HB0670ham001 99TH GENERAL ASSEMBLY

Rep. Christian L. Mitchell

Filed: 4/20/2015

09900HB0670ham001 LRB099 04503 HLH 34475 a

AMENDMENT TO HOUSE BILL 670

AMENDMENT NO. ______. Amend House Bill 670 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Comprehensive Fund Administration Services Tax Act.

Section 5. Definitions. As used in this Act:

"Department" means the Department of Revenue.

"Comprehensive fund administration services" means and includes:

(1) fund accounting;

(2) fund consulting;

(3) partnership accounting;

(4) third party transfer agency services;

(5) management company services;

(6) trustee and fiduciary services; and

(7) regulatory and financial reporting services.

"Private market fund" means any private equity fund, venture capital fund, hedge fund, real estate fund, or other investment vehicle that is not publicly traded.

Section 10. Tax imposed.

(a) Beginning on July 1, 2015, a service tax is imposed upon each business that:

(1) has a principal place of business located in the State;

(2) provides comprehensive fund administration services to private market funds; and

(3) has $10,000,000,000 or more in capital, funds, and assets under management at any time during the reporting period.

The tax shall be imposed at the rate of 3% of the fees charged for those services.

(b) Every business subject to the tax under subsection (a) shall apply to the Department (upon a form prescribed and furnished by the Department) for a certificate of registration under this Act.

(c) The Department shall have full power to administer and enforce this Act, to collect all taxes and penalties due hereunder, to dispose of taxes and penalties so collected in the manner hereinafter provided, and to determine all rights to credit memoranda, arising on account of the erroneous payment of tax or penalty hereunder.

(d) The tax imposed under this Act shall be in addition to all other taxes imposed by the State of Illinois or by any municipal corporation or political subdivision thereof.

(e) The tax under this Act is not imposed with respect to any business that may not, under the Constitution and statutes of the United States, be made the subject of taxation by this State.

Section 15. Returns. On or before the twentieth day of each calendar month, each person who is subject to the tax under this Act during the preceding calendar month shall file a return with the Department, stating:

(1) the name of the taxpayer;

(2) the address of the taxpayer's principal place of business;

(3) the amount of tax due;

(4) the signature of the taxpayer; and

(5) such other reasonable information as the Department may require.

If a taxpayer fails to sign a return within 30 days after the proper notice and demand for signature by the Department, the return shall be considered valid and any amount shown to be due on the return shall be deemed assessed.

The taxpayer shall remit the amount of the tax due to the Department at the time the taxpayer files his or her return.

Section 20. Suspension or revocation of certificates of registration. The Department may, after notice and a hearing as provided herein, suspend or revoke the certificate of registration of any person who violates any of the provisions of this Act. Before suspension or revocation of a certificate of registration, the Department shall, within 90 days after non-compliance and at least 7 days prior to the date of the hearing, give the person so accused notice in writing of the charge against him or her, and on the date designated shall conduct a hearing upon this matter. The lapse of such 90 day period shall not preclude the Department from conducting suspension or revocation proceedings at a later date if necessary. Any hearing held under this Section shall be conducted by the Director of Revenue or by any officer or employee of the Department designated, in writing, by the Director of Revenue.

Upon the hearing of any such proceeding, the Director of Revenue, or any officer or employee of the Department designated, in writing, by the Director of Revenue, may administer oaths and the Department may procure by its subpoena the attendance of witnesses and, by its subpoena duces tecum, the production of relevant books and papers. Any circuit court, upon application either of the accused or of the Department, may, by order duly entered, require the attendance of witnesses and the production of relevant books and papers, before the Department in any hearing relating to the suspension or revocation of certificates of registration. Upon refusal or neglect to obey the order of the court, the court may compel obedience thereof by proceedings for contempt.

Section 25. Review of Department decisions. Any person aggrieved by any decision of the Department under this Act may, within 20 days after notice of such decision, protest and request a hearing, whereupon the Department shall give notice to such person of the time and place fixed for such hearing and shall hold a hearing in conformity with the provisions of this Act and then issue its final administrative decision in the matter to such person. In the absence of such a protest within 20 days, the Department's decision shall become final without any further determination being made or notice given.

Section 30. Distribution of proceeds. The first $32,000,000 of the proceeds collected under this Act annually shall be deposited into the Textbook Block Grant Fund, a special Fund created in the State treasury. Moneys in the Textbook Block Grant Fund shall be used by the State Board of Education, subject to appropriation, for the purpose of administering the textbook block grant program established under Section 2-3.155 of the School Code. The remainder of the proceeds shall be used for the purpose of increasing General State Aid to school districts.

Section 35. Rules. The Department may adopt rules related to the enforcement of this Act.

Section 100. The State Finance Act is amended by adding Section 5.866 as follows:

(30 ILCS 105/5.866 new)

Sec. 5.866. The Textbook Block Grant Fund.

Section 999. Effective date. This Act takes effect upon becoming law.".