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STATE OF ILLINOIS
HOUSE JOURNAL
HOUSE OF REPRESENTATIVES
NINETY-SECOND GENERAL ASSEMBLY
126TH LEGISLATIVE DAY
WEDNESDAY, MAY 1, 2002
12:00 O'CLOCK NOON
NO. 126
[May 1, 2002] 2
HOUSE OF REPRESENTATIVES
Daily Journal Index
126th Legislative Day
Action Page(s)
Adjournment........................................ 39
Corrections Budget & Impact Note Supplied.......... 4
Fiscal Impact Note Supplied........................ 3
Judicial Note Supplied............................. 4
Pension Impact Note Supplied....................... 4
Quorum Roll Call................................... 3
Recess............................................. 7
State Debt Impact Note Supplied.................... 3
State Mandates Note Supplied....................... 3
Bill Number Legislative Action Page(s)
HB 5803 Motion Submitted................................... 3
HC 0013 Committee Report................................... 4
HJR 0073 Resolution......................................... 37
HR 0827 Committee Report................................... 6
HR 0850 Resolution......................................... 35
HR 0852 Resolution......................................... 35
HR 0854 Resolution......................................... 36
HR 0856 Resolution......................................... 37
SB 1540 Second Reading..................................... 7
SB 1543 Committee Report-Floor Amendment/s................. 5
SB 1543 Motion Submitted................................... 3
SB 1543 Second Reading - Amendment/s....................... 7
SB 1543 Third Reading...................................... 23
SB 1588 Committee Report-Floor Amendment/s................. 4
SB 1635 Committee Report-Floor Amendment/s................. 4
SB 1657 Committee Report-Floor Amendment/s................. 6
SB 1666 Committee Report-Floor Amendment/s................. 6
SB 1859 Second Reading..................................... 23
SB 1907 Committee Report-Floor Amendment/s................. 5
SB 1917 Committee Report-Floor Amendment/s................. 5
SB 2072 Third Reading...................................... 6
SB 2081 Committee Report-Floor Amendment/s................. 3
SB 2081 Second Reading - Amendment/s....................... 23
SB 2214 Committee Report-Floor Amendment/s................. 5
3 [May 1, 2002]
The House met pursuant to adjournment.
The Speaker in the Chair.
Prayer by LeeArthur Crawford, Assistant Pastor with the Victory
Temple Church in Springfield, Illinois.
Representative Jefferson led the House in the Pledge of Allegiance.
By direction of the Speaker, a roll call was taken to ascertain the
attendance of Members, as follows:
115 present. (ROLL CALL 1)
By unanimous consent, Representatives Myers and O'Brien were
excused from attendance.
REQUEST TO BE SHOWN ON QUORUM
Having been absent when the Quorum Roll Call for Attendance was
taken, this is to advise you that I, Representative Durkin, should be
recorded as present.
REPORT FROM THE COMMITTEE ON RULES
Representative Currie, Chairperson, from the Committee on Rules to
which the following were referred, action taken earlier today, and
reported the same back with the following recommendations:
That the Floor Amendment be reported "recommends be adopted":
Amendment No. 5 to SENATE BILL 2081.
The committee roll call vote on the foregoing Legislative Measure
is as follows:
4, Yeas; 0, Nays; 0, Answering Present.
Y Currie, Chair A Hannig (Lang)
Y Cross Y Tenhouse, Spkpn
Y Turner, Art
MOTIONS
SUBMITTED
Representative Black submitted the following written motion, which
was placed on the order of Motions:
MOTION
I move to table Amendment 1 to SENATE BILL 1543.
JOINT ACTION MOTIONS SUBMITTED
Representative Meyer submitted the following written motion, which
was referred to the Committee on Rules:
MOTION
I move to concur with Senate Amendment No. 1 to HOUSE BILL 5803.
FISCAL IMPACT NOTE SUPPLIED
A Fiscal Impact Note has been supplied for SENATE BILL 1543, as
amended.
STATE MANDATES NOTE SUPPLIED
A State Mandates Note has been supplied for SENATE BILL 1543, as
amended.
STATE DEBT IMPACT NOTE SUPPLIED
[May 1, 2002] 4
A State Debt Impact Note has been supplied for SENATE BILL 1543, as
amended.
JUDICIAL NOTE SUPPLIED
A Judicial Note has been supplied for SENATE BILL 1543, as amended.
PENSION IMPACT NOTE SUPPLIED
A Pension Impact Note has been supplied for SENATE BILL 1543, as
amended.
CORRECTIONS BUDGET & IMPACT NOTE SUPPLIED
A Corrections Budget & Impact Note has been supplied for SENATE
BILL 1543, as amended.
REPORT FROM STANDING COMMITTEE
Representative Reitz, Chairperson, from the Committee on Cities &
Villages to which the following were referred, action taken on April
30, 2002, and reported the same back with the following
recommendations:
That the Floor Amendment be reported "recommends be adopted":
Amendment No. 1 to SENATE BILL 1635.
The committee roll call vote on Amendment No. 1 to SENATE BILL 1635
is as follows:
12, Yeas; 0, Nays; 0, Answering Present.
Y Reitz, Chair Y Mathias, Spkpn
Y Berns Y Mautino
Y Colvin Y May
A Durkin Y McCarthy, V-Chair
Y Forby Y Schmitz
Y Marquardt Y Slone
Y Wojcik
Representative Steve Davis, Chairperson, from the Committee on
Constitutional Officers to which the following were referred, action
taken on April 30, 2002, and reported the same back with the following
recommendations:
That the Floor Amendment be reported "recommends be adopted":
Amendments numbered 3 and 5 to SENATE BILL 1588.
Representative Giles, Chairperson, from the Committee on Elementary
& Secondary Education to which the following were referred, action
taken earlier today, and reported the same back with the following
recommendations:
That the Constitutional Amendment be reported "do pass" and be
placed on the order of Second Reading (Second Legislative Day): HOUSE
JOINT RESOLUTION CONSTITUTIONAL AMENDMENT 13.
The committee roll call vote on HOUSE JOINT RESOLUTION
CONSTITUTIONAL AMENDMENT 13 is as follows:
14, Yeas; 2, Nays; 1, Answering Present.
Y Giles, Chair P Johnson
N Bassi (Tenhouse) Y Kosel
Y Collins Y Krause
N Cowlishaw, Spkpn Y Miller
A Crotty Y Mitchell, Jerry
A Davis, Monique, V-Chair Y Moffitt
5 [May 1, 2002]
Y Delgado Y Mulligan
Y Fowler A Murphy
Y Garrett Y Osterman
Y Hoeft Y Smith, Michael
A Winkel
Representative Novak, Chairperson, from the Committee on
Environment & Energy to which the following were referred, action taken
on April 30, 2002, and reported the same back with the following
recommendations:
That the Floor Amendment be reported "recommends be adopted":
Amendment No. 2 to SENATE BILL 1907.
The committee roll call vote on Amendment No. 2 to SENATE BILL 1907
is as follows:
13, Yeas; 0, Nays; 0, Answering Present.
Y Novak, Chair Y Holbrook
Y Beaubien Y Hultgren
Y Bradley Y Jones, Shirley
A Brunsvold Y Lawfer
A Davis, Steve, V-Chair Y Marquardt
A Durkin Y Parke
Y Hartke Y Reitz
A Hassert, Spkpn Y Simpson
Y Soto
Representative Burke, Chairperson, from the Committee on Executive
to which the following were referred, action taken earlier today, and
reported the same back with the following recommendations:
That the Floor Amendment be reported "recommends be adopted":
Amendment No. 1 to SENATE BILL 1543.
That the Floor Amendment be reported "recommends be adopted":
Amendments numbered 2 and 3 to SENATE BILL 2214.
The committee roll call vote on Amendment No. 1 to SENATE BILL 1543
is as follows:
7, Yeas; 6, Nays; 0, Answering Present.
Y Burke, Chair Y Capparelli
Y Acevedo N Hassert
N Beaubien (Tenhouse) Y Jones, Lou
N Biggins Y McKeon
Y Bradley N Pankau
Y Bugielski, V-Chair N Poe, Spkpn
N Rutherford
The committee roll call vote on Amendments No. 2 and 3 to SENATE
BILL 2214 is as follows:
11, Yeas; 0, Nays; 0, Answering Present.
Y Burke, Chair Y Capparelli
Y Acevedo Y Hassert
Y Beaubien (Tenhouse) Y Jones, Lou
Y Biggins A McKeon
A Bradley Y Pankau
Y Bugielski, V-Chair Y Poe, Spkpn
Y Rutherford
Representative O'Brien, Chairperson, from the Committee on
Judiciary II - Criminal Law to which the following were referred,
action taken on April 30, 2002, and reported the same back with the
following recommendations:
That the Floor Amendment be reported "recommends be adopted":
Amendment No. 1 to SENATE BILL 1917.
[May 1, 2002] 6
The committee roll call vote on Amendment No. 1 to SENATE BILL 1917
is as follows:
10, Yeas; 0, Nays; 0, Answering Present.
A O'Brien, Chair Y Johnson
A Bradley Y Jones, Lou
Y Brady Y Lindner
Y Brosnahan, V-Chair Y Smith, Michael
Y Brunsvold A Turner, John
Y Delgado Y Wait
Y Winkel, Spkpn
Representative Joseph Lyons, Chairperson, from the Committee on
Revenue to which the following were referred, action taken earlier
today, and reported the same back with the following recommendations:
That the Floor Amendment be reported "recommends be adopted":
Amendment No. 1 to SENATE BILL 1666.
The committee roll call vote on Amendment No. 1 to SENATE BILL 1666
is as follows:
10, Yeas; 0, Nays; 0, Answering Present.
Y Lyons, Joseph, Chair A Kenner, V-Chair
Y Beaubien, Spkpn Y Lyons, Eileen
Y Biggins Y McGuire
Y Currie Y Pankau
Y Granberg Y Turner, Art
Y Watson
Representative Hoffman, Chairperson, from the Committee on
Transportation & Motor Vehicles to which the following were referred,
action taken earlier today, and reported the same back with the
following recommendations:
That the resolution be reported "recommends be adopted" and be
placed on the House Calendar: HOUSE RESOLUTION 827.
That the Floor Amendment be reported "recommends be adopted":
Amendment No. 1 to SENATE BILL 1657.
The committee roll call vote on HOUSE RESOLUTION 827 is as follows:
17, Yeas; 0, Nays; 0, Answering Present.
Y Hoffman, Chair Y Kosel
Y Bassi Y Lyons, Joseph
A Black Y Mathias
Y Brosnahan Y McAuliffe
A Collins A O'Brien, V-Chair
A Fowler Y O'Connor
Y Garrett Y Osterman
Y Hamos Y Reitz
Y Hartke Y Schmitz
Y Jones, John Y Wait, Spkpn
Y Zickus
SENATE BILLS ON THIRD READING
The following bill and any amendments adopted thereto was printed
and laid upon the Members' desks. Any amendments pending were tabled
pursuant to Rule 40(a).
On motion of Representative Bellock, SENATE BILL 2072 was taken up
and read by title a third time.
And the question being, "Shall this bill pass?" it was decided in
the affirmative by the following vote:
114, Yeas; 0, Nays; 0, Answering Present.
7 [May 1, 2002]
(ROLL CALL 2)
This bill, having received the votes of a constitutional majority
of the Members elected, was declared passed.
Ordered that the Clerk inform the Senate.
SENATE BILLS ON SECOND READING
Having been printed, the following bill was taken up, read by title
a second time and advanced to the order of Third Reading: SENATE BILL
1540.
RECESS
At the hour of 12:23 o'clock p.m., Representative Black moved that
the House do now take a recess until 1:30 o'clock p.m.
The motion prevailed.
At the hour of 1:52 o'clock p.m., the House resumed its session.
Speaker Madigan in the Chair.
SENATE BILLS ON SECOND READING
SENATE BILL 1543. Having been printed, was taken up and read by
title a second time.
Representative Currie offered the following amendment:
AMENDMENT NO. 1 TO SENATE BILL 1543
AMENDMENT NO. 1. Amend Senate Bill 1543 on page 1, immediately
below line 3, by inserting the following:
"Section 3. The Illinois Income Tax Act is amended by changing
Section 203 as follows:
(35 ILCS 5/203) (from Ch. 120, par. 2-203)
Sec. 203. Base income defined.
(a) Individuals.
(1) In general. In the case of an individual, base income
means an amount equal to the taxpayer's adjusted gross income for
the taxable year as modified by paragraph (2).
(2) Modifications. The adjusted gross income referred to in
paragraph (1) shall be modified by adding thereto the sum of the
following amounts:
(A) An amount equal to all amounts paid or accrued to
the taxpayer as interest or dividends during the taxable year
to the extent excluded from gross income in the computation of
adjusted gross income, except stock dividends of qualified
public utilities described in Section 305(e) of the Internal
Revenue Code;
(B) An amount equal to the amount of tax imposed by this
Act to the extent deducted from gross income in the
computation of adjusted gross income for the taxable year;
(C) An amount equal to the amount received during the
taxable year as a recovery or refund of real property taxes
paid with respect to the taxpayer's principal residence under
the Revenue Act of 1939 and for which a deduction was
previously taken under subparagraph (L) of this paragraph (2)
prior to July 1, 1991, the retrospective application date of
Article 4 of Public Act 87-17. In the case of multi-unit or
multi-use structures and farm dwellings, the taxes on the
taxpayer's principal residence shall be that portion of the
total taxes for the entire property which is attributable to
such principal residence;
(D) An amount equal to the amount of the capital gain
deduction allowable under the Internal Revenue Code, to the
[May 1, 2002] 8
extent deducted from gross income in the computation of
adjusted gross income;
(D-5) An amount, to the extent not included in adjusted
gross income, equal to the amount of money withdrawn by the
taxpayer in the taxable year from a medical care savings
account and the interest earned on the account in the taxable
year of a withdrawal pursuant to subsection (b) of Section 20
of the Medical Care Savings Account Act or subsection (b) of
Section 20 of the Medical Care Savings Account Act of 2000;
and
(D-10) For taxable years ending after December 31, 1997,
an amount equal to any eligible remediation costs that the
individual deducted in computing adjusted gross income and for
which the individual claims a credit under subsection (l) of
Section 201;
(D-15) For taxable years 2001 and thereafter, an amount
equal to the bonus depreciation deduction (30% of the adjusted
basis of the qualified property) taken on the taxpayer's
federal income tax return for the taxable year under
subsection (k) of Section 168 of the Internal Revenue Code;
and
(D-16) If the taxpayer reports a capital gain or loss on
the taxpayer's federal income tax return for the taxable year
based on a sale or transfer of property for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (D-15), then an amount equal
to the aggregate amount of the deductions taken in all taxable
years under subparagraph (Z) with respect to that property;
The taxpayer is required to make the addition
modification under this subparagraph only once with respect to
any one piece of property.
