ethics officer, (ii) make information part
12 of the record, or (iii) make a filing with the Executive Ethics
13 Commission as required by this Section or as required by
14 Section 5-165 of the Illinois Administrative Procedure Act
15 violates this Act.
16 (Source: P.A. 95-331, eff. 8-21-07.)
 
17     (5 ILCS 430/20-10)
18     Sec. 20-10. Offices of Executive Inspectors General.
19     (a) Six Five independent Offices of the Executive Inspector
20 General are created, one each for the Governor, the Attorney
21 General, the Secretary of State, the Comptroller, and the
22 Treasurer and one for gaming activities. Each Office shall be
23 under the direction and supervision of an Executive Inspector
24 General and shall be a fully independent office with separate
25 appropriations.

 

 

HB4194 - 39 - LRB095 15068 AMC 41028 b

1     (b) The Governor, Attorney General, Secretary of State,
2 Comptroller, and Treasurer shall each appoint an Executive
3 Inspector General, and the Director of Gaming Enforcement shall
4 appoint an Executive Inspector General for gaming activities.
5 Each appointment must be made without regard to political
6 affiliation and solely on the basis of integrity and
7 demonstrated ability. Appointments shall be made by and with
8 the advice and consent of the Senate by three-fifths of the
9 elected members concurring by record vote. Any nomination not
10 acted upon by the Senate within 60 session days of the receipt
11 thereof shall be deemed to have received the advice and consent
12 of the Senate. If, during a recess of the Senate, there is a
13 vacancy in an office of Executive Inspector General, the
14 appointing authority shall make a temporary appointment until
15 the next meeting of the Senate when the appointing authority
16 shall make a nomination to fill that office. No person rejected
17 for an office of Executive Inspector General shall, except by
18 the Senate's request, be nominated again for that office at the
19 same session of the Senate or be appointed to that office
20 during a recess of that Senate.
21     Nothing in this Article precludes the appointment by the
22 Governor, Attorney General, Secretary of State, Comptroller,
23 or Treasurer of any other inspector general required or
24 permitted by law. The Governor, Attorney General, Secretary of
25 State, Comptroller, and Treasurer each may appoint an existing
26 inspector general as the Executive Inspector General required

 

 

HB4194 - 40 - LRB095 15068 AMC 41028 b

1 by this Article, provided that such an inspector general is not
2 prohibited by law, rule, jurisdiction, qualification, or
3 interest from serving as the Executive Inspector General
4 required by this Article. An appointing authority may not
5 appoint a relative as an Executive Inspector General.
6     Each Executive Inspector General shall have the following
7 qualifications:
8         (1) has not been convicted of any felony under the laws
9     of this State, another State, or the United States;
10         (2) has earned a baccalaureate degree from an
11     institution of higher education; and
12         (3) has 5 or more years of cumulative service (A) with
13     a federal, State, or local law enforcement agency, at least
14     2 years of which have been in a progressive investigatory
15     capacity; (B) as a federal, State, or local prosecutor; (C)
16     as a senior manager or executive of a federal, State, or
17     local agency; (D) as a member, an officer, or a State or
18     federal judge; or (E) representing any combination of (A)
19     through (D).
20     The term of each initial Executive Inspector General shall
21 commence upon qualification and shall run through June 30,
22 2008. The initial appointments shall be made within 60 days
23 after the effective date of this Act.
24     After the initial term, each Executive Inspector General
25 shall serve for 5-year terms commencing on July 1 of the year
26 of appointment and running through June 30 of the fifth

 

 

HB4194 - 41 - LRB095 15068 AMC 41028 b

1 following year. An Executive Inspector General may be
2 reappointed to one or more subsequent terms.
3     A vacancy occurring other than at the end of a term shall
4 be filled by the appointing authority only for the balance of
5 the term of the Executive Inspector General whose office is
6 vacant.
7     Terms shall run regardless of whether the position is
8 filled.
9     (c) The Executive Inspector General appointed by the
10 Attorney General shall have jurisdiction over the Attorney
11 General and all officers and employees of, and vendors and
12 others doing business with, State agencies within the
13 jurisdiction of the Attorney General. The Executive Inspector
14 General appointed by the Secretary of State shall have
15 jurisdiction over the Secretary of State and all officers and
16 employees of, and vendors and others doing business with, State
17 agencies within the jurisdiction of the Secretary of State. The
18 Executive Inspector General appointed by the Comptroller shall
19 have jurisdiction over the Comptroller and all officers and
20 employees of, and vendors and others doing business with, State
21 agencies within the jurisdiction of the Comptroller. The
22 Executive Inspector General appointed by the Treasurer shall
23 have jurisdiction over the Treasurer and all officers and
24 employees of, and vendors and others doing business with, State
25 agencies within the jurisdiction of the Treasurer. The
26 Executive Inspector General appointed by the Governor shall

 

 

HB4194 - 42 - LRB095 15068 AMC 41028 b

1 have jurisdiction over the Governor, the Lieutenant Governor,
2 and all officers and employees of, and vendors and others doing
3 business with, executive branch State agencies under the
4 jurisdiction of the Executive Ethics Commission and not within
5 the jurisdiction of the Attorney General, the Secretary of
6 State, the Comptroller, or the Treasurer, or the Executive
7 Inspector General for gaming activities. The Executive
8 Inspector General for gaming activities appointed by the
9 Director of Gaming Enforcement has jurisdiction over the
10 Illinois Gaming Board, Illinois Racing Board, the Office of
11 Gaming Enforcement, and all officers and employees of those
12 agencies.
13     The jurisdiction of each Executive Inspector General is to
14 investigate allegations of fraud, waste, abuse, mismanagement,
15 misconduct, nonfeasance, misfeasance, malfeasance, or
16 violations of this Act or violations of other related laws and
17 rules.
18     (d) The minimum compensation for each Executive Inspector
19 General shall be determined by the Executive Ethics Commission.
20 The actual compensation for each Executive Inspector General
21 shall be determined by the appointing executive branch
22 constitutional officer and must be at or above the minimum
23 compensation level set by the Executive Ethics Commission.
24 Subject to Section 20-45 of this Act, each Executive Inspector
25 General has full authority to organize his or her Office of the
26 Executive Inspector General, including the employment and

 

 

HB4194 - 43 - LRB095 15068 AMC 41028 b

1 determination of the compensation of staff, such as deputies,
2 assistants, and other employees, as appropriations permit. A
3 separate appropriation shall be made for each Office of
4 Executive Inspector General.
5     (e) No Executive Inspector General or employee of the
6 Office of the Executive Inspector General may, during his or
7 her term of appointment or employment:
8         (1) become a candidate for any elective office;
9         (2) hold any other elected or appointed public office
10     except for appointments on governmental advisory boards or
11     study commissions or as otherwise expressly authorized by
12     law;
13         (3) be actively involved in the affairs of any
14     political party or political organization; or
15         (4) actively participate in any campaign for any
16     elective office.
17     In this subsection an appointed public office means a
18 position authorized by law that is filled by an appointing
19 authority as provided by law and does not include employment by
20 hiring in the ordinary course of business.
21     (e-1) No Executive Inspector General or employee of the
22 Office of the Executive Inspector General may, for one year
23 after the termination of his or her appointment or employment:
24         (1) become a candidate for any elective office;
25         (2) hold any elected public office; or
26         (3) hold any appointed State, county, or local judicial

 

 

HB4194 - 44 - LRB095 15068 AMC 41028 b

1     office.
2     (e-2) The requirements of item (3) of subsection (e-1) may
3 be waived by the Executive Ethics Commission.
4     (f) An Executive Inspector General may be removed only for
5 cause and may be removed only by the appointing constitutional
6 officer. At the time of the removal, the appointing
7 constitutional officer must report to the Executive Ethics
8 Commission the justification for the removal.
9 (Source: P.A. 93-617, eff. 12-9-03.)
 
10     (5 ILCS 430/20-15)
11     Sec. 20-15. Duties of the Executive Ethics Commission. In
12 addition to duties otherwise assigned by law, the Executive
13 Ethics Commission shall have the following duties:
14         (1) To promulgate rules governing the performance of
15     its duties and the exercise of its powers and governing the
16     investigations of the Executive Inspectors General. It is
17     declared to be in the public interest, safety, and welfare
18     that the Commission adopt emergency rules under the
19     Illinois Administrative Procedure Act to initially perform
20     its duties under this subsection.
21         (2) To conduct administrative hearings and rule on
22     matters brought before the Commission only upon the receipt
23     of pleadings filed by an Executive Inspector General and
24     not upon its own prerogative, but may appoint special
25     Executive Inspectors General as provided in Section 20-21.

 

 

HB4194 - 45 - LRB095 15068 AMC 41028 b

1     Any other allegations of misconduct received by the
2     Commission from a person other than an Executive Inspector
3     General shall be referred to the Office of the appropriate
4     Executive Inspector General.
5         (3) To prepare and publish manuals and guides and,
6     working with the Office of the Attorney General, oversee
7     training of employees under its jurisdiction that explains
8     their duties.
9         (4) To prepare public information materials to
10     facilitate compliance, implementation, and enforcement of
11     this Act.
12         (5) To submit reports as required by this Act.
13         (6) To the extent authorized by this Act, to make
14     rulings, issue recommendations, and impose administrative
15     fines, if appropriate, in connection with the
16     implementation and interpretation of this Act. The powers
17     and duties of the Commission are limited to matters clearly
18     within the purview of this Act.
19         (7) To issue subpoenas with respect to matters pending
20     before the Commission, subject to the provisions of this
21     Article and in the discretion of the Commission, to compel
22     the attendance of witnesses for purposes of testimony and
23     the production of documents and other items for inspection
24     and copying.
25         (8) To appoint special Executive Inspectors General as
26     provided in Section 20-21.

 

 

HB4194 - 46 - LRB095 15068 AMC 41028 b

1         (9) To review applications and appoint members to the
2     Nomination Panel established under the Illinois Gambling
3     Act.
4 (Source: P.A. 93-617, eff. 12-9-03.)
 
5     Section 90-2. The Executive Reorganization Implementation
6 Act is amended by changing Section 3.1 as follows:
 
7     (15 ILCS 15/3.1)  (from Ch. 127, par. 1803.1)
8     Sec. 3.1. "Agency directly responsible to the Governor" or
9 "agency" means any office, officer, division, or part thereof,
10 and any other office, nonelective officer, department,
11 division, bureau, board, or commission in the executive branch
12 of State government, except that it does not apply to any
13 agency whose primary function is service to the General
14 Assembly or the Judicial Branch of State government, or to any
15 agency administered by the Attorney General, Secretary of
16 State, State Comptroller or State Treasurer. In addition the
17 term does not apply to the following agencies created by law
18 with the primary responsibility of exercising regulatory or
19 adjudicatory functions independently of the Governor:
20     (1) the State Board of Elections;
21     (2) the State Board of Education;
22     (3) the Illinois Commerce Commission;
23     (4) the Illinois Workers' Compensation Commission;
24     (5) the Civil Service Commission;

 

 

HB4194 - 47 - LRB095 15068 AMC 41028 b

1     (6) the Fair Employment Practices Commission;
2     (7) the Pollution Control Board;
3     (8) the Department of State Police Merit Board;
4     (9) the Illinois Gaming Board;
5     (10) the Office of Gaming Enforcement; and
6     (11) the Illinois Racing Board.
7 (Source: P.A. 93-721, eff. 1-1-05.)
 
