093_HB0043

 
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 1        AN ACT  in relation to health.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  1.  Short  title.  This  Act may be cited as the
 5    Physical Fitness Facility Medical Emergency Preparedness Act.

 6        Section 5.  Definitions. In this Act, words  and  phrases
 7    have the meanings set forth in the following Sections.

 8        Section     5.5.  Automated    external    defibrillator.
 9    "Automated  external  defibrillator"  or   "AED"   means   an
10    automated  external defibrillator as defined in the Automated
11    External Defibrillator Act.

12        Section   5.10.  Department.   "Department"   means   the
13    Department of Public Health.

14        Section 5.15.  Director. "Director" means the Director of
15    Public Health.

16        Section  5.20.  Medical  emergency.  "Medical  emergency"
17    means the occurrence of a  sudden,  serious,  and  unexpected
18    sickness  or  injury  that  would  lead  a reasonable person,
19    possessing an average knowledge of medicine  and  health,  to
20    believe  that  the  sick or injured person requires urgent or
21    unscheduled medical care.

22        Section 5.25.  Physical fitness facility.
23        (a) "Physical fitness facility" means the following:
24             (1)  Any of the  following  that  is  (i)  owned  or
25        operated  by a park district, municipality, or other unit
26        of local government or by a public or private  elementary
 
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 1        or secondary school, college, university, or technical or
 2        trade  school  and (ii) supervised by one or more persons
 3        employed  by  the  unit  of  local  government,   school,
 4        college, or university for the purpose of supervising the
 5        use  of  the  facility:  swimming pool; stadium; athletic
 6        field; track and field facility; tennis court; basketball
 7        court; or volleyball court.
 8             (2)  A golf course.
 9             (3)  Except as provided in subsection (b), any other
10        establishment, whether public or private,  that  provides
11        services   or  facilities  for  preserving,  maintaining,
12        encouraging,   or   developing   physical   fitness    or
13        well-being,  including  an  establishment designated as a
14        "health club", "fitness club", or "exercise  gym"  or  by
15        any other term of similar import.
16        (b)  "Physical  fitness  facility"  does  not  include  a
17    facility  located  in  a hospital or in a hotel or motel. The
18    term also does not include any facility that does not  employ
19    any  persons  to provide instruction, training, or assistance
20    for persons using the facility.

21        Section 10.  Medical emergency plan required.
22        (a)  Before July 1, 2004, every physical fitness facility
23    must adopt and implement a written  plan  for  responding  to
24    medical  emergencies  that  occur  at the facility during the
25    time that the facility is open for use by its members  or  by
26    the  public.  The  plan  must  comply with this Act and rules
27    adopted by the Department to implement this Act. The facility
28    must file a copy of the plan with the Department.
29        (b)  Whenever there is a change in the structure occupied
30    by the facility or in the services provided or offered by the
31    facility that would materially affect the facility's  ability
32    to respond to a medical emergency, the facility must promptly
33    update  its plan developed under subsection (a) and must file
 
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 1    a copy of the updated plan with the Department.

 2        Section 15.  Automated external defibrillator required.
 3        (a)  Before July 1, 2004, every physical fitness facility
 4    must have at least one automated  external  defibrillator  on
 5    the  facility's premises. The Department shall adopt rules to
 6    ensure coordination with  local  emergency  medical  services
 7    systems  regarding  the placement and use of AEDs in physical
 8    fitness facilities. The Department may adopt rules  requiring
 9    a  facility  to have more than one AED on the premises, based
10    on factors that include, but need  not  be  limited  to,  the
11    following:
12             (1)  The size of the area or the number of buildings
13        or floors occupied by the facility.
14             (2)  The number of persons using the facility.
15        (b)  During  the time that a physical fitness facility is
16    open for use by its members or by the  public,  the  facility
17    must  ensure  that  there  is  on  the  premises at least one
18    trained AED user for every AED. As used in  this  subsection,
19    "trained  AED  user" has the same meaning as in the Automated
20    External Defibrillator Act.
21        (c)  Every physical fitness  facility  must  ensure  that
22    every  AED  on the facility's premises is properly tested and
23    maintained  in  accordance  with   rules   adopted   by   the
24    Department.

25        Section  20.  Training.  The Department shall adopt rules
26    to establish programs  to  train  physical  fitness  facility
27    staff  on  the  role of cardiopulmonary resuscitation and the
28    use of automated external defibrillators. The rules  must  be
29    consistent  with those adopted by the Department for training
30    AED users under the Automated External Defibrillator Act.

31        Section 25.  Economic incentives.
 
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 1        (a)  The  Department  must  work  with  physical  fitness
 2    facilities and manufacturers and  distributors  of  automated
 3    external  defibrillators to develop a procedure by which 2 or
 4    more facilities may submit a joint bid for  the  purchase  of
 5    AEDs in order to maximize their purchasing power.
 6        (b)  A  private  physical fitness facility that purchases
 7    an automated external defibrillator in order to  comply  with
 8    this  Act  is  eligible  for  a  tax exemption as provided in
 9    Section 3-5 of the Use Tax Act, Section 3-5  of  the  Service
10    Use  Tax  Act, Section 3-5 of the Service Occupation Tax Act,
11    and Section 2-5 of the Retailers' Occupation Tax Act.

12        Section 30.  Inspections. The Department shall inspect  a
13    physical  fitness  facility  in response to a complaint filed
14    with the Department alleging a violation of this Act. For the
15    purpose of ensuring compliance with this Act, the  Department
16    may  inspect  a  physical  fitness facility at other times in
17    accordance with rules adopted by the Department.

18        Section 35.  Penalties for violations.
19        (a)  If a physical fitness facility violates this Act  by
20    (i)  failing  to  adopt or implement a plan for responding to
21    medical emergencies under Section 10 or (ii) failing to  have
22    on the premises an AED or trained AED user as required  under
23    subsection  (a) or (b) of Section 15, the Director may impose
24    a civil penalty against the facility as follows:
25             (1)  At least $250 but less than $500  for  a  first
26        violation.
27             (2)  At least $500 but less than $1,000 for a second
28        violation.
29             (3)  At  least  $1,000  for  a  third  or subsequent
30        violation.
31        (b)  The Director may impose a civil penalty  under  this
32    Section only after it provides the following to the facility:
 
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 1             (1)  Written notice of the alleged violation.
 2             (2)  Written  notice  of  the  facility's  right  to
 3        request  an administrative hearing on the question of the
 4        alleged violation.
 5             (3)  An opportunity to present evidence,  orally  or
 6        in  writing  or  both,  on  the  question  of the alleged
 7        violation before an impartial hearing examiner  appointed
 8        by the Director.
 9             (4)  A  written decision from the Director, based on
10        the evidence introduced at the hearing  and  the  hearing
11        examiner's  recommendations,  finding  that  the facility
12        violated this Act and imposing the civil penalty.
13        (c)  The Attorney General may  bring  an  action  in  the
14    circuit court to enforce the collection of a monetary penalty
15    imposed under this Section.

16        Section  40.  Rules.  The Department shall adopt rules to
17    implement this Act.

18        Section 45.  Liability. Nothing  in  this  Act  shall  be
19    construed to either limit or expand the exemptions from civil
20    liability  in  connection  with  the  purchase  or  use of an
21    automated external defibrillator that are provided under  the
22    Automated  External  Defibrillator  Act  or  under  any other
23    provision of law.

24        Section 90.  The Use  Tax  Act  is  amended  by  changing
25    Section 3-5 as follows:

26        (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
27        Sec.  3-5.  Exemptions.   Use  of  the following tangible
28    personal property is exempt from the tax imposed by this Act:
29        (1)  Personal  property  purchased  from  a  corporation,
30    society,    association,    foundation,    institution,    or
 
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 1    organization, other than a limited liability company, that is
 2    organized and operated as a not-for-profit service enterprise
 3    for the benefit of persons 65 years of age or  older  if  the
 4    personal property was not purchased by the enterprise for the
 5    purpose of resale by the enterprise.
 6        (2)  Personal  property  purchased  by  a  not-for-profit
 7    Illinois  county  fair  association  for  use  in conducting,
 8    operating, or promoting the county fair.
 9        (3)  Personal property purchased by a not-for-profit arts
10    or cultural organization that establishes, by proof  required
11    by  the Department by rule, that it has received an exemption
12    under Section 501(c)(3) of the Internal Revenue Code and that
13    is organized and operated primarily for the  presentation  or
14    support  of  arts  or  cultural  programming,  activities, or
15    services.  These organizations include, but are  not  limited
16    to,  music  and  dramatic arts organizations such as symphony
17    orchestras and theatrical groups, arts and  cultural  service
18    organizations,    local    arts    councils,    visual   arts
19    organizations, and media arts organizations. On and after the
20    effective date of this amendatory Act  of  the  92nd  General
21    Assembly,  however,  an  entity  otherwise  eligible for this
22    exemption shall not make tax-free purchases unless it has  an
23    active identification number issued by the Department.
24        (4)  Personal  property purchased by a governmental body,
25    by  a  corporation,  society,  association,  foundation,   or
26    institution    organized   and   operated   exclusively   for
27    charitable, religious,  or  educational  purposes,  or  by  a
28    not-for-profit corporation, society, association, foundation,
29    institution, or organization that has no compensated officers
30    or employees and that is organized and operated primarily for
31    the recreation of persons 55 years of age or older. A limited
32    liability  company  may  qualify for the exemption under this
33    paragraph only if the limited liability company is  organized
34    and  operated  exclusively  for  educational purposes. On and
 