and by deducting from the total so obtained the sum of the
following amounts:
(E) For taxable years ending before December 31, 2001,
any amount included in such total in respect of any
compensation (including but not limited to any compensation
paid or accrued to a serviceman while a prisoner of war or
missing in action) paid to a resident by reason of being on
active duty in the Armed Forces of the United States and in
respect of any compensation paid or accrued to a resident who
as a governmental employee was a prisoner of war or missing in
action, and in respect of any compensation paid to a resident
in 1971 or thereafter for annual training performed pursuant
to Sections 502 and 503, Title 32, United States Code as a
member of the Illinois National Guard. For taxable years
ending on or after December 31, 2001, any amount included in
such total in respect of any compensation (including but not
limited to any compensation paid or accrued to a serviceman
while a prisoner of war or missing in action) paid to a
resident by reason of being a member of any component of the
Armed Forces of the United States and in respect of any
compensation paid or accrued to a resident who as a
governmental employee was a prisoner of war or missing in
action, and in respect of any compensation paid to a resident
in 2001 or thereafter by reason of being a member of the
Illinois National Guard. The provisions of this amendatory Act
of the 92nd General Assembly are exempt from the provisions of
Section 250;
(F) An amount equal to all amounts included in such
total pursuant to the provisions of Sections 402(a), 402(c),
403(a), 403(b), 406(a), 407(a), and 408 of the Internal
Revenue Code, or included in such total as distributions under
the provisions of any retirement or disability plan for
employees of any governmental agency or unit, or retirement
payments to retired partners, which payments are excluded in
computing net earnings from self employment by Section 1402 of
9 [May 1, 2002]
the Internal Revenue Code and regulations adopted pursuant
thereto;
(G) The valuation limitation amount;
(H) An amount equal to the amount of any tax imposed by
this Act which was refunded to the taxpayer and included in
such total for the taxable year;
(I) An amount equal to all amounts included in such
total pursuant to the provisions of Section 111 of the
Internal Revenue Code as a recovery of items previously
deducted from adjusted gross income in the computation of
taxable income;
(J) An amount equal to those dividends included in such
total which were paid by a corporation which conducts business
operations in an Enterprise Zone or zones created under the
Illinois Enterprise Zone Act, and conducts substantially all
of its operations in an Enterprise Zone or zones;
(K) An amount equal to those dividends included in such
total that were paid by a corporation that conducts business
operations in a federally designated Foreign Trade Zone or
Sub-Zone and that is designated a High Impact Business located
in Illinois; provided that dividends eligible for the
deduction provided in subparagraph (J) of paragraph (2) of
this subsection shall not be eligible for the deduction
provided under this subparagraph (K);
(L) For taxable years ending after December 31, 1983, an
amount equal to all social security benefits and railroad
retirement benefits included in such total pursuant to
Sections 72(r) and 86 of the Internal Revenue Code;
(M) With the exception of any amounts subtracted under
subparagraph (N), an amount equal to the sum of all amounts
disallowed as deductions by (i) Sections 171(a) (2), and
265(2) of the Internal Revenue Code of 1954, as now or
hereafter amended, and all amounts of expenses allocable to
interest and disallowed as deductions by Section 265(1) of
the Internal Revenue Code of 1954, as now or hereafter
amended; and (ii) for taxable years ending on or after August
13, 1999, Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i)
of the Internal Revenue Code; the provisions of this
subparagraph are exempt from the provisions of Section 250;
(N) An amount equal to all amounts included in such
total which are exempt from taxation by this State either by
reason of its statutes or Constitution or by reason of the
Constitution, treaties or statutes of the United States;
provided that, in the case of any statute of this State that
exempts income derived from bonds or other obligations from
the tax imposed under this Act, the amount exempted shall be
the interest net of bond premium amortization;
(O) An amount equal to any contribution made to a job
training project established pursuant to the Tax Increment
Allocation Redevelopment Act;
(P) An amount equal to the amount of the deduction used
to compute the federal income tax credit for restoration of
substantial amounts held under claim of right for the taxable
year pursuant to Section 1341 of the Internal Revenue Code of
1986;
(Q) An amount equal to any amounts included in such
total, received by the taxpayer as an acceleration in the
payment of life, endowment or annuity benefits in advance of
the time they would otherwise be payable as an indemnity for a
terminal illness;
(R) An amount equal to the amount of any federal or
State bonus paid to veterans of the Persian Gulf War;
(S) An amount, to the extent included in adjusted gross
income, equal to the amount of a contribution made in the
taxable year on behalf of the taxpayer to a medical care
savings account established under the Medical Care Savings
[May 1, 2002] 10
Account Act or the Medical Care Savings Account Act of 2000 to
the extent the contribution is accepted by the account
administrator as provided in that Act;
(T) An amount, to the extent included in adjusted gross
income, equal to the amount of interest earned in the taxable
year on a medical care savings account established under the
Medical Care Savings Account Act or the Medical Care Savings
Account Act of 2000 on behalf of the taxpayer, other than
interest added pursuant to item (D-5) of this paragraph (2);
(U) For one taxable year beginning on or after January
1, 1994, an amount equal to the total amount of tax imposed
and paid under subsections (a) and (b) of Section 201 of this
Act on grant amounts received by the taxpayer under the
Nursing Home Grant Assistance Act during the taxpayer's
taxable years 1992 and 1993;
(V) Beginning with tax years ending on or after December
31, 1995 and ending with tax years ending on or before
December 31, 2004, an amount equal to the amount paid by a
taxpayer who is a self-employed taxpayer, a partner of a
partnership, or a shareholder in a Subchapter S corporation
for health insurance or long-term care insurance for that
taxpayer or that taxpayer's spouse or dependents, to the
extent that the amount paid for that health insurance or
long-term care insurance may be deducted under Section 213 of
the Internal Revenue Code of 1986, has not been deducted on
the federal income tax return of the taxpayer, and does not
exceed the taxable income attributable to that taxpayer's
income, self-employment income, or Subchapter S corporation
income; except that no deduction shall be allowed under this
item (V) if the taxpayer is eligible to participate in any
health insurance or long-term care insurance plan of an
employer of the taxpayer or the taxpayer's spouse. The amount
of the health insurance and long-term care insurance
subtracted under this item (V) shall be determined by
multiplying total health insurance and long-term care
insurance premiums paid by the taxpayer times a number that
represents the fractional percentage of eligible medical
expenses under Section 213 of the Internal Revenue Code of
1986 not actually deducted on the taxpayer's federal income
tax return;
(W) For taxable years beginning on or after January 1,
1998, all amounts included in the taxpayer's federal gross
income in the taxable year from amounts converted from a
regular IRA to a Roth IRA. This paragraph is exempt from the
provisions of Section 250;
(X) For taxable year 1999 and thereafter, an amount
equal to the amount of any (i) distributions, to the extent
includible in gross income for federal income tax purposes,
made to the taxpayer because of his or her status as a victim
of persecution for racial or religious reasons by Nazi Germany
or any other Axis regime or as an heir of the victim and (ii)
items of income, to the extent includible in gross income for
federal income tax purposes, attributable to, derived from or
in any way related to assets stolen from, hidden from, or
otherwise lost to a victim of persecution for racial or
religious reasons by Nazi Germany or any other Axis regime
immediately prior to, during, and immediately after World War
II, including, but not limited to, interest on the proceeds
receivable as insurance under policies issued to a victim of
persecution for racial or religious reasons by Nazi Germany or
any other Axis regime by European insurance companies
immediately prior to and during World War II; provided,
however, this subtraction from federal adjusted gross income
does not apply to assets acquired with such assets or with the
proceeds from the sale of such assets; provided, further, this
paragraph shall only apply to a taxpayer who was the first
11 [May 1, 2002]
recipient of such assets after their recovery and who is a
victim of persecution for racial or religious reasons by Nazi
Germany or any other Axis regime or as an heir of the victim.
The amount of and the eligibility for any public assistance,
benefit, or similar entitlement is not affected by the
inclusion of items (i) and (ii) of this paragraph in gross
income for federal income tax purposes. This paragraph is
exempt from the provisions of Section 250; and
(Y) For taxable years beginning on or after January 1,
2002, moneys contributed in the taxable year to a College
Savings Pool account under Section 16.5 of the State Treasurer
Act. This subparagraph (Y) is exempt from the provisions of
Section 250;
(Z) For taxable years 2001 and thereafter, for the
taxable year in which the bonus depreciation deduction (30% of
the adjusted basis of the qualified property) is taken on the
taxpayer's federal income tax return under subsection (k) of
Section 168 of the Internal Revenue Code and for each
applicable taxable year thereafter, an amount equal to "x",
where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the taxpayer's
federal income tax return on property for which the bonus
depreciation deduction (30% of the adjusted basis of the
qualified property) was taken in any year under
subsection (k) of Section 168 of the Internal Revenue
Code, but not including the bonus depreciation deduction;
and
(2) "x" equals "y" multiplied by 30 and then
divided by 70 (or "y" multiplied by 0.429).
The aggregate amount deducted under this subparagraph in
all taxable years for any one piece of property may not exceed
the amount of the bonus depreciation deduction (30% of the
adjusted basis of the qualified property) taken on that
property on the taxpayer's federal income tax return under
subsection (k) of Section 168 of the Internal Revenue Code;
and
(AA) If the taxpayer reports a capital gain or loss on
the taxpayer's federal income tax return for the taxable year
based on a sale or transfer of property for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (D-15), then an amount equal
to that addition modification.
The taxpayer is allowed to take the deduction under this
subparagraph only once with respect to any one piece of
property.
(b) Corporations.
(1) In general. In the case of a corporation, base income
means an amount equal to the taxpayer's taxable income for the
taxable year as modified by paragraph (2).
(2) Modifications. The taxable income referred to in
paragraph (1) shall be modified by adding thereto the sum of the
following amounts:
(A) An amount equal to all amounts paid or accrued to
the taxpayer as interest and all distributions received from
regulated investment companies during the taxable year to the
extent excluded from gross income in the computation of
taxable income;
(B) An amount equal to the amount of tax imposed by this
Act to the extent deducted from gross income in the
computation of taxable income for the taxable year;
(C) In the case of a regulated investment company, an
amount equal to the excess of (i) the net long-term capital
gain for the taxable year, over (ii) the amount of the capital
gain dividends designated as such in accordance with Section
852(b)(3)(C) of the Internal Revenue Code and any amount
[May 1, 2002] 12
designated under Section 852(b)(3)(D) of the Internal Revenue
Code, attributable to the taxable year (this amendatory Act of
1995 (Public Act 89-89) is declarative of existing law and is
not a new enactment);
(D) The amount of any net operating loss deduction taken
in arriving at taxable income, other than a net operating loss
carried forward from a taxable year ending prior to December
31, 1986;
(E) For taxable years in which a net operating loss
carryback or carryforward from a taxable year ending prior to
December 31, 1986 is an element of taxable income under
paragraph (1) of subsection (e) or subparagraph (E) of
paragraph (2) of subsection (e), the amount by which addition
modifications other than those provided by this subparagraph
(E) exceeded subtraction modifications in such earlier taxable
year, with the following limitations applied in the order that
they are listed:
(i) the addition modification relating to the net
operating loss carried back or forward to the taxable
year from any taxable year ending prior to December 31,
1986 shall be reduced by the amount of addition
modification under this subparagraph (E) which related to
that net operating loss and which was taken into account
in calculating the base income of an earlier taxable
year, and
(ii) the addition modification relating to the net
operating loss carried back or forward to the taxable
year from any taxable year ending prior to December 31,
1986 shall not exceed the amount of such carryback or
carryforward;
For taxable years in which there is a net operating loss
carryback or carryforward from more than one other taxable
year ending prior to December 31, 1986, the addition
modification provided in this subparagraph (E) shall be the
sum of the amounts computed independently under the preceding
provisions of this subparagraph (E) for each such taxable
year; and
(E-5) For taxable years ending after December 31, 1997,
an amount equal to any eligible remediation costs that the
corporation deducted in computing adjusted gross income and
for which the corporation claims a credit under subsection (l)
of Section 201;
(E-10) For taxable years 2001 and thereafter, an amount
equal to the bonus depreciation deduction (30% of the adjusted
basis of the qualified property) taken on the taxpayer's
federal income tax return for the taxable year under
subsection (k) of Section 168 of the Internal Revenue Code;
and
(E-11) If the taxpayer reports a capital gain or loss on
the taxpayer's federal income tax return for the taxable year
based on a sale or transfer of property for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (E-10), then an amount equal
to the aggregate amount of the deductions taken in all taxable
years under subparagraph (T) with respect to that property;
The taxpayer is required to make the addition
modification under this subparagraph only once with respect to
any one piece of property.
