HB2249ham001 94TH GENERAL ASSEMBLY

Rep. Tom Cross

Filed: 4/12/2005

09400HB2249ham001 LRB094 03245 JAM 44913 a

AMENDMENT TO HOUSE BILL 2249

AMENDMENT NO. ______. Amend House Bill 2249 by replacing everything after the enacting clause with the following:

"ARTICLE 1

Section 1-1. Short title. This Article may be cited as the Illinois Regenerative Medicine Institute Act.

Section 1-5. Legislative intent. This Act is intended to:

(1) Create a research institute to support stem cell research at Illinois universities and other advanced research facilities throughout the State.

(2) Maximize the use of research funds by giving priority to stem cell research that has the greatest potential for therapies and cures that cannot or are unlikely to receive timely or sufficient federal funding.

(3) Ensure that the research is conducted safely and ethically by including provisions to require compliance with standards based on national models that protect patient safety, patient rights, patient privacy, and prohibit the purchase or sale of embryonic or fetal tissue for research purposes.

(4) Prohibit the use of State funds made available pursuant to this Act for research involving human reproductive cloning, fetuses from induced abortions, or the creation of embryos through the combination of gametes solely for the purpose of research.

(5) Prohibit and criminalize human reproductive cloning.

(6) Reduce the long-term health care cost burden on Illinois through the development of therapies that treat diseases and injuries with the ultimate goal to cure them.

(7) Require strict fiscal and public accountability through mandatory independent audits, open meetings, public hearings, open access to published papers, and annual reports to the public and the General Assembly.

(8) Establish a system of governance for the institute that draws on representatives from the research and academic community, disease advocacy groups, and experts in the development of medical therapies and thereby insulates research decisions from partisan political concerns.

(9) Establish new funding sources for medical and basic scientific research that will eventually produce royalties, patents, and licensing fees for the State and significantly reduce future State health care costs; a tax on the use of medical procedures raises revenue from an industry that is expected to benefit from such research, and using definitions from the federal tax code to exclude medically-necessary procedures builds upon the public policy decisions made by Congress in the field of health care taxation.

(10) Benefit the Illinois economy by creating projects, jobs, and therapies that will generate significant new economic activity for the State.

Section 1-10. Definitions.

"Adult stem cell" means an undifferentiated cell found in a differentiated tissue in an adult human that can renew itself and may, with certain limitations, differentiate to yield all the specialized cell types of the tissue from which it originated.

"Executive Director" means the Executive Director of the institute.

"IRMI" or "institute" means the Illinois Regenerative Medicine Institute.

"Oversight Committee" means the IRMI Oversight Committee.

"Pluripotent cells" means cells that are capable of self-renewal and have broad potential to differentiate into multiple cell types. Pluripotent stem cells may be derived from somatic cell nuclear transfer or from surplus embryos produced during in vitro fertilization treatments and donated under appropriate informed consent procedures. These excess cells from in vitro fertilization treatments would otherwise be intended to be discarded if not used for medical research.

"Progenitor cells" means multipotent or precursor cells that are partially differentiated but retain the ability to divide and give rise to differentiated cells.

"Stem cells" mean nonspecialized cells that have the capacity to divide in culture and to differentiate into more mature cells with specialized functions.

Section 1-15. Institute creation; purpose; powers.

(a) There is established the Illinois Regenerative Medicine Institute.

(b) The institute shall have the following purposes:

(1) To make grants and loans for stem cell research to realize therapies, protocols, and medical procedures that will result in, as speedily as possible, the cure for, and substantial mitigation of, major diseases, injuries, and orphan diseases.

(2) To support all stages of the process of developing cures, from laboratory research through successful clinical trials.

(3) To establish the appropriate regulatory standards and oversight bodies for research and facilities development.

Section 1-20. State policy on stem cell research; criminal penalties.

(a) It is the policy of the State to permit stem cell research that includes research involving adult stem cells, cord blood stem cells, pluripotent stem cells, progenitor cells, or any combination of those cells.

(b) No funds authorized for, or made available to, the institute shall be used for research involving the cloning of a human being or fetuses from induced abortions or to create embryos through the combination of gametes solely for the purpose of research.

(c) A person who knowingly engages or assists, directly or indirectly, in the cloning of a human being is guilty of a Class 1 felony. As used in this Section, "cloning of a human being" means the asexual human reproduction by implanting or attempting to implant the product of nuclear transplantation into a woman's uterus to initiate a pregnancy.

(d) A person may not knowingly, for valuable consideration, purchase or sell embryonic or cadaveric fetal tissue for research purposes.

For the purposes of this subsection, payment of customary medical charges for the removal, processing, disposal, preservation, quality control, storage, transplantation, or implantation of the tissue does not constitute valuable consideration. This subsection does not prohibit reimbursement for removal, storage, or transportation of embryonic fetal tissue for research purposes pursuant to this Act.