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 1    after July 1, 1987, however, no entity otherwise eligible for
 2    this exemption shall make tax-free purchases unless it has an
 3    active  exemption  identification  number   issued   by   the
 4    Department.
 5        (5)  A passenger car that is a replacement vehicle to the
 6    extent  that  the purchase price of the car is subject to the
 7    Replacement Vehicle Tax.
 8        (6)  Graphic  arts  machinery  and  equipment,  including
 9    repair  and  replacement  parts,  both  new  and  used,   and
10    including  that  manufactured  on special order, certified by
11    the  purchaser  to  be  used  primarily  for   graphic   arts
12    production,  and  including machinery and equipment purchased
13    for lease.  Equipment includes chemicals or chemicals  acting
14    as catalysts but only if the chemicals or chemicals acting as
15    catalysts effect a direct and immediate change upon a graphic
16    arts product.
17        (7)  Farm chemicals.
18        (8)  Legal  tender,  currency,  medallions,  or  gold  or
19    silver   coinage   issued  by  the  State  of  Illinois,  the
20    government of the United States of America, or the government
21    of any foreign country, and bullion.
22        (9)  Personal property purchased from a teacher-sponsored
23    student  organization  affiliated  with  an   elementary   or
24    secondary school located in Illinois.
25        (10)  A  motor  vehicle  of  the  first division, a motor
26    vehicle of the second division that is a self-contained motor
27    vehicle designed or permanently converted to  provide  living
28    quarters  for  recreational,  camping,  or  travel  use, with
29    direct walk through to the living quarters from the  driver's
30    seat,  or  a  motor vehicle of the second division that is of
31    the van configuration designed for the transportation of  not
32    less  than  7  nor  more  than  16  passengers, as defined in
33    Section 1-146 of the Illinois Vehicle Code, that is used  for
34    automobile  renting,  as  defined  in  the Automobile Renting
 
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 1    Occupation and Use Tax Act.
 2        (11)  Farm machinery and equipment, both  new  and  used,
 3    including  that  manufactured  on special order, certified by
 4    the purchaser to be used primarily for production agriculture
 5    or  State  or  federal   agricultural   programs,   including
 6    individual replacement parts for the machinery and equipment,
 7    including  machinery  and  equipment purchased for lease, and
 8    including implements of husbandry defined in Section 1-130 of
 9    the Illinois Vehicle Code, farm  machinery  and  agricultural
10    chemical  and fertilizer spreaders, and nurse wagons required
11    to be registered under Section 3-809 of the Illinois  Vehicle
12    Code,  but  excluding  other  motor  vehicles  required to be
13    registered under the  Illinois  Vehicle  Code.  Horticultural
14    polyhouses  or  hoop houses used for propagating, growing, or
15    overwintering plants shall be considered farm  machinery  and
16    equipment  under this item (11). Agricultural chemical tender
17    tanks and dry boxes shall include units sold separately  from
18    a  motor  vehicle  required  to  be  licensed  and units sold
19    mounted on a motor vehicle required to  be  licensed  if  the
20    selling price of the tender is separately stated.
21        Farm  machinery  and  equipment  shall  include precision
22    farming equipment  that  is  installed  or  purchased  to  be
23    installed  on farm machinery and equipment including, but not
24    limited  to,  tractors,   harvesters,   sprayers,   planters,
25    seeders,  or spreaders. Precision farming equipment includes,
26    but is not  limited  to,  soil  testing  sensors,  computers,
27    monitors,  software,  global positioning and mapping systems,
28    and other such equipment.
29        Farm machinery and  equipment  also  includes  computers,
30    sensors,  software,  and  related equipment used primarily in
31    the computer-assisted  operation  of  production  agriculture
32    facilities,  equipment,  and  activities  such  as,  but  not
33    limited  to,  the  collection, monitoring, and correlation of
34    animal and crop data for the purpose  of  formulating  animal
 
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 1    diets  and  agricultural chemicals.  This item (11) is exempt
 2    from the provisions of Section 3-90.
 3        (12)  Fuel and petroleum products sold to or used  by  an
 4    air  common  carrier, certified by the carrier to be used for
 5    consumption, shipment, or  storage  in  the  conduct  of  its
 6    business  as an air common carrier, for a flight destined for
 7    or returning from a location or locations outside the  United
 8    States  without  regard  to  previous  or subsequent domestic
 9    stopovers.
10        (13)  Proceeds of mandatory  service  charges  separately
11    stated  on  customers' bills for the purchase and consumption
12    of food and beverages purchased at retail from a retailer, to
13    the extent that the proceeds of the  service  charge  are  in
14    fact  turned  over as tips or as a substitute for tips to the
15    employees who participate  directly  in  preparing,  serving,
16    hosting  or  cleaning  up  the food or beverage function with
17    respect to which the service charge is imposed.
18        (14)  Oil field  exploration,  drilling,  and  production
19    equipment, including (i) rigs and parts of rigs, rotary rigs,
20    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
21    goods, including casing and drill strings,  (iii)  pumps  and
22    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
23    individual  replacement  part  for  oil  field   exploration,
24    drilling,  and  production  equipment, and (vi) machinery and
25    equipment purchased for lease; but excluding  motor  vehicles
26    required to be registered under the Illinois Vehicle Code.
27        (15)  Photoprocessing  machinery and equipment, including
28    repair and replacement parts, both new  and  used,  including
29    that   manufactured   on  special  order,  certified  by  the
30    purchaser to  be  used  primarily  for  photoprocessing,  and
31    including  photoprocessing  machinery and equipment purchased
32    for lease.
33        (16)  Coal  exploration,  mining,   offhighway   hauling,
34    processing, maintenance, and reclamation equipment, including
 
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 1    replacement  parts  and  equipment,  and  including equipment
 2    purchased for lease, but excluding motor vehicles required to
 3    be registered under the Illinois Vehicle Code.
 4        (17)  Distillation machinery and  equipment,  sold  as  a
 5    unit   or  kit,  assembled  or  installed  by  the  retailer,
 6    certified by the user to be used only for the  production  of
 7    ethyl alcohol that will be used for consumption as motor fuel
 8    or  as  a component of motor fuel for the personal use of the
 9    user, and not subject to sale or resale.
10        (18)  Manufacturing   and   assembling   machinery    and
11    equipment  used  primarily in the process of manufacturing or
12    assembling tangible personal property for wholesale or retail
13    sale or lease, whether that sale or lease is made directly by
14    the  manufacturer  or  by  some  other  person,  whether  the
15    materials used in the process are owned by  the  manufacturer
16    or  some  other person, or whether that sale or lease is made
17    apart from or as an incident to the seller's engaging in  the
18    service  occupation of producing machines, tools, dies, jigs,
19    patterns, gauges, or other similar  items  of  no  commercial
20    value on special order for a particular purchaser.
21        (19)  Personal  property  delivered  to  a  purchaser  or
22    purchaser's donee inside Illinois when the purchase order for
23    that  personal  property  was  received  by a florist located
24    outside Illinois who has a florist  located  inside  Illinois
25    deliver the personal property.
26        (20)  Semen used for artificial insemination of livestock
27    for direct agricultural production.
28        (21)  Horses, or interests in horses, registered with and
29    meeting  the  requirements  of  any of the Arabian Horse Club
30    Registry of America, Appaloosa Horse Club,  American  Quarter
31    Horse  Association,  United  States  Trotting Association, or
32    Jockey Club, as appropriate, used for purposes of breeding or
33    racing for prizes.
34        (22)  Computers and communications equipment utilized for
 
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 1    any hospital purpose and equipment  used  in  the  diagnosis,
 2    analysis,  or  treatment  of hospital patients purchased by a
 3    lessor who leases the equipment, under a lease of one year or
 4    longer executed or in effect at the  time  the  lessor  would
 5    otherwise  be  subject  to  the tax imposed by this Act, to a
 6    hospital  that  has  been  issued  an  active  tax  exemption
 7    identification  number  by the Department under Section 1g of
 8    the Retailers' Occupation  Tax  Act.   If  the  equipment  is
 9    leased  in  a manner that does not qualify for this exemption
10    or is used in any other non-exempt manner, the  lessor  shall
11    be  liable  for the tax imposed under this Act or the Service
12    Use Tax Act, as the case may be, based  on  the  fair  market
13    value  of  the  property  at  the time the non-qualifying use
14    occurs.  No lessor shall collect or  attempt  to  collect  an
15    amount  (however  designated) that purports to reimburse that
16    lessor for the tax imposed by this Act or the Service Use Tax
17    Act, as the case may be, if the tax has not been paid by  the
18    lessor.  If a lessor improperly collects any such amount from
19    the  lessee,  the  lessee shall have a legal right to claim a
20    refund of that amount from the  lessor.   If,  however,  that
21    amount  is  not  refunded  to  the lessee for any reason, the
22    lessor is liable to pay that amount to the Department.
23        (23)  Personal property purchased by a lessor who  leases
24    the  property,  under a lease of  one year or longer executed
25    or in effect at  the  time  the  lessor  would  otherwise  be
26    subject  to  the  tax  imposed by this Act, to a governmental
27    body that has been  issued  an  active  sales  tax  exemption
28    identification  number  by the Department under Section 1g of
29    the Retailers' Occupation Tax Act. If the property is  leased
30    in  a manner that does not qualify for this exemption or used
31    in any other non-exempt manner, the lessor  shall  be  liable
32    for  the  tax  imposed  under this Act or the Service Use Tax
33    Act, as the case may be, based on the fair  market  value  of
34    the  property  at the time the non-qualifying use occurs.  No
 