and by deducting from the total so obtained the sum of the
following amounts:
(F) An amount equal to the amount of any tax imposed by
this Act which was refunded to the taxpayer and included in
such total for the taxable year;
(G) An amount equal to any amount included in such total
under Section 78 of the Internal Revenue Code;
(H) In the case of a regulated investment company, an
13 [May 1, 2002]
amount equal to the amount of exempt interest dividends as
defined in subsection (b) (5) of Section 852 of the Internal
Revenue Code, paid to shareholders for the taxable year;
(I) With the exception of any amounts subtracted under
subparagraph (J), an amount equal to the sum of all amounts
disallowed as deductions by (i) Sections 171(a) (2), and
265(a)(2) and amounts disallowed as interest expense by
Section 291(a)(3) of the Internal Revenue Code, as now or
hereafter amended, and all amounts of expenses allocable to
interest and disallowed as deductions by Section 265(a)(1) of
the Internal Revenue Code, as now or hereafter amended; and
(ii) for taxable years ending on or after August 13, 1999,
Sections 171(a)(2), 265, 280C, 291(a)(3), and 832(b)(5)(B)(i)
of the Internal Revenue Code; the provisions of this
subparagraph are exempt from the provisions of Section 250;
(J) An amount equal to all amounts included in such
total which are exempt from taxation by this State either by
reason of its statutes or Constitution or by reason of the
Constitution, treaties or statutes of the United States;
provided that, in the case of any statute of this State that
exempts income derived from bonds or other obligations from
the tax imposed under this Act, the amount exempted shall be
the interest net of bond premium amortization;
(K) An amount equal to those dividends included in such
total which were paid by a corporation which conducts business
operations in an Enterprise Zone or zones created under the
Illinois Enterprise Zone Act and conducts substantially all of
its operations in an Enterprise Zone or zones;
(L) An amount equal to those dividends included in such
total that were paid by a corporation that conducts business
operations in a federally designated Foreign Trade Zone or
Sub-Zone and that is designated a High Impact Business located
in Illinois; provided that dividends eligible for the
deduction provided in subparagraph (K) of paragraph 2 of this
subsection shall not be eligible for the deduction provided
under this subparagraph (L);
(M) For any taxpayer that is a financial organization
within the meaning of Section 304(c) of this Act, an amount
included in such total as interest income from a loan or loans
made by such taxpayer to a borrower, to the extent that such a
loan is secured by property which is eligible for the
Enterprise Zone Investment Credit. To determine the portion
of a loan or loans that is secured by property eligible for a
Section 201(f) investment credit to the borrower, the entire
principal amount of the loan or loans between the taxpayer and
the borrower should be divided into the basis of the Section
201(f) investment credit property which secures the loan or
loans, using for this purpose the original basis of such
property on the date that it was placed in service in the
Enterprise Zone. The subtraction modification available to
taxpayer in any year under this subsection shall be that
portion of the total interest paid by the borrower with
respect to such loan attributable to the eligible property as
calculated under the previous sentence;
(M-1) For any taxpayer that is a financial organization
within the meaning of Section 304(c) of this Act, an amount
included in such total as interest income from a loan or loans
made by such taxpayer to a borrower, to the extent that such a
loan is secured by property which is eligible for the High
Impact Business Investment Credit. To determine the portion
of a loan or loans that is secured by property eligible for a
Section 201(h) investment credit to the borrower, the entire
principal amount of the loan or loans between the taxpayer and
the borrower should be divided into the basis of the Section
201(h) investment credit property which secures the loan or
loans, using for this purpose the original basis of such
[May 1, 2002] 14
property on the date that it was placed in service in a
federally designated Foreign Trade Zone or Sub-Zone located in
Illinois. No taxpayer that is eligible for the deduction
provided in subparagraph (M) of paragraph (2) of this
subsection shall be eligible for the deduction provided under
this subparagraph (M-1). The subtraction modification
available to taxpayers in any year under this subsection shall
be that portion of the total interest paid by the borrower
with respect to such loan attributable to the eligible
property as calculated under the previous sentence;
(N) Two times any contribution made during the taxable
year to a designated zone organization to the extent that the
contribution (i) qualifies as a charitable contribution under
subsection (c) of Section 170 of the Internal Revenue Code and
(ii) must, by its terms, be used for a project approved by the
Department of Commerce and Community Affairs under Section 11
of the Illinois Enterprise Zone Act;
(O) An amount equal to: (i) 85% for taxable years ending
on or before December 31, 1992, or, a percentage equal to the
percentage allowable under Section 243(a)(1) of the Internal
Revenue Code of 1986 for taxable years ending after December
31, 1992, of the amount by which dividends included in taxable
income and received from a corporation that is not created or
organized under the laws of the United States or any state or
political subdivision thereof, including, for taxable years
ending on or after December 31, 1988, dividends received or
deemed received or paid or deemed paid under Sections 951
through 964 of the Internal Revenue Code, exceed the amount of
the modification provided under subparagraph (G) of paragraph
(2) of this subsection (b) which is related to such dividends;
plus (ii) 100% of the amount by which dividends, included in
taxable income and received, including, for taxable years
ending on or after December 31, 1988, dividends received or
deemed received or paid or deemed paid under Sections 951
through 964 of the Internal Revenue Code, from any such
corporation specified in clause (i) that would but for the
provisions of Section 1504 (b) (3) of the Internal Revenue
Code be treated as a member of the affiliated group which
includes the dividend recipient, exceed the amount of the
modification provided under subparagraph (G) of paragraph (2)
of this subsection (b) which is related to such dividends;
(P) An amount equal to any contribution made to a job
training project established pursuant to the Tax Increment
Allocation Redevelopment Act;
(Q) An amount equal to the amount of the deduction used
to compute the federal income tax credit for restoration of
substantial amounts held under claim of right for the taxable
year pursuant to Section 1341 of the Internal Revenue Code of
1986;
(R) In the case of an attorney-in-fact with respect to
whom an interinsurer or a reciprocal insurer has made the
election under Section 835 of the Internal Revenue Code, 26
U.S.C. 835, an amount equal to the excess, if any, of the
amounts paid or incurred by that interinsurer or reciprocal
insurer in the taxable year to the attorney-in-fact over the
deduction allowed to that interinsurer or reciprocal insurer
with respect to the attorney-in-fact under Section 835(b) of
the Internal Revenue Code for the taxable year; and
(S) For taxable years ending on or after December 31,
1997, in the case of a Subchapter S corporation, an amount
equal to all amounts of income allocable to a shareholder
subject to the Personal Property Tax Replacement Income Tax
imposed by subsections (c) and (d) of Section 201 of this Act,
including amounts allocable to organizations exempt from
federal income tax by reason of Section 501(a) of the Internal
Revenue Code. This subparagraph (S) is exempt from the
15 [May 1, 2002]
provisions of Section 250;
(T) For taxable years 2001 and thereafter, for the
taxable year in which the bonus depreciation deduction (30% of
the adjusted basis of the qualified property) is taken on the
taxpayer's federal income tax return under subsection (k) of
Section 168 of the Internal Revenue Code and for each
applicable taxable year thereafter, an amount equal to "x",
where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the taxpayer's
federal income tax return on property for which the bonus
depreciation deduction (30% of the adjusted basis of the
qualified property) was taken in any year under
subsection (k) of Section 168 of the Internal Revenue
Code, but not including the bonus depreciation deduction;
and
(2) "x" equals "y" multiplied by 30 and then
divided by 70 (or "y" multiplied by 0.429).
The aggregate amount deducted under this subparagraph in
all taxable years for any one piece of property may not exceed
the amount of the bonus depreciation deduction (30% of the
adjusted basis of the qualified property) taken on that
property on the taxpayer's federal income tax return under
subsection (k) of Section 168 of the Internal Revenue Code;
and
(U) If the taxpayer reports a capital gain or loss on
the taxpayer's federal income tax return for the taxable year
based on a sale or transfer of property for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (E-10), then an amount equal
to that addition modification.
The taxpayer is allowed to take the deduction under this
subparagraph only once with respect to any one piece of
property.
(3) Special rule. For purposes of paragraph (2) (A), "gross
income" in the case of a life insurance company, for tax years
ending on and after December 31, 1994, shall mean the gross
investment income for the taxable year.
(c) Trusts and estates.
(1) In general. In the case of a trust or estate, base
income means an amount equal to the taxpayer's taxable income for
the taxable year as modified by paragraph (2).
(2) Modifications. Subject to the provisions of paragraph
(3), the taxable income referred to in paragraph (1) shall be
modified by adding thereto the sum of the following amounts:
(A) An amount equal to all amounts paid or accrued to
the taxpayer as interest or dividends during the taxable year
to the extent excluded from gross income in the computation of
taxable income;
(B) In the case of (i) an estate, $600; (ii) a trust
which, under its governing instrument, is required to
distribute all of its income currently, $300; and (iii) any
other trust, $100, but in each such case, only to the extent
such amount was deducted in the computation of taxable income;
(C) An amount equal to the amount of tax imposed by this
Act to the extent deducted from gross income in the
computation of taxable income for the taxable year;
(D) The amount of any net operating loss deduction taken
in arriving at taxable income, other than a net operating loss
carried forward from a taxable year ending prior to December
31, 1986;
(E) For taxable years in which a net operating loss
carryback or carryforward from a taxable year ending prior to
December 31, 1986 is an element of taxable income under
paragraph (1) of subsection (e) or subparagraph (E) of
paragraph (2) of subsection (e), the amount by which addition
[May 1, 2002] 16
modifications other than those provided by this subparagraph
(E) exceeded subtraction modifications in such taxable year,
with the following limitations applied in the order that they
are listed:
(i) the addition modification relating to the net
operating loss carried back or forward to the taxable
year from any taxable year ending prior to December 31,
1986 shall be reduced by the amount of addition
modification under this subparagraph (E) which related to
that net operating loss and which was taken into account
in calculating the base income of an earlier taxable
year, and
(ii) the addition modification relating to the net
operating loss carried back or forward to the taxable
year from any taxable year ending prior to December 31,
1986 shall not exceed the amount of such carryback or
carryforward;
For taxable years in which there is a net operating loss
carryback or carryforward from more than one other taxable
year ending prior to December 31, 1986, the addition
modification provided in this subparagraph (E) shall be the
sum of the amounts computed independently under the preceding
provisions of this subparagraph (E) for each such taxable
year;
(F) For taxable years ending on or after January 1,
1989, an amount equal to the tax deducted pursuant to Section
164 of the Internal Revenue Code if the trust or estate is
claiming the same tax for purposes of the Illinois foreign tax
credit under Section 601 of this Act;
(G) An amount equal to the amount of the capital gain
deduction allowable under the Internal Revenue Code, to the
extent deducted from gross income in the computation of
taxable income; and
(G-5) For taxable years ending after December 31, 1997,
an amount equal to any eligible remediation costs that the
trust or estate deducted in computing adjusted gross income
and for which the trust or estate claims a credit under
subsection (l) of Section 201;
(G-10) For taxable years 2001 and thereafter, an amount
equal to the bonus depreciation deduction (30% of the adjusted
basis of the qualified property) taken on the taxpayer's
federal income tax return for the taxable year under
subsection (k) of Section 168 of the Internal Revenue Code;
and
(G-11) If the taxpayer reports a capital gain or loss on
the taxpayer's federal income tax return for the taxable year
based on a sale or transfer of property for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (G-10), then an amount equal
to the aggregate amount of the deductions taken in all taxable
years under subparagraph (R) with respect to that property;
The taxpayer is required to make the addition
modification under this subparagraph only once with respect to
any one piece of property.
and by deducting from the total so obtained the sum of the
following amounts:
(H) An amount equal to all amounts included in such
total pursuant to the provisions of Sections 402(a), 402(c),
403(a), 403(b), 406(a), 407(a) and 408 of the Internal Revenue
Code or included in such total as distributions under the
provisions of any retirement or disability plan for employees
of any governmental agency or unit, or retirement payments to
retired partners, which payments are excluded in computing net
earnings from self employment by Section 1402 of the Internal
Revenue Code and regulations adopted pursuant thereto;
(I) The valuation limitation amount;
17 [May 1, 2002]
(J) An amount equal to the amount of any tax imposed by
this Act which was refunded to the taxpayer and included in
such total for the taxable year;
(K) An amount equal to all amounts included in taxable
income as modified by subparagraphs (A), (B), (C), (D), (E),
(F) and (G) which are exempt from taxation by this State
either by reason of its statutes or Constitution or by reason
of the Constitution, treaties or statutes of the United
States; provided that, in the case of any statute of this
State that exempts income derived from bonds or other
obligations from the tax imposed under this Act, the amount
exempted shall be the interest net of bond premium
amortization;
(L) With the exception of any amounts subtracted under
subparagraph (K), an amount equal to the sum of all amounts
disallowed as deductions by (i) Sections 171(a) (2) and
265(a)(2) of the Internal Revenue Code, as now or hereafter
amended, and all amounts of expenses allocable to interest and
disallowed as deductions by Section 265(1) of the Internal
Revenue Code of 1954, as now or hereafter amended; and (ii)
for taxable years ending on or after August 13, 1999, Sections
171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the Internal
Revenue Code; the provisions of this subparagraph are exempt
from the provisions of Section 250;
(M) An amount equal to those dividends included in such
total which were paid by a corporation which conducts business
operations in an Enterprise Zone or zones created under the
Illinois Enterprise Zone Act and conducts substantially all of
its operations in an Enterprise Zone or Zones;
(N) An amount equal to any contribution made to a job
training project established pursuant to the Tax Increment
Allocation Redevelopment Act;
(O) An amount equal to those dividends included in such
total that were paid by a corporation that conducts business
operations in a federally designated Foreign Trade Zone or
Sub-Zone and that is designated a High Impact Business located
in Illinois; provided that dividends eligible for the
deduction provided in subparagraph (M) of paragraph (2) of
this subsection shall not be eligible for the deduction
provided under this subparagraph (O);
(P) An amount equal to the amount of the deduction used
to compute the federal income tax credit for restoration of
substantial amounts held under claim of right for the taxable
year pursuant to Section 1341 of the Internal Revenue Code of
1986; and
(Q) For taxable year 1999 and thereafter, an amount
equal to the amount of any (i) distributions, to the extent
includible in gross income for federal income tax purposes,
made to the taxpayer because of his or her status as a victim
of persecution for racial or religious reasons by Nazi Germany
or any other Axis regime or as an heir of the victim and (ii)
items of income, to the extent includible in gross income for
federal income tax purposes, attributable to, derived from or
in any way related to assets stolen from, hidden from, or
otherwise lost to a victim of persecution for racial or
religious reasons by Nazi Germany or any other Axis regime
immediately prior to, during, and immediately after World War
II, including, but not limited to, interest on the proceeds
receivable as insurance under policies issued to a victim of
persecution for racial or religious reasons by Nazi Germany or
any other Axis regime by European insurance companies
immediately prior to and during World War II; provided,
however, this subtraction from federal adjusted gross income
does not apply to assets acquired with such assets or with the
proceeds from the sale of such assets; provided, further, this
paragraph shall only apply to a taxpayer who was the first
[May 1, 2002] 18
recipient of such assets after their recovery and who is a
victim of persecution for racial or religious reasons by Nazi
Germany or any other Axis regime or as an heir of the victim.
The amount of and the eligibility for any public assistance,
benefit, or similar entitlement is not affected by the
inclusion of items (i) and (ii) of this paragraph in gross
income for federal income tax purposes. This paragraph is
exempt from the provisions of Section 250;
(R) For taxable years 2001 and thereafter, for the
taxable year in which the bonus depreciation deduction (30% of
the adjusted basis of the qualified property) is taken on the
taxpayer's federal income tax return under subsection (k) of
Section 168 of the Internal Revenue Code and for each
applicable taxable year thereafter, an amount equal to "x",
where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the taxpayer's
federal income tax return on property for which the bonus
depreciation deduction (30% of the adjusted basis of the
qualified property) was taken in any year under
subsection (k) of Section 168 of the Internal Revenue
Code, but not including the bonus depreciation deduction;
and
(2) "x" equals "y" multiplied by 30 and then
divided by 70 (or "y" multiplied by 0.429).
The aggregate amount deducted under this subparagraph in
all taxable years for any one piece of property may not exceed
the amount of the bonus depreciation deduction (30% of the
adjusted basis of the qualified property) taken on that
property on the taxpayer's federal income tax return under
subsection (k) of Section 168 of the Internal Revenue Code;
and
(S) If the taxpayer reports a capital gain or loss on
the taxpayer's federal income tax return for the taxable year
based on a sale or transfer of property for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (G-10), then an amount equal
to that addition modification.
The taxpayer is allowed to take the deduction under this
subparagraph only once with respect to any one piece of
property.
(3) Limitation. The amount of any modification otherwise
required under this subsection shall, under regulations prescribed
by the Department, be adjusted by any amounts included therein
which were properly paid, credited, or required to be distributed,
or permanently set aside for charitable purposes pursuant to
Internal Revenue Code Section 642(c) during the taxable year.
(d) Partnerships.
(1) In general. In the case of a partnership, base income
means an amount equal to the taxpayer's taxable income for the
taxable year as modified by paragraph (2).