A person who knowingly purchases or sells embryonic tissue for research purposes in violation of this Section is guilty of a Class A misdemeanor for the first conviction and a Class 4 felony for subsequent convictions.

Section 1-25. Illinois Regenerative Medicine Institute Oversight Committee.

(a) The Oversight Committee shall be composed of 7 members. Members shall come from the medical community or the scientific research community and shall have experience in peer review and scientific grant making. Members shall be as follows:

(1) Two members to be appointed by the Governor.

(2) Two members to be appointed by the Comptroller.

(3) Two members to be appointed by the Treasurer.

(4) The Director of Public Health.

(b) At the time of appointment, the Governor shall designate one member to serve a 2-year term and one member to serve a 6-year term, the Comptroller shall designate one member to serve a 4-year term and one to serve a 6-year term, and the Treasurer shall designate one member to serve a 2-year term and one to serve a 4-year term. These initial appointments shall be made within 90 days after the effective date of this Act. Thereafter, appointments shall be for a term of 6 years commencing on July 1 of the year of appointment and running through June 30 of the sixth following year.

The Director of Public Health shall be a voting member of the Oversight Committee, but shall serve ex officio.

Appointments shall be made by and with the advice and consent of the Senate. Any nomination not acted upon by the Senate within 60 session days after the receipt thereof shall be deemed to have received the advice and consent of the Senate. Committee members may be reappointed to one or more subsequent terms. A member shall serve until his or her successor is appointed and qualified for office by filing the oath and bond. Vacancies occurring other than at the end of a term shall be filled by the appointing authority only for the balance of the term of the member whose office is vacant. Terms shall run regardless of whether the position is filled.

No member of the Oversight Committee may receive compensation for his or her services, but each member may be reimbursed for expenses incurred in the performance of his or her duties.

(c) Every 4 years the Oversight Committee shall choose from its membership a Chairperson, a Vice-Chairperson, and a Secretary. The Chairperson shall preside at meetings of the Oversight Committee and shall have other duties as provided for in this Article or as provided for by the Oversight Committee. The Vice-Chairperson shall preside at meetings whenever the Chairperson is unable to attend or preside. The Secretary shall ensure that an accurate record is made of all proceedings of the Oversight Committee and shall have other duties as provided for in this Article or as provided for by the Oversight Committee.

(d) The Oversight Committee shall hold at least 4 public meetings per year, one of which shall be designated as the institute's annual meeting. The Oversight Committee may hold additional meetings as it determines are necessary or appropriate.

(e) The Oversight Committee shall award all grants, loans, and contracts in public meetings and shall adopt and amend all governance, scientific, medical, and regulatory standards in public meetings.

(f) The Oversight Committee functions are:

(1) Oversee the operations of the institute and appoint an Executive Director for the institute.

(2) Develop annual and long-term strategic research and financial plans for the institute.

(3) Approve an annual budget for the institute.

(4) Make final decisions on research standards and grant and loan awards.

(5) Approve appointments to the institute's various advisory panels.

(6) Issue public reports on the activities of the institute and to the extent possible provide open access to published papers.

(7) Amend policies regarding intellectual property rights arising from research funded by the institute.

(8) Amend rules and guidelines for the operation of the institute.

(9) Adopt, amend, and rescind rules to carry out the purposes and provisions of this Article, and to govern the procedures of the institute.

(10) Subject to appropriation, use funds from the Regenerative Medicine Institute Operations Fund for its operations and activities.

(11) Annually modify its funding and finance programs to optimize the institute's ability to achieve the objective that its activities be revenue-positive for the State of Illinois without jeopardizing the progress of its core medical and scientific research program.

(12) Accept additional revenue and real and personal property, including but not limited to gifts, royalties, interest, and appropriations that may be used to supplement annual research grant funding and the operations of the institute.

(13) At the institute's discretion, fix, determine, charge, and collect any premiums, fees, charges, costs, and expenses, including without limitation any application fees, grant administration fees, program fees, financing charges, or publication fees from any person in connection with its activities.

(14) Perform all other acts necessary or appropriate in the exercise of its power, authority, and jurisdiction over the institute.

Section 1-30. Advisory panels.

(a) The Chairperson of the Oversight Committee shall appoint persons, with the advice and consent of a majority of the Oversight Committee, to serve on various advisory panels.

The Oversight Committee shall determine the number and size of advisory panels to be appointed through rulemaking.

Persons appointed to advisory panels shall have expertise in medical or stem cell research as researchers, physicians, ethicists, or administrators. No member of an advisory panel may serve on that panel for more than 2 consecutive years.