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 1    lessor shall collect or attempt to collect an amount (however
 2    designated) that purports to reimburse that  lessor  for  the
 3    tax  imposed  by  this Act or the Service Use Tax Act, as the
 4    case may be, if the tax has not been paid by the lessor.   If
 5    a lessor improperly collects any such amount from the lessee,
 6    the lessee shall have a legal right to claim a refund of that
 7    amount  from  the  lessor.   If,  however, that amount is not
 8    refunded to the lessee for any reason, the lessor  is  liable
 9    to pay that amount to the Department.
10        (24)  Beginning  with  taxable  years  ending on or after
11    December 31, 1995 and ending with taxable years ending on  or
12    before  December  31, 2004, personal property that is donated
13    for disaster relief to  be  used  in  a  State  or  federally
14    declared disaster area in Illinois or bordering Illinois by a
15    manufacturer  or retailer that is registered in this State to
16    a   corporation,   society,   association,   foundation,   or
17    institution that  has  been  issued  a  sales  tax  exemption
18    identification  number by the Department that assists victims
19    of the disaster who reside within the declared disaster area.
20        (25)  Beginning with taxable years  ending  on  or  after
21    December  31, 1995 and ending with taxable years ending on or
22    before December 31, 2004, personal property that is  used  in
23    the  performance  of  infrastructure  repairs  in this State,
24    including but not limited to  municipal  roads  and  streets,
25    access  roads,  bridges,  sidewalks,  waste disposal systems,
26    water and  sewer  line  extensions,  water  distribution  and
27    purification  facilities,  storm water drainage and retention
28    facilities, and sewage treatment facilities, resulting from a
29    State or federally declared disaster in Illinois or bordering
30    Illinois  when  such  repairs  are  initiated  on  facilities
31    located in the declared disaster area within 6  months  after
32    the disaster.
33        (26)  Beginning   July   1,  1999,  game  or  game  birds
34    purchased at a "game breeding and hunting preserve  area"  or
 
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 1    an  "exotic game hunting area" as those terms are used in the
 2    Wildlife Code or at  a  hunting  enclosure  approved  through
 3    rules  adopted  by the Department of Natural Resources.  This
 4    paragraph is exempt from the provisions of Section 3-90.
 5        (27)  A motor vehicle, as that term is defined in Section
 6    1-146 of the Illinois Vehicle Code,  that  is  donated  to  a
 7    corporation, limited liability company, society, association,
 8    foundation,   or   institution  that  is  determined  by  the
 9    Department to  be  organized  and  operated  exclusively  for
10    educational  purposes.    For  purposes of this exemption, "a
11    corporation, limited liability company, society, association,
12    foundation, or institution organized and operated exclusively
13    for educational  purposes"  means  all  tax-supported  public
14    schools, private schools that offer systematic instruction in
15    useful  branches  of  learning  by  methods  common to public
16    schools  and  that  compare  favorably  in  their  scope  and
17    intensity with the course of study presented in tax-supported
18    schools, and vocational or technical  schools  or  institutes
19    organized  and  operated  exclusively  to provide a course of
20    study of not less than  6  weeks  duration  and  designed  to
21    prepare  individuals to follow a trade or to pursue a manual,
22    technical, mechanical, industrial,  business,  or  commercial
23    occupation.
24        (28)  Beginning  January  1,  2000,   personal  property,
25    including  food, purchased through fundraising events for the
26    benefit of  a  public  or  private  elementary  or  secondary
27    school,  a  group  of  those  schools,  or one or more school
28    districts if the events are sponsored by an entity recognized
29    by the school district that consists primarily of  volunteers
30    and  includes  parents  and  teachers of the school children.
31    This paragraph does not apply to fundraising events  (i)  for
32    the benefit of private home instruction or (ii) for which the
33    fundraising  entity  purchases  the personal property sold at
34    the events from another individual or entity  that  sold  the
 
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 1    property  for the purpose of resale by the fundraising entity
 2    and that profits from the sale  to  the  fundraising  entity.
 3    This paragraph is exempt from the provisions of Section 3-90.
 4        (29)  Beginning  January 1, 2000 and through December 31,
 5    2001, new or used automatic vending machines that prepare and
 6    serve hot food and beverages,  including  coffee,  soup,  and
 7    other  items,  and  replacement  parts  for  these  machines.
 8    Beginning  January  1,  2002, machines and parts for machines
 9    used  in  commercial,  coin-operated  amusement  and  vending
10    business if a use or occupation tax  is  paid  on  the  gross
11    receipts   derived   from   the   use   of   the  commercial,
12    coin-operated amusement and vending machines. This  paragraph
13    is exempt from the provisions of Section 3-90.
14        (30)  Food  for  human consumption that is to be consumed
15    off the premises where  it  is  sold  (other  than  alcoholic
16    beverages,  soft  drinks, and food that has been prepared for
17    immediate consumption) and prescription  and  nonprescription
18    medicines,  drugs,  medical  appliances,  and  insulin, urine
19    testing materials, syringes, and needles used  by  diabetics,
20    for  human  use, when purchased for use by a person receiving
21    medical assistance under Article 5 of the Illinois Public Aid
22    Code who resides in a licensed long-term  care  facility,  as
23    defined in the Nursing Home Care Act.
24        (31)  Beginning  on the effective date of this amendatory
25    Act   of   the   92nd   General   Assembly,   computers   and
26    communications equipment utilized for  any  hospital  purpose
27    and  equipment  used in the diagnosis, analysis, or treatment
28    of hospital patients purchased by a  lessor  who  leases  the
29    equipment, under a lease of one year or longer executed or in
30    effect  at  the time the lessor would otherwise be subject to
31    the tax imposed by this Act, to  a  hospital  that  has  been
32    issued  an  active tax exemption identification number by the
33    Department under Section 1g of the Retailers' Occupation  Tax
34    Act.   If  the  equipment is leased in a manner that does not
 
                            -15-     LRB093 02059 DRJ 02062 b
 1    qualify for this exemption or is used in any other  nonexempt
 2    manner,  the lessor shall be liable for the tax imposed under
 3    this Act or the Service Use Tax Act,  as  the  case  may  be,
 4    based  on  the  fair market value of the property at the time
 5    the nonqualifying use occurs.  No  lessor  shall  collect  or
 6    attempt  to  collect  an  amount  (however  designated)  that
 7    purports to reimburse that lessor for the tax imposed by this
 8    Act  or  the  Service Use Tax Act, as the case may be, if the
 9    tax has not been paid by the lessor.  If a lessor  improperly
10    collects  any  such  amount from the lessee, the lessee shall
11    have a legal right to claim a refund of that amount from  the
12    lessor.   If,  however,  that  amount  is not refunded to the
13    lessee for any reason, the  lessor  is  liable  to  pay  that
14    amount  to  the Department. This paragraph is exempt from the
15    provisions of Section 3-90.
16        (32)  Beginning on the effective date of this  amendatory
17    Act of the 92nd General Assembly, personal property purchased
18    by  a  lessor  who  leases the property, under a lease of one
19    year or longer executed or in effect at the time  the  lessor
20    would otherwise be subject to the tax imposed by this Act, to
21    a  governmental body that has been issued an active sales tax
22    exemption  identification  number  by  the  Department  under
23    Section 1g of the Retailers'  Occupation  Tax  Act.   If  the
24    property is leased in a manner that does not qualify for this
25    exemption  or  used in any other nonexempt manner, the lessor
26    shall be liable for the tax imposed under  this  Act  or  the
27    Service  Use  Tax  Act, as the case may be, based on the fair
28    market value of the property at the  time  the  nonqualifying
29    use occurs.  No lessor shall collect or attempt to collect an
30    amount  (however  designated) that purports to reimburse that
31    lessor for the tax imposed by this Act or the Service Use Tax
32    Act, as the case may be, if the tax has not been paid by  the
33    lessor.  If a lessor improperly collects any such amount from
34    the  lessee,  the  lessee shall have a legal right to claim a
 
                            -16-     LRB093 02059 DRJ 02062 b
 1    refund of that amount from the  lessor.   If,  however,  that
 2    amount  is  not  refunded  to  the lessee for any reason, the
 3    lessor is liable to pay that amount to the Department.   This
 4    paragraph is exempt from the provisions of Section 3-90.
 5        (33)  Beginning  January  1, 2004 and ending December 31,
 6    2006,  automated  external  defibrillators  purchased  by   a
 7    physical  fitness  facility for the purpose of complying with
 8    the Physical Fitness Facility Medical Emergency  Preparedness
 9    Act, up to a maximum exemption of $300 per year. For purposes
10    of  this  paragraph  (33),  "physical  fitness  facility"  is
11    defined as in the Physical Fitness Facility Medical Emergency
12    Preparedness  Act,  except that the term does not include any
13    facility that is  owned  or  operated  by  a  unit  of  local
14    government or a public school, college, or university.
15    (Source:  P.A.  91-51,  eff.  6-30-99;  91-200, eff. 7-20-99;
16    91-439, eff.  8-6-99;  91-637,  eff.  8-20-99;  91-644,  eff.
17    8-20-99;  91-901,  eff.  1-1-01;  92-35, eff. 7-1-01; 92-227,
18    eff. 8-2-01; 92-337,  eff.  8-10-01;  92-484,  eff.  8-23-01;
19    92-651, eff. 7-11-02.)