(2) Modifications. The taxable income referred to in
paragraph (1) shall be modified by adding thereto the sum of the
following amounts:
(A) An amount equal to all amounts paid or accrued to
the taxpayer as interest or dividends during the taxable year
to the extent excluded from gross income in the computation of
taxable income;
(B) An amount equal to the amount of tax imposed by this
Act to the extent deducted from gross income for the taxable
year;
(C) The amount of deductions allowed to the partnership
pursuant to Section 707 (c) of the Internal Revenue Code in
calculating its taxable income; and
(D) An amount equal to the amount of the capital gain
deduction allowable under the Internal Revenue Code, to the
19 [May 1, 2002]
extent deducted from gross income in the computation of
taxable income;
(D-5) For taxable years 2001 and thereafter, an amount
equal to the bonus depreciation deduction (30% of the adjusted
basis of the qualified property) taken on the taxpayer's
federal income tax return for the taxable year under
subsection (k) of Section 168 of the Internal Revenue Code;
and
(D-6) If the taxpayer reports a capital gain or loss on
the taxpayer's federal income tax return for the taxable year
based on a sale or transfer of property for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (D-5), then an amount equal to
the aggregate amount of the deductions taken in all taxable
years under subparagraph (O) with respect to that property;
The taxpayer is required to make the addition
modification under this subparagraph only once with respect to
any one piece of property.
and by deducting from the total so obtained the following amounts:
(E) The valuation limitation amount;
(F) An amount equal to the amount of any tax imposed by
this Act which was refunded to the taxpayer and included in
such total for the taxable year;
(G) An amount equal to all amounts included in taxable
income as modified by subparagraphs (A), (B), (C) and (D)
which are exempt from taxation by this State either by reason
of its statutes or Constitution or by reason of the
Constitution, treaties or statutes of the United States;
provided that, in the case of any statute of this State that
exempts income derived from bonds or other obligations from
the tax imposed under this Act, the amount exempted shall be
the interest net of bond premium amortization;
(H) Any income of the partnership which constitutes
personal service income as defined in Section 1348 (b) (1) of
the Internal Revenue Code (as in effect December 31, 1981) or
a reasonable allowance for compensation paid or accrued for
services rendered by partners to the partnership, whichever is
greater;
(I) An amount equal to all amounts of income
distributable to an entity subject to the Personal Property
Tax Replacement Income Tax imposed by subsections (c) and (d)
of Section 201 of this Act including amounts distributable to
organizations exempt from federal income tax by reason of
Section 501(a) of the Internal Revenue Code;
(J) With the exception of any amounts subtracted under
subparagraph (G), an amount equal to the sum of all amounts
disallowed as deductions by (i) Sections 171(a) (2), and
265(2) of the Internal Revenue Code of 1954, as now or
hereafter amended, and all amounts of expenses allocable to
interest and disallowed as deductions by Section 265(1) of the
Internal Revenue Code, as now or hereafter amended; and (ii)
for taxable years ending on or after August 13, 1999, Sections
171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the Internal
Revenue Code; the provisions of this subparagraph are exempt
from the provisions of Section 250;
(K) An amount equal to those dividends included in such
total which were paid by a corporation which conducts business
operations in an Enterprise Zone or zones created under the
Illinois Enterprise Zone Act, enacted by the 82nd General
Assembly, and which does not conduct such operations other
than in an Enterprise Zone or Zones;
(L) An amount equal to any contribution made to a job
training project established pursuant to the Real Property Tax
Increment Allocation Redevelopment Act;
(M) An amount equal to those dividends included in such
total that were paid by a corporation that conducts business
[May 1, 2002] 20
operations in a federally designated Foreign Trade Zone or
Sub-Zone and that is designated a High Impact Business located
in Illinois; provided that dividends eligible for the
deduction provided in subparagraph (K) of paragraph (2) of
this subsection shall not be eligible for the deduction
provided under this subparagraph (M);
(N) An amount equal to the amount of the deduction used
to compute the federal income tax credit for restoration of
substantial amounts held under claim of right for the taxable
year pursuant to Section 1341 of the Internal Revenue Code of
1986;
(O) For taxable years 2001 and thereafter, for the
taxable year in which the bonus depreciation deduction (30% of
the adjusted basis of the qualified property) is taken on the
taxpayer's federal income tax return under subsection (k) of
Section 168 of the Internal Revenue Code and for each
applicable taxable year thereafter, an amount equal to "x",
where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the taxpayer's
federal income tax return on property for which the bonus
depreciation deduction (30% of the adjusted basis of the
qualified property) was taken in any year under
subsection (k) of Section 168 of the Internal Revenue
Code, but not including the bonus depreciation deduction;
and
(2) "x" equals "y" multiplied by 30 and then
divided by 70 (or "y" multiplied by 0.429).
The aggregate amount deducted under this subparagraph in
all taxable years for any one piece of property may not exceed
the amount of the bonus depreciation deduction (30% of the
adjusted basis of the qualified property) taken on that
property on the taxpayer's federal income tax return under
subsection (k) of Section 168 of the Internal Revenue Code;
and
(P) If the taxpayer reports a capital gain or loss on
the taxpayer's federal income tax return for the taxable year
based on a sale or transfer of property for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (D-5), then an amount equal to
that addition modification.
The taxpayer is allowed to take the deduction under this
subparagraph only once with respect to any one piece of
property.
(e) Gross income; adjusted gross income; taxable income.
(1) In general. Subject to the provisions of paragraph (2)
and subsection (b) (3), for purposes of this Section and Section
803(e), a taxpayer's gross income, adjusted gross income, or
taxable income for the taxable year shall mean the amount of gross
income, adjusted gross income or taxable income properly reportable
for federal income tax purposes for the taxable year under the
provisions of the Internal Revenue Code. Taxable income may be less
than zero. However, for taxable years ending on or after December
31, 1986, net operating loss carryforwards from taxable years
ending prior to December 31, 1986, may not exceed the sum of
federal taxable income for the taxable year before net operating
loss deduction, plus the excess of addition modifications over
subtraction modifications for the taxable year. For taxable years
ending prior to December 31, 1986, taxable income may never be an
amount in excess of the net operating loss for the taxable year as
defined in subsections (c) and (d) of Section 172 of the Internal
Revenue Code, provided that when taxable income of a corporation
(other than a Subchapter S corporation), trust, or estate is less
than zero and addition modifications, other than those provided by
subparagraph (E) of paragraph (2) of subsection (b) for
corporations or subparagraph (E) of paragraph (2) of subsection (c)
21 [May 1, 2002]
for trusts and estates, exceed subtraction modifications, an
addition modification must be made under those subparagraphs for
any other taxable year to which the taxable income less than zero
(net operating loss) is applied under Section 172 of the Internal
Revenue Code or under subparagraph (E) of paragraph (2) of this
subsection (e) applied in conjunction with Section 172 of the
Internal Revenue Code.
(2) Special rule. For purposes of paragraph (1) of this
subsection, the taxable income properly reportable for federal
income tax purposes shall mean:
(A) Certain life insurance companies. In the case of a
life insurance company subject to the tax imposed by Section
801 of the Internal Revenue Code, life insurance company
taxable income, plus the amount of distribution from pre-1984
policyholder surplus accounts as calculated under Section 815a
of the Internal Revenue Code;
(B) Certain other insurance companies. In the case of
mutual insurance companies subject to the tax imposed by
Section 831 of the Internal Revenue Code, insurance company
taxable income;
(C) Regulated investment companies. In the case of a
regulated investment company subject to the tax imposed by
Section 852 of the Internal Revenue Code, investment company
taxable income;
(D) Real estate investment trusts. In the case of a
real estate investment trust subject to the tax imposed by
Section 857 of the Internal Revenue Code, real estate
investment trust taxable income;
(E) Consolidated corporations. In the case of a
corporation which is a member of an affiliated group of
corporations filing a consolidated income tax return for the
taxable year for federal income tax purposes, taxable income
determined as if such corporation had filed a separate return
for federal income tax purposes for the taxable year and each
preceding taxable year for which it was a member of an
affiliated group. For purposes of this subparagraph, the
taxpayer's separate taxable income shall be determined as if
the election provided by Section 243(b) (2) of the Internal
Revenue Code had been in effect for all such years;
(F) Cooperatives. In the case of a cooperative
corporation or association, the taxable income of such
organization determined in accordance with the provisions of
Section 1381 through 1388 of the Internal Revenue Code;
(G) Subchapter S corporations. In the case of: (i) a
Subchapter S corporation for which there is in effect an
election for the taxable year under Section 1362 of the
Internal Revenue Code, the taxable income of such corporation
determined in accordance with Section 1363(b) of the Internal
Revenue Code, except that taxable income shall take into
account those items which are required by Section 1363(b)(1)
of the Internal Revenue Code to be separately stated; and (ii)
a Subchapter S corporation for which there is in effect a
federal election to opt out of the provisions of the
Subchapter S Revision Act of 1982 and have applied instead the
prior federal Subchapter S rules as in effect on July 1, 1982,
the taxable income of such corporation determined in
accordance with the federal Subchapter S rules as in effect on
July 1, 1982; and
(H) Partnerships. In the case of a partnership, taxable
income determined in accordance with Section 703 of the
Internal Revenue Code, except that taxable income shall take
into account those items which are required by Section
703(a)(1) to be separately stated but which would be taken
into account by an individual in calculating his taxable
income.
(f) Valuation limitation amount.
[May 1, 2002] 22
(1) In general. The valuation limitation amount referred to
in subsections (a) (2) (G), (c) (2) (I) and (d)(2) (E) is an amount
equal to:
(A) The sum of the pre-August 1, 1969 appreciation
amounts (to the extent consisting of gain reportable under the
provisions of Section 1245 or 1250 of the Internal Revenue
Code) for all property in respect of which such gain was
reported for the taxable year; plus
(B) The lesser of (i) the sum of the pre-August 1, 1969
appreciation amounts (to the extent consisting of capital
gain) for all property in respect of which such gain was
reported for federal income tax purposes for the taxable year,
or (ii) the net capital gain for the taxable year, reduced in
either case by any amount of such gain included in the amount
determined under subsection (a) (2) (F) or (c) (2) (H).
(2) Pre-August 1, 1969 appreciation amount.
(A) If the fair market value of property referred to in
paragraph (1) was readily ascertainable on August 1, 1969, the
pre-August 1, 1969 appreciation amount for such property is
the lesser of (i) the excess of such fair market value over
the taxpayer's basis (for determining gain) for such property
on that date (determined under the Internal Revenue Code as in
effect on that date), or (ii) the total gain realized and
reportable for federal income tax purposes in respect of the
sale, exchange or other disposition of such property.
(B) If the fair market value of property referred to in
paragraph (1) was not readily ascertainable on August 1, 1969,
the pre-August 1, 1969 appreciation amount for such property
is that amount which bears the same ratio to the total gain
reported in respect of the property for federal income tax
purposes for the taxable year, as the number of full calendar
months in that part of the taxpayer's holding period for the
property ending July 31, 1969 bears to the number of full
calendar months in the taxpayer's entire holding period for
the property.
(C) The Department shall prescribe such regulations as
may be necessary to carry out the purposes of this paragraph.
(g) Double deductions. Unless specifically provided otherwise,
nothing in this Section shall permit the same item to be deducted more
than once.
(h) Legislative intention. Except as expressly provided by this
Section there shall be no modifications or limitations on the amounts
of income, gain, loss or deduction taken into account in determining
gross income, adjusted gross income or taxable income for federal
income tax purposes for the taxable year, or in the amount of such
items entering into the computation of base income and net income under
this Act for such taxable year, whether in respect of property values
as of August 1, 1969 or otherwise.
(Source: P.A. 91-192, eff. 7-20-99; 91-205, eff. 7-20-99; 91-357, eff.
7-29-99; 91-541, eff. 8-13-99; 91-676, eff. 12-23-99; 91-845, eff.
6-22-00; 91-913, eff. 1-1-01; 92-16, eff. 6-28-01; 92-244, eff. 8-3-01;
92-439, eff. 8-17-01; revised 9-21-01.)".
Pursuant to the Motion submitted previously, Representative Black
moved to table Amendment No. 1.
And on that motion, a vote was taken resulting as follows:
54, Yeas; 59, Nays; 0, Answering Present.
(ROLL CALL 3)
The motion lost.
Representative Currie then moved the adoption of Amendment No. 1.
And on that motion, a vote was taken resulting as follows:
63, Yeas; 37, Nays; 13, Answering Present.
(ROLL CALL 4)
23 [May 1, 2002]
Representative Black moved table Amendment No. 1.
And on that motion, a vote was taken resulting as follows:
54, Yeas; 59, Nays; 0, Answering Present.
(ROLL CALL 3)
The motion lost.
Representative Currie again moved the adoption of Amendment No. 1.
The motion prevailed and the amendment was adopted and ordered
printed.
There being no further amendments, the foregoing Amendment No. 1
was adopted and the bill, as amended, was advanced to the order of
Third Reading.
SENATE BILLS ON THIRD READING
The following bill and any amendments adopted thereto was printed
and laid upon the Members' desks. Any amendments pending were tabled
pursuant to Rule 40(a).
On motion of Representative Currie, SENATE BILL 1543 was taken up
and read by title a third time.
And the question being, "Shall this bill pass?" it was decided in
the affirmative by the following vote:
66, Yeas; 32, Nays; 15, Answering Present.
(ROLL CALL 5)
This bill, as amended, having received the votes of a
constitutional majority of the Members elected, was declared passed.
Ordered that the Clerk inform the Senate and ask their concurrence
in the House amendment/s adopted.
SENATE BILLS ON SECOND READING
Having been printed, the following bill was taken up, read by title
a second time and advanced to the order of Third Reading: SENATE BILL
1859.
SENATE BILL 2081. Having been printed, was taken up and read by
title a second time.
The following amendments were offered in the Committee on Energy &
Environment, adopted and printed:
AMENDMENT NO. 1 TO SENATE BILL 2081
AMENDMENT NO. 1. Amend Senate Bill 2081 on page 1, line 4, by
changing "by" to "by changing Section 16-102 and"; and
on page 1 by inserting immediately below line 5 the following:
"(220 ILCS 5/16-102)
Sec. 16-102. Definitions. For the purposes of this Article the
following terms shall be defined as set forth in this Section.