(b) The advisory panels shall review and make a recommendation on the merits of all grant and loan proposals prior to final action by the Oversight Committee.

(c) The advisory panels shall follow the current Review Procedures for Scientific Review Group Meetings as stipulated by the National Institutes of Health, Center for Scientific Review.

(d) Each advisory panel shall hold at least 2 public meetings per year. Advisory panels may hold additional meetings as necessary or appropriate.

(e) This Section is repealed on July 1, 2009.

Section 1-35. Applicability of open government and ethics laws.

(a) Nothing in this Act shall exempt the Oversight Committee or the various advisory panels from the Open Meetings Act.

(b) Nothing in this Act shall exempt the institute, including the Oversight Committee and the various advisory panels, from the Freedom of Information Act or the State Records Act.

(c) The State Officials and Employees Ethics Act and Article 4A of the Illinois Governmental Ethics Act shall apply to members of the Oversight Committee, the various advisory panels, and employees of the institute.

(d) No member of the Oversight Committee, the various advisory panels, or employee of the institute shall make, participate in making, or in any way attempt to use his or her official position to influence a decision to approve or award a grant, loan, or contract if he or she has a real conflict of interest as defined at 42 CFR 52h. If a member of the Oversight Committee, the various advisory panels, or the institute has an apparent conflict of interest as defined at 42 CFR 52h, then he or she may participate in a decision to approve or award a grant, loan, or contract only if the Executive Director determines in writing that it would be difficult or impractical to carry out the review otherwise, and the integrity of the review process would not be impaired by his or her participation.

A member of the Oversight Committee, the various advisory panels, or the institute may participate in a decision to approve or award a grant, loan, or contract to an entity for the purposes of research involving a disease from which a member or his or her immediate family suffers.

The Oversight Committee shall adopt additional policies on ethics, including conflicts of interests, in order to minimize possible influences of personal finances and partisan political motivations on the decisions and activities of the institute, the various advisory panels, and the Oversight Committee. The initial policies on conflicts of interests shall be based on standards applicable to members of scientific review committees of the National Institutes of Health at 42 CFR 52h.

Section 1-40. Public and financial accountability standards.

(a) The institute shall issue an annual report to the public, the Governor, and the General Assembly that sets forth its activities, grants awarded, grants in progress, research accomplishments, and future program directions. Each annual report shall include but not be limited to the following: the number and dollar amounts of research grants; the grantees for the prior year; the institute's administrative expenses; an assessment of the available funding for stem cell research from sources other than the institute; a summary of research findings, including promising new research areas; an assessment of the relationship between the institute's grants and the overall strategy of its research program; and a report of the institute's strategic research and financial plans.

This report shall be posted on the institute's website and shall be available to the general public upon request.

(b) The institute shall issue quarterly reports throughout the fiscal year to the public, the Governor, and the General Assembly that should include the number and dollar amounts of the research grants, a summary of research findings, and an assessment of the relationship between the institute's grants and the overall strategy of its research program.

This report shall be posted on the institute's website and shall be available to the general public upon request.

(c) The institute shall be considered a "State agency" under the Illinois State Auditing Act.

Section 1-45. Medical and scientific accountability standards.

(a) The institute and its grantees shall be governed by the provisions of this Article in the establishment of standards, the award of grants, and the conduct of grants awarded pursuant to this Article.

(b) The institute shall establish standards for the following:

(1) Informed consent. Standards for obtaining the informed consent of research donors, patients, or participants initially shall be generally based on the requirements at 45 CFR 46.116 for all research funded by the National Institutes of Health.

(2) Controls on research involving humans. Standards for the review of research involving human subjects shall be generally based on the policies adopted at 45 CFR 46 for all research funded by the National Institutes of Health.

(3) Prohibition on compensation. Standards prohibiting compensation to research donors or participants shall permit reimbursement of expenses.

(4) Patient privacy laws. Standards shall ensure compliance with State and federal patient privacy laws.

(5) Limitations on payments for cells. Standards shall limit payments for the purchase of stem cells or stem cell lines to reasonable payment for removal, processing, disposal, preservation, quality control, storage, transplantation, implantation, or legal transaction or other administrative costs associated with these medical procedures and shall specifically include any required payments for medical or scientific technologies, products, or processes for royalties, patent, licensing fees, or other costs for intellectual property.

(6) Time limits for obtaining cells. Standards shall set a limit on the time during which cells may be extracted from blastocysts, which shall initially be 8 to 12 days after cell division begins, not counting any time during which the blastocysts or cells have been stored frozen.

Section 1-50. Institute operations.

(a) The institute may sue and be sued; provided that any suit against the institute based upon a claim sounding in tort must be filed in the Court of Claims.