8     Section 90-5. The Alcoholism and Other Drug Abuse and
9 Dependency Act is amended by changing Section 5-20 as follows:
 
10     (20 ILCS 301/5-20)
11     Sec. 5-20. Compulsive gambling program.
12     (a) Subject to appropriation, the Department shall
13 establish a program for public education, research, and
14 training regarding problem and compulsive gambling and the
15 treatment and prevention of problem and compulsive gambling.
16 Subject to specific appropriation for these stated purposes,
17 the program must include all of the following:
18         (1) Establishment and maintenance of a toll-free "800"
19     telephone number to provide crisis counseling and referral
20     services to families experiencing difficulty as a result of
21     problem or compulsive gambling.
22         (2) Promotion of public awareness regarding the
23     recognition and prevention of problem and compulsive
24     gambling.

 

 

HB4194 - 48 - LRB095 15068 AMC 41028 b

1         (3) Facilitation, through in-service training and
2     other means, of the availability of effective assistance
3     programs for problem and compulsive gamblers.
4         (4) Conducting studies to identify adults and
5     juveniles in this State who are, or who are at risk of
6     becoming, problem or compulsive gamblers.
7     (b) Subject to appropriation, the Department shall either
8 establish and maintain the program or contract with a private
9 or public entity for the establishment and maintenance of the
10 program. Subject to appropriation, either the Department or the
11 private or public entity shall implement the toll-free
12 telephone number, promote public awareness, and conduct
13 in-service training concerning problem and compulsive
14 gambling.
15     (c) Subject to appropriation, the Department shall produce
16 and supply the signs specified in Section 10.7 of the Illinois
17 Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
18 1975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
19 of the Charitable Games Act, and Section 13.1 of the Illinois
20 Riverboat Gambling Act.
21 (Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)
 
22     Section 90-10. The Department of Revenue Law of the Civil
23 Administrative Code of Illinois is amended by changing Section
24 2505-305 as follows:
 

 

 

HB4194 - 49 - LRB095 15068 AMC 41028 b

1     (20 ILCS 2505/2505-305)  (was 20 ILCS 2505/39b15.1)
2     Sec. 2505-305. Investigators.
3     (a) The Department has the power to appoint investigators
4 to conduct all investigations, searches, seizures, arrests,
5 and other duties imposed under the provisions of any law
6 administered by the Department or the Illinois Gaming Board.
7 Except as provided in subsection (c), these investigators have
8 and may exercise all the powers of peace officers solely for
9 the purpose of enforcing taxing measures administered by the
10 Department or the Illinois Gaming Board.
11     (b) The Director must authorize to each investigator
12 employed under this Section and to any other employee of the
13 Department exercising the powers of a peace officer a distinct
14 badge that, on its face, (i) clearly states that the badge is
15 authorized by the Department and (ii) contains a unique
16 identifying number. No other badge shall be authorized by the
17 Department.
18     (c) Investigators appointed under this Section who are
19 assigned to the Illinois Gaming Board have and may exercise all
20 the rights and powers of peace officers, provided that these
21 powers shall be limited to offenses or violations occurring or
22 committed on a riverboat or dock, as defined in subsections (d)
23 and (f) of Section 4 of the Riverboat Gambling Act.
24 (Source: P.A. 91-239, eff. 1-1-00; 91-883, eff. 1-1-01; 92-493,
25 eff. 1-1-02.)
 

 

 

HB4194 - 50 - LRB095 15068 AMC 41028 b

1     Section 90-12. The Illinois State Auditing Act is amended
2 by changing Section 3-1 as follows:
 
3     (30 ILCS 5/3-1)  (from Ch. 15, par. 303-1)
4     Sec. 3-1. Jurisdiction of Auditor General. The Auditor
5 General has jurisdiction over all State agencies to make post
6 audits and investigations authorized by or under this Act or
7 the Constitution.
8     The Auditor General has jurisdiction over local government
9 agencies and private agencies only:
10         (a) to make such post audits authorized by or under
11     this Act as are necessary and incidental to a post audit of
12     a State agency or of a program administered by a State
13     agency involving public funds of the State, but this
14     jurisdiction does not include any authority to review local
15     governmental agencies in the obligation, receipt,
16     expenditure or use of public funds of the State that are
17     granted without limitation or condition imposed by law,
18     other than the general limitation that such funds be used
19     for public purposes;
20         (b) to make investigations authorized by or under this
21     Act or the Constitution; and
22         (c) to make audits of the records of local government
23     agencies to verify actual costs of state-mandated programs
24     when directed to do so by the Legislative Audit Commission
25     at the request of the State Board of Appeals under the

 

 

HB4194 - 51 - LRB095 15068 AMC 41028 b

1     State Mandates Act.
2     In addition to the foregoing, the Auditor General may
3 conduct an audit of the Metropolitan Pier and Exposition
4 Authority, the Regional Transportation Authority, the Suburban
5 Bus Division, the Commuter Rail Division and the Chicago
6 Transit Authority and any other subsidized carrier when
7 authorized by the Legislative Audit Commission. Such audit may
8 be a financial, management or program audit, or any combination
9 thereof.
10     The audit shall determine whether they are operating in
11 accordance with all applicable laws and regulations. Subject to
12 the limitations of this Act, the Legislative Audit Commission
13 may by resolution specify additional determinations to be
14 included in the scope of the audit.
15     In addition to the foregoing, the Auditor General must also
16 conduct a financial audit of the Illinois Sports Facilities
17 Authority's expenditures of public funds in connection with the
18 reconstruction, renovation, remodeling, extension, or
19 improvement of all or substantially all of any existing
20 "facility", as that term is defined in the Illinois Sports
21 Facilities Authority Act.
22     The Auditor General may also conduct an audit, when
23 authorized by the Legislative Audit Commission, of any hospital
24 which receives 10% or more of its gross revenues from payments
25 from the State of Illinois, Department of Healthcare and Family
26 Services (formerly Department of Public Aid), Medical

 

 

HB4194 - 52 - LRB095 15068 AMC 41028 b

1 Assistance Program.
2     The Auditor General is authorized to conduct financial and
3 compliance audits of the Illinois Distance Learning Foundation
4 and the Illinois Conservation Foundation.
5     As soon as practical after the effective date of this
6 amendatory Act of 1995, the Auditor General shall conduct a
7 compliance and management audit of the City of Chicago and any
8 other entity with regard to the operation of Chicago O'Hare
9 International Airport, Chicago Midway Airport and Merrill C.
10 Meigs Field. The audit shall include, but not be limited to, an
11 examination of revenues, expenses, and transfers of funds;
12 purchasing and contracting policies and practices; staffing
13 levels; and hiring practices and procedures. When completed,
14 the audit required by this paragraph shall be distributed in
15 accordance with Section 3-14.
16     The Auditor General shall conduct a financial and
17 compliance and program audit of distributions from the
18 Municipal Economic Development Fund during the immediately
19 preceding calendar year pursuant to Section 8-403.1 of the
20 Public Utilities Act at no cost to the city, village, or
21 incorporated town that received the distributions.
22     The Auditor General must conduct an audit of the Health
23 Facilities Planning Board pursuant to Section 19.5 of the
24 Illinois Health Facilities Planning Act.
25     The Auditor General must conduct an audit of the Chicago
26 Casino Development Authority pursuant to Section 1-60 of the

 

 

HB4194 - 53 - LRB095 15068 AMC 41028 b

1 Chicago Casino Development Authority Act.
2     The Auditor General of the State of Illinois shall annually
3 conduct or cause to be conducted a financial and compliance
4 audit of the books and records of any county water commission
5 organized pursuant to the Water Commission Act of 1985 and
6 shall file a copy of the report of that audit with the Governor
7 and the Legislative Audit Commission. The filed audit shall be
8 open to the public for inspection. The cost of the audit shall
9 be charged to the county water commission in accordance with
10 Section 6z-27 of the State Finance Act. The county water
11 commission shall make available to the Auditor General its
12 books and records and any other documentation, whether in the
13 possession of its trustees or other parties, necessary to
14 conduct the audit required. These audit requirements apply only
15 through July 1, 2007.
16     The Auditor General must conduct audits of the Rend Lake
17 Conservancy District as provided in Section 25.5 of the River
18 Conservancy Districts Act.
19     The Auditor General must conduct financial audits of the
20 Southeastern Illinois Economic Development Authority as
21 provided in Section 70 of the Southeastern Illinois Economic
22 Development Authority Act.
23 (Source: P.A. 95-331, eff. 8-21-07.)
 
24     Section 90-15. The State Finance Act is amended by changing
25 Section 8h and adding Sections 5.708, 5.709, and 6z-71 as

 

 

HB4194 - 54 - LRB095 15068 AMC 41028 b

1 follows:
 
2     (30 ILCS 105/5.708 new)
3     Sec. 5.708. The GROW Fund.
 
4     (30 ILCS 105/5.709 new)
5     Sec. 5.709. The Focusing on Children, Uplifting Schools
6 (FOCUS) Fund.
 
7     (30 ILCS 105/6z-71 new)
8     Sec. 6z-71. FOCUS Fund.
9     (a) There is created the Focusing on Children, Uplifting
10 Schools (FOCUS) Fund as a special fund in the State treasury.
11 All money in the Fund shall be used, subject to appropriation,
12 by the State Board of Education as provided in this Section.
13     (b) The State Board of Education shall distribute the money
14 in the FOCUS Fund as follows:
15         (1) Twenty percent of money in the Fund must be
16     distributed to a school district organized under Article 34
17     of the School Code.
18         (2) The balance of the money in the Fund must be
19     distributed to school districts, except those organized
20     under Article 34 of the School Code as follows:
21             (A) Fifty percent of the balance must be
22         distributed on a per capita basis to depressed school
23         districts and school districts that accept for

 

 

HB4194 - 55 - LRB095 15068 AMC 41028 b

1         enrollment military-dependent children whose parents
2         or guardians reside in federal military housing. To
3         determine which school districts qualify as depressed
4         school districts, the State Board shall use its final
5         data for the previous school year concerning those
6         school districts that have the lowest 30% of available
7         local resources, as defined under Section 18-8.05 of
8         the School Code.
9             (B) Thirty percent of the balance must be
10         distributed to school districts under the School
11         Safety and Educational Improvement Block Grant
12         Program.
13             (C) The remaining 20% of the balance must be
14         distributed as fast growth grants under Section
15         18-8.10 of the School Code to school districts that
16         qualify.
17     (c) All money distributed by the State Board of Education
18 from the FOCUS Fund must be used by schools and school
19 districts, as determined by rule of the State Board of
20 Education, for reducing class sizes, for math and reading
21 specialists, and for school counselors, including without
22 limitation those persons providing social, behavioral, and
23 academic counseling.
 