"Alternative retail electric supplier" means every person,
cooperative, corporation, municipal corporation, company, association,
joint stock company or association, firm, partnership, individual, or
other entity, their lessees, trustees, or receivers appointed by any
court whatsoever, that offers electric power or energy for sale, lease
or in exchange for other value received to one or more retail
customers, or that engages in the delivery or furnishing of electric
power or energy to such retail customers, and shall include, without
limitation, resellers, aggregators and power marketers, but shall not
include (i) electric utilities (or any agent of the electric utility to
the extent the electric utility provides tariffed services to retail
customers through that agent), (ii) any electric cooperative or
[May 1, 2002] 24
municipal system as defined in Section 17-100 to the extent that the
electric cooperative or municipal system is serving retail customers
within any area in which it is or would be entitled to provide service
under the law in effect immediately prior to the effective date of this
amendatory Act of 1997, (iii) a public utility that is owned and
operated by any public institution of higher education of this State,
or a public utility that is owned by such public institution of higher
education and operated by any of its lessees or operating agents,
within any area in which it is or would be entitled to provide service
under the law in effect immediately prior to the effective date of this
amendatory Act of 1997, (iv) a retail customer to the extent that
customer obtains its electric power and energy from that customer's own
cogeneration or self-generation facilities, (v) an entity that owns,
operates, sells, or arranges for the installation of a customer's own
cogeneration or self-generation facilities, but only to the extent the
entity is engaged in owning, selling or arranging for the installation
of such facility, or operating the facility on behalf of such
customer, provided however that any such third party owner or operator
of a facility built after January 1, 1999, complies with the labor
provisions of Section 16-128(a) as though such third party were an
alternative retail electric supplier, or (vi) an industrial or
manufacturing customer that owns its own distribution facilities, to
the extent that the customer provides service from that distribution
system to a third-party contractor located on the customer's premises
that is integrally and predominantly engaged in the customer's
industrial or manufacturing process; provided, that if the industrial
or manufacturing customer has elected delivery services, the customer
shall pay transition charges applicable to the electric power and
energy consumed by the third-party contractor unless such charges are
otherwise paid by the third party contractor, which shall be calculated
based on the usage of, and the base rates or the contract rates
applicable to, the third-party contractor in accordance with Section
16-102.
"Base rates" means the rates for those tariffed services that the
electric utility is required to offer pursuant to subsection (a) of
Section 16-103 and that were identified in a rate order for collection
of the electric utility's base rate revenue requirement, excluding (i)
separate automatic rate adjustment riders then in effect, (ii) special
or negotiated contract rates, (iii) delivery services tariffs filed
pursuant to Section 16-108, (iv) real-time pricing, or (v) tariffs that
were in effect prior to October 1, 1996 and that based charges for
services on an index or average of other utilities' charges, but
including (vi) any subsequent redesign of such rates for tariffed
services that is authorized by the Commission after notice and hearing.
"Competitive service" includes (i) any service that has been
declared to be competitive pursuant to Section 16-113 of this Act, (ii)
contract service, and (iii) services, other than tariffed services,
that are related to, but not necessary for, the provision of electric
power and energy or delivery services.
"Contract service" means (1) services, including the provision of
electric power and energy or other services, that are provided by
mutual agreement between an electric utility and a retail customer that
is located in the electric utility's service area, provided that,
delivery services shall not be a contract service until such services
are declared competitive pursuant to Section 16-113; and also means (2)
the provision of electric power and energy by an electric utility to
retail customers outside the electric utility's service area pursuant
to Section 16-116. Provided, however, contract service does not
include electric utility services provided pursuant to (i) contracts
that retail customers are required to execute as a condition of
receiving tariffed services, or (ii) special or negotiated rate
contracts for electric utility services that were entered into between
an electric utility and a retail customer prior to the effective date
of this amendatory Act of 1997 and filed with the Commission.
"Delivery services" means those services provided by the electric
utility that are necessary in order for the transmission and
25 [May 1, 2002]
distribution systems to function so that retail customers located in
the electric utility's service area can receive electric power and
energy from suppliers other than the electric utility, and shall
include, without limitation, standard metering and billing services.
"Electric utility" means a public utility, as defined in Section
3-105 of this Act, that has a franchise, license, permit or right to
furnish or sell electricity to retail customers within a service area.
"Mandatory transition period" means the period from the effective
date of this amendatory Act of 1997 through January 1, 2007 2005.
"Municipal system" shall have the meaning set forth in Section
17-100.
"Real-time pricing" means charges for delivered electric power and
energy that vary on an hour-to-hour basis for nonresidential retail
customers and that vary on a periodic basis during the day for
residential retail customers.
"Retail customer" means a single entity using electric power or
energy at a single premises and that (A) either (i) is receiving or is
eligible to receive tariffed services from an electric utility, or
(ii) that is served by a municipal system or electric cooperative
within any area in which the municipal system or electric cooperative
is or would be entitled to provide service under the law in effect
immediately prior to the effective date of this amendatory Act of 1997,
or (B) an entity which on the effective date of this Act was receiving
electric service from a public utility and (i) was engaged in the
practice of resale and redistribution of such electricity within a
building prior to January 2, 1957, or (ii) was providing lighting
services to tenants in a multi-occupancy building, but only to the
extent such resale, redistribution or lighting service is authorized by
the electric utility's tariffs that were on file with the Commission on
the effective date of this Act.
"Service area" means (i) the geographic area within which an
electric utility was lawfully entitled to provide electric power and
energy to retail customers as of the effective date of this amendatory
Act of 1997, and includes (ii) the location of any retail customer to
which the electric utility was lawfully providing electric utility
services on such effective date.
"Small commercial retail customer" means those nonresidential
retail customers of an electric utility consuming 15,000 kilowatt-hours
or less of electricity annually in its service area.
"Tariffed service" means services provided to retail customers by
an electric utility as defined by its rates on file with the Commission
pursuant to the provisions of Article IX of this Act, but shall not
include competitive services.
"Transition charge" means a charge expressed in cents per
kilowatt-hour that is calculated for a customer or class of customers
as follows for each year in which an electric utility is entitled to
recover transition charges as provided in Section 16-108:
(1) the amount of revenue that an electric utility would
receive from the retail customer or customers if it were serving
such customers' electric power and energy requirements as a
tariffed service based on (A) all of the customers' actual usage
during the 3 years ending 90 days prior to the date on which such
customers were first eligible for delivery services pursuant to
Section 16-104, and (B) on (i) the base rates in effect on October
1, 1996 (adjusted for the reductions required by subsection (b) of
Section 16-111, for any reduction resulting from a rate decrease
under Section 16-101(b), for any restatement of base rates made in
conjunction with an elimination of the fuel adjustment clause
pursuant to subsection (b), (d), or (f) of Section 9-220 and for
any removal of decommissioning costs from base rates pursuant to
Section 16-114) and any separate automatic rate adjustment riders
(other than a decommissioning rate as defined in Section 16-114)
under which the customers were receiving or, had they been
customers, would have received electric power and energy from the
electric utility during the year immediately preceding the date on
which such customers were first eligible for delivery service
[May 1, 2002] 26
pursuant to Section 16-104, or (ii) to the extent applicable, any
contract rates, including contracts or rates for consolidated or
aggregated billing, under which such customers were receiving
electric power and energy from the electric utility during such
year;
(2) less the amount of revenue, other than revenue from
transition charges and decommissioning rates, that the electric
utility would receive from such retail customers for delivery
services provided by the electric utility, assuming such customers
were taking delivery services for all of their usage, based on the
delivery services tariffs in effect during the year for which the
transition charge is being calculated and on the usage identified
in paragraph (1);
(3) less the market value for the electric power and energy
that the electric utility would have used to supply all of such
customers' electric power and energy requirements, as a tariffed
service, based on the usage identified in paragraph (1), with such
market value determined in accordance with Section 16-112 of this
Act;
(4) less the following amount which represents the amount to
be attributed to new revenue sources and cost reductions by the
electric utility through the end of the period for which transition
costs are recovered pursuant to Section 16-108, referred to in this
Article XVI as a "mitigation factor":
(A) for nonresidential retail customers, an amount equal
to the greater of (i) 0.5 cents per kilowatt-hour during the
period October 1, 1999 through December 31, 2004, 0.6 cents
per kilowatt-hour in calendar year 2005, and 0.9 cents per
kilowatt-hour in calendar year 2006, multiplied in each year
by the usage identified in paragraph (1), or (ii) an amount
equal to the following percentages of the amount produced by
applying the applicable base rates (adjusted as described in
subparagraph (1)(B)) or contract rate to the usage identified
in paragraph (1): 8% for the period October 1, 1999 through
December 31, 2002, 10% in calendar years 2003 and 2004, 11% in
calendar year 2005 and 12% in calendar year 2006; and
(B) for residential retail customers, an amount equal to
the following percentages of the amount produced by applying
the base rates in effect on October 1, 1996 (adjusted as
described in subparagraph (1)(B)) to the usage identified in
paragraph (1): (i) 6% from May 1, 2002 through December 31,
2002, (ii) 7% in calendar years 2003 and 2004, (iii) 8% in
calendar year 2005, and (iv) 10% in calendar year 2006;
(5) divided by the usage of such customers identified in
paragraph (1),
provided that the transition charge shall never be less than zero.
"Unbundled service" means a component or constituent part of a
tariffed service which the electric utility subsequently offers
separately to its customers.
(Source: P.A. 90-561, eff. 12-16-97; 91-50, eff. 6-30-99.)".
AMENDMENT NO. 2 TO SENATE BILL 2081
AMENDMENT NO. 2. Amend Senate Bill 2081, AS AMENDED, in the
introductory clause to Section 5 of the bill by changing "Section
16-102" to "Sections 16-102 and 16-111"; and
in the body of Section 5 of the bill by inserting immediately below the
last line of Sec. 16-102 the following:
"(220 ILCS 5/16-111)
Sec. 16-111. Rates and restructuring transactions during mandatory
transition period.
(a) During the mandatory transition period, notwithstanding any
provision of Article IX of this Act, and except as provided in
subsections (b), (d), (e), and (f) of this Section, the Commission
shall not (i) initiate, authorize or order any change by way of
increase (other than in connection with a request for rate increase
27 [May 1, 2002]
which was filed after September 1, 1997 but prior to October 15, 1997,
by an electric utility serving less than 12,500 customers in this
State), (ii) initiate or, unless requested by the electric utility,
authorize or order any change by way of decrease, restructuring or
unbundling (except as provided in Section 16-109A), in the rates of any
electric utility that were in effect on October 1, 1996, or (iii) in
any order approving any application for a merger pursuant to Section
7-204 that was pending as of May 16, 1997, impose any condition
requiring any filing for an increase, decrease, or change in, or other
review of, an electric utility's rates or enforce any such condition of
any such order; provided, however, that this subsection shall not
prohibit the Commission from:
(1) approving the application of an electric utility to
implement an alternative to rate of return regulation or a
regulatory mechanism that rewards or penalizes the electric utility
through adjustment of rates based on utility performance, pursuant
to Section 9-244;
(2) authorizing an electric utility to eliminate its fuel
adjustment clause and adjust its base rate tariffs in accordance
with subsection (b), (d), or (f) of Section 9-220 of this Act, to
fix its fuel adjustment factor in accordance with subsection (c) of
Section 9-220 of this Act, or to eliminate its fuel adjustment
clause in accordance with subsection (e) of Section 9-220 of this
Act;
(3) ordering into effect tariffs for delivery services and
transition charges in accordance with Sections 16-104 and 16-108,
for real-time pricing in accordance with Section 16-107, or the
options required by Section 16-110 and subsection (n) of 16-112,
allowing a billing experiment in accordance with Section 16-106, or
modifying delivery services tariffs in accordance with Section
16-109; or
(4) ordering or allowing into effect any tariff to recover
charges pursuant to Sections 9-201.5, 9-220.1, 9-221, 9-222 (except
as provided in Section 9-222.1), 16-108, and 16-114 of this Act,
Section 5-5 of the Electricity Infrastructure Maintenance Fee Law,
Section 6-5 of the Renewable Energy, Energy Efficiency, and Coal
Resources Development Law of 1997, and Section 13 of the Energy
Assistance Act of 1989.
After December 31, 2004, the provisions of this subsection (a)
shall not apply to an electric utility whose average residential retail
rate was less than or equal to 90% of the average residential retail
rate for the "Midwest Utilities", as that term is defined in subsection
(b) of this Section, based on data reported on Form 1 to the Federal
Energy Regulatory Commission for calendar year 1995, and which served
between 150,000 and 250,000 retail customers in this State on January
1, 1995.
(b) Notwithstanding the provisions of subsection (a), each
Illinois electric utility serving more than 12,500 customers in
Illinois shall file tariffs (i) reducing, effective August 1, 1998,
each component of its base rates to residential retail customers by 15%
from the base rates in effect immediately prior to January 1, 1998 and
(ii) if the public utility provides electric service to (A) more than
500,000 customers but less than 1,000,000 customers in this State on
January 1, 1999, reducing, effective May 1, 2002, each component of its
base rates to residential retail customers by an additional 5% from the
base rates in effect immediately prior to January 1, 1998, or (B) at
least 1,000,000 customers in this State on January 1, 1999, reducing,
effective October 1, 2001, each component of its base rates to
residential retail customers by an additional 5% from the base rates in
effect immediately prior to January 1, 1998. Provided, however, that
(A) if an electric utility's average residential retail rate is less
than or equal to the average residential retail rate for a group of
Midwest Utilities (consisting of all investor-owned electric utilities
with annual system peaks in excess of 1000 megawatts in the States of
Illinois, Indiana, Iowa, Kentucky, Michigan, Missouri, Ohio, and
Wisconsin), based on data reported on Form 1 to the Federal Energy
[May 1, 2002] 28
Regulatory Commission for calendar year 1995, then it shall only be
required to file tariffs (i) reducing, effective August 1, 1998, each
component of its base rates to residential retail customers by 5% from
the base rates in effect immediately prior to January 1, 1998, (ii)
reducing, effective October 1, 2000, each component of its base rates
to residential retail customers by the lesser of 5% of the base rates
in effect immediately prior to January 1, 1998 or the percentage by
which the electric utility's average residential retail rate exceeds
the average residential retail rate of the Midwest Utilities, based on
data reported on Form 1 to the Federal Energy Regulatory Commission for
calendar year 1999, and (iii) reducing, effective October 1, 2002, each
component of its base rates to residential retail customers by an
additional amount equal to the lesser of 5% of the base rates in effect
immediately prior to January 1, 1998 or the percentage by which the
electric utility's average residential retail rate exceeds the average
residential retail rate of the Midwest Utilities, based on data
reported on Form 1 to the Federal Energy Regulatory Commission for
calendar year 2001; and (B) if the average residential retail rate of
an electric utility serving between 150,000 and 250,000 retail
customers in this State on January 1, 1995 is less than or equal to 90%
of the average residential retail rate for the Midwest Utilities, based
on data reported on Form 1 to the Federal Energy Regulatory Commission
for calendar year 1995, then it shall only be required to file tariffs
(i) reducing, effective August 1, 1998, each component of its base
rates to residential retail customers by 2% from the base rates in
effect immediately prior to January 1, 1998; (ii) reducing, effective
October 1, 2000, each component of its base rates to residential retail
customers by 2% from the base rate in effect immediately prior to
January 1, 1998; and (iii) reducing, effective October 1, 2002, each
component of its base rates to residential retail customers by 1% from
the base rates in effect immediately prior to January 1, 1998.