Based upon institute standards, institute grantees shall indemnify or insure, and hold the institute harmless against any and all losses, claims, damages, expenses, or liabilities, including attorneys' fees, arising from research conducted by the grantee pursuant to the grant, or, in the alternative, grantees shall name the institute as an additional insured and submit proof of that insurance.

To the extent allowed under the Illinois Constitution and given the scientific, medical, and technical nature of the issues facing the institute, the institute is authorized to retain outside counsel when, after consultation with the Attorney General, the institute determines that the institute requires specialized services not provided by the Attorney General's office.

(b) The institute may enter into contracts or obligations that are authorized or permitted by law.

(c) The Oversight Committee shall select an Executive Director who shall exercise the powers delegated in this subsection.

The Executive Director shall be the chief administrative and operational officer of the institute, shall direct and supervise its administrative affairs and general management and perform such other duties as may be prescribed from time to time by the Oversight Committee, and shall receive compensation fixed by the Oversight Committee.

(d) The institute shall be subject to the Illinois Procurement Code. For purposes of the Illinois Procurement Code, the institute shall be considered an institute of higher education and use the services of the higher education chief procurement officer and the higher education procurement bulletin.

The institute shall ensure that grantees purchase goods and services from Illinois suppliers to the extent reasonably possible, in a good faith effort to achieve a goal of more than 50% of those purchases from Illinois suppliers.

Nothing in this Article shall exempt the institute from the Business Enterprise for Minorities, Females, and Persons with Disabilities Act.

(e) The Illinois Administrative Procedure Act, including review by the Joint Committee on Administrative Rules, is expressly adopted and shall apply to all administrative rules and procedures adopted by the Oversight Committee. The Oversight Committee may use its emergency rulemaking authority to adopt initial rules. The General Assembly finds that the adoption of rules to implement this Article is deemed an emergency and necessary for the public interest, safety, and welfare.

Section 1-55. Intellectual property.

(a) All grants and loan awards issued by the institute shall include intellectual property provisions that provide protections and incentives to encourage both the discovery and development of new knowledge and its transfer for the public benefit.

It is the policy and objective of the institute to promote the utilization of intellectual property arising from institute-supported research or development; to promote collaboration between commercial concerns and nonprofit organizations, including universities; to ensure that intellectual property is used in a manner to promote free competition and enterprise without unduly encumbering future research and discovery; to ensure that the institute obtains sufficient rights in institute-supported intellectual property to meet the needs of the institute and protect the public against nonuse or unreasonable use of such intellectual property; and to minimize the costs of administering policies in this area.

(b) The institute shall develop policies as well as grant and loan terms regarding intellectual property that:

(1) Acknowledge that both the federal government in the Bayh-Dole Act and each individual research institution have policies regarding intellectual property rights.

(2) Clearly define the rights of the institute, the creators of the intellectual property, the creators' parent institution, and any other parties to all intellectual property created as a result of the performance of the research funded by the institute. The institute shall, at a minimum, retain a license to use intellectual property created as a result of the performance of the research funded by the institute in the institute's programs of research on a perpetual, royalty-free, non-exclusive, and non-commercial basis.

(3) Provide for the institute to receive a share of the proceeds from the transfer, commercialization, or other exploitation of intellectual property created as a result of the performance of the research funded by the institute; the distribution of proceeds shall depend on the nature of the intellectual property and its application, the relative contributions of the institute and other parties with rights to the work, the conditions deemed most likely to advance the commercial development and acceptance of the intellectual property, and other relevant factors.

(4) Require that all intellectual property in which the institute has an interest under grant and loan agreements and that has the potential to be brought into practical use for public benefit or for which disclosure is required by law be reported promptly in writing by the grant or loan recipient to the institute, and that the institute may receive title to any such intellectual property not disclosed to it within that time.

(5) Require that notice of any proposed transfer in intellectual property rights be given, along with copies of the operative transfer documents, to all parties to a grant or loan agreement no less than 10 business days prior to the transfer of the intellectual property rights.

(6) Require that grant and loan recipients give recognition to the institute for its support of the research when publishing or releasing research-related public information.

(7) Retain march-in rights for the institute to develop, license, patent, or otherwise exploit intellectual property created as a result of the performance of the research funded by the institute when the creators or other parties having a duty to exploit or disseminate the intellectual property have abandoned the intellectual property or when the institute determines that action is necessary because of circumstances similar to those enumerated in Section 203 of the federal Bayh-Dole Act.

(8) Address other issues related to intellectual property as determined by the Oversight Committee or the Executive Director.

(c) If the Bayh-Dole Act applies to any intellectual property created as a result of the performance of the research funded by the institute, then the parties to the grant or loan agreement entered into shall, if necessary, apply to the appropriate federal agency or the United States Department of Commerce as provided for in the Bayh-Dole Act for the appropriate permissions or exceptions to give effect to the intellectual property provisions of the grant or loan agreement.