20        Section  91.  The  Service  Use  Tax  Act  is  amended by
21    changing Section 3-5 as follows:

22        (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
23        Sec. 3-5.  Exemptions.  Use  of  the  following  tangible
24    personal property is exempt from the tax imposed by this Act:
25        (1)  Personal  property  purchased  from  a  corporation,
26    society,    association,    foundation,    institution,    or
27    organization, other than a limited liability company, that is
28    organized and operated as a not-for-profit service enterprise
29    for  the  benefit  of persons 65 years of age or older if the
30    personal property was not purchased by the enterprise for the
31    purpose of resale by the enterprise.
32        (2)  Personal property purchased by a non-profit Illinois
 
                            -17-     LRB093 02059 DRJ 02062 b
 1    county fair association for use in conducting, operating,  or
 2    promoting the county fair.
 3        (3)  Personal property purchased by a not-for-profit arts
 4    or  cultural organization that establishes, by proof required
 5    by the Department by rule, that it has received an  exemption
 6    under Section 501(c)(3) of the Internal Revenue Code and that
 7    is  organized  and operated primarily for the presentation or
 8    support of  arts  or  cultural  programming,  activities,  or
 9    services.   These  organizations include, but are not limited
10    to, music and dramatic arts organizations  such  as  symphony
11    orchestras  and  theatrical groups, arts and cultural service
12    organizations,   local    arts    councils,    visual    arts
13    organizations, and media arts organizations. On and after the
14    effective  date  of  this  amendatory Act of the 92nd General
15    Assembly, however, an  entity  otherwise  eligible  for  this
16    exemption  shall not make tax-free purchases unless it has an
17    active identification number issued by the Department.
18        (4)  Legal  tender,  currency,  medallions,  or  gold  or
19    silver  coinage  issued  by  the  State  of   Illinois,   the
20    government of the United States of America, or the government
21    of any foreign country, and bullion.
22        (5)  Graphic  arts  machinery  and  equipment,  including
23    repair   and  replacement  parts,  both  new  and  used,  and
24    including that manufactured on special order or purchased for
25    lease, certified by the purchaser to be  used  primarily  for
26    graphic  arts  production.  Equipment  includes  chemicals or
27    chemicals acting as catalysts but only if  the  chemicals  or
28    chemicals  acting  as catalysts effect a direct and immediate
29    change upon a graphic arts product.
30        (6)  Personal property purchased from a teacher-sponsored
31    student  organization  affiliated  with  an   elementary   or
32    secondary school located in Illinois.
33        (7)  Farm  machinery  and  equipment,  both new and used,
34    including that manufactured on special  order,  certified  by
 
                            -18-     LRB093 02059 DRJ 02062 b
 1    the purchaser to be used primarily for production agriculture
 2    or   State   or   federal  agricultural  programs,  including
 3    individual replacement parts for the machinery and equipment,
 4    including machinery and equipment purchased  for  lease,  and
 5    including implements of husbandry defined in Section 1-130 of
 6    the  Illinois  Vehicle  Code, farm machinery and agricultural
 7    chemical and fertilizer spreaders, and nurse wagons  required
 8    to  be registered under Section 3-809 of the Illinois Vehicle
 9    Code, but excluding  other  motor  vehicles  required  to  be
10    registered  under  the  Illinois  Vehicle Code. Horticultural
11    polyhouses or hoop houses used for propagating,  growing,  or
12    overwintering  plants  shall be considered farm machinery and
13    equipment under this item (7). Agricultural  chemical  tender
14    tanks  and dry boxes shall include units sold separately from
15    a motor vehicle  required  to  be  licensed  and  units  sold
16    mounted  on  a  motor  vehicle required to be licensed if the
17    selling price of the tender is separately stated.
18        Farm machinery  and  equipment  shall  include  precision
19    farming  equipment  that  is  installed  or  purchased  to be
20    installed on farm machinery and equipment including, but  not
21    limited   to,   tractors,   harvesters,  sprayers,  planters,
22    seeders, or spreaders. Precision farming equipment  includes,
23    but  is  not  limited  to,  soil  testing sensors, computers,
24    monitors, software, global positioning and  mapping  systems,
25    and other such equipment.
26        Farm  machinery  and  equipment  also includes computers,
27    sensors, software, and related equipment  used  primarily  in
28    the  computer-assisted  operation  of  production agriculture
29    facilities,  equipment,  and  activities  such  as,  but  not
30    limited to, the collection, monitoring,  and  correlation  of
31    animal  and  crop  data for the purpose of formulating animal
32    diets and agricultural chemicals.  This item  (7)  is  exempt
33    from the provisions of Section 3-75.
34        (8)  Fuel  and  petroleum  products sold to or used by an
 
                            -19-     LRB093 02059 DRJ 02062 b
 1    air common carrier, certified by the carrier to be  used  for
 2    consumption,  shipment,  or  storage  in  the  conduct of its
 3    business as an air common carrier, for a flight destined  for
 4    or  returning from a location or locations outside the United
 5    States without regard  to  previous  or  subsequent  domestic
 6    stopovers.
 7        (9)  Proceeds  of  mandatory  service  charges separately
 8    stated on customers' bills for the purchase  and  consumption
 9    of food and beverages acquired as an incident to the purchase
10    of  a  service  from  a  serviceman,  to  the extent that the
11    proceeds of the service charge are in  fact  turned  over  as
12    tips  or  as  a  substitute  for  tips  to  the employees who
13    participate  directly  in  preparing,  serving,  hosting   or
14    cleaning  up  the  food  or beverage function with respect to
15    which the service charge is imposed.
16        (10)  Oil field  exploration,  drilling,  and  production
17    equipment, including (i) rigs and parts of rigs, rotary rigs,
18    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
19    goods, including casing and drill strings,  (iii)  pumps  and
20    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
21    individual  replacement  part  for  oil  field   exploration,
22    drilling,  and  production  equipment, and (vi) machinery and
23    equipment purchased for lease; but excluding  motor  vehicles
24    required to be registered under the Illinois Vehicle Code.
25        (11)  Proceeds from the sale of photoprocessing machinery
26    and  equipment,  including repair and replacement parts, both
27    new and used, including that manufactured on  special  order,
28    certified   by   the  purchaser  to  be  used  primarily  for
29    photoprocessing, and including photoprocessing machinery  and
30    equipment purchased for lease.
31        (12)  Coal   exploration,   mining,  offhighway  hauling,
32    processing, maintenance, and reclamation equipment, including
33    replacement parts  and  equipment,  and  including  equipment
34    purchased for lease, but excluding motor vehicles required to
 
                            -20-     LRB093 02059 DRJ 02062 b
 1    be registered under the Illinois Vehicle Code.
 2        (13)  Semen used for artificial insemination of livestock
 3    for direct agricultural production.
 4        (14)  Horses, or interests in horses, registered with and
 5    meeting  the  requirements  of  any of the Arabian Horse Club
 6    Registry of America, Appaloosa Horse Club,  American  Quarter
 7    Horse  Association,  United  States  Trotting Association, or
 8    Jockey Club, as appropriate, used for purposes of breeding or
 9    racing for prizes.
10        (15)  Computers and communications equipment utilized for
11    any hospital purpose and equipment  used  in  the  diagnosis,
12    analysis,  or  treatment  of hospital patients purchased by a
13    lessor who leases the equipment, under a lease of one year or
14    longer executed or in effect at the  time  the  lessor  would
15    otherwise  be  subject  to  the tax imposed by this Act, to a
16    hospital  that  has  been  issued  an  active  tax  exemption
17    identification number by the Department under Section  1g  of
18    the Retailers' Occupation Tax Act. If the equipment is leased
19    in  a  manner  that does not qualify for this exemption or is
20    used in any other non-exempt  manner,  the  lessor  shall  be
21    liable for the tax imposed under this Act or the Use Tax Act,
22    as  the  case  may  be, based on the fair market value of the
23    property at the  time  the  non-qualifying  use  occurs.   No
24    lessor shall collect or attempt to collect an amount (however
25    designated)  that  purports  to reimburse that lessor for the
26    tax imposed by this Act or the Use Tax Act, as the  case  may
27    be,  if the tax has not been paid by the lessor.  If a lessor
28    improperly collects any such  amount  from  the  lessee,  the
29    lessee  shall  have  a  legal right to claim a refund of that
30    amount from the lessor.  If,  however,  that  amount  is  not
31    refunded  to  the lessee for any reason, the lessor is liable
32    to pay that amount to the Department.
33        (16)  Personal property purchased by a lessor who  leases
34    the property, under a lease of one year or longer executed or
 