Provided, further, that any electric utility for which a decrease in
base rates has been or is placed into effect between October 1, 1996
and the dates specified in the preceding sentences of this subsection,
other than pursuant to the requirements of this subsection, shall be
entitled to reduce the amount of any reduction or reductions in its
base rates required by this subsection by the amount of such other
decrease. The tariffs required under this subsection shall be filed 45
days in advance of the effective date. Notwithstanding anything to the
contrary in Section 9-220 of this Act, no restatement of base rates in
conjunction with the elimination of a fuel adjustment clause under that
Section shall result in a lesser decrease in base rates than customers
would otherwise receive under this subsection had the electric
utility's fuel adjustment clause not been eliminated.
(c) Any utility reducing its base rates by 15% on August 1, 1998
pursuant to subsection (b) shall include the following statement on its
bills for residential customers from August 1 through December 31,
1998: "Effective August 1, 1998, your rates have been reduced by 15% by
the Electric Service Customer Choice and Rate Relief Law of 1997 passed
by the Illinois General Assembly.". Any utility reducing its base
rates by 5% on August 1, 1998, pursuant to subsection (b) shall include
the following statement on its bills for residential customers from
August 1 through December 31, 1998: "Effective August 1, 1998, your
rates have been reduced by 5% by the Electric Service Customer Choice
and Rate Relief Law of 1997 passed by the Illinois General Assembly.".
Any utility reducing its base rates by 2% on August 1, 1998
pursuant to subsection (b) shall include the following statement on its
bills for residential customers from August 1 through December 31,
1998: "Effective August 1, 1998, your rates have been reduced by 2% by
the Electric Service Customer Choice and Rate Relief Law of 1997 passed
by the Illinois General Assembly.".
(d) During the mandatory transition period, but not before January
1, 2000, and notwithstanding the provisions of subsection (a), an
electric utility may request an increase in its base rates if the
electric utility demonstrates that the 2-year average of its earned
rate of return on common equity, calculated as its net income
29 [May 1, 2002]
applicable to common stock divided by the average of its beginning and
ending balances of common equity using data reported in the electric
utility's Form 1 report to the Federal Energy Regulatory Commission but
adjusted to remove the effects of accelerated depreciation or
amortization or other transition or mitigation measures implemented by
the electric utility pursuant to subsection (g) of this Section and the
effect of any refund paid pursuant to subsection (e) of this Section,
is below the 2-year average for the same 2 years of the monthly average
yields of 30-year U.S. Treasury bonds published by the Board of
Governors of the Federal Reserve System in its weekly H.15 Statistical
Release or successor publication. The Commission shall review the
electric utility's request, and may review the justness and
reasonableness of all rates for tariffed services, in accordance with
the provisions of Article IX of this Act, provided that the Commission
shall consider any special or negotiated adjustments to the revenue
requirement agreed to between the electric utility and the other
parties to the proceeding. In setting rates under this Section, the
Commission shall exclude the costs and revenues that are associated
with competitive services and any billing or pricing experiments
conducted under Section 16-106.
(e) For the purposes of this subsection (e) all calculations and
comparisons shall be performed for the Illinois operations of
multijurisdictional utilities. During the mandatory transition period,
notwithstanding the provisions of subsection (a), if the 2-year average
of an electric utility's earned rate of return on common equity,
calculated as its net income applicable to common stock divided by the
average of its beginning and ending balances of common equity using
data reported in the electric utility's Form 1 report to the Federal
Energy Regulatory Commission but adjusted to remove the effect of any
refund paid under this subsection (e), and further adjusted to include
the annual amortization of any difference between the consideration
received by an affiliated interest of the electric utility in the sale
of an asset which had been sold or transferred by the electric utility
to the affiliated interest subsequent to the effective date of this
amendatory Act of 1997 and the consideration for which such asset had
been sold or transferred to the affiliated interest, with such
difference to be amortized ratably from the date of the sale by the
affiliated interest to December 31, 2006, exceeds the 2-year average of
the Index for the same 2 years by 1.5 or more percentage points, the
electric utility shall make refunds to customers beginning the first
billing day of April in the following year in the manner described in
paragraph (3) of this subsection. For purposes of this subsection (e),
the "Index" shall be the sum of (A) the average for the 12 months ended
September 30 of the monthly average yields of 30-year U.S. Treasury
bonds published by the Board of Governors of the Federal Reserve System
in its weekly H.15 Statistical Release or successor publication for
each year 1998 through 2004, and (B) (i) 4.00 percentage points for
each of the 12-month periods ending September 30, 1998 through
September 30, 1999 or 8.00 percentage points if the electric utility's
average residential retail rate is less than or equal to 90% of the
average residential retail rate for the "Midwest Utilities", as that
term is defined in subsection (b) of this Section, based on data
reported on Form 1 to the Federal Energy Regulatory Commission for
calendar year 1995, and the electric utility served between 150,000 and
250,000 retail customers on January 1, 1995, (ii) 7.00 percentage
points for each of the 12-month periods ending September 30, 2000
through September 30, 2004 if the electric utility was providing
service to at least 1,000,000 customers in this State on January 1,
1999, or 9.00 percentage points if the electric utility's average
residential retail rate is less than or equal to 90% of the average
residential retail rate for the "Midwest Utilities", as that term is
defined in subsection (b) of this Section, based on data reported on
Form 1 to the Federal Energy Regulatory Commission for calendar year
1995 and the electric utility served between 150,000 and 250,000 retail
customers in this State on January 1, 1995, (iii) 11.00 percentage
points for each of the 12-month periods ending September 30, 2000
[May 1, 2002] 30
through September 30, 2004, but only if the electric utility's average
residential retail rate is less than or equal to 90% of the average
residential retail rate for the "Midwest Utilities", as that term is
defined in subsection (b) of this Section, based on data reported on
Form 1 to the Federal Energy Regulatory Commission for calendar year
1995, the electric utility served between 150,000 and 250,000 retail
customers in this State on January 1, 1995, and the electric utility
offers delivery services on or before June 1, 2000 to retail customers
whose annual electric energy use comprises 33% of the kilowatt hour
sales to that group of retail customers that are classified under
Division D, Groups 20 through 39 of the Standard Industrial
Classifications set forth in the Standard Industrial Classification
Manual published by the United States Office of Management and Budget,
excluding the kilowatt hour sales to those customers that are eligible
for delivery services pursuant to Section 16-104(a)(1)(i), and offers
delivery services to its remaining retail customers classified under
Division D, Groups 20 through 39 on or before October 1, 2000, and,
provided further, that the electric utility commits not to petition
pursuant to Section 16-108(f) for entry of an order by the Commission
authorizing the electric utility to implement transition charges for an
additional period after December 31, 2006, or (iv) 5.00 percentage
points for each of the 12-month periods ending September 30, 2000
through September 30, 2004 for all other electric utilities or 7.00
percentage points for such utilities for each of the 12-month periods
ending September 30, 2000 through September 30, 2004 for any such
utility that commits not to petition pursuant to Section 16-108(f) for
entry of an order by the Commission authorizing the electric utility to
implement transition charges for an additional period after December
31, 2006.
(1) For purposes of this subsection (e), "excess earnings"
means the difference between (A) the 2-year average of the electric
utility's earned rate of return on common equity, less (B) the
2-year average of the sum of (i) the Index applicable to each of
the 2 years and (ii) 1.5 percentage points; provided, that "excess
earnings" shall never be less than zero.
(2) On or before March 31 of each year 2000 through 2005 each
electric utility shall file a report with the Commission showing
its earned rate of return on common equity, calculated in
accordance with this subsection, for the preceding calendar year
and the average for the preceding 2 calendar years.
(3) If an electric utility has excess earnings, determined in
accordance with paragraphs (1) and (2) of this subsection, the
refunds which the electric utility shall pay to its customers
beginning the first billing day of April in the following year
shall be calculated and applied as follows:
(i) The electric utility's excess earnings shall be
multiplied by the average of the beginning and ending balances
of the electric utility's common equity for the 2-year period
in which excess earnings occurred.
(ii) The result of the calculation in (i) shall be
multiplied by 0.50 and then divided by a number equal to 1
minus the electric utility's composite federal and State
income tax rate.
(iii) The result of the calculation in (ii) shall be
divided by the sum of the electric utility's projected total
kilowatt-hour sales to retail customers plus projected
kilowatt-hours to be delivered to delivery services customers
over a one year period beginning with the first billing date
in April in the succeeding year to determine a cents per
kilowatt-hour refund factor.
(iv) The cents per kilowatt-hour refund factor
calculated in (iii) shall be credited to the electric
utility's customers by applying the factor on the customer's
monthly bills to each kilowatt-hour sold or delivered until
the total amount calculated in (ii) has been paid to
customers.
31 [May 1, 2002]
(f) During the mandatory transition period, an electric utility
may file revised tariffs reducing the price of any tariffed service
offered by the electric utility for all customers taking that tariffed
service, which shall be effective 7 days after filing.
(g) During the mandatory transition period, an electric utility
may, without obtaining any approval of the Commission other than that
provided for in this subsection and notwithstanding any other provision
of this Act or any rule or regulation of the Commission that would
require such approval:
(1) implement a reorganization, other than a merger of 2 or
more public utilities as defined in Section 3-105 or their holding
companies;
(2) retire generating plants from service;
(3) sell, assign, lease or otherwise transfer assets to an
affiliated or unaffiliated entity and as part of such transaction
enter into service agreements, power purchase agreements, or other
agreements with the transferee; provided, however, that the prices,
terms and conditions of any power purchase agreement must be
approved or allowed into effect by the Federal Energy Regulatory
Commission; or
(4) use any accelerated cost recovery method including
accelerated depreciation, accelerated amortization or other capital
recovery methods, or record reductions to the original cost of its
assets.
In order to implement a reorganization, retire generating plants
from service, or sell, assign, lease or otherwise transfer assets
pursuant to this Section, the electric utility shall comply with
subsections (c) and (d) of Section 16-128, if applicable, and
subsection (k) of this Section, if applicable, and provide the
Commission with at least 30 days notice of the proposed reorganization
or transaction, which notice shall include the following information:
(i) a complete statement of the entries that the
electric utility will make on its books and records of account
to implement the proposed reorganization or transaction
together with a certification from an independent certified
public accountant that such entries are in accord with
generally accepted accounting principles and, if the
Commission has previously approved guidelines for cost
allocations between the utility and its affiliates, a
certification from the chief accounting officer of the utility
that such entries are in accord with those cost allocation
guidelines;
(ii) a description of how the electric utility will use
proceeds of any sale, assignment, lease or transfer to retire
debt or otherwise reduce or recover the costs of services
provided by such electric utility;
(iii) a list of all federal approvals or approvals
required from departments and agencies of this State, other
than the Commission, that the electric utility has or will
obtain before implementing the reorganization or transaction;
(iv) an irrevocable commitment by the electric utility
that it will not, as a result of the transaction, impose any
stranded cost charges that it might otherwise be allowed to
charge retail customers under federal law or increase the
transition charges that it is otherwise entitled to collect
under this Article XVI; and
(v) if the electric utility proposes to sell, assign,
lease or otherwise transfer a generating plant that brings the
amount of net dependable generating capacity transferred
pursuant to this subsection to an amount equal to or greater
than 15% of the electric utility's net dependable capacity as
of the effective date of this amendatory Act of 1997, and
enters into a power purchase agreement with the entity to
which such generating plant is sold, assigned, leased, or
otherwise transferred, the electric utility also agrees, if
its fuel adjustment clause has not already been eliminated, to
[May 1, 2002] 32
eliminate its fuel adjustment clause in accordance with
subsection (b) of Section 9-220 for a period of time equal to
the length of any such power purchase agreement or successor
agreement, or until January 1, 2005, whichever is longer; if
the capacity of the generating plant so transferred and
related power purchase agreement does not result in the
elimination of the fuel adjustment clause under this
subsection, and the fuel adjustment clause has not already
been eliminated, the electric utility shall agree that the
costs associated with the transferred plant that are included
in the calculation of the rate per kilowatt-hour to be applied
pursuant to the electric utility's fuel adjustment clause
during such period shall not exceed the per kilowatt-hour cost
associated with such generating plant included in the electric
utility's fuel adjustment clause during the full calendar year
preceding the transfer, with such limit to be adjusted each
year thereafter by the Gross Domestic Product Implicit Price
Deflator.
(vi) In addition, if the electric utility proposes to
sell, assign, or lease, (A) either (1) an amount of generating
plant that brings the amount of net dependable generating
capacity transferred pursuant to this subsection to an amount
equal to or greater than 15% of its net dependable capacity on
the effective date of this amendatory Act of 1997, or (2) one
or more generating plants with a total net dependable capacity
of 1100 megawatts, or (B) transmission and distribution
facilities that either (1) bring the amount of transmission
and distribution facilities transferred pursuant to this
subsection to an amount equal to or greater than 15% of the
electric utility's total depreciated original cost investment
in such facilities, or (2) represent an investment of
$25,000,000 in terms of total depreciated original cost, the
electric utility shall provide, in addition to the information
listed in subparagraphs (i) through (v), the following
information: (A) a description of how the electric utility
will meet its service obligations under this Act in a safe and
reliable manner and (B) the electric utility's projected
earned rate of return on common equity, calculated in
accordance with subsection (d) of this Section, for each year
from the date of the notice through December 31, 2004 both
with and without the proposed transaction. If the Commission
has not issued an order initiating a hearing on the proposed
transaction within 30 days after the date the electric
utility's notice is filed, the transaction shall be deemed
approved. The Commission may, after notice and hearing,
prohibit the proposed transaction if it makes either or both
of the following findings: (1) that the proposed transaction
will render the electric utility unable to provide its
tariffed services in a safe and reliable manner, or (2) that
there is a strong likelihood that consummation of the proposed
transaction will result in the electric utility being entitled
to request an increase in its base rates during the mandatory
transition period pursuant to subsection (d) of this Section.
Any hearing initiated by the Commission into the proposed
transaction shall be completed, and the Commission's final
order approving or prohibiting the proposed transaction shall
be entered, within 90 days after the date the electric
utility's notice was filed. Provided, however, that a sale,
assignment, or lease of transmission facilities to an
independent system operator that meets the requirements of
Section 16-126 shall not be subject to Commission approval
under this Section.
In any proceeding conducted by the Commission pursuant to
this subparagraph (vi), intervention shall be limited to
parties with a direct interest in the transaction which is the
subject of the hearing and any statutory consumer protection
33 [May 1, 2002]
agency as defined in subsection (d) of Section 9-102.1.
Notwithstanding the provisions of Section 10-113 of this Act,
any application seeking rehearing of an order issued under
this subparagraph (vi), whether filed by the electric utility
or by an intervening party, shall be filed within 10 days
after service of the order.