(d) The institute may accept assignment of intellectual property from any person or entity, provided that the action is determined to be consistent with the public interest. Intellectual property so accepted shall be administered in a manner consistent with the administration of other institute-owned intellectual property.

(e) The Oversight Committee has ultimate authority for the stewardship of intellectual property in which the institute has an interest. Primary responsibility is delegated through the Executive Director for establishing operational guidelines and procedures for the administration of intellectual property consistent with this Section, including but not limited to determination of ownership, assignment, protection, licensing, marketing, maintenance of records, oversight of revenue or equity collection and distribution, approval of individual exceptions, and resolution of disputes among parties to grant and loan agreements as well as other intellectual property agreements to which the institute is a party.

(f) Recommendations for exceptions to the provisions of the policy in this Section, or any administrative rules adopted by the institute, shall be made by the Executive Director to the Oversight Committee

Section 1-60. Appropriation and allocation of funding.

(a) Moneys in the Cosmetic Medical Procedure Utilization Tax Fund shall be used to make grants and loans for stem cell research pursuant to this Article.

(b) Grants and loans for research shall be awarded based on scientific merit. When determining the scientific merit of a proposal the advisory panels and the Oversight Committee should consider criteria including:

(1) A demonstrated record of achievement in the areas of pluripotent stem cell and progenitor cell biology and medicine.

(2) The quality of the research proposal.

(3) The potential for achieving significant research or clinical results.

(4) The timetable for realizing the significant results.

(5) The importance of the research objectives.

(6) The innovativeness of the proposed research.

The grantee shall provide or demonstrate available matching funds of a minimum of 20% of the grant amount.

The institute shall limit indirect costs to 25% of a research award except that the indirect cost limitation may be increased by that amount by which the grantee provides matching funds in excess of 20% of the grant amount. "Indirect costs" mean the recipient's costs in the administration, accounting, general overhead, and general support costs for implementing a grant or loan of the institute. NIH definitions of "indirect costs" shall be used as one of the bases to create guidelines for recipients under this definition.

(c) Grants and loans for buildings, building leases, and capital equipment shall be solely for facilities and equipment located within Illinois.

ARTICLE 10

Section 10-1. Short title. This Article may be cited as the Cosmetic Medical Procedure Utilization Tax Act. The tax imposed by this Article may be referred to as the "Cosmetic Medical Procedure Utilization Tax".

Section 10-5. Tax imposed; collection of tax. Beginning on January 1, 2006, a tax is imposed upon the privilege of utilizing cosmetic medical procedures in this State. The subject of the cosmetic medical procedure shall pay the tax, which shall be collected from the procedure subject by the person billing the gross receipts from the cosmetic medical procedure when collecting the payment for the cosmetic medical procedure in the manner prescribed by the Department of Revenue. If more than one person bills gross receipts from a single cosmetic medical procedure, each person shall be responsible for the collection of the gross receipts tax on the portion of the gross receipts billed.

Section 10-10. Rate of tax. The tax imposed by this Article is at the rate of 6% of the gross receipts from a cosmetic medical procedure.

Section 10-15. Definitions. For the purposes of this Article, the following terms shall have the following meanings:

"Cosmetic medical procedure" means any medical procedure performed on an individual that is directed at improving the procedure subject's appearance and that does not meaningfully promote the proper function of the body or prevent or treat illness or disease. "Cosmetic medical procedure" includes but is not limited to cosmetic surgery, hair transplants, cosmetic injections, cosmetic soft tissue fillers, dermabrasion and chemical peel, laser hair removal, laser skin resurfacing, laser treatment of leg veins, sclerotherapy, and cosmetic dentistry. "Cosmetic medical procedure" does not include reconstructive surgery or dentistry.

"Cosmetic dentistry" means any dental procedure that is directed at improving the patient's appearance and does not meaningfully promote the proper function of the teeth and gums or prevent or treat illness or disease of the teeth and gums.

"Cosmetic surgery" means any procedure that is directed at improving the patient's appearance and does not meaningfully promote the proper function of the body or prevent or treat illness or disease.

"Department" means the Department of Revenue.

"Gross receipts from a cosmetic medical procedure" means all amounts paid for services, property, or occupancy required for or associated with the performance of a cosmetic medical procedure and billed to the procedure subject's account.

"Person" means any natural individual, firm, partnership, association, joint stock company, joint venture, public or private corporation, limited liability company, and any receiver, executor, trustee, guardian, or other representative appointed by order of any court.

"Reconstructive surgery or dentistry" includes any surgery or dentistry necessary to ameliorate a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma, or disfiguring disease.