24     (30 ILCS 105/8h)
25     Sec. 8h. Transfers to General Revenue Fund.

 

 

HB4194 - 56 - LRB095 15068 AMC 41028 b

1     (a) Except as otherwise provided in this Section and
2 Section 8n of this Act, and notwithstanding any other State law
3 to the contrary, the Governor may, through June 30, 2007, from
4 time to time direct the State Treasurer and Comptroller to
5 transfer a specified sum from any fund held by the State
6 Treasurer to the General Revenue Fund in order to help defray
7 the State's operating costs for the fiscal year. The total
8 transfer under this Section from any fund in any fiscal year
9 shall not exceed the lesser of (i) 8% of the revenues to be
10 deposited into the fund during that fiscal year or (ii) an
11 amount that leaves a remaining fund balance of 25% of the July
12 1 fund balance of that fiscal year. In fiscal year 2005 only,
13 prior to calculating the July 1, 2004 final balances, the
14 Governor may calculate and direct the State Treasurer with the
15 Comptroller to transfer additional amounts determined by
16 applying the formula authorized in Public Act 93-839 to the
17 funds balances on July 1, 2003. No transfer may be made from a
18 fund under this Section that would have the effect of reducing
19 the available balance in the fund to an amount less than the
20 amount remaining unexpended and unreserved from the total
21 appropriation from that fund estimated to be expended for that
22 fiscal year. This Section does not apply to any funds that are
23 restricted by federal law to a specific use, to any funds in
24 the Motor Fuel Tax Fund, the Intercity Passenger Rail Fund, the
25 Hospital Provider Fund, the Medicaid Provider Relief Fund, the
26 Teacher Health Insurance Security Fund, the Reviewing Court

 

 

HB4194 - 57 - LRB095 15068 AMC 41028 b

1 Alternative Dispute Resolution Fund, the Voters' Guide Fund,
2 the Foreign Language Interpreter Fund, the Lawyers' Assistance
3 Program Fund, the Supreme Court Federal Projects Fund, the
4 Supreme Court Special State Projects Fund, the Supplemental
5 Low-Income Energy Assistance Fund, the Good Samaritan Energy
6 Trust Fund, the Low-Level Radioactive Waste Facility
7 Development and Operation Fund, the Horse Racing Equity Trust
8 Fund, the Racing Industry Workers' Trust Fund, the Illinois
9 Equine Research Trust Fund, the Agricultural Premium Fund, the
10 Illinois Colt Stakes Purse Distribution Fund, the Horse Racing
11 Fund, the Illinois Thoroughbred Breeders Fund, the Illinois
12 Racing Quarter Horse Breeders Fund, the Illinois Standardbred
13 Breeders Fund, the Metabolic Screening and Treatment Fund, or
14 the Hospital Basic Services Preservation Fund, or to any funds
15 to which Section 70-50 of the Nurse Practice Act applies. No
16 transfers may be made under this Section from the Pet
17 Population Control Fund. Notwithstanding any other provision
18 of this Section, for fiscal year 2004, the total transfer under
19 this Section from the Road Fund or the State Construction
20 Account Fund shall not exceed the lesser of (i) 5% of the
21 revenues to be deposited into the fund during that fiscal year
22 or (ii) 25% of the beginning balance in the fund. For fiscal
23 year 2005 through fiscal year 2007, no amounts may be
24 transferred under this Section from the Road Fund, the State
25 Construction Account Fund, the Criminal Justice Information
26 Systems Trust Fund, the Wireless Service Emergency Fund, or the

 

 

HB4194 - 58 - LRB095 15068 AMC 41028 b

1 Mandatory Arbitration Fund.
2     In determining the available balance in a fund, the
3 Governor may include receipts, transfers into the fund, and
4 other resources anticipated to be available in the fund in that
5 fiscal year.
6     The State Treasurer and Comptroller shall transfer the
7 amounts designated under this Section as soon as may be
8 practicable after receiving the direction to transfer from the
9 Governor.
10     (a-5) Transfers directed to be made under this Section on
11 or before February 28, 2006 that are still pending on May 19,
12 2006 (the effective date of Public Act 94-774) shall be
13 redirected as provided in Section 8n of this Act.
14     (b) This Section does not apply to: (i) the Ticket For The
15 Cure Fund; (ii) any fund established under the Community Senior
16 Services and Resources Act; or (iii) on or after January 1,
17 2006 (the effective date of Public Act 94-511), the Child Labor
18 and Day and Temporary Labor Enforcement Fund.
19     (c) This Section does not apply to the Demutualization
20 Trust Fund established under the Uniform Disposition of
21 Unclaimed Property Act.
22     (d) This Section does not apply to moneys set aside in the
23 Illinois State Podiatric Disciplinary Fund for podiatric
24 scholarships and residency programs under the Podiatric
25 Scholarship and Residency Act.
26     (e) Subsection (a) does not apply to, and no transfer may

 

 

HB4194 - 59 - LRB095 15068 AMC 41028 b

1 be made under this Section from, the Pension Stabilization
2 Fund.
3     (f) Subsection (a) does not apply to, and no transfer may
4 be made under this Section from, the Illinois Power Agency
5 Operations Fund, the Illinois Power Agency Facilities Fund, the
6 Illinois Power Agency Debt Service Fund, and the Illinois Power
7 Agency Trust Fund.
8     (g) (f) This Section does not apply to the Veterans Service
9 Organization Reimbursement Fund.
10     (h) (f) This Section does not apply to the Supreme Court
11 Historic Preservation Fund.
12 (Source: P.A. 94-91, eff. 7-1-05; 94-120, eff. 7-6-05; 94-511,
13 eff. 1-1-06; 94-535, eff. 8-10-05; 94-639, eff. 8-22-05;
14 94-645, eff. 8-22-05; 94-648, eff. 1-1-06; 94-686, eff.
15 11-2-05; 94-691, eff. 11-2-05; 94-726, eff. 1-20-06; 94-773,
16 eff. 5-18-06; 94-774, eff. 5-19-06; 94-804, eff. 5-26-06;
17 94-839, eff. 6-6-06; 95-331, eff. 8-21-07; 95-410, eff.
18 8-24-07; 95-481, eff. 8-28-07; 95-629, eff. 9-25-07; 95-639,
19 eff. 10-5-07; 95-695, eff. 11-5-07; revised 11-2-07.)
 
20     (30 ILCS 105/5.26 rep.)
21     (30 ILCS 105/5.26a rep.)
22     Section 90-20. The State Finance Act is amended by
23 repealing Sections 5.26 and 5.26a.
 
24     Section 90-21. The Illinois Procurement Code is amended by

 

 

HB4194 - 60 - LRB095 15068 AMC 41028 b

1 changing Section 50-70 as follows:
 
2     (30 ILCS 500/50-70)
3     Sec. 50-70. Additional provisions. This Code is subject to
4 applicable provisions of the following Acts:
5         (1) Article 33E of the Criminal Code of 1961;
6         (2) the Illinois Human Rights Act;
7         (3) the Discriminatory Club Act;
8         (4) the Illinois Governmental Ethics Act;
9         (5) the State Prompt Payment Act;
10         (6) the Public Officer Prohibited Activities Act;
11         (7) the Drug Free Workplace Act; and
12         (8) the Illinois Power Agency Act; .
13         (9) (8) the Employee Classification Act; and .
14         (10) the Illinois Gambling Act.
15 (Source: P.A. 95-26, eff. 1-1-08; 95-481, eff. 8-28-07; revised
16 11-2-07.)
 
17     Section 90-21.5. The Illinois Income Tax Act is amended by
18 changing Section 201 as follows:
 
19     (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
20     Sec. 201. Tax Imposed.
21     (a) In general. A tax measured by net income is hereby
22 imposed on every individual, corporation, trust and estate for
23 each taxable year ending after July 31, 1969 on the privilege

 

 

HB4194 - 61 - LRB095 15068 AMC 41028 b

1 of earning or receiving income in or as a resident of this
2 State. Such tax shall be in addition to all other occupation or
3 privilege taxes imposed by this State or by any municipal
4 corporation or political subdivision thereof.
5     (b) Rates. The tax imposed by subsection (a) of this
6 Section shall be determined as follows, except as adjusted by
7 subsection (d-1):
8         (1) In the case of an individual, trust or estate, for
9     taxable years ending prior to July 1, 1989, an amount equal
10     to 2 1/2% of the taxpayer's net income for the taxable
11     year.
12         (2) In the case of an individual, trust or estate, for
13     taxable years beginning prior to July 1, 1989 and ending
14     after June 30, 1989, an amount equal to the sum of (i) 2
15     1/2% of the taxpayer's net income for the period prior to
16     July 1, 1989, as calculated under Section 202.3, and (ii)
17     3% of the taxpayer's net income for the period after June
18     30, 1989, as calculated under Section 202.3.
19         (3) In the case of an individual, trust or estate, for
20     taxable years beginning after June 30, 1989, an amount
21     equal to 3% of the taxpayer's net income for the taxable
22     year.
23         (4) (Blank).
24         (5) (Blank).
25         (6) In the case of a corporation, for taxable years
26     ending prior to July 1, 1989, an amount equal to 4% of the

 

 

HB4194 - 62 - LRB095 15068 AMC 41028 b

1     taxpayer's net income for the taxable year.
2         (7) In the case of a corporation, for taxable years
3     beginning prior to July 1, 1989 and ending after June 30,
4     1989, an amount equal to the sum of (i) 4% of the
5     taxpayer's net income for the period prior to July 1, 1989,
6     as calculated under Section 202.3, and (ii) 4.8% of the
7     taxpayer's net income for the period after June 30, 1989,
8     as calculated under Section 202.3.
9         (8) In the case of a corporation, for taxable years
10     beginning after June 30, 1989, an amount equal to 4.8% of
11     the taxpayer's net income for the taxable year.
12     Surcharge; sale or exchange of assets, properties, and
13 intangibles of gaming licensees. For each of taxable years 2008
14 through 2017, a surcharge is imposed on all taxpayers on income
15 arising from the sale or exchange of capital assets,
16 depreciable business property, real property used in the trade
17 or business, and Section 197 intangibles (i) of an organization
18 licensee under the Illinois Horse Racing Act of 1975 and (ii)
19 of an owners licensee or an electronic gaming licensee under
20 the Illinois Gambling Act. The amount of the surcharge is equal
21 to the amount of federal income tax liability for the taxable
22 year attributable to those sales and exchanges. The Department
23 shall adopt rules necessary to implement and administer this
24 paragraph.
25     (c) Personal Property Tax Replacement Income Tax.
26 Beginning on July 1, 1979 and thereafter, in addition to such

 

 