                            -21-     LRB093 02059 DRJ 02062 b
 1    in  effect  at the time the lessor would otherwise be subject
 2    to the tax imposed by this Act, to a governmental  body  that
 3    has been issued an active tax exemption identification number
 4    by   the  Department  under  Section  1g  of  the  Retailers'
 5    Occupation Tax Act.  If the property is leased  in  a  manner
 6    that  does  not  qualify for this exemption or is used in any
 7    other non-exempt manner, the lessor shall be liable  for  the
 8    tax  imposed  under  this Act or the Use Tax Act, as the case
 9    may be, based on the fair market value of the property at the
10    time the non-qualifying use occurs.  No lessor shall  collect
11    or  attempt  to  collect  an amount (however designated) that
12    purports to reimburse that lessor for the tax imposed by this
13    Act or the Use Tax Act, as the case may be, if  the  tax  has
14    not been paid by the lessor.  If a lessor improperly collects
15    any  such  amount  from  the  lessee, the lessee shall have a
16    legal right to claim a refund of that amount from the lessor.
17    If, however, that amount is not refunded to  the  lessee  for
18    any  reason,  the  lessor is liable to pay that amount to the
19    Department.
20        (17)  Beginning with taxable years  ending  on  or  after
21    December  31, 1995 and ending with taxable years ending on or
22    before December 31, 2004, personal property that  is  donated
23    for  disaster  relief  to  be  used  in  a State or federally
24    declared disaster area in Illinois or bordering Illinois by a
25    manufacturer or retailer that is registered in this State  to
26    a   corporation,   society,   association,   foundation,   or
27    institution  that  has  been  issued  a  sales  tax exemption
28    identification number by the Department that assists  victims
29    of the disaster who reside within the declared disaster area.
30        (18)  Beginning  with  taxable  years  ending on or after
31    December 31, 1995 and ending with taxable years ending on  or
32    before  December  31, 2004, personal property that is used in
33    the performance of  infrastructure  repairs  in  this  State,
34    including  but  not  limited  to municipal roads and streets,
 
                            -22-     LRB093 02059 DRJ 02062 b
 1    access roads, bridges,  sidewalks,  waste  disposal  systems,
 2    water  and  sewer  line  extensions,  water  distribution and
 3    purification facilities, storm water drainage  and  retention
 4    facilities, and sewage treatment facilities, resulting from a
 5    State or federally declared disaster in Illinois or bordering
 6    Illinois  when  such  repairs  are  initiated  on  facilities
 7    located  in  the declared disaster area within 6 months after
 8    the disaster.
 9        (19)  Beginning  July  1,  1999,  game  or   game   birds
10    purchased  at  a "game breeding and hunting preserve area" or
11    an "exotic game hunting area" as those terms are used in  the
12    Wildlife  Code  or  at  a  hunting enclosure approved through
13    rules adopted by the Department of Natural  Resources.   This
14    paragraph is exempt from the provisions of Section 3-75.
15        (20)  A motor vehicle, as that term is defined in Section
16    1-146  of  the  Illinois  Vehicle  Code, that is donated to a
17    corporation, limited liability company, society, association,
18    foundation,  or  institution  that  is  determined   by   the
19    Department  to  be  organized  and  operated  exclusively for
20    educational purposes.  For purposes  of  this  exemption,  "a
21    corporation, limited liability company, society, association,
22    foundation, or institution organized and operated exclusively
23    for  educational  purposes"  means  all  tax-supported public
24    schools, private schools that offer systematic instruction in
25    useful branches of  learning  by  methods  common  to  public
26    schools  and  that  compare  favorably  in  their  scope  and
27    intensity with the course of study presented in tax-supported
28    schools,  and  vocational  or technical schools or institutes
29    organized and operated exclusively to  provide  a  course  of
30    study  of  not  less  than  6  weeks duration and designed to
31    prepare individuals to follow a trade or to pursue a  manual,
32    technical,  mechanical,  industrial,  business, or commercial
33    occupation.
34        (21)  Beginning  January  1,  2000,   personal  property,
 
                            -23-     LRB093 02059 DRJ 02062 b
 1    including food, purchased through fundraising events for  the
 2    benefit  of  a  public  or  private  elementary  or secondary
 3    school, a group of those  schools,  or  one  or  more  school
 4    districts if the events are sponsored by an entity recognized
 5    by  the school district that consists primarily of volunteers
 6    and includes parents and teachers  of  the  school  children.
 7    This  paragraph  does not apply to fundraising events (i) for
 8    the benefit of private home instruction or (ii) for which the
 9    fundraising entity purchases the personal  property  sold  at
10    the  events  from  another individual or entity that sold the
11    property for the purpose of resale by the fundraising  entity
12    and  that  profits  from  the sale to the fundraising entity.
13    This paragraph is exempt from the provisions of Section 3-75.
14        (22)  Beginning January 1, 2000 and through December  31,
15    2001, new or used automatic vending machines that prepare and
16    serve  hot  food  and  beverages, including coffee, soup, and
17    other  items,  and  replacement  parts  for  these  machines.
18    Beginning January 1, 2002, machines and  parts  for  machines
19    used  in  commercial,  coin-operated  amusement  and  vending
20    business  if  a  use  or  occupation tax is paid on the gross
21    receipts  derived   from   the   use   of   the   commercial,
22    coin-operated  amusement and vending machines. This paragraph
23    is exempt from the provisions of Section 3-75.
24        (23)  Food for human consumption that is to  be  consumed
25    off  the  premises  where  it  is  sold (other than alcoholic
26    beverages, soft drinks, and food that has been  prepared  for
27    immediate  consumption)  and prescription and nonprescription
28    medicines, drugs,  medical  appliances,  and  insulin,  urine
29    testing  materials,  syringes, and needles used by diabetics,
30    for human use, when purchased for use by a  person  receiving
31    medical assistance under Article 5 of the Illinois Public Aid
32    Code  who  resides  in a licensed long-term care facility, as
33    defined in the Nursing Home Care Act.
34        (24)    Beginning  on  the   effective   date   of   this
 
                            -24-     LRB093 02059 DRJ 02062 b
 1    amendatory  Act  of  the 92nd General Assembly, computers and
 2    communications equipment utilized for  any  hospital  purpose
 3    and  equipment  used in the diagnosis, analysis, or treatment
 4    of hospital patients purchased by a  lessor  who  leases  the
 5    equipment, under a lease of one year or longer executed or in
 6    effect  at  the time the lessor would otherwise be subject to
 7    the tax imposed by this Act, to  a  hospital  that  has  been
 8    issued  an  active tax exemption identification number by the
 9    Department under Section 1g of the Retailers' Occupation  Tax
10    Act.   If  the  equipment is leased in a manner that does not
11    qualify for this exemption or is used in any other  nonexempt
12    manner,  the lessor shall be liable for the tax imposed under
13    this Act or the Use Tax Act, as the case may be, based on the
14    fair  market  value  of  the  property  at   the   time   the
15    nonqualifying  use occurs. No lessor shall collect or attempt
16    to collect an amount (however designated)  that  purports  to
17    reimburse  that lessor for the tax imposed by this Act or the
18    Use Tax Act, as the case may be, if the tax has not been paid
19    by the lessor.  If a  lessor  improperly  collects  any  such
20    amount  from  the lessee, the lessee shall have a legal right
21    to claim a refund  of  that  amount  from  the  lessor.   If,
22    however,  that  amount  is not refunded to the lessee for any
23    reason, the lessor is  liable  to  pay  that  amount  to  the
24    Department.  This  paragraph is exempt from the provisions of
25    Section 3-75.
26        (25)  Beginning on the effective date of this  amendatory
27    Act of the 92nd General Assembly, personal property purchased
28    by  a  lessor  who  leases the property, under a lease of one
29    year or longer executed or in effect at the time  the  lessor
30    would otherwise be subject to the tax imposed by this Act, to
31    a  governmental  body  that  has  been  issued  an active tax
32    exemption  identification  number  by  the  Department  under
33    Section 1g of the Retailers'  Occupation  Tax  Act.   If  the
34    property is leased in a manner that does not qualify for this
 