Section 10-17. Determination of exemptions. When determining whether a medical procedure is exempt from taxation as reconstructive surgery or dentistry, the Department may consider whether or not the procedure is considered medically necessary by the physician performing the medical procedure or by a health insurance provider. Medical procedures that are considered medically necessary by both the physician performing the procedure and the patient's health insurance provider are presumed to be exempt from taxation under this Article. The Department may also consider whether the procedure would be considered "medical care" or "cosmetic surgery" under the federal Internal Revenue Code.

Section 10-20. Reporting of tax. The Department shall collect and administer the tax imposed pursuant to this Article. The tax shall be reported and paid on a quarterly basis in a manner prescribed by the Department.

Section 10-25. Rules. The Department shall promulgate such rules and procedures as are required to implement this Article and may use its emergency rulemaking authority to adopt initial rules. The General Assembly finds that the adoption of rules to implement this Article is deemed an emergency and necessary for the public interest, safety, and welfare. The Illinois Administrative Procedure Act is hereby expressly adopted and shall apply to all administrative rules and procedures of the Department of Revenue under this Article, except that (1) paragraph (b) of Section 5-10 of the Illinois Administrative Procedure Act does not apply to final orders, decisions, and opinions of the Department, (2) item (ii) of subsection (a) of Section 5-10 of the Illinois Administrative Procedure Act does not apply to forms established by the Department for use under this Article, and (3) the provisions of Section 10-45 of the Illinois Administrative Procedure Act regarding proposals for decision are excluded and not applicable to the Department under this Article.

Section 10-30. Tax as billing item. The tax imposed by this Article may be stated as a distinct item separate and apart on any billing for the procedure, and shall be so stated when requested by the procedure subject.

Section 10-35. Registration. Every person required to collect the tax imposed by this Article shall apply to the Department (upon a form prescribed and furnished by the Department) for a Certificate of Registration under this Article. In completing the application, the applicant shall furnish such information as the Department may reasonably require. Upon approval of an application for Certificate of Registration, the Department shall issue, without charge, a Certificate of Registration to the applicant. The Certificate of Registration shall be displayed at the address that the applicant states in his or her application to be the principal place of business or location from which he or she will perform cosmetic medical procedures in this State. If the applicant will perform cosmetic medical procedures in this State from other places of business or locations, he or she shall list the addresses of the additional places of business or locations in his or her application for Certificate of Registration, and the Department shall issue a Sub-Certificate of Registration to the applicant for each additional place of business or location. Each Sub-Certificate of Registration shall be conspicuously displayed at the place for which it is issued. Each Sub-Certificate of Registration shall bear the same registration number as that appearing upon the Certificate of Registration to which the Sub-Certificate relates. Where an applicant operates more than one place of business that is subject to registration under this Section and those businesses are substantially different in character or are engaged in under different trade names or are engaged in under other substantially dissimilar circumstances (so that it is more practical, from an accounting, auditing, or bookkeeping standpoint, for the businesses to be separately registered), the Department may require or permit the person to apply for and obtain a separate Certificate of Registration for each business or for any of the businesses instead of registering the person, as to all those businesses, under a single Certificate of Registration supplemented by related Sub-Certificates of Registration. No Certificate of Registration shall be issued to any person who is in default to the State of Illinois for moneys due under this Article.

Section 10-40. Returns. Every person required to collect the tax imposed by this Article shall file a return in accordance with reasonable rules promulgated by the Department in accordance with Section 10-25. The return shall be filed on a form prescribed by the Department and shall contain such information as the Department may reasonably require. The Department shall require returns to be filed on a quarterly basis. A return for each calendar quarter shall be filed on or before the twentieth day of the calendar month following the end of that calendar quarter.

Section 10-45. Tax proceeds. All moneys received by the Department pursuant to this Article shall be paid into the Cosmetic Medical Procedure Utilization Tax Fund of the State treasury. Every fiscal year the State Comptroller shall order transferred and the State Treasurer shall transfer from the Cosmetic Medical Procedure Utilization Tax Fund to the Regenerative Medicine Institute Operations Fund an amount equal to the full amount of moneys appropriated by the General Assembly (both by original and supplemental appropriation), less any unexpended balance from the previous fiscal year, from the Regenerative Medicine Institute Operations Fund for the activities and purposes provided in the Illinois Regenerative Medicine Institute Act.

Section 10-50. Records. Every person required to collect the tax imposed by this Article shall keep such records, receipts, invoices, and other pertinent books, documents, memoranda, and papers as the Department shall require, in the form the Department shall require. In accordance with Section 10-25, the Department may adopt rules that establish requirements, including record forms and formats, for records required to be kept and maintained by taxpayers. For the purpose of administering and enforcing the provisions of this Article, the Department, or any officer or employee of the Department designated in writing by the Director of Revenue, may hold investigations and hearings concerning any matters covered in this Article and may examine any relevant books, papers, records, documents, or memoranda of any person required to collect the tax imposed by this Article or any taxable purchaser, and may require the attendance of that person or any officer or employee of that person, or of any person having knowledge of the facts, and may take testimony and require proof for its information.