HB4194 - 63 - LRB095 15068 AMC 41028 b

1 income tax, there is also hereby imposed the Personal Property
2 Tax Replacement Income Tax measured by net income on every
3 corporation (including Subchapter S corporations), partnership
4 and trust, for each taxable year ending after June 30, 1979.
5 Such taxes are imposed on the privilege of earning or receiving
6 income in or as a resident of this State. The Personal Property
7 Tax Replacement Income Tax shall be in addition to the income
8 tax imposed by subsections (a) and (b) of this Section and in
9 addition to all other occupation or privilege taxes imposed by
10 this State or by any municipal corporation or political
11 subdivision thereof.
12     (d) Additional Personal Property Tax Replacement Income
13 Tax Rates. The personal property tax replacement income tax
14 imposed by this subsection and subsection (c) of this Section
15 in the case of a corporation, other than a Subchapter S
16 corporation and except as adjusted by subsection (d-1), shall
17 be an additional amount equal to 2.85% of such taxpayer's net
18 income for the taxable year, except that beginning on January
19 1, 1981, and thereafter, the rate of 2.85% specified in this
20 subsection shall be reduced to 2.5%, and in the case of a
21 partnership, trust or a Subchapter S corporation shall be an
22 additional amount equal to 1.5% of such taxpayer's net income
23 for the taxable year.
24     (d-1) Rate reduction for certain foreign insurers. In the
25 case of a foreign insurer, as defined by Section 35A-5 of the
26 Illinois Insurance Code, whose state or country of domicile

 

 

HB4194 - 64 - LRB095 15068 AMC 41028 b

1 imposes on insurers domiciled in Illinois a retaliatory tax
2 (excluding any insurer whose premiums from reinsurance assumed
3 are 50% or more of its total insurance premiums as determined
4 under paragraph (2) of subsection (b) of Section 304, except
5 that for purposes of this determination premiums from
6 reinsurance do not include premiums from inter-affiliate
7 reinsurance arrangements), beginning with taxable years ending
8 on or after December 31, 1999, the sum of the rates of tax
9 imposed by subsections (b) and (d) shall be reduced (but not
10 increased) to the rate at which the total amount of tax imposed
11 under this Act, net of all credits allowed under this Act,
12 shall equal (i) the total amount of tax that would be imposed
13 on the foreign insurer's net income allocable to Illinois for
14 the taxable year by such foreign insurer's state or country of
15 domicile if that net income were subject to all income taxes
16 and taxes measured by net income imposed by such foreign
17 insurer's state or country of domicile, net of all credits
18 allowed or (ii) a rate of zero if no such tax is imposed on such
19 income by the foreign insurer's state of domicile. For the
20 purposes of this subsection (d-1), an inter-affiliate includes
21 a mutual insurer under common management.
22         (1) For the purposes of subsection (d-1), in no event
23     shall the sum of the rates of tax imposed by subsections
24     (b) and (d) be reduced below the rate at which the sum of:
25             (A) the total amount of tax imposed on such foreign
26         insurer under this Act for a taxable year, net of all

 

 

HB4194 - 65 - LRB095 15068 AMC 41028 b

1         credits allowed under this Act, plus
2             (B) the privilege tax imposed by Section 409 of the
3         Illinois Insurance Code, the fire insurance company
4         tax imposed by Section 12 of the Fire Investigation
5         Act, and the fire department taxes imposed under
6         Section 11-10-1 of the Illinois Municipal Code,
7     equals 1.25% for taxable years ending prior to December 31,
8     2003, or 1.75% for taxable years ending on or after
9     December 31, 2003, of the net taxable premiums written for
10     the taxable year, as described by subsection (1) of Section
11     409 of the Illinois Insurance Code. This paragraph will in
12     no event increase the rates imposed under subsections (b)
13     and (d).
14         (2) Any reduction in the rates of tax imposed by this
15     subsection shall be applied first against the rates imposed
16     by subsection (b) and only after the tax imposed by
17     subsection (a) net of all credits allowed under this
18     Section other than the credit allowed under subsection (i)
19     has been reduced to zero, against the rates imposed by
20     subsection (d).
21     This subsection (d-1) is exempt from the provisions of
22 Section 250.
23     (e) Investment credit. A taxpayer shall be allowed a credit
24 against the Personal Property Tax Replacement Income Tax for
25 investment in qualified property.
26         (1) A taxpayer shall be allowed a credit equal to .5%

 

 

HB4194 - 66 - LRB095 15068 AMC 41028 b

1     of the basis of qualified property placed in service during
2     the taxable year, provided such property is placed in
3     service on or after July 1, 1984. There shall be allowed an
4     additional credit equal to .5% of the basis of qualified
5     property placed in service during the taxable year,
6     provided such property is placed in service on or after
7     July 1, 1986, and the taxpayer's base employment within
8     Illinois has increased by 1% or more over the preceding
9     year as determined by the taxpayer's employment records
10     filed with the Illinois Department of Employment Security.
11     Taxpayers who are new to Illinois shall be deemed to have
12     met the 1% growth in base employment for the first year in
13     which they file employment records with the Illinois
14     Department of Employment Security. The provisions added to
15     this Section by Public Act 85-1200 (and restored by Public
16     Act 87-895) shall be construed as declaratory of existing
17     law and not as a new enactment. If, in any year, the
18     increase in base employment within Illinois over the
19     preceding year is less than 1%, the additional credit shall
20     be limited to that percentage times a fraction, the
21     numerator of which is .5% and the denominator of which is
22     1%, but shall not exceed .5%. The investment credit shall
23     not be allowed to the extent that it would reduce a
24     taxpayer's liability in any tax year below zero, nor may
25     any credit for qualified property be allowed for any year
26     other than the year in which the property was placed in

 

 

HB4194 - 67 - LRB095 15068 AMC 41028 b

1     service in Illinois. For tax years ending on or after
2     December 31, 1987, and on or before December 31, 1988, the
3     credit shall be allowed for the tax year in which the
4     property is placed in service, or, if the amount of the
5     credit exceeds the tax liability for that year, whether it
6     exceeds the original liability or the liability as later
7     amended, such excess may be carried forward and applied to
8     the tax liability of the 5 taxable years following the
9     excess credit years if the taxpayer (i) makes investments
10     which cause the creation of a minimum of 2,000 full-time
11     equivalent jobs in Illinois, (ii) is located in an
12     enterprise zone established pursuant to the Illinois
13     Enterprise Zone Act and (iii) is certified by the
14     Department of Commerce and Community Affairs (now
15     Department of Commerce and Economic Opportunity) as
16     complying with the requirements specified in clause (i) and
17     (ii) by July 1, 1986. The Department of Commerce and
18     Community Affairs (now Department of Commerce and Economic
19     Opportunity) shall notify the Department of Revenue of all
20     such certifications immediately. For tax years ending
21     after December 31, 1988, the credit shall be allowed for
22     the tax year in which the property is placed in service,
23     or, if the amount of the credit exceeds the tax liability
24     for that year, whether it exceeds the original liability or
25     the liability as later amended, such excess may be carried
26     forward and applied to the tax liability of the 5 taxable

 

 

HB4194 - 68 - LRB095 15068 AMC 41028 b

1     years following the excess credit years. The credit shall
2     be applied to the earliest year for which there is a
3     liability. If there is credit from more than one tax year
4     that is available to offset a liability, earlier credit
5     shall be applied first.
6         (2) The term "qualified property" means property
7     which:
8             (A) is tangible, whether new or used, including
9         buildings and structural components of buildings and
10         signs that are real property, but not including land or
11         improvements to real property that are not a structural
12         component of a building such as landscaping, sewer
13         lines, local access roads, fencing, parking lots, and
14         other appurtenances;
15             (B) is depreciable pursuant to Section 167 of the
16         Internal Revenue Code, except that "3-year property"
17         as defined in Section 168(c)(2)(A) of that Code is not
18         eligible for the credit provided by this subsection
19         (e);
20             (C) is acquired by purchase as defined in Section
21         179(d) of the Internal Revenue Code;
22             (D) is used in Illinois by a taxpayer who is
23         primarily engaged in manufacturing, or in mining coal
24         or fluorite, or in retailing, or was placed in service
25         on or after July 1, 2006 in a River Edge Redevelopment
26         Zone established pursuant to the River Edge

 

 

HB4194 - 69 - LRB095 15068 AMC 41028 b

1         Redevelopment Zone Act; and
2             (E) has not previously been used in Illinois in
3         such a manner and by such a person as would qualify for
4         the credit provided by this subsection (e) or
5         subsection (f).
6         (3) For purposes of this subsection (e),
7     "manufacturing" means the material staging and production
8     of tangible personal property by procedures commonly
9     regarded as manufacturing, processing, fabrication, or
10     assembling which changes some existing material into new
11     shapes, new qualities, or new combinations. For purposes of
12     this subsection (e) the term "mining" shall have the same
13     meaning as the term "mining" in Section 613(c) of the
14     Internal Revenue Code. For purposes of this subsection (e),
15     the term "retailing" means the sale of tangible personal
16     property or services rendered in conjunction with the sale
17     of tangible consumer goods or commodities.
18         (4) The basis of qualified property shall be the basis
19     used to compute the depreciation deduction for federal
20     income tax purposes.
21         (5) If the basis of the property for federal income tax
22     depreciation purposes is increased after it has been placed
23     in service in Illinois by the taxpayer, the amount of such
24     increase shall be deemed property placed in service on the
25     date of such increase in basis.
26         (6) The term "placed in service" shall have the same

 

 

HB4194 - 70 - LRB095 15068 AMC 41028 b

1     meaning as under Section 46 of the Internal Revenue Code.
2         (7) If during any taxable year, any property ceases to
3     be qualified property in the hands of the taxpayer within
4     48 months after being placed in service, or the situs of
5     any qualified property is moved outside Illinois within 48
6     months after being placed in service, the Personal Property
7     Tax Replacement Income Tax for such taxable year shall be
8     increased. Such increase shall be determined by (i)
9     recomputing the investment credit which would have been
10     allowed for the year in which credit for such property was
11     originally allowed by eliminating such property from such
12     computation and, (ii) subtracting such recomputed credit
13     from the amount of credit previously allowed. For the
14     purposes of this paragraph (7), a reduction of the basis of
15     qualified property resulting from a redetermination of the
16     purchase price shall be deemed a disposition of qualified
17     property to the extent of such reduction.
18         (8) Unless the investment credit is extended by law,
19     the basis of qualified property shall not include costs
20     incurred after December 31, 2008, except for costs incurred
21     pursuant to a binding contract entered into on or before
22     December 31, 2008.
23         (9) Each taxable year ending before December 31, 2000,
24     a partnership may elect to pass through to its partners the
25     credits to which the partnership is entitled under this
26     subsection (e) for the taxable year. A partner may use the

 

 

HB4194 - 71 - LRB095 15068 AMC 41028 b

1     credit allocated to him or her under this paragraph only
2     against the tax imposed in subsections (c) and (d) of this
3     Section. If the partnership makes that election, those
4     credits shall be allocated among the partners in the
5     partnership in accordance with the rules set forth in
6     Section 704(b) of the Internal Revenue Code, and the rules
7     promulgated under that Section, and the allocated amount of
8     the credits shall be allowed to the partners for that
9     taxable year. The partnership shall make this election on
10     its Personal Property Tax Replacement Income Tax return for
11     that taxable year. The election to pass through the credits
12     shall be irrevocable.
13         For taxable years ending on or after December 31, 2000,
14     a partner that qualifies its partnership for a subtraction
15     under subparagraph (I) of paragraph (2) of subsection (d)
16     of Section 203 or a shareholder that qualifies a Subchapter
17     S corporation for a subtraction under subparagraph (S) of
18     paragraph (2) of subsection (b) of Section 203 shall be
19     allowed a credit under this subsection (e) equal to its
20     share of the credit earned under this subsection (e) during
21     the taxable year by the partnership or Subchapter S
22     corporation, determined in accordance with the
23     determination of income and distributive share of income
24     under Sections 702 and 704 and Subchapter S of the Internal
25     Revenue Code. This paragraph is exempt from the provisions
26     of Section 250.