                            -25-     LRB093 02059 DRJ 02062 b
 1    exemption  or  is  used  in  any  other nonexempt manner, the
 2    lessor shall be liable for the tax imposed under this Act  or
 3    the Use Tax Act, as the case may be, based on the fair market
 4    value  of  the  property  at  the  time the nonqualifying use
 5    occurs.  No lessor shall collect or  attempt  to  collect  an
 6    amount  (however  designated) that purports to reimburse that
 7    lessor for the tax imposed by this Act or the Use Tax Act, as
 8    the case may be, if the tax has not been paid by the  lessor.
 9    If  a  lessor  improperly  collects  any such amount from the
10    lessee, the lessee shall have a legal right to claim a refund
11    of that amount from the lessor.  If, however, that amount  is
12    not  refunded  to  the  lessee  for any reason, the lessor is
13    liable to pay that amount to the Department.  This  paragraph
14    is exempt from the provisions of Section 3-75.
15        (26)    Beginning January 1, 2004 and ending December 31,
16    2006,  automated  external  defibrillators  purchased  by   a
17    physical  fitness  facility for the purpose of complying with
18    the Physical Fitness Facility Medical Emergency  Preparedness
19    Act, up to a maximum exemption of $300 per year. For purposes
20    of  this  paragraph  (26),  "physical  fitness  facility"  is
21    defined as in the Physical Fitness Facility Medical Emergency
22    Preparedness  Act,  except that the term does not include any
23    facility that is  owned  or  operated  by  a  unit  of  local
24    government or a public school, college, or university.
25    (Source:  P.A.  91-51,  eff.  6-30-99;  91-200, eff. 7-20-99;
26    91-439, eff.  8-6-99;  91-637,  eff.  8-20-99;  91-644,  eff.
27    8-20-99;  92-16,  eff.  6-28-01;  92-35, eff. 7-1-01; 92-227,
28    eff. 8-2-01; 92-337,  eff.  8-10-01;  92-484,  eff.  8-23-01;
29    92-651, eff. 7-11-02.)

30        Section 92.  The Service Occupation Tax Act is amended by
31    changing Section 3-5 as follows:

32        (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
 
                            -26-     LRB093 02059 DRJ 02062 b
 1        Sec.  3-5.  Exemptions.   The following tangible personal
 2    property is exempt from the tax imposed by this Act:
 3        (1)  Personal property sold by  a  corporation,  society,
 4    association,  foundation, institution, or organization, other
 5    than a limited  liability  company,  that  is  organized  and
 6    operated  as  a  not-for-profit  service  enterprise  for the
 7    benefit of persons 65 years of age or older if  the  personal
 8    property  was not purchased by the enterprise for the purpose
 9    of resale by the enterprise.
10        (2)  Personal  property  purchased  by  a  not-for-profit
11    Illinois county  fair  association  for  use  in  conducting,
12    operating, or promoting the county fair.
13        (3)  Personal  property  purchased  by any not-for-profit
14    arts or cultural  organization  that  establishes,  by  proof
15    required  by  the Department by rule, that it has received an
16    exemption  under Section 501(c)(3) of  the  Internal  Revenue
17    Code  and  that  is  organized and operated primarily for the
18    presentation or support  of  arts  or  cultural  programming,
19    activities,  or  services.   These organizations include, but
20    are not limited to, music  and  dramatic  arts  organizations
21    such  as  symphony orchestras and theatrical groups, arts and
22    cultural service organizations, local arts  councils,  visual
23    arts  organizations,  and  media  arts  organizations. On and
24    after the effective date of this amendatory Act of  the  92nd
25    General  Assembly,  however, an entity otherwise eligible for
26    this exemption shall not make tax-free  purchases  unless  it
27    has an active identification number issued by the Department.
28        (4)  Legal  tender,  currency,  medallions,  or  gold  or
29    silver   coinage   issued  by  the  State  of  Illinois,  the
30    government of the United States of America, or the government
31    of any foreign country, and bullion.
32        (5)  Graphic  arts  machinery  and  equipment,  including
33    repair  and  replacement  parts,  both  new  and  used,   and
34    including that manufactured on special order or purchased for
 
                            -27-     LRB093 02059 DRJ 02062 b
 1    lease,  certified  by  the purchaser to be used primarily for
 2    graphic arts  production.  Equipment  includes  chemicals  or
 3    chemicals  acting  as  catalysts but only if the chemicals or
 4    chemicals acting as catalysts effect a direct  and  immediate
 5    change upon a graphic arts product.
 6        (6)  Personal   property   sold  by  a  teacher-sponsored
 7    student  organization  affiliated  with  an   elementary   or
 8    secondary school located in Illinois.
 9        (7)  Farm  machinery  and  equipment,  both new and used,
10    including that manufactured on special  order,  certified  by
11    the purchaser to be used primarily for production agriculture
12    or   State   or   federal  agricultural  programs,  including
13    individual replacement parts for the machinery and equipment,
14    including machinery and equipment purchased  for  lease,  and
15    including implements of husbandry defined in Section 1-130 of
16    the  Illinois  Vehicle  Code, farm machinery and agricultural
17    chemical and fertilizer spreaders, and nurse wagons  required
18    to  be registered under Section 3-809 of the Illinois Vehicle
19    Code, but excluding  other  motor  vehicles  required  to  be
20    registered  under  the  Illinois  Vehicle Code. Horticultural
21    polyhouses or hoop houses used for propagating,  growing,  or
22    overwintering  plants  shall be considered farm machinery and
23    equipment under this item (7). Agricultural  chemical  tender
24    tanks  and dry boxes shall include units sold separately from
25    a motor vehicle  required  to  be  licensed  and  units  sold
26    mounted  on  a  motor  vehicle required to be licensed if the
27    selling price of the tender is separately stated.
28        Farm machinery  and  equipment  shall  include  precision
29    farming  equipment  that  is  installed  or  purchased  to be
30    installed on farm machinery and equipment including, but  not
31    limited   to,   tractors,   harvesters,  sprayers,  planters,
32    seeders, or spreaders. Precision farming equipment  includes,
33    but  is  not  limited  to,  soil  testing sensors, computers,
34    monitors, software, global positioning and  mapping  systems,
 
                            -28-     LRB093 02059 DRJ 02062 b
 1    and other such equipment.
 2        Farm  machinery  and  equipment  also includes computers,
 3    sensors, software, and related equipment  used  primarily  in
 4    the  computer-assisted  operation  of  production agriculture
 5    facilities,  equipment,  and  activities  such  as,  but  not
 6    limited to, the collection, monitoring,  and  correlation  of
 7    animal  and  crop  data for the purpose of formulating animal
 8    diets and agricultural chemicals.  This item  (7)  is  exempt
 9    from the provisions of Section 3-55.
10        (8)  Fuel  and  petroleum  products sold to or used by an
11    air common carrier, certified by the carrier to be  used  for
12    consumption,  shipment,  or  storage  in  the  conduct of its
13    business as an air common carrier, for a flight destined  for
14    or  returning from a location or locations outside the United
15    States without regard  to  previous  or  subsequent  domestic
16    stopovers.
17        (9)  Proceeds  of  mandatory  service  charges separately
18    stated on customers' bills for the purchase  and  consumption
19    of food and beverages, to the extent that the proceeds of the
20    service  charge  are  in  fact  turned  over  as tips or as a
21    substitute for tips to the employees who participate directly
22    in preparing, serving, hosting or cleaning  up  the  food  or
23    beverage function with respect to which the service charge is
24    imposed.
25        (10)  Oil  field  exploration,  drilling,  and production
26    equipment, including (i) rigs and parts of rigs, rotary rigs,
27    cable tool rigs, and workover rigs,  (ii)  pipe  and  tubular
28    goods,  including  casing  and drill strings, (iii) pumps and
29    pump-jack units, (iv) storage tanks and flow lines,  (v)  any
30    individual   replacement  part  for  oil  field  exploration,
31    drilling, and production equipment, and  (vi)  machinery  and
32    equipment  purchased  for lease; but excluding motor vehicles
33    required to be registered under the Illinois Vehicle Code.
34        (11)  Photoprocessing machinery and equipment,  including
 
                            -29-     LRB093 02059 DRJ 02062 b
 1    repair  and  replacement  parts, both new and used, including
 2    that  manufactured  on  special  order,  certified   by   the
 3    purchaser  to  be  used  primarily  for  photoprocessing, and
 4    including photoprocessing machinery and  equipment  purchased
 5    for lease.
 6        (12)  Coal   exploration,   mining,  offhighway  hauling,
 7    processing, maintenance, and reclamation equipment, including
 8    replacement parts  and  equipment,  and  including  equipment
 9    purchased for lease, but excluding motor vehicles required to
10    be registered under the Illinois Vehicle Code.
11        (13)  Food  for  human consumption that is to be consumed
12    off the premises where  it  is  sold  (other  than  alcoholic
13    beverages,  soft  drinks  and food that has been prepared for
14    immediate consumption) and prescription and  non-prescription
15    medicines,  drugs,  medical  appliances,  and  insulin, urine
16    testing materials, syringes, and needles used  by  diabetics,
17    for  human  use, when purchased for use by a person receiving
18    medical assistance under Article 5 of the Illinois Public Aid
19    Code who resides in a licensed long-term  care  facility,  as
20    defined in the Nursing Home Care Act.
21        (14)  Semen used for artificial insemination of livestock
22    for direct agricultural production.
23        (15)  Horses, or interests in horses, registered with and
24    meeting  the  requirements  of  any of the Arabian Horse Club
25    Registry of America, Appaloosa Horse Club,  American  Quarter
26    Horse  Association,  United  States  Trotting Association, or
27    Jockey Club, as appropriate, used for purposes of breeding or
28    racing for prizes.
29        (16)  Computers and communications equipment utilized for
30    any hospital purpose and equipment  used  in  the  diagnosis,
31    analysis,  or treatment of hospital patients sold to a lessor
32    who leases the equipment, under a lease of one year or longer
33    executed or in effect at the  time  of  the  purchase,  to  a
34    hospital  that  has  been  issued  an  active  tax  exemption
 