Section 10-55. Tax additional to other taxes. The tax imposed by this Article shall be in addition to all other occupation or privilege taxes imposed by the State of Illinois or by any municipal corporation or political subdivision of the State of Illinois.

Section 10-60. Liability for tax. To the extent that a person required to collect the tax imposed by this Article has actually collected that tax, the tax is held in trust for the benefit of the Department. The Department may adopt rules necessary to effectuate a program of electronic funds transfer for the payment of the tax imposed by this Article.

Section 10-65. Uniform Penalty and Interest Act. The Uniform Penalty and Interest Act shall apply, as far as practical, to the subject matter of this Article to the same extent as if those provisions were included in this Article.

Section 10-90. Severability. It is the purpose of Section 10-5 of this Article to impose a tax upon the privilege of utilizing cosmetic medical procedures in this State, the tax to be based upon the gross receipts from cosmetic medical procedures, so far as the same may be done, under the Constitution and statutes of the United States, and the Constitution of the State of Illinois. The tax is not imposed upon the privilege of engaging in any business in interstate commerce or otherwise, however, which business may not, under the Constitution and statutes of the United States, be made the subject of taxation by this State. If any clause, sentence, Section, provision, or part of this Article or its application to any person or circumstance shall be adjudged to be unconstitutional, the remainder of this Article or its application to persons or circumstances, other than those to which it is held invalid, shall not be affected thereby.

ARTICLE 90

Section 90-2. The Open Meetings Act is amended by changing Section 2 as follows:

(5 ILCS 120/2) (from Ch. 102, par. 42)

Sec. 2. Open meetings.

(a) Openness required. All meetings of public bodies shall be open to the public unless excepted in subsection (c) and closed in accordance with Section 2a.

(b) Construction of exceptions. The exceptions contained in subsection (c) are in derogation of the requirement that public bodies meet in the open, and therefore, the exceptions are to be strictly construed, extending only to subjects clearly within their scope. The exceptions authorize but do not require the holding of a closed meeting to discuss a subject included within an enumerated exception.

(c) Exceptions. A public body may hold closed meetings to consider the following subjects:

(1) The appointment, employment, compensation, discipline, performance, or dismissal of specific employees of the public body or legal counsel for the public body, including hearing testimony on a complaint lodged against an employee of the public body or against legal counsel for the public body to determine its validity.

(2) Collective negotiating matters between the public body and its employees or their representatives, or deliberations concerning salary schedules for one or more classes of employees.

(3) The selection of a person to fill a public office, as defined in this Act, including a vacancy in a public office, when the public body is given power to appoint under law or ordinance, or the discipline, performance or removal of the occupant of a public office, when the public body is given power to remove the occupant under law or ordinance.

(4) Evidence or testimony presented in open hearing, or in closed hearing where specifically authorized by law, to a quasi-adjudicative body, as defined in this Act, provided that the body prepares and makes available for public inspection a written decision setting forth its determinative reasoning.

(5) The purchase or lease of real property for the use of the public body, including meetings held for the purpose of discussing whether a particular parcel should be acquired.

(6) The setting of a price for sale or lease of property owned by the public body.

(7) The sale or purchase of securities, investments, or investment contracts.

(8) Security procedures and the use of personnel and equipment to respond to an actual, a threatened, or a reasonably potential danger to the safety of employees, students, staff, the public, or public property.

(9) Student disciplinary cases.

(10) The placement of individual students in special education programs and other matters relating to individual students.

(11) Litigation, when an action against, affecting or on behalf of the particular public body has been filed and is pending before a court or administrative tribunal, or when the public body finds that an action is probable or imminent, in which case the basis for the finding shall be recorded and entered into the minutes of the closed meeting.

(12) The establishment of reserves or settlement of claims as provided in the Local Governmental and Governmental Employees Tort Immunity Act, if otherwise the disposition of a claim or potential claim might be prejudiced, or the review or discussion of claims, loss or risk management information, records, data, advice or communications from or with respect to any insurer of the public body or any intergovernmental risk management association or self insurance pool of which the public body is a member.

(13) Conciliation of complaints of discrimination in the sale or rental of housing, when closed meetings are authorized by the law or ordinance prescribing fair housing practices and creating a commission or administrative agency for their enforcement.

(14) Informant sources, the hiring or assignment of undercover personnel or equipment, or ongoing, prior or future criminal investigations, when discussed by a public body with criminal investigatory responsibilities.