The Commission shall not in any subsequent proceeding or otherwise,
review such a reorganization or other transaction authorized by this
Section, but shall retain the authority to allocate costs as stated in
Section 16-111(i). An entity to which an electric utility sells,
assigns, leases or transfers assets pursuant to this subsection (g)
shall not, as a result of the transactions specified in this subsection
(g), be deemed a public utility as defined in Section 3-105. Nothing
in this subsection (g) shall change any requirement under the
jurisdiction of the Illinois Department of Nuclear Safety including,
but not limited to, the payment of fees. Nothing in this subsection (g)
shall exempt a utility from obtaining a certificate pursuant to Section
8-406 of this Act for the construction of a new electric generating
facility. Nothing in this subsection (g) is intended to exempt the
transactions hereunder from the operation of the federal or State
antitrust laws. Nothing in this subsection (g) shall require an
electric utility to use the procedures specified in this subsection for
any of the transactions specified herein. Any other procedure
available under this Act may, at the electric utility's election, be
used for any such transaction.
(h) During the mandatory transition period, the Commission shall
not establish or use any rates of depreciation, which for purposes of
this subsection shall include amortization, for any electric utility
other than those established pursuant to subsection (c) of Section
5-104 of this Act or utilized pursuant to subsection (g) of this
Section. Provided, however, that in any proceeding to review an
electric utility's rates for tariffed services pursuant to Section
9-201, 9-202, 9-250 or 16-111(d) of this Act, the Commission may
establish new rates of depreciation for the electric utility in the
same manner provided in subsection (d) of Section 5-104 of this Act. An
electric utility implementing an accelerated cost recovery method
including accelerated depreciation, accelerated amortization or other
capital recovery methods, or recording reductions to the original cost
of its assets, pursuant to subsection (g) of this Section, shall file a
statement with the Commission describing the accelerated cost recovery
method to be implemented or the reduction in the original cost of its
assets to be recorded. Upon the filing of such statement, the
accelerated cost recovery method or the reduction in the original cost
of assets shall be deemed to be approved by the Commission as though an
order had been entered by the Commission.
(i) Subsequent to the mandatory transition period, the Commission,
in any proceeding to establish rates and charges for tariffed services
offered by an electric utility, shall consider only (1) the then
current or projected revenues, costs, investments and cost of capital
directly or indirectly associated with the provision of such tariffed
services; (2) collection of transition charges in accordance with
Sections 16-102 and 16-108 of this Act; (3) recovery of any employee
transition costs as described in Section 16-128 which the electric
utility is continuing to incur, including recovery of any unamortized
portion of such costs previously incurred or committed, with such costs
to be equitably allocated among bundled services, delivery services,
and contracts with alternative retail electric suppliers; and (4)
recovery of the costs associated with the electric utility's compliance
with decommissioning funding requirements; and shall not consider any
other revenues, costs, investments or cost of capital of either the
electric utility or of any affiliate of the electric utility that are
not associated with the provision of tariffed services. In setting
rates for tariffed services, the Commission shall equitably allocate
joint and common costs and investments between the electric utility's
competitive and tariffed services. In determining the justness and
reasonableness of the electric power and energy component of an
[May 1, 2002] 34
electric utility's rates for tariffed services subsequent to the
mandatory transition period and prior to the time that the provision of
such electric power and energy is declared competitive, the Commission
shall consider the extent to which the electric utility's tariffed
rates for such component for each customer class exceed the market
value determined pursuant to Section 16-112, and, if the electric power
and energy component of such tariffed rate exceeds the market value by
more than 10% for any customer class, may establish such electric power
and energy component at a rate equal to the market value plus 10%. In
any such case, the Commission may also elect to extend the provisions
of Section 16-111(e) for any period in which the electric utility is
collecting transition charges, using information applicable to such
period.
(j) During the mandatory transition period, an electric utility
may elect to transfer to a non-operating income account under the
Commission's Uniform System of Accounts either or both of (i) an amount
of unamortized investment tax credit that is in addition to the ratable
amount which is credited to the electric utility's operating income
account for the year in accordance with Section 46(f)(2) of the federal
Internal Revenue Code of 1986, as in effect prior to P.L. 101-508, or
(ii) "excess tax reserves", as that term is defined in Section
203(e)(2)(A) of the federal Tax Reform Act of 1986, provided that (A)
the amount transferred may not exceed the amount of the electric
utility's assets that were created pursuant to Statement of Financial
Accounting Standards No. 71 which the electric utility has written off
during the mandatory transition period, and (B) the transfer shall not
be effective until approved by the Internal Revenue Service. An
electric utility electing to make such a transfer shall file a
statement with the Commission stating the amount and timing of the
transfer for which it intends to request approval of the Internal
Revenue Service, along with a copy of its proposed request to the
Internal Revenue Service for a ruling. The Commission shall issue an
order within 14 days after the electric utility's filing approving,
subject to receipt of approval from the Internal Revenue Service, the
proposed transfer.
(k) If an electric utility is selling or transferring to a single
buyer 5 or more generating plants located in this State with a total
net dependable capacity of 5000 megawatts or more pursuant to
subsection (g) of this Section and has obtained a sale price or
consideration that exceeds 200% of the book value of such plants, the
electric utility must provide to the Governor, the President of the
Illinois Senate, the Minority Leader of the Illinois Senate, the
Speaker of the Illinois House of Representatives, and the Minority
Leader of the Illinois House of Representatives no later than 15 days
after filing its notice under subsection (g) of this Section or 5 days
after the date on which this subsection (k) becomes law, whichever is
later, a written commitment in which such electric utility agrees to
expend $2 billion outside the corporate limits of any municipality with
1,000,000 or more inhabitants within such electric utility's service
area, over a 6-year period beginning with the calendar year in which
the notice is filed, on projects, programs, and improvements within its
service area relating to transmission and distribution including,
without limitation, infrastructure expansion, repair and replacement,
capital investments, operations and maintenance, and vegetation
management.
(Source: P.A. 90-561, eff. 12-16-97; 90-563, eff. 12-16-97; 91-50, eff.
6-30-99.)".
Floor Amendments numbered 3 and 4 remained in the Committee on
Rules.
There being no further amendments, the foregoing Amendments
numbered 1 and 2 were adopted and the bill, as amended, was held on the
order of Second Reading.
35 [May 1, 2002]
RESOLUTIONS
The following resolutions were offered and placed in the Committee
on Rules.
HOUSE RESOLUTION 850
Offered by Representative Wojcik:
WHEREAS, Good health is essential to every citizen of the world and
access to the highest standards of health information and services is
necessary to improve public health; and
WHEREAS, The World Health Organization (WHO) set forth in the first
chapter of its charter the objective of attaining the highest possible
level of health for all people; and
WHEREAS, The achievements of the Republic of China (Taiwan) in the
field of health are substantial, including one of the highest life
expectancy levels in Asia, maternal and infant mortality rates
comparable to those of western countries, the eradication of such
infectious diseases as cholera, smallpox, and the plague, and the first
to eradicate polio and provide children with hepatitis B vaccinations;
and
WHEREAS, The United States Centers for Disease Control and
Prevention and its Taiwanese counterpart have enjoyed close
collaboration on a wide range of public health issues; and
WHEREAS, The Republic of China was a founding member of the WHO,
but was forced to depart from the WHO in 1972, following the admission
of the People's Republic of China; and
WHEREAS, In recent years the Republic of China has expressed a
willingness to assist financially and technically in international
health activities supported by the WHO; and
WHEREAS, Direct, unobstructed participation in international health
forums and programs is critical to limit the spread of various
infectious diseases and achieve world health; therefore, be it
RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-SECOND
GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we urge the World
Health Organization to permit the Republic of China to participate in a
meaningful and appropriate way in the World Health Organization's
activities; and be it further
RESOLVED, That a suitable copy of this resolution be forwarded to
the World Health Organization and the Taipei Economic and Cultural
Office in Chicago.
HOUSE RESOLUTION 852
Offered by Representative Daniels:
WHEREAS, The Community Integrated Living Arrangement ("CILA") is a
small residential model that houses no more than eight individuals and
offers supports designed to address the individual needs of persons
with disabilities; and
WHEREAS, CILA is the recommended option for individuals who are
discharged from State-operated developmental centers; and
WHEREAS, Today more than 7,400 Illinois residents with
developmental disabilities live in CILAs; and
WHEREAS, The United States Supreme Court in Olmstead v. L.C. Ex
rel. Zimring, 119 S.Ct. 2176 (1999), held that the unjustifiable
institutionalization of a person with a disability who is capable of
living in the community with proper supports, and wishes to do so,
constitutes unlawful discrimination in violation of the Americans with
Disabilities Act (ADA); and
WHEREAS, Availability of CILA placements for individuals with
disabilities advances the State's efforts to comply with the ADA and
the Court's holding in Olmstead; and
WHEREAS, The Illinois Department of Human Services ("Department")
has converted many of its grant-in-aid CILA programs to a
fee-for-service model beginning in State Fiscal Year 2002; and
WHEREAS, The CILA rate model and the CILA payment methodology
[May 1, 2002] 36
utilized by the Department affects the type and availability of CILA
placements for Illinois residents with developmental disabilities; and
WHEREAS, The CILA rate model and CILA payment methodology must be
analyzed in the broader context of the current fiscal condition of the
State; therefore, be it
RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-SECOND
GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that the Secretary of Human
Services is directed to:
(1) Meet and work with agencies providing CILAs in the State of
Illinois and associations representing those agencies to review the
current CILA rate model and payment methodology, with particular
attention paid to whether 100% of the actual costs of delivering CILA
services are being met, including staff compensation, benefits,
staffing levels, workers compensation, physical plant maintenance and
repairs, and delivering services to individuals with challenging
behaviors or extraordinary medical needs;
(2) Determine the impact of the current CILA rate model and
payment methodology on the ability of the State to implement the "most
integrated setting" requirements of the ADA and the holding in
Olmstead; and
(3) File a written report with the House of Representatives and
the Senate on or before December 1, 2002, that includes a summary of
the actions taken pursuant to this Resolution and specific
recommendations as to whether and how the CILA rate model and payment
methodology should be updated; and be it further
RESOLVED, That a copy of this Resolution be sent to the Secretary
of Human Services.
HOUSE RESOLUTION 854
Offered by Representative Flowers:
WHEREAS, Blood banks across the State rely 100 percent on blood
donated on a voluntary basis; and
WHEREAS, Less than 60 percent of the general population is eligible
to donate blood; and
WHEREAS, Less than 5 percent of the general population actually
donates blood; and
WHEREAS, New FDA regulations, which restrict blood donations from
anyone who has spent extended time in the United Kingdom and Western
Europe, will go into effect in June 2002; and
WHEREAS, Some major cities such as New York, which rely on
one-third on Europe for a third of their blood, will turn to the rest
of the country's bloodcenters for assistance; and
WHEREAS, Many Americans, including military personnel who have
spent extensive time abroad, will be ineligible to donate blood;
therefore, be it
RESOLVED, BY THE ILLINOIS HOUSE OF REPRESENTATIVES OF THE
NINETY-SECOND GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that a special
task force be convened by the Secretary of State to address the need to
increase blood donations across the State; and be it further
RESOLVED, Each of the following organizations shall select one
person to serve on the task force: the Central Illinois Community Blood
Center, Community Blood Services of Illinois, Heartland Blood Centers,
LifeSource Blood Services, Northern Illinois Blood Bank, Inc., the
American College of Surgeons, the American Red Cross of Illinois, the
Illinois Hospital & Health Systems Association, and the Illinois State
Medical Society; in addition, the Director of Public Health and the
Mayor of the City of Chicago shall each select one person to serve on
the task force, and the Secretary of State may select other interested
parties to serve on the task force; and be it further
RESOLVED, That the task force shall make recommendations for a
statewide blood donation awareness campaign, preparing for blood
shortages in a disaster, and overall plans for increasing donations;
and be it further
RESOLVED, That the task force submit its report to the House of
Representatives before January 8, 2003; and be it further
37 [May 1, 2002]
RESOLVED, That a suitable copy of this resolution be sent to the
Secretary of State.
HOUSE RESOLUTION 856
Offered by Representative Watson:
WHEREAS, Illinois produces more ethanol than any state in the
United States; and
WHEREAS, Illinois produces around 40% of the United States' ethanol
production; and
WHEREAS, Illinois currently produces around 710 million gallons of
ethanol annually from 275 million bushels of corn; and
WHEREAS, At least one out of every six rows of corn grown in
Illinois is used for ethanol production; and
WHEREAS, Domestic, renewable and alternative fuels such as ethanol
and biodiesel offer hope for America's future; and
WHEREAS, Ethanol contains oxygen, and fuel blended with ethanol
reduces harmful exhaust emissions from vehicles; and
WHEREAS, Ethanol, when blended with gasoline, acts as an octane
enhancer, reducing the need for such harmful substances as benzene and
toluene in gasoline; and
WHEREAS, Ethanol blended fuels extend current supplies of
petroleum; and
WHEREAS, The use of ethanol and other biofuels would help decrease
our dependence on foreign oil; and
WHEREAS, The continued growth of renewable energy will continue to
be important in delivering larger supplies of clean, domestic power for
America's growing economy; and
WHEREAS, Illinois has enacted legislation to implement the
phase-out of the alternative motor fuel additive methyl tertiary-butyl
ether (MTBE) in this State; and
WHEREAS, A recent agreement between oil companies,
environmentalists, and agricultural interests may help increase the use
of ethanol and other biofuels over the next decade; and
WHEREAS, The Renewable Fuels Standard (RFS) would boost ethanol
production from the 2001 level of 1.7 billion gallons to 5 billion
gallons of renewable fuels by 2012; and
WHEREAS, The agreement includes the phasing out of MTBE; and
WHEREAS, This agreement has brought most major interested groups
toward a consensus on the motor fuel composition issue, and there are
substantial reasons to believe that federal law will soon reflect this
agreement; therefore be it
RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-SECOND
GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that the State of Illinois
needs to protect and expand the production and use of biofuels in the
State; and be it further
RESOLVED, That we urge the members of the United States Congress to
support the Renewable Fuels Standard and the elimination of MTBE; and
be it further
RESOLVED, That suitable copies of this resolution be delivered to
Senator Peter Fitzgerald, Senator Dick Durbin, and each member of the
Illinois delegation in the United States House of Representatives.