                            -30-     LRB093 02059 DRJ 02062 b
 1    identification  number  by the Department under Section 1g of
 2    the Retailers' Occupation Tax Act.
 3        (17)  Personal property sold to a lessor who  leases  the
 4    property,  under a lease of one year or longer executed or in
 5    effect at the time of the purchase, to  a  governmental  body
 6    that  has  been issued an active tax exemption identification
 7    number by the Department under Section 1g of  the  Retailers'
 8    Occupation Tax Act.
 9        (18)  Beginning  with  taxable  years  ending on or after
10    December 31, 1995 and ending with taxable years ending on  or
11    before  December  31, 2004, personal property that is donated
12    for disaster relief to  be  used  in  a  State  or  federally
13    declared disaster area in Illinois or bordering Illinois by a
14    manufacturer  or retailer that is registered in this State to
15    a   corporation,   society,   association,   foundation,   or
16    institution that  has  been  issued  a  sales  tax  exemption
17    identification  number by the Department that assists victims
18    of the disaster who reside within the declared disaster area.
19        (19)  Beginning with taxable years  ending  on  or  after
20    December  31, 1995 and ending with taxable years ending on or
21    before December 31, 2004, personal property that is  used  in
22    the  performance  of  infrastructure  repairs  in this State,
23    including but not limited to  municipal  roads  and  streets,
24    access  roads,  bridges,  sidewalks,  waste disposal systems,
25    water and  sewer  line  extensions,  water  distribution  and
26    purification  facilities,  storm water drainage and retention
27    facilities, and sewage treatment facilities, resulting from a
28    State or federally declared disaster in Illinois or bordering
29    Illinois  when  such  repairs  are  initiated  on  facilities
30    located in the declared disaster area within 6  months  after
31    the disaster.
32        (20)  Beginning  July 1, 1999, game or game birds sold at
33    a "game breeding and hunting preserve  area"  or  an  "exotic
34    game  hunting  area"  as those terms are used in the Wildlife
 
                            -31-     LRB093 02059 DRJ 02062 b
 1    Code or at a hunting enclosure approved through rules adopted
 2    by the Department of Natural Resources.   This  paragraph  is
 3    exempt from the provisions of Section 3-55.
 4        (21)  A motor vehicle, as that term is defined in Section
 5    1-146  of  the  Illinois  Vehicle  Code, that is donated to a
 6    corporation, limited liability company, society, association,
 7    foundation,  or  institution  that  is  determined   by   the
 8    Department  to  be  organized  and  operated  exclusively for
 9    educational purposes.  For purposes  of  this  exemption,  "a
10    corporation, limited liability company, society, association,
11    foundation, or institution organized and operated exclusively
12    for  educational  purposes"  means  all  tax-supported public
13    schools, private schools that offer systematic instruction in
14    useful branches of  learning  by  methods  common  to  public
15    schools  and  that  compare  favorably  in  their  scope  and
16    intensity with the course of study presented in tax-supported
17    schools,  and  vocational  or technical schools or institutes
18    organized and operated exclusively to  provide  a  course  of
19    study  of  not  less  than  6  weeks duration and designed to
20    prepare individuals to follow a trade or to pursue a  manual,
21    technical,  mechanical,  industrial,  business, or commercial
22    occupation.
23        (22)  Beginning  January  1,  2000,   personal  property,
24    including food, purchased through fundraising events for  the
25    benefit  of  a  public  or  private  elementary  or secondary
26    school, a group of those  schools,  or  one  or  more  school
27    districts if the events are sponsored by an entity recognized
28    by  the school district that consists primarily of volunteers
29    and includes parents and teachers  of  the  school  children.
30    This  paragraph  does not apply to fundraising events (i) for
31    the benefit of private home instruction or (ii) for which the
32    fundraising entity purchases the personal  property  sold  at
33    the  events  from  another individual or entity that sold the
34    property for the purpose of resale by the fundraising  entity
 
                            -32-     LRB093 02059 DRJ 02062 b
 1    and  that  profits  from  the sale to the fundraising entity.
 2    This paragraph is exempt from the provisions of Section 3-55.
 3        (23)  Beginning January 1, 2000 and through December  31,
 4    2001, new or used automatic vending machines that prepare and
 5    serve  hot  food  and  beverages, including coffee, soup, and
 6    other  items,  and  replacement  parts  for  these  machines.
 7    Beginning January 1, 2002, machines and  parts  for  machines
 8    used  in  commercial,  coin-operated  amusement  and  vending
 9    business  if  a  use  or  occupation tax is paid on the gross
10    receipts  derived   from   the   use   of   the   commercial,
11    coin-operated amusement and vending machines.  This paragraph
12    is exempt from the provisions of Section 3-55.
13        (24)  Beginning  on the effective date of this amendatory
14    Act   of   the   92nd   General   Assembly,   computers   and
15    communications equipment utilized for  any  hospital  purpose
16    and  equipment  used in the diagnosis, analysis, or treatment
17    of  hospital  patients  sold  to  a  lessor  who  leases  the
18    equipment, under a lease of one year or longer executed or in
19    effect at the time of the purchase, to a  hospital  that  has
20    been  issued an active tax exemption identification number by
21    the Department under Section 1g of the Retailers'  Occupation
22    Tax  Act.   This  paragraph  is exempt from the provisions of
23    Section 3-55.
24        (25)  Beginning on the effective date of this  amendatory
25    Act of the 92nd General Assembly, personal property sold to a
26    lessor  who leases the property, under a lease of one year or
27    longer executed or in effect at the time of the purchase,  to
28    a  governmental  body  that  has  been  issued  an active tax
29    exemption  identification  number  by  the  Department  under
30    Section 1g  of  the  Retailers'  Occupation  Tax  Act.   This
31    paragraph is exempt from the provisions of Section 3-55.
32        (26)  Beginning  on  January  1,  2002, tangible personal
33    property purchased from an Illinois retailer  by  a  taxpayer
34    engaged  in centralized purchasing activities in Illinois who
 
                            -33-     LRB093 02059 DRJ 02062 b
 1    will, upon receipt of the property in  Illinois,  temporarily
 2    store  the  property  in  Illinois  (i)  for  the  purpose of
 3    subsequently transporting it outside this State  for  use  or
 4    consumption  thereafter solely outside this State or (ii) for
 5    the purpose of being processed, fabricated,  or  manufactured
 6    into,  attached  to,  or  incorporated  into  other  tangible
 7    personal  property  to  be transported outside this State and
 8    thereafter used or consumed solely outside this  State.   The
 9    Director  of  Revenue  shall,  pursuant  to  rules adopted in
10    accordance with the Illinois  Administrative  Procedure  Act,
11    issue  a  permit  to  any  taxpayer in good standing with the
12    Department who is  eligible  for  the  exemption  under  this
13    paragraph  (26).  The permit issued under this paragraph (26)
14    shall authorize the holder, to the extent and in  the  manner
15    specified  in  the  rules adopted under this Act, to purchase
16    tangible personal property from a retailer  exempt  from  the
17    taxes  imposed  by  this  Act.   Taxpayers shall maintain all
18    necessary books and  records  to  substantiate  the  use  and
19    consumption of all such tangible personal property outside of
20    the State of Illinois.
21        (27)  Beginning  January  1, 2004 and ending December 31,
22    2006,  automated  external  defibrillators  purchased  by   a
23    physical  fitness  facility for the purpose of complying with
24    the Physical Fitness Facility Medical Emergency  Preparedness
25    Act, up to a maximum exemption of $300 per year. For purposes
26    of  this  paragraph  (27),  "physical  fitness  facility"  is
27    defined as in the Physical Fitness Facility Medical Emergency
28    Preparedness  Act,  except that the term does not include any
29    facility that is  owned  or  operated  by  a  unit  of  local
30    government or a public school, college, or university.
31    (Source: P.A.  91-51,  eff.  6-30-99;  91-200,  eff. 7-20-99;
32    91-439, eff.  8-6-99;  91-533,  eff.  8-13-99;  91-637,  eff.
33    8-20-99;  91-644,  eff.  8-20-99; 92-16, eff. 6-28-01; 92-35,
34    eff. 7-1-01;  92-227,  eff.  8-2-01;  92-337,  eff.  8-10-01;
 
                            -34-     LRB093 02059 DRJ 02062 b
 1    92-484,  eff.  8-23-01;  92-488,  eff.  8-23-01; 92-651, eff.
 2    7-11-02.)