(15) Professional ethics or performance when considered by an advisory body appointed to advise a licensing or regulatory agency on matters germane to the advisory body's field of competence.

(16) Self evaluation, practices and procedures or professional ethics, when meeting with a representative of a statewide association of which the public body is a member.

(17) The recruitment, credentialing, discipline or formal peer review of physicians or other health care professionals for a hospital, or other institution providing medical care, that is operated by the public body.

(18) Deliberations for decisions of the Prisoner Review Board.

(19) Review or discussion of applications received under the Experimental Organ Transplantation Procedures Act.

(20) The classification and discussion of matters classified as confidential or continued confidential by the State Employees Suggestion Award Board.

(21) Discussion of minutes of meetings lawfully closed under this Act, whether for purposes of approval by the body of the minutes or semi-annual review of the minutes as mandated by Section 2.06.

(22) Deliberations for decisions of the State Emergency Medical Services Disciplinary Review Board.

(23) The operation by a municipality of a municipal utility or the operation of a municipal power agency or municipal natural gas agency when the discussion involves (i) contracts relating to the purchase, sale, or delivery of electricity or natural gas or (ii) the results or conclusions of load forecast studies.

(24) Meetings of a residential health care facility resident sexual assault and death review team or the Residential Health Care Facility Resident Sexual Assault and Death Review Teams Executive Council under the Residential Health Care Facility Resident Sexual Assault and Death Review Team Act.

(25) Discussions of the Illinois Regenerative Medicine Institute Oversight Committee or its advisory panels that involve (i) personally identifiable information relating to patients or medical subjects or (ii) matters concerning confidential intellectual property and confidential scientific research or data.

(d) Definitions. For purposes of this Section:

"Employee" means a person employed by a public body whose relationship with the public body constitutes an employer-employee relationship under the usual common law rules, and who is not an independent contractor.

"Public office" means a position created by or under the Constitution or laws of this State, the occupant of which is charged with the exercise of some portion of the sovereign power of this State. The term "public office" shall include members of the public body, but it shall not include organizational positions filled by members thereof, whether established by law or by a public body itself, that exist to assist the body in the conduct of its business.

"Quasi-adjudicative body" means an administrative body charged by law or ordinance with the responsibility to conduct hearings, receive evidence or testimony and make determinations based thereon, but does not include local electoral boards when such bodies are considering petition challenges.

(e) Final action. No final action may be taken at a closed meeting. Final action shall be preceded by a public recital of the nature of the matter being considered and other information that will inform the public of the business being conducted.

(Source: P.A. 93-57, eff. 7-1-03; 93-79, eff. 7-2-03; 93-422, eff. 8-5-03; 93-577, eff. 8-21-03; revised 9-8-03.)

Section 90-10. The State Finance Act is amended by adding Sections 6z-100 and 6z-105 as follows:

(30 ILCS 105/6z-100 new)

Sec. 6z-100. The Cosmetic Medical Procedure Utilization Tax Fund.

(a) The Cosmetic Medical Procedure Utilization Tax Fund is created as a special fund in the State treasury.

(b) Subject to appropriation, the Illinois Regenerative Medicine Institute may use the moneys in the Fund for activities and purposes provided in the Illinois Regenerative Medicine Institute Act, including the making of grants and loans. Subject to appropriation, the Department of Revenue may use the moneys in the Fund for administration of the Cosmetic Medical Procedure Utilization Tax Act, including refunds to taxpayers.

(c) Investment income that is attributable to the investment of moneys of the Cosmetic Medical Procedure Utilization Tax Fund shall be retained in that Fund. Moneys in this Fund shall not be transferred to the General Revenue Fund for any purposes other than those outlined in this Section.

(30 ILCS 105/6z-105 new)

Sec. 6z-105. Regenerative Medicine Institute Operations Fund.

(a) The Regenerative Medicine Institute Operations Fund is created as a special fund in the State Treasury.

(b) The following items of income for the Illinois Institute for Regenerative Medicine shall be deposited into the Fund: funds received pursuant to the Cosmetic Medical Procedure Utilization Tax Act; the fees charged by the institute; payments received as repayment of loans made by the institute; funds received in connection with the retention, receipt, assignment, license, sale or transfer of interests in, rights to, or income from discoveries, inventions, patents, or copyrightable works; donations, monetary gifts, or other financial assistance from private sources of individuals; and any other funds appropriated or transferred into the Fund.

(c) Subject to appropriation, the institute may use those funds for activities and purposes provided in the Illinois Regenerative Medicine Institute Act, including activities and operations of the institute.

(d) Investment income that is attributable to the investment of moneys of the Regenerative Medicine Institute Operations Fund shall be retained in the Fund.

ARTICLE 99

Section 99-5. Effective date. This Act takes effect upon becoming law.".