 

 

HB4194 - 72 - LRB095 15068 AMC 41028 b

1     (f) Investment credit; Enterprise Zone; River Edge
2 Redevelopment Zone.
3         (1) A taxpayer shall be allowed a credit against the
4     tax imposed by subsections (a) and (b) of this Section for
5     investment in qualified property which is placed in service
6     in an Enterprise Zone created pursuant to the Illinois
7     Enterprise Zone Act or, for property placed in service on
8     or after July 1, 2006, a River Edge Redevelopment Zone
9     established pursuant to the River Edge Redevelopment Zone
10     Act. For partners, shareholders of Subchapter S
11     corporations, and owners of limited liability companies,
12     if the liability company is treated as a partnership for
13     purposes of federal and State income taxation, there shall
14     be allowed a credit under this subsection (f) to be
15     determined in accordance with the determination of income
16     and distributive share of income under Sections 702 and 704
17     and Subchapter S of the Internal Revenue Code. The credit
18     shall be .5% of the basis for such property. The credit
19     shall be available only in the taxable year in which the
20     property is placed in service in the Enterprise Zone or
21     River Edge Redevelopment Zone and shall not be allowed to
22     the extent that it would reduce a taxpayer's liability for
23     the tax imposed by subsections (a) and (b) of this Section
24     to below zero. For tax years ending on or after December
25     31, 1985, the credit shall be allowed for the tax year in
26     which the property is placed in service, or, if the amount

 

 

HB4194 - 73 - LRB095 15068 AMC 41028 b

1     of the credit exceeds the tax liability for that year,
2     whether it exceeds the original liability or the liability
3     as later amended, such excess may be carried forward and
4     applied to the tax liability of the 5 taxable years
5     following the excess credit year. The credit shall be
6     applied to the earliest year for which there is a
7     liability. If there is credit from more than one tax year
8     that is available to offset a liability, the credit
9     accruing first in time shall be applied first.
10         (2) The term qualified property means property which:
11             (A) is tangible, whether new or used, including
12         buildings and structural components of buildings;
13             (B) is depreciable pursuant to Section 167 of the
14         Internal Revenue Code, except that "3-year property"
15         as defined in Section 168(c)(2)(A) of that Code is not
16         eligible for the credit provided by this subsection
17         (f);
18             (C) is acquired by purchase as defined in Section
19         179(d) of the Internal Revenue Code;
20             (D) is used in the Enterprise Zone or River Edge
21         Redevelopment Zone by the taxpayer; and
22             (E) has not been previously used in Illinois in
23         such a manner and by such a person as would qualify for
24         the credit provided by this subsection (f) or
25         subsection (e).
26         (3) The basis of qualified property shall be the basis

 

 

HB4194 - 74 - LRB095 15068 AMC 41028 b

1     used to compute the depreciation deduction for federal
2     income tax purposes.
3         (4) If the basis of the property for federal income tax
4     depreciation purposes is increased after it has been placed
5     in service in the Enterprise Zone or River Edge
6     Redevelopment Zone by the taxpayer, the amount of such
7     increase shall be deemed property placed in service on the
8     date of such increase in basis.
9         (5) The term "placed in service" shall have the same
10     meaning as under Section 46 of the Internal Revenue Code.
11         (6) If during any taxable year, any property ceases to
12     be qualified property in the hands of the taxpayer within
13     48 months after being placed in service, or the situs of
14     any qualified property is moved outside the Enterprise Zone
15     or River Edge Redevelopment Zone within 48 months after
16     being placed in service, the tax imposed under subsections
17     (a) and (b) of this Section for such taxable year shall be
18     increased. Such increase shall be determined by (i)
19     recomputing the investment credit which would have been
20     allowed for the year in which credit for such property was
21     originally allowed by eliminating such property from such
22     computation, and (ii) subtracting such recomputed credit
23     from the amount of credit previously allowed. For the
24     purposes of this paragraph (6), a reduction of the basis of
25     qualified property resulting from a redetermination of the
26     purchase price shall be deemed a disposition of qualified

 

 

HB4194 - 75 - LRB095 15068 AMC 41028 b

1     property to the extent of such reduction.
2         (7) There shall be allowed an additional credit equal
3     to 0.5% of the basis of qualified property placed in
4     service during the taxable year in a River Edge
5     Redevelopment Zone, provided such property is placed in
6     service on or after July 1, 2006, and the taxpayer's base
7     employment within Illinois has increased by 1% or more over
8     the preceding year as determined by the taxpayer's
9     employment records filed with the Illinois Department of
10     Employment Security. Taxpayers who are new to Illinois
11     shall be deemed to have met the 1% growth in base
12     employment for the first year in which they file employment
13     records with the Illinois Department of Employment
14     Security. If, in any year, the increase in base employment
15     within Illinois over the preceding year is less than 1%,
16     the additional credit shall be limited to that percentage
17     times a fraction, the numerator of which is 0.5% and the
18     denominator of which is 1%, but shall not exceed 0.5%.
19     (g) Jobs Tax Credit; Enterprise Zone, River Edge
20 Redevelopment Zone, and Foreign Trade Zone or Sub-Zone.
21         (1) A taxpayer conducting a trade or business in an
22     enterprise zone or a High Impact Business designated by the
23     Department of Commerce and Economic Opportunity or for
24     taxable years ending on or after December 31, 2006, in a
25     River Edge Redevelopment Zone conducting a trade or
26     business in a federally designated Foreign Trade Zone or

 

 

HB4194 - 76 - LRB095 15068 AMC 41028 b

1     Sub-Zone shall be allowed a credit against the tax imposed
2     by subsections (a) and (b) of this Section in the amount of
3     $500 per eligible employee hired to work in the zone during
4     the taxable year.
5         (2) To qualify for the credit:
6             (A) the taxpayer must hire 5 or more eligible
7         employees to work in an enterprise zone, River Edge
8         Redevelopment Zone, or federally designated Foreign
9         Trade Zone or Sub-Zone during the taxable year;
10             (B) the taxpayer's total employment within the
11         enterprise zone, River Edge Redevelopment Zone, or
12         federally designated Foreign Trade Zone or Sub-Zone
13         must increase by 5 or more full-time employees beyond
14         the total employed in that zone at the end of the
15         previous tax year for which a jobs tax credit under
16         this Section was taken, or beyond the total employed by
17         the taxpayer as of December 31, 1985, whichever is
18         later; and
19             (C) the eligible employees must be employed 180
20         consecutive days in order to be deemed hired for
21         purposes of this subsection.
22         (3) An "eligible employee" means an employee who is:
23             (A) Certified by the Department of Commerce and
24         Economic Opportunity as "eligible for services"
25         pursuant to regulations promulgated in accordance with
26         Title II of the Job Training Partnership Act, Training

 

 

HB4194 - 77 - LRB095 15068 AMC 41028 b

1         Services for the Disadvantaged or Title III of the Job
2         Training Partnership Act, Employment and Training
3         Assistance for Dislocated Workers Program.
4             (B) Hired after the enterprise zone, River Edge
5         Redevelopment Zone, or federally designated Foreign
6         Trade Zone or Sub-Zone was designated or the trade or
7         business was located in that zone, whichever is later.
8             (C) Employed in the enterprise zone, River Edge
9         Redevelopment Zone, or Foreign Trade Zone or Sub-Zone.
10         An employee is employed in an enterprise zone or
11         federally designated Foreign Trade Zone or Sub-Zone if
12         his services are rendered there or it is the base of
13         operations for the services performed.
14             (D) A full-time employee working 30 or more hours
15         per week.
16         (4) For tax years ending on or after December 31, 1985
17     and prior to December 31, 1988, the credit shall be allowed
18     for the tax year in which the eligible employees are hired.
19     For tax years ending on or after December 31, 1988, the
20     credit shall be allowed for the tax year immediately
21     following the tax year in which the eligible employees are
22     hired. If the amount of the credit exceeds the tax
23     liability for that year, whether it exceeds the original
24     liability or the liability as later amended, such excess
25     may be carried forward and applied to the tax liability of
26     the 5 taxable years following the excess credit year. The

 

 

HB4194 - 78 - LRB095 15068 AMC 41028 b

1     credit shall be applied to the earliest year for which
2     there is a liability. If there is credit from more than one
3     tax year that is available to offset a liability, earlier
4     credit shall be applied first.
5         (5) The Department of Revenue shall promulgate such
6     rules and regulations as may be deemed necessary to carry
7     out the purposes of this subsection (g).
8         (6) The credit shall be available for eligible
9     employees hired on or after January 1, 1986.
10     (h) Investment credit; High Impact Business.
11         (1) Subject to subsections (b) and (b-5) of Section 5.5
12     of the Illinois Enterprise Zone Act, a taxpayer shall be
13     allowed a credit against the tax imposed by subsections (a)
14     and (b) of this Section for investment in qualified
15     property which is placed in service by a Department of
16     Commerce and Economic Opportunity designated High Impact
17     Business. The credit shall be .5% of the basis for such
18     property. The credit shall not be available (i) until the
19     minimum investments in qualified property set forth in
20     subdivision (a)(3)(A) of Section 5.5 of the Illinois
21     Enterprise Zone Act have been satisfied or (ii) until the
22     time authorized in subsection (b-5) of the Illinois
23     Enterprise Zone Act for entities designated as High Impact
24     Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
25     (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
26     Act, and shall not be allowed to the extent that it would

 

 

HB4194 - 79 - LRB095 15068 AMC 41028 b

1     reduce a taxpayer's liability for the tax imposed by
2     subsections (a) and (b) of this Section to below zero. The
3     credit applicable to such investments shall be taken in the
4     taxable year in which such investments have been completed.
5     The credit for additional investments beyond the minimum
6     investment by a designated high impact business authorized
7     under subdivision (a)(3)(A) of Section 5.5 of the Illinois
8     Enterprise Zone Act shall be available only in the taxable
9     year in which the property is placed in service and shall
10     not be allowed to the extent that it would reduce a
11     taxpayer's liability for the tax imposed by subsections (a)
12     and (b) of this Section to below zero. For tax years ending
13     on or after December 31, 1987, the credit shall be allowed
14     for the tax year in which the property is placed in
15     service, or, if the amount of the credit exceeds the tax
16     liability for that year, whether it exceeds the original
17     liability or the liability as later amended, such excess
18     may be carried forward and applied to the tax liability of
19     the 5 taxable years following the excess credit year. The
20     credit shall be applied to the earliest year for which
21     there is a liability. If there is credit from more than one
22     tax year that is available to offset a liability, the
23     credit accruing first in time shall be applied first.
24         Changes made in this subdivision (h)(1) by Public Act
25     88-670 restore changes made by Public Act 85-1182 and
26     reflect existing law.