HOUSE JOINT RESOLUTION 73
Offered by Representative Daniels:
WHEREAS, In Olmstead vs. L.C. ex rel. Zimring, 119 S. Ct. 2176
(1999), the Supreme Court affirmed that a state is obliged to provide
community-based services and supports for individuals with disabilities
who have been recommended for community placement by a state's
treatment professional, choose to be served in the community, and would
otherwise be served in a state institution; and
WHEREAS, The implication of the Olmstead Decision is a fundamental
alteration in the state's delivery system for persons with
disabilities, requiring the expansion of services and supports at the
community level to integrate more persons with disabilities in
[May 1, 2002] 38
community-based settings; and
WHEREAS, In fulfilling the responsibilities under Olmstead, the
State must coordinate the necessary financial resources to expand these
community-based services, including identifying other financial
resources outside of General Revenue Funds; and
WHEREAS, In further fulfilling the responsibilities under Olmstead
by addressing the interagency barriers to services and supports for all
persons with disabilities, a cohesive and strategic direction must be
established by the Governor and all State agencies that offer services
and supports to persons with disabilities that maximizes the use of all
sources of funding at the State, federal, and local levels; and
WHEREAS, Federal funding opportunities play an integral role in
providing states with additional financial resources to maintain and
expand services and supports for persons with disabilities; and
WHEREAS, The Home and Community Based Services (HCBS) Waiver, first
authorized by Congress in 1981, continues to play a larger role in
permitting innovation in the states due to the increasing flexibility
of the Centers for Medicare and Medicaid Services (CMS) and an
increasing nationwide effort to utilize currently unmatched state and
local funds to draw down additional federal HCBS Waiver revenue; and
WHEREAS, The Olmstead Decision has also stimulated increased
utilization of the Waiver to finance community long term care supports;
and
WHEREAS, Illinois has the capacity to leverage unmatched State
funds to capture more federal financial participation, thereby
improving on its current ranking of 48th in federal waiver spending per
capita; and
WHEREAS, In FY00, Illinois captured an average of only $6.15 in
federal funding per capita, and federal-state waiver spending
represented only 13% of total spending; therefore, be it
RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-SECOND
GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, THE SENATE CONCURRING
HEREIN, that we support the efforts of the State's developmental
disabilities council, the Illinois Council on Developmental
Disabilities, in its support of activities that lead to a re-design of
the system of services and supports for all persons with developmental
disabilities and urge the Council to conduct activities that address
the following goals:
(1) identify ways in which the State of Illinois can increase its
ability to capture more federal financial participation (FFP), as well
as maximize other financial resources to fund services and supports for
persons with disabilities;
(2) identify ways in which the State of Illinois can increase the
flexibility in how that federal financial participation is utilized;
and
(3) identify ways in which the State of Illinois can direct more
federal financial participation toward the expansion of community-based
services and supports for persons with disabilities; and be it further
RESOLVED, That a copy of this Resolution be forwarded to the
chairperson of the Illinois Council on Developmental Disabilities.
At the hour of 3:55 o'clock p.m., Representative Currie moved that
the House do now adjourn.
The motion prevailed.
And in accordance therewith and pursuant to HOUSE JOINT RESOLUTION
74, the House stood adjourned until Thursday, May 2, 2002, at 11:00
o'clock a.m.
39 [May 1, 2002]
NO. 1
STATE OF ILLINOIS
NINETY-SECOND
GENERAL ASSEMBLY
HOUSE ROLL CALL
QUORUM ROLL CALL FOR ATTENDANCE
MAY 01, 2002
0 YEAS 0 NAYS 115 PRESENT
P ACEVEDO P ERWIN P LAWFER P PARKE
P BASSI P FEIGENHOLTZ P LEITCH P POE
P BEAUBIEN P FLOWERS P LINDNER P REITZ
P BELLOCK P FORBY P LYONS,EILEEN P RIGHTER
P BERNS P FOWLER P LYONS,JOSEPH P RUTHERFORD
P BIGGINS P FRANKS P MARQUARDT P RYAN
P BLACK P FRITCHEY P MATHIAS P SAVIANO
P BOLAND P GARRETT P MAUTINO P SCHMITZ
P BOST P GILES P MAY P SCHOENBERG
P BRADLEY P GRANBERG P McAULIFFE P SCULLY
P BRADY P HAMOS P McCARTHY P SIMPSON
P BROSNAHAN P HANNIG P McGUIRE P SLONE
P BRUNSVOLD P HARTKE P McKEON P SMITH
P BUGIELSKI P HASSERT P MENDOZA P SOMMER
P BURKE P HOEFT P MEYER P SOTO
P CAPPARELLI P HOFFMAN P MILLER P STEPHENS
P COLLINS P HOLBROOK P MITCHELL,BILL P TENHOUSE
P COLVIN P HOWARD P MITCHELL,JERRY P TURNER
P COULSON P HULTGREN P MOFFITT P WAIT
P COWLISHAW P JEFFERSON P MORROW P WATSON
P CROSS P JOHNSON P MULLIGAN P WINKEL
P CROTTY P JONES,JOHN P MURPHY P WINTERS
P CURRIE P JONES,LOU E MYERS P WIRSING
P CURRY P JONES,SHIRLEY P NOVAK P WOJCIK
P DANIELS P KENNER E O'BRIEN P WRIGHT
P DART P KLINGLER P O'CONNOR P YARBROUGH
A DAVIS,MONIQUE P KOSEL P OSMOND P YOUNGE
P DAVIS,STEVE P KRAUSE P OSTERMAN P ZICKUS
P DELGADO P KURTZ P PANKAU P MR. SPEAKER
P DURKIN P LANG
E - Denotes Excused Absence
[May 1, 2002] 40
NO. 2
STATE OF ILLINOIS
NINETY-SECOND
GENERAL ASSEMBLY
HOUSE ROLL CALL
SENATE BILL 2072
ENVIRONMENTAL-WATER SUPPLIES
THIRD READING
PASSED
MAY 01, 2002
114 YEAS 0 NAYS 0 PRESENT
Y ACEVEDO Y ERWIN Y LAWFER Y PARKE
Y BASSI Y FEIGENHOLTZ Y LEITCH Y POE
Y BEAUBIEN Y FLOWERS Y LINDNER Y REITZ
Y BELLOCK Y FORBY Y LYONS,EILEEN Y RIGHTER
Y BERNS Y FOWLER Y LYONS,JOSEPH Y RUTHERFORD
Y BIGGINS Y FRANKS Y MARQUARDT Y RYAN
Y BLACK Y FRITCHEY Y MATHIAS Y SAVIANO
Y BOLAND Y GARRETT Y MAUTINO Y SCHMITZ
Y BOST Y GILES Y MAY Y SCHOENBERG
Y BRADLEY Y GRANBERG Y McAULIFFE Y SCULLY
Y BRADY Y HAMOS Y McCARTHY Y SIMPSON
Y BROSNAHAN Y HANNIG Y McGUIRE Y SLONE
Y BRUNSVOLD Y HARTKE Y McKEON Y SMITH
Y BUGIELSKI Y HASSERT Y MENDOZA Y SOMMER
Y BURKE Y HOEFT Y MEYER Y SOTO
Y CAPPARELLI Y HOFFMAN Y MILLER Y STEPHENS
Y COLLINS Y HOLBROOK Y MITCHELL,BILL Y TENHOUSE
Y COLVIN Y HOWARD Y MITCHELL,JERRY Y TURNER
Y COULSON Y HULTGREN Y MOFFITT Y WAIT
Y COWLISHAW Y JEFFERSON Y MORROW Y WATSON
Y CROSS Y JOHNSON Y MULLIGAN Y WINKEL
Y CROTTY Y JONES,JOHN Y MURPHY Y WINTERS
Y CURRIE Y JONES,LOU E MYERS Y WIRSING
Y CURRY Y JONES,SHIRLEY Y NOVAK Y WOJCIK
Y DANIELS Y KENNER E O'BRIEN Y WRIGHT
Y DART Y KLINGLER Y O'CONNOR Y YARBROUGH
A DAVIS,MONIQUE Y KOSEL Y OSMOND Y YOUNGE
Y DAVIS,STEVE Y KRAUSE Y OSTERMAN Y ZICKUS
Y DELGADO Y KURTZ Y PANKAU Y MR. SPEAKER
A DURKIN Y LANG
E - Denotes Excused Absence
41 [May 1, 2002]
NO. 3
STATE OF ILLINOIS
NINETY-SECOND
GENERAL ASSEMBLY
HOUSE ROLL CALL
SENATE BILL 1543
TAX EXEMPT-AGGREGATE
MOTION TO TABLE AMENDMENT NO. 1
LOST
MAY 01, 2002
54 YEAS 59 NAYS 0 PRESENT
N ACEVEDO N ERWIN Y LAWFER Y PARKE
Y BASSI N FEIGENHOLTZ Y LEITCH Y POE
Y BEAUBIEN N FLOWERS Y LINDNER N REITZ
Y BELLOCK N FORBY Y LYONS,EILEEN Y RIGHTER
Y BERNS N FOWLER N LYONS,JOSEPH Y RUTHERFORD
Y BIGGINS N FRANKS Y MARQUARDT N RYAN
Y BLACK N FRITCHEY Y MATHIAS Y SAVIANO
N BOLAND N GARRETT N MAUTINO Y SCHMITZ
Y BOST N GILES N MAY N SCHOENBERG
N BRADLEY N GRANBERG Y McAULIFFE N SCULLY
Y BRADY N HAMOS N McCARTHY Y SIMPSON
N BROSNAHAN N HANNIG N McGUIRE N SLONE
N BRUNSVOLD N HARTKE N McKEON N SMITH
N BUGIELSKI Y HASSERT N MENDOZA Y SOMMER
N BURKE Y HOEFT Y MEYER N SOTO
N CAPPARELLI N HOFFMAN N MILLER Y STEPHENS
N COLLINS N HOLBROOK Y MITCHELL,BILL Y TENHOUSE
N COLVIN N HOWARD Y MITCHELL,JERRY N TURNER
Y COULSON Y HULTGREN Y MOFFITT Y WAIT
Y COWLISHAW N JEFFERSON N MORROW Y WATSON
Y CROSS E JOHNSON Y MULLIGAN Y WINKEL
N CROTTY Y JONES,JOHN A MURPHY Y WINTERS
N CURRIE N JONES,LOU E MYERS Y WIRSING
N CURRY N JONES,SHIRLEY N NOVAK Y WOJCIK
Y DANIELS N KENNER E O'BRIEN Y WRIGHT
N DART Y KLINGLER Y O'CONNOR N YARBROUGH
A DAVIS,MONIQUE Y KOSEL Y OSMOND N YOUNGE
N DAVIS,STEVE Y KRAUSE N OSTERMAN Y ZICKUS
N DELGADO Y KURTZ Y PANKAU N MR. SPEAKER
Y DURKIN N LANG
E - Denotes Excused Absence
[May 1, 2002] 42
NO. 4
STATE OF ILLINOIS
NINETY-SECOND
GENERAL ASSEMBLY
HOUSE ROLL CALL
SENATE BILL 1543
TAX EXEMPT-AGGREGATE
SECOND READING - AMENDMENT NO. 1
ADOPTED
MAY 01, 2002
63 YEAS 37 NAYS 13 PRESENT
Y ACEVEDO Y ERWIN N LAWFER N PARKE
P BASSI Y FEIGENHOLTZ N LEITCH N POE
N BEAUBIEN Y FLOWERS N LINDNER Y REITZ
N BELLOCK Y FORBY P LYONS,EILEEN N RIGHTER
P BERNS Y FOWLER Y LYONS,JOSEPH N RUTHERFORD
N BIGGINS Y FRANKS N MARQUARDT Y RYAN
N BLACK Y FRITCHEY Y MATHIAS Y SAVIANO
Y BOLAND Y GARRETT Y MAUTINO N SCHMITZ
P BOST Y GILES Y MAY Y SCHOENBERG
Y BRADLEY N GRANBERG P McAULIFFE Y SCULLY
N BRADY Y HAMOS Y McCARTHY N SIMPSON
Y BROSNAHAN Y HANNIG Y McGUIRE Y SLONE
Y BRUNSVOLD Y HARTKE Y McKEON Y SMITH
Y BUGIELSKI N HASSERT Y MENDOZA N SOMMER
Y BURKE P HOEFT N MEYER Y SOTO
Y CAPPARELLI Y HOFFMAN Y MILLER N STEPHENS
Y COLLINS Y HOLBROOK N MITCHELL,BILL N TENHOUSE
Y COLVIN Y HOWARD N MITCHELL,JERRY N TURNER
P COULSON N HULTGREN Y MOFFITT N WAIT
N COWLISHAW Y JEFFERSON Y MORROW P WATSON
N CROSS E JOHNSON P MULLIGAN N WINKEL
Y CROTTY Y JONES,JOHN A MURPHY N WINTERS
Y CURRIE Y JONES,LOU E MYERS N WIRSING
Y CURRY Y JONES,SHIRLEY Y NOVAK P WOJCIK
N DANIELS Y KENNER E O'BRIEN N WRIGHT
Y DART Y KLINGLER P O'CONNOR Y YARBROUGH
A DAVIS,MONIQUE P KOSEL N OSMOND Y YOUNGE
Y DAVIS,STEVE Y KRAUSE Y OSTERMAN P ZICKUS
Y DELGADO N KURTZ N PANKAU Y MR. SPEAKER
N DURKIN Y LANG
E - Denotes Excused Absence
43 [May 1, 2002]
NO. 5
STATE OF ILLINOIS
NINETY-SECOND
GENERAL ASSEMBLY
HOUSE ROLL CALL
SENATE BILL 1543
TAX EXEMPT-AGGREGATE
THIRD READING
PASSED
MAY 01, 2002
66 YEAS 32 NAYS 15 PRESENT
Y ACEVEDO Y ERWIN N LAWFER N PARKE
P BASSI Y FEIGENHOLTZ N LEITCH N POE
N BEAUBIEN Y FLOWERS N LINDNER Y REITZ
N BELLOCK Y FORBY P LYONS,EILEEN N RIGHTER
P BERNS Y FOWLER Y LYONS,JOSEPH N RUTHERFORD
N BIGGINS Y FRANKS N MARQUARDT Y RYAN
P BLACK Y FRITCHEY Y MATHIAS Y SAVIANO
Y BOLAND Y GARRETT Y MAUTINO N SCHMITZ
P BOST Y GILES Y MAY Y SCHOENBERG
Y BRADLEY N GRANBERG P McAULIFFE Y SCULLY
N BRADY Y HAMOS Y McCARTHY N SIMPSON
Y BROSNAHAN Y HANNIG Y McGUIRE Y SLONE
Y BRUNSVOLD Y HARTKE Y McKEON Y SMITH
Y BUGIELSKI N HASSERT Y MENDOZA N SOMMER
Y BURKE N HOEFT N MEYER Y SOTO
Y CAPPARELLI Y HOFFMAN Y MILLER N STEPHENS
Y COLLINS Y HOLBROOK N MITCHELL,BILL N TENHOUSE
Y COLVIN Y HOWARD P MITCHELL,JERRY N TURNER
P COULSON N HULTGREN Y MOFFITT Y WAIT
N COWLISHAW Y JEFFERSON Y MORROW P WATSON
N CROSS E JOHNSON Y MULLIGAN P WINKEL
Y CROTTY Y JONES,JOHN A MURPHY N WINTERS
Y CURRIE Y JONES,LOU E MYERS P WIRSING
Y CURRY Y JONES,SHIRLEY Y NOVAK P WOJCIK
N DANIELS Y KENNER E O'BRIEN N WRIGHT
Y DART Y KLINGLER P O'CONNOR Y YARBROUGH
A DAVIS,MONIQUE P KOSEL N OSMOND Y YOUNGE
Y DAVIS,STEVE Y KRAUSE Y OSTERMAN P ZICKUS
Y DELGADO Y KURTZ N PANKAU Y MR. SPEAKER
N DURKIN Y LANG
E - Denotes Excused Absence
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