 

 

HB4194 - 80 - LRB095 15068 AMC 41028 b

1         (2) The term qualified property means property which:
2             (A) is tangible, whether new or used, including
3         buildings and structural components of buildings;
4             (B) is depreciable pursuant to Section 167 of the
5         Internal Revenue Code, except that "3-year property"
6         as defined in Section 168(c)(2)(A) of that Code is not
7         eligible for the credit provided by this subsection
8         (h);
9             (C) is acquired by purchase as defined in Section
10         179(d) of the Internal Revenue Code; and
11             (D) is not eligible for the Enterprise Zone
12         Investment Credit provided by subsection (f) of this
13         Section.
14         (3) The basis of qualified property shall be the basis
15     used to compute the depreciation deduction for federal
16     income tax purposes.
17         (4) If the basis of the property for federal income tax
18     depreciation purposes is increased after it has been placed
19     in service in a federally designated Foreign Trade Zone or
20     Sub-Zone located in Illinois by the taxpayer, the amount of
21     such increase shall be deemed property placed in service on
22     the date of such increase in basis.
23         (5) The term "placed in service" shall have the same
24     meaning as under Section 46 of the Internal Revenue Code.
25         (6) If during any taxable year ending on or before
26     December 31, 1996, any property ceases to be qualified

 

 

HB4194 - 81 - LRB095 15068 AMC 41028 b

1     property in the hands of the taxpayer within 48 months
2     after being placed in service, or the situs of any
3     qualified property is moved outside Illinois within 48
4     months after being placed in service, the tax imposed under
5     subsections (a) and (b) of this Section for such taxable
6     year shall be increased. Such increase shall be determined
7     by (i) recomputing the investment credit which would have
8     been allowed for the year in which credit for such property
9     was originally allowed by eliminating such property from
10     such computation, and (ii) subtracting such recomputed
11     credit from the amount of credit previously allowed. For
12     the purposes of this paragraph (6), a reduction of the
13     basis of qualified property resulting from a
14     redetermination of the purchase price shall be deemed a
15     disposition of qualified property to the extent of such
16     reduction.
17         (7) Beginning with tax years ending after December 31,
18     1996, if a taxpayer qualifies for the credit under this
19     subsection (h) and thereby is granted a tax abatement and
20     the taxpayer relocates its entire facility in violation of
21     the explicit terms and length of the contract under Section
22     18-183 of the Property Tax Code, the tax imposed under
23     subsections (a) and (b) of this Section shall be increased
24     for the taxable year in which the taxpayer relocated its
25     facility by an amount equal to the amount of credit
26     received by the taxpayer under this subsection (h).

 

 

HB4194 - 82 - LRB095 15068 AMC 41028 b

1     (i) Credit for Personal Property Tax Replacement Income
2 Tax. For tax years ending prior to December 31, 2003, a credit
3 shall be allowed against the tax imposed by subsections (a) and
4 (b) of this Section for the tax imposed by subsections (c) and
5 (d) of this Section. This credit shall be computed by
6 multiplying the tax imposed by subsections (c) and (d) of this
7 Section by a fraction, the numerator of which is base income
8 allocable to Illinois and the denominator of which is Illinois
9 base income, and further multiplying the product by the tax
10 rate imposed by subsections (a) and (b) of this Section.
11     Any credit earned on or after December 31, 1986 under this
12 subsection which is unused in the year the credit is computed
13 because it exceeds the tax liability imposed by subsections (a)
14 and (b) for that year (whether it exceeds the original
15 liability or the liability as later amended) may be carried
16 forward and applied to the tax liability imposed by subsections
17 (a) and (b) of the 5 taxable years following the excess credit
18 year, provided that no credit may be carried forward to any
19 year ending on or after December 31, 2003. This credit shall be
20 applied first to the earliest year for which there is a
21 liability. If there is a credit under this subsection from more
22 than one tax year that is available to offset a liability the
23 earliest credit arising under this subsection shall be applied
24 first.
25     If, during any taxable year ending on or after December 31,
26 1986, the tax imposed by subsections (c) and (d) of this

 

 

HB4194 - 83 - LRB095 15068 AMC 41028 b

1 Section for which a taxpayer has claimed a credit under this
2 subsection (i) is reduced, the amount of credit for such tax
3 shall also be reduced. Such reduction shall be determined by
4 recomputing the credit to take into account the reduced tax
5 imposed by subsections (c) and (d). If any portion of the
6 reduced amount of credit has been carried to a different
7 taxable year, an amended return shall be filed for such taxable
8 year to reduce the amount of credit claimed.
9     (j) Training expense credit. Beginning with tax years
10 ending on or after December 31, 1986 and prior to December 31,
11 2003, a taxpayer shall be allowed a credit against the tax
12 imposed by subsections (a) and (b) under this Section for all
13 amounts paid or accrued, on behalf of all persons employed by
14 the taxpayer in Illinois or Illinois residents employed outside
15 of Illinois by a taxpayer, for educational or vocational
16 training in semi-technical or technical fields or semi-skilled
17 or skilled fields, which were deducted from gross income in the
18 computation of taxable income. The credit against the tax
19 imposed by subsections (a) and (b) shall be 1.6% of such
20 training expenses. For partners, shareholders of subchapter S
21 corporations, and owners of limited liability companies, if the
22 liability company is treated as a partnership for purposes of
23 federal and State income taxation, there shall be allowed a
24 credit under this subsection (j) to be determined in accordance
25 with the determination of income and distributive share of
26 income under Sections 702 and 704 and subchapter S of the

 

 

HB4194 - 84 - LRB095 15068 AMC 41028 b

1 Internal Revenue Code.
2     Any credit allowed under this subsection which is unused in
3 the year the credit is earned may be carried forward to each of
4 the 5 taxable years following the year for which the credit is
5 first computed until it is used. This credit shall be applied
6 first to the earliest year for which there is a liability. If
7 there is a credit under this subsection from more than one tax
8 year that is available to offset a liability the earliest
9 credit arising under this subsection shall be applied first. No
10 carryforward credit may be claimed in any tax year ending on or
11 after December 31, 2003.
12     (k) Research and development credit.
13     For tax years ending after July 1, 1990 and prior to
14 December 31, 2003, and beginning again for tax years ending on
15 or after December 31, 2004, a taxpayer shall be allowed a
16 credit against the tax imposed by subsections (a) and (b) of
17 this Section for increasing research activities in this State.
18 The credit allowed against the tax imposed by subsections (a)
19 and (b) shall be equal to 6 1/2% of the qualifying expenditures
20 for increasing research activities in this State. For partners,
21 shareholders of subchapter S corporations, and owners of
22 limited liability companies, if the liability company is
23 treated as a partnership for purposes of federal and State
24 income taxation, there shall be allowed a credit under this
25 subsection to be determined in accordance with the
26 determination of income and distributive share of income under

 

 

HB4194 - 85 - LRB095 15068 AMC 41028 b

1 Sections 702 and 704 and subchapter S of the Internal Revenue
2 Code.
3     For purposes of this subsection, "qualifying expenditures"
4 means the qualifying expenditures as defined for the federal
5 credit for increasing research activities which would be
6 allowable under Section 41 of the Internal Revenue Code and
7 which are conducted in this State, "qualifying expenditures for
8 increasing research activities in this State" means the excess
9 of qualifying expenditures for the taxable year in which
10 incurred over qualifying expenditures for the base period,
11 "qualifying expenditures for the base period" means the average
12 of the qualifying expenditures for each year in the base
13 period, and "base period" means the 3 taxable years immediately
14 preceding the taxable year for which the determination is being
15 made.
16     Any credit in excess of the tax liability for the taxable
17 year may be carried forward. A taxpayer may elect to have the
18 unused credit shown on its final completed return carried over
19 as a credit against the tax liability for the following 5
20 taxable years or until it has been fully used, whichever occurs
21 first; provided that no credit earned in a tax year ending
22 prior to December 31, 2003 may be carried forward to any year
23 ending on or after December 31, 2003.
24     If an unused credit is carried forward to a given year from
25 2 or more earlier years, that credit arising in the earliest
26 year will be applied first against the tax liability for the

 

 

HB4194 - 86 - LRB095 15068 AMC 41028 b

1 given year. If a tax liability for the given year still
2 remains, the credit from the next earliest year will then be
3 applied, and so on, until all credits have been used or no tax
4 liability for the given year remains. Any remaining unused
5 credit or credits then will be carried forward to the next
6 following year in which a tax liability is incurred, except
7 that no credit can be carried forward to a year which is more
8 than 5 years after the year in which the expense for which the
9 credit is given was incurred.
10     No inference shall be drawn from this amendatory Act of the
11 91st General Assembly in construing this Section for taxable
12 years beginning before January 1, 1999.
13     (l) Environmental Remediation Tax Credit.
14         (i) For tax years ending after December 31, 1997 and on
15     or before December 31, 2001, a taxpayer shall be allowed a
16     credit against the tax imposed by subsections (a) and (b)
17     of this Section for certain amounts paid for unreimbursed
18     eligible remediation costs, as specified in this
19     subsection. For purposes of this Section, "unreimbursed
20     eligible remediation costs" means costs approved by the
21     Illinois Environmental Protection Agency ("Agency") under
22     Section 58.14 of the Environmental Protection Act that were
23     paid in performing environmental remediation at a site for
24     which a No Further Remediation Letter was issued by the
25     Agency and recorded under Section 58.10 of the
26     Environmental Protection Act. The credit must be claimed

 

 

HB4194 - 87 - LRB095 15068 AMC 41028 b

1     for the taxable year in which Agency approval of the
2     eligible remediation costs is granted. The credit is not
3     available to any taxpayer if the taxpayer or any related
4     party caused or contributed to, in any material respect, a
5     release of regulated substances on, in, or under the site
6     that was identified and addressed by the remedial action
7     pursuant to the Site Remediation Program of the
8     Environmental Protection Act. After the Pollution Control
9     Board rules are adopted pursuant to the Illinois
10     Administrative Procedure Act for the administration and
11     enforcement of Section 58.9 of the Environmental
12     Protection Act, determinations as to credit availability
13     for purposes of this Section shall be made consistent with
14     those rules. For purposes of this Section, "taxpayer"
15     includes a person whose tax attributes the taxpayer has
16     succeeded to under Section 381 of the Internal Revenue Code
17     and "related party" includes the persons disallowed a
18     deduction for losses by paragraphs (b), (c), and (f)(1) of
19     Section 267 of the Internal Revenue Code by virtue of being
20     a related taxpayer, as well as any of its partners. The
21     credit allowed against the tax imposed by subsections (a)
22     and (b) shall be equal to 25% of the unreimbursed eligible
23     remediation costs in excess of $100,000 per site, except
24     that the $100,000 threshold shall not apply to any site
25     contained in an enterprise zone as determined by the
26     Department of Commerce and Community Affairs (now

 

 

HB4194 - 88 - LRB095 15068 AMC 41028 b

1     Department of Commerce and Economic Opportunity). The
2     total credit allowed shall not exceed $40,000 per year with
3     a maximum total of $150,000 per site. For partners and
4     shareholders of subchapter S corporations, there shall be
5     allowed a credit under this subsection to be determined in
6     accordance with the determination of income and
7     distributive share of income under Sections 702 and 704 and
8     subchapter S of the Internal Revenue Code.
9         (ii) A credit allowed under this subsection that is
10     unused in the year the credit is earned may be carried
11     forward to each of the 5 taxable years following the year
12     for which the credit is first earned until it is used. The
13     term "unused credit" does not include any amounts of
14     unreimbursed eligible remediation costs in excess of the
15     maximum credit per site authorized under paragraph (i).
16     This credit shall be applied first to the earliest year for
17     which there is a liability. If there is a credit under this
18     subsection from more than one tax year that is available to
19     offset a liability, the earliest credit arising under this
20     subsection shall be applied first. A credit allowed under
21     this subsection may be sold to a buyer as part of a sale of
22     all or part of the remediation site for which the credit
23     was granted. The purchaser of a remediation site and the
24     tax credit shall succeed to the unused credit and remaining
25     carry-forward period of the seller. To perfect the
26     transfer, the assignor shall record the transfer in the

 

 

HB4194 - 89 - LRB095 15068 AMC 41028 b

1     chain of title for the site and provide written notice to
2     the Director of the Illinois Department of Revenue of the
3     assignor's intent to sell the remediation site and the
4     amount of the tax credit to be transferred as a portion of
5     the sale. In no event may a credit be transferred to any
6     taxpayer if the taxpayer or a related party would not be
7     eligible under the provisions of subsection (i).
8         (iii) For purposes of this Section, the term "site"
9     shall have the same meaning as under Section 58.2 of the
10     Environmental Protection Act.
11     (m) Education expense credit. Beginning with tax years
12 ending after December 31, 1999, a taxpayer who is the custodian
13 of one or more qualifying pupils shall be allowed a credit
14 against the tax imposed by subsections (a) and (b) of this
15 Section for qualified education expenses incurred on behalf of
16 the qualifying pupils. The credit shall be equal to 25% of
17 qualified education expenses, but in no event may the total
18 credit under this subsection claimed by a family that is the
19 custodian of qualifying pupils exceed $500. In no event shall a
20 credit under this subsection reduce the taxpayer's liability
21 under this Act to less than zero. This subsection is exempt
22 from the provisions of Section 250 of this Act.
23     For purposes of this subsection:
24     "Qualifying pupils" means individuals who (i) are
25 residents of the State of Illinois, (ii) are under the age of
26 21 at the close of the school year for which a credit is

 

 

HB4194 - 90 - LRB095 15068 AMC 41028 b

1 sought, and (iii) during the school year for which a credit is
2 sought were full-time pupils enrolled in a kindergarten through
3 twelfth grade education program at any school, as defined in
4 this subsection.
5     "Qualified education expense" means the amount incurred on
6 behalf of a qualifying pupil in excess of $250 for tuition,
7 book fees, and lab fees at the school in which the pupil is
8 enrolled during the regular school year.
9     "School" means any public or nonpublic elementary or
10 secondary school in Illinois that is in compliance with Title
11 VI of the Civil Rights Act of 1964 and attendance at which
12 satisfies the requirements of Section 26-1 of the School Code,
13 except that nothing shall be construed to require a child to
14 attend any particular public or nonpublic school to qualify for
15 the credit under this Section.
16     "Custodian" means, with respect to qualifying pupils, an
17 Illinois resident who is a parent, the parents, a legal
18 guardian, or the legal guardians of the qualifying pupils.
19     (n) River Edge Redevelopment Zone site remediation tax
20 credit.
21         (i) For tax years ending on or after December 31, 2006,
22     a taxpayer shall be allowed a credit against the tax
23     imposed by subsections (a) and (b) of this Section for
24     certain amounts paid for unreimbursed eligible remediation
25     costs, as specified in this subsection. For purposes of
26     this Section, "unreimbursed eligible remediation costs"

 

 

HB4194 - 91 - LRB095 15068 AMC 41028 b

1     means costs approved by the Illinois Environmental
2     Protection Agency ("Agency") under Section 58.14a of the
3     Environmental Protection Act that were paid in performing
4     environmental remediation at a site within a River Edge
5     Redevelopment Zone for which a No Further Remediation
6     Letter was issued by the Agency and recorded under Section
7     58.10 of the Environmental Protection Act. The credit must
8     be claimed for the taxable year in which Agency approval of
9     the eligible remediation costs is granted. The credit is
10     not available to any taxpayer if the taxpayer or any
11     related party caused or contributed to, in any material
12     respect, a release of regulated substances on, in, or under
13     the site that was identified and addressed by the remedial
14     action pursuant to the Site Remediation Program of the
15     Environmental Protection Act. Determinations as to credit
16     availability for purposes of this Section shall be made
17     consistent with rules adopted by the Pollution Control
18     Board pursuant to the Illinois Administrative Procedure
19     Act for the administration and enforcement of Section 58.9
20     of the Environmental Protection Act. For purposes of this
21     Section, "taxpayer" includes a person whose tax attributes
22     the taxpayer has succeeded to under Section 381 of the
23     Internal Revenue Code and "related party" includes the
24     persons disallowed a deduction for losses by paragraphs
25     (b), (c), and (f)(1) of Section 267 of the Internal Revenue
26     Code by virtue of being a related taxpayer, as well as any

 

 

HB4194 - 92 - LRB095 15068 AMC 41028 b

1     of its partners. The credit allowed against the tax imposed
2     by subsections (a) and (b) shall be equal to 25% of the
3     unreimbursed eligible remediation costs in excess of
4     $100,000 per site.
5         (ii) A credit allowed under this subsection that is
6     unused in the year the credit is earned may be carried
7     forward to each of the 5 taxable years following the year
8     for which the credit is first earned until it is used. This
9     credit shall be applied first to the earliest year for
10     which there is a liability. If there is a credit under this
11     subsection from more than one tax year that is available to
12     offset a liability, the earliest credit arising under this
13     subsection shall be applied first. A credit allowed under
14     this subsection may be sold to a buyer as part of a sale of
15     all or part of the remediation site for which the credit
16     was granted. The purchaser of a remediation site and the
17     tax credit shall succeed to the unused credit and remaining
18     carry-forward period of the seller. To perfect the
19     transfer, the assignor shall record the transfer in the
20     chain of title for the site and provide written notice to
21     the Director of the Illinois Department of Revenue of the
22     assignor's intent to sell the remediation site and the
23     amount of the tax credit to be transferred as a portion of
24     the sale. In no event may a credit be transferred to any
25     taxpayer if the taxpayer or a related party would not be
26     eligible under the provisions of subsection (i).

 

 

HB4194 - 93 - LRB095 15068 AMC 41028 b

1         (iii) For purposes of this Section, the term "site"
2     shall have the same meaning as under Section 58.2 of the
3     Environmental Protection Act.
4         (iv) This subsection is exempt from the provisions of
5     Section 250.
6 (Source: P.A. 94-1021, eff. 7-12-06; 95-454, eff. 8-27-07.)
 
7     Section 90-22. The Illinois Pension Code is amended by
8 changing Sections 14-110, 14-111, 14-152.1, 18-127, and 18-169
9 as follows:
 
10     (40 ILCS 5/14-110)  (from Ch. 108 1/2, par. 14-110)
11     Sec. 14-110. Alternative retirement annuity.
12     (a) Any member who has withdrawn from service with not less
13 than 20 years of eligible creditable service and has attained
14 age 55, and any member who has withdrawn from service with not
15 less than 25 years of eligible creditable service and has
16 attained age 50, regardless of whether the attainment of either
17 of the specified ages occurs while the member is still in
18 service, shall be entitled to receive at the option of the
19 member, in lieu of the regular or minimum retirement annuity, a
20 retirement annuity computed as follows:
21         (i) for periods of service as a noncovered employee: if
22     retirement occurs on or after January 1, 2001, 3% of final
23     average compensation for each year of creditable service;
24     if retirement occurs before January 1, 2001, 2 1/4% of

 

 

HB4194 - 94 - LRB095 15068 AMC 41028 b

1     final average compensation for each of the first 10 years
2     of creditable service, 2 1/2% for each year above 10 years
3     to and including 20 years of creditable service, and 2 3/4%
4     for each year of creditable service above 20 years; and
5         (ii) for periods of eligible creditable service as a
6     covered employee: if retirement occurs on or after January
7     1, 2001, 2.5% of final average compensation for each year
8     of creditable service; if retirement occurs before January
9     1, 2001, 1.67% of final average compensation for each of
10     the first 10 years of such service, 1.90% for each of the
11     next 10 years of such service, 2.10% for each year of such
12     service in excess of 20 but not exceeding 30, and 2.30% for
13     each year in excess of 30.
14     Such annuity shall be subject to a maximum of 75% of final
15 average compensation if retirement occurs before January 1,
16 2001 or to a maximum of 80% of final average compensation if
17 retirement occurs on or after January 1, 2001.
18     These rates shall not be applicable to any service
19 performed by a member as a covered employee which is not
20 eligible creditable service. Service as a covered employee
21 which is not eligible creditable service shall be subject to
22 the rates and provisions of Section 14-108.
23     (b) For the purpose of this Section, "eligible creditable
24 service" means creditable service resulting from service in one
25 or more of the following positions:
26         (1) State policeman;

 

 

HB4194 - 95 - LRB095 15068 AMC 41028 b

1         (2) fire fighter in the fire protection service of a
2     department;
3         (3) air pilot;
4         (4) special agent;
5         (5) investigator for the Secretary of State;
6         (6) conservation police officer;
7         (7) investigator for the Department of Revenue;
8         (7.5) investigator for the Office of Gaming
9     Enforcement;
10         (8) security employee of the Department of Human
11     Services;
12         (9) Central Management Services security police
13     officer;
14         (10) security employee of the Department of
15     Corrections or the Department of Juvenile Justice;
16         (11) dangerous drugs investigator;
17         (12) investigator for the Department of State Police;
18         (13) investigator for the Office of the Attorney
19     General;
20         (14) controlled substance inspector;
21         (15) investigator for the Office of the State's
22     Attorneys Appellate Prosecutor;
23         (16) Commerce Commission police officer;
24         (17) arson investigator;
25         (18) State highway maintenance worker.
26     A person employed in one of the positions specified in this

 

 

HB4194 - 96 - LRB095 15068 AMC 41028 b

1 subsection is entitled to eligible creditable service for
2 service credit earned under this Article while undergoing the
3 basic police training course approved by the Illinois Law
4 Enforcement Training Standards Board, if completion of that
5 training is required of persons serving in that position. For
6 the purposes of this Code, service during the required basic
7 police training course shall be deemed performance of the
8 duties of the specified position, even though the person is not
9 a sworn peace officer at the time of the training.
10     (c) For the purposes of this Section:
11         (1) The term "state policeman" includes any title or
12     position in the Department of State Police that is held by
13     an individual employed under the State Police Act.
14         (2) The term "fire fighter in the fire protection
15     service of a department" includes all officers in such fire
16     protection service including fire chiefs and assistant
17     fire chiefs.
18         (3) The term "air pilot" includes any employee whose
19     official job description on file in the Department of
20     Central Management Services, or in the department by which
21     he is employed if that department is not covered by the
22     Personnel Code, states that his principal duty is the
23     operation of aircraft, and who possesses a pilot's license;
24     however, the change in this definition made by this
25     amendatory Act of 1983 shall not operate to exclude any
26     noncovered employee who was an "air pilot" for the purposes

 

 

HB4194 - 97 - LRB095 15068 AMC 41028 b

1     of this Section on January 1, 1984.
2         (4) The term "special agent" means any person who by
3     reason of employment by the Division of Narcotic Control,
4     the Bureau of Investigation or, after July 1, 1977, the
5     Division of Criminal Investigation, the Division of
6     Internal Investigation, the Division of Operations, or any
7     other Division or organizational entity in the Department
8     of State Police is vested by law with duties to maintain
9     public order, investigate violations of the criminal law of
10     this State, enforce the laws of this State, make arrests
11     and recover property. The term "special agent" includes any
12     title or position in the Department of State Police that is
13     held by an individual employed under the State Police Act.
14         (5) The term "investigator for the Secretary of State"
15     means any person employed by the Office of the Secretary of
16     State and vested with such investigative duties as render
17     him ineligible for coverage under the Social Security Act
18     by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
19     218(l)(1) of that Act.
20         A person who became employed as an investigator for the
21     Secretary of State between January 1, 1967 and December 31,
22     1975, and who has served as such until attainment of age
23     60, either continuously or with a single break in service
24     of not more than 3 years duration, which break terminated
25     before January 1, 1976, shall be entitled to have his
26     retirement annuity calculated in accordance with

 

 

HB4194 - 98 - LRB095 15068 AMC 41028 b

1     subsection (a), notwithstanding that he has less than 20
2     years of credit for such service.
3         (6) The term "Conservation Police Officer" means any
4     person employed by the Division of Law Enforcement of the
5     Department of Natural Resources and vested with such law
6     enforcement duties as render him ineligible for coverage
7     under the Social Security Act by reason of Sections
8     218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
9     term "Conservation Police Officer" includes the positions
10     of Chief Conservation Police Administrator and Assistant
11     Conservation Police Administrator.
12         (7) The term "investigator for the Department of
13     Revenue" means any person employed by the Department of
14     Revenue and vested with such investigative duties as render
15     him ineligible for coverage under the Social Security Act
16     by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
17     218(l)(1) of that Act.
18         (7.5) The term "investigator for the Office of Gaming
19     Enforcement" means any person employed as such by the
20     Office of Gaming Enforcement and vested with such peace
21     officer duties as render the person ineligible for coverage
22     under the Social Security Act by reason of Sections
23     218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act.
24         (8) The term "security employee of the Department of
25     Human Services" means any person employed by the Department
26     of Human Services who (i) is employed at the Chester Mental

 

 

HB4194 - 99 - LRB095 15068 AMC 41028 b

1     Health Center and has daily contact with the residents
2     thereof, (ii) is employed within a security unit at a
3     facility operated by the Department and has daily contact
4     with the residents of the security unit, (iii) is employed
5     at a facility operated by the Department that includes a
6     security unit and is regularly scheduled to work at least
7     50% of his or her working hours within that security unit,
8     or (iv) is a mental health police officer. "Mental health
9     police officer" means any person employed by the Department
10     of Human Services in a position pertaining to the
11     Department's mental health and developmental disabilities
12     functions who is vested with such law enforcement duties as
13     render the person ineligible for coverage under the Social
14     Security Act by reason of Sections 218(d)(5)(A),
15     218(d)(8)(D) and 218(l)(1) of that Act. "Security unit"
16     means that portion of a facility that is devoted to the
17     care, containment, and treatment of persons committed to
18     the Department of Human Services as sexually violent
19     persons, persons unfit to stand trial, or persons not
20     guilty by reason of insanity. With respect to past
21     employment, references to the Department of Human Services
22     include its predecessor, the Department of Mental Health
23     and Developmental Disabilities.
24         The changes made to this subdivision (c)(8) by Public
25     Act 92-14 apply to persons who retire on or after January
26     1, 2001, notwithstanding Section 1-103.1.

 

 

HB4194 - 100 - LRB095 15068 AMC 41028 b

1         (9) "Central Management Services security police
2     officer" means any person employed by the Department of
3     Central Management Services who is vested with such law
4     enforcement duties as render him ineligible for coverage
5     under the Social Security Act by reason of Sections
6     218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
7         (10) For a member who first became an employee under
8     this Article before July 1, 2005, the term "security
9     employee of the Department of Corrections or the Department
10     of Juvenile Justice" means any employee of the Department
11     of Corrections or the Department of Juvenile Justice or the
12     former Department of Personnel, and any member or employee
13     of the Prisoner Review Board, who has daily contact with
14     inmates or youth by working within a correctional facility
15     or Juvenile facility operated by the Department of Juvenile
16     Justice or who is a parole officer or an employee who has
17     direct contact with committed persons in the performance of
18     his or her job duties. For a member who first becomes an
19     employee under this Article on or after July 1, 2005, the
20     term means an employee of the Department of Corrections or
21     the Department of Juvenile Justice who is any of the
22     following: (i) officially headquartered at a correctional
23     facility or Juvenile facility operated by the Department of
24     Juvenile Justice, (ii) a parole officer, (iii) a member of
25     the apprehension unit, (iv) a member of the intelligence
26     unit, (v) a member of the sort team, or (vi) an

 

 

HB4194 - 101 - LRB095 15068 AMC 41028 b

1     investigator.
2         (11) The term "dangerous drugs investigator" means any
3     person who is employed as such by the Department of Human
4     Services.
5         (12) The term "investigator for the Department of State
6     Police" means a person employed by the Department of State
7     Police who is vested under Section 4 of the Narcotic
8     Control Division Abolition Act with such law enforcement
9     powers as render him ineligible for coverage under the
10     Social Security Act by reason of Sections 218(d)(5)(A),
11     218(d)(8)(D) and 218(l)(1) of that Act.
12         (13) "Investigator for the Office of the Attorney
13     General" means any person who is employed as such by the
14     Office of the Attorney General and is vested with such
15     investigative duties as render him ineligible for coverage
16     under the Social Security Act by reason of Sections
17     218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
18     the period before January 1, 1989, the term includes all
19     persons who were employed as investigators by the Office of
20     the Attorney General, without regard to social security
21     status.
22         (14) "Controlled substance inspector" means any person
23     who is employed as such by the Department of Professional
24     Regulation and is vested with such law enforcement duties
25     as render him ineligible for coverage under the Social
26     Security Act by reason of Sections 218(d)(5)(A),

 

 

HB4194 - 102 - LRB095 15068 AMC 41028 b

1     218(d)(8)(D) and 218(l)(1) of that Act. The term
2     "controlled substance inspector" includes the Program
3     Executive of Enforcement and the Assistant Program
4     Executive of Enforcement.
5         (15) The term "investigator for the Office of the
6     State's Attorneys Appellate Prosecutor" means a person
7     employed in that capacity on a full time basis under the
8     authority of Section 7.06 of the State's Attorneys
9     Appellate Prosecutor's Act.
10         (16) "Commerce Commission police officer" means any
11     person employed by the Illinois Commerce Commission who is
12     vested with such law enforcement duties as render him
13     ineligible for coverage under the Social Security Act by
14     reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
15     218(l)(1) of that Act.
16         (17) "Arson investigator" means any person who is
17     employed as such by the Office of the State Fire Marshal
18     and is vested with such law enforcement duties as render
19     the person ineligible for coverage under the Social
20     Security Act by reason of Sections 218(d)(5)(A),
21     218(d)(8)(D), and 218(l)(1) of that Act. A person who was
22     employed as an arson investigator on January 1, 1995 and is
23     no longer in service but not yet receiving a retirement
24     annuity may convert his or her creditable service for
25     employment as an arson investigator into eligible
26     creditable service by paying to the System the difference

 

 

HB4194 - 103 - LRB095 15068 AMC 41028 b

1     between the employee contributions actually paid for that
2     service and the amounts that would have been contributed if
3     the applicant were contributing at the rate applicable to
4     persons with the same social security status earning
5     eligible creditable service on the date of application.
6         (18) The term "State highway maintenance worker" means
7     a person who is either of the following:
8             (i) A person employed on a full-time basis by the
9         Illinois Department of Transportation in the position
10         of highway maintainer, highway maintenance lead
11         worker, highway maintenance lead/lead worker, heavy
12         construction equipment operator, power shovel
13         operator, or bridge mechanic; and whose principal
14         responsibility is to perform, on the roadway, the
15         actual maintenance necessary to keep the highways that
16         form a part of the State highway system in serviceable
17         condition for vehicular traffic.
18             (ii) A person employed on a full-time basis by the
19         Illinois State Toll Highway Authority in the position
20         of equipment operator/laborer H-4, equipment
21         operator/laborer H-6, welder H-4, welder H-6,
22         mechanical/electrical H-4, mechanical/electrical H-6,
23         water/sewer H-4, water/sewer H-6, sign maker/hanger
24         H-4, sign maker/hanger H-6, roadway lighting H-4,
25         roadway lighting H-6, structural H-4, structural H-6,
26         painter H-4, or painter H-6; and whose principal

 

 

HB4194 - 104 - LRB095 15068 AMC 41028 b

1         responsibility is to perform, on the roadway, the
2         actual maintenance necessary to keep the Authority's
3         tollways in serviceable condition for vehicular
4         traffic.
5     (d) A security employee of the Department of Corrections or
6 the Department of Juvenile Justice, and a security employee of
7 the Department of Human Services who is not a mental health
8 police officer, shall not be eligible for the alternative
9 retirement annuity provided by this Section unless he or she
10 meets the following minimum age and service requirements at the
11 time of retirement:
12         (i) 25 years of eligible creditable service and age 55;
13     or
14         (ii) beginning January 1, 1987, 25 years of eligible
15     creditable service and age 54, or 24 years of eligible
16     creditable service and age 55; or
17         (iii) beginning January 1, 1988, 25 years of eligible
18     creditable service and age 53, or 23 years of eligible
19     creditable service and age 55; or </