 3        Section 93.  The Retailers' Occupation Tax Act is amended
 4    by changing Section 2-5 as follows:

 5        (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
 6        Sec. 2-5.  Exemptions.  Gross receipts from proceeds from
 7    the sale of the  following  tangible  personal  property  are
 8    exempt from the tax imposed by this Act:
 9        (1)  Farm chemicals.
10        (2)  Farm  machinery  and  equipment,  both new and used,
11    including that manufactured on special  order,  certified  by
12    the purchaser to be used primarily for production agriculture
13    or   State   or   federal  agricultural  programs,  including
14    individual replacement parts for the machinery and equipment,
15    including machinery and equipment purchased  for  lease,  and
16    including implements of husbandry defined in Section 1-130 of
17    the  Illinois  Vehicle  Code, farm machinery and agricultural
18    chemical and fertilizer spreaders, and nurse wagons  required
19    to  be registered under Section 3-809 of the Illinois Vehicle
20    Code, but excluding  other  motor  vehicles  required  to  be
21    registered  under  the  Illinois  Vehicle Code. Horticultural
22    polyhouses or hoop houses used for propagating,  growing,  or
23    overwintering  plants  shall be considered farm machinery and
24    equipment under this item (2). Agricultural  chemical  tender
25    tanks  and dry boxes shall include units sold separately from
26    a motor vehicle  required  to  be  licensed  and  units  sold
27    mounted  on  a  motor vehicle required to be licensed, if the
28    selling price of the tender is separately stated.
29        Farm machinery  and  equipment  shall  include  precision
30    farming  equipment  that  is  installed  or  purchased  to be
31    installed on farm machinery and equipment including, but  not
32    limited   to,   tractors,   harvesters,  sprayers,  planters,
 
                            -35-     LRB093 02059 DRJ 02062 b
 1    seeders, or spreaders. Precision farming equipment  includes,
 2    but  is  not  limited  to,  soil  testing sensors, computers,
 3    monitors, software, global positioning and  mapping  systems,
 4    and other such equipment.
 5        Farm  machinery  and  equipment  also includes computers,
 6    sensors, software, and related equipment  used  primarily  in
 7    the  computer-assisted  operation  of  production agriculture
 8    facilities,  equipment,  and  activities  such  as,  but  not
 9    limited to, the collection, monitoring,  and  correlation  of
10    animal  and  crop  data for the purpose of formulating animal
11    diets and agricultural chemicals.  This item  (7)  is  exempt
12    from the provisions of Section 2-70.
13        (3)  Distillation machinery and equipment, sold as a unit
14    or  kit, assembled or installed by the retailer, certified by
15    the user to be used only for the production of ethyl  alcohol
16    that  will  be  used  for  consumption  as motor fuel or as a
17    component of motor fuel for the personal use of the user, and
18    not subject to sale or resale.
19        (4)  Graphic  arts  machinery  and  equipment,  including
20    repair  and  replacement  parts,  both  new  and  used,   and
21    including that manufactured on special order or purchased for
22    lease,  certified  by  the purchaser to be used primarily for
23    graphic arts  production.  Equipment  includes  chemicals  or
24    chemicals  acting  as  catalysts but only if the chemicals or
25    chemicals acting as catalysts effect a direct  and  immediate
26    change upon a graphic arts product.
27        (5)  A  motor  vehicle  of  the  first  division, a motor
28    vehicle of the second division that is a self-contained motor
29    vehicle designed or permanently converted to  provide  living
30    quarters  for  recreational,  camping,  or  travel  use, with
31    direct walk through access to the living  quarters  from  the
32    driver's seat, or a motor vehicle of the second division that
33    is  of  the van configuration designed for the transportation
34    of not less than 7 nor more than 16 passengers, as defined in
 
                            -36-     LRB093 02059 DRJ 02062 b
 1    Section 1-146 of the Illinois Vehicle Code, that is used  for
 2    automobile  renting,  as  defined  in  the Automobile Renting
 3    Occupation and Use Tax Act.
 4        (6)  Personal  property  sold  by   a   teacher-sponsored
 5    student   organization   affiliated  with  an  elementary  or
 6    secondary school located in Illinois.
 7        (7)  Proceeds of that portion of the selling price  of  a
 8    passenger car the sale of which is subject to the Replacement
 9    Vehicle Tax.
10        (8)  Personal  property  sold  to an Illinois county fair
11    association for use in conducting,  operating,  or  promoting
12    the county fair.
13        (9)  Personal  property  sold to a not-for-profit arts or
14    cultural organization that establishes, by proof required  by
15    the  Department  by  rule,  that it has received an exemption
16    under Section 501(c)(3) of the Internal Revenue Code and that
17    is organized and operated primarily for the  presentation  or
18    support  of  arts  or  cultural  programming,  activities, or
19    services.  These organizations include, but are  not  limited
20    to,  music  and  dramatic arts organizations such as symphony
21    orchestras and theatrical groups, arts and  cultural  service
22    organizations,    local    arts    councils,    visual   arts
23    organizations, and media arts organizations. On and after the
24    effective date of this amendatory Act  of  the  92nd  General
25    Assembly,  however,  an  entity  otherwise  eligible for this
26    exemption shall not make tax-free purchases unless it has  an
27    active identification number issued by the Department.
28        (10)  Personal  property  sold by a corporation, society,
29    association, foundation, institution, or organization,  other
30    than  a  limited  liability  company,  that  is organized and
31    operated as  a  not-for-profit  service  enterprise  for  the
32    benefit  of  persons 65 years of age or older if the personal
33    property was not purchased by the enterprise for the  purpose
34    of resale by the enterprise.
 
                            -37-     LRB093 02059 DRJ 02062 b
 1        (11)  Personal property sold to a governmental body, to a
 2    corporation, society, association, foundation, or institution
 3    organized and operated exclusively for charitable, religious,
 4    or  educational purposes, or to a not-for-profit corporation,
 5    society,    association,    foundation,    institution,    or
 6    organization that has no compensated  officers  or  employees
 7    and   that  is  organized  and  operated  primarily  for  the
 8    recreation of persons 55 years of age  or  older.  A  limited
 9    liability  company  may  qualify for the exemption under this
10    paragraph only if the limited liability company is  organized
11    and  operated  exclusively  for  educational purposes. On and
12    after July 1, 1987, however, no entity otherwise eligible for
13    this exemption shall make tax-free purchases unless it has an
14    active identification number issued by the Department.
15        (12)  Personal property sold to interstate  carriers  for
16    hire  for  use as rolling stock moving in interstate commerce
17    or to lessors under leases of one year or longer executed  or
18    in  effect at the time of purchase by interstate carriers for
19    hire for use as rolling stock moving in  interstate  commerce
20    and  equipment  operated  by  a  telecommunications provider,
21    licensed as a common carrier by  the  Federal  Communications
22    Commission,  which  is permanently installed in or affixed to
23    aircraft moving in interstate commerce.
24        (13)  Proceeds from sales to owners, lessors, or shippers
25    of tangible personal property that is utilized by  interstate
26    carriers  for  hire  for  use  as  rolling  stock  moving  in
27    interstate    commerce    and   equipment   operated   by   a
28    telecommunications provider, licensed as a common carrier  by
29    the  Federal  Communications Commission, which is permanently
30    installed in or affixed  to  aircraft  moving  in  interstate
31    commerce.
32        (14)  Machinery  and  equipment  that will be used by the
33    purchaser, or a lessee of the  purchaser,  primarily  in  the
34    process  of  manufacturing  or  assembling  tangible personal
 
                            -38-     LRB093 02059 DRJ 02062 b
 1    property for wholesale or retail sale or lease,  whether  the
 2    sale or lease is made directly by the manufacturer or by some
 3    other  person,  whether the materials used in the process are
 4    owned by the manufacturer or some other  person,  or  whether
 5    the sale or lease is made apart from or as an incident to the
 6    seller's  engaging  in  the  service  occupation of producing
 7    machines, tools,  dies,  jigs,  patterns,  gauges,  or  other
 8    similar  items  of no commercial value on special order for a
 9    particular purchaser.
10        (15)  Proceeds of mandatory  service  charges  separately
11    stated  on  customers'  bills for purchase and consumption of
12    food and beverages, to the extent that the  proceeds  of  the
13    service  charge  are  in  fact  turned  over  as tips or as a
14    substitute for tips to the employees who participate directly
15    in preparing, serving, hosting or cleaning  up  the  food  or
16    beverage function with respect to which the service charge is
17    imposed.
18        (16)  Petroleum  products  sold  to  a  purchaser  if the
19    seller is prohibited by federal law from charging tax to  the
20    purchaser.
21        (17)  Tangible personal property sold to a common carrier
22    by rail or motor that receives the physical possession of the
23    property  in  Illinois  and  that transports the property, or
24    shares with another common carrier in the  transportation  of
25    the  property,  out of Illinois on a standard uniform bill of
26    lading showing the seller of the property as the  shipper  or
27    consignor  of the property to a destination outside Illinois,
28    for use outside Illinois.
29        (18)  Legal tender,  currency,  medallions,  or  gold  or
30    silver   coinage   issued  by  the  State  of  Illinois,  the
31    government of the United States of America, or the government
32    of any foreign country, and bullion.
33        (19)  Oil field  exploration,  drilling,  and  production
34    equipment, including (i) rigs and parts of rigs, rotary rigs,
 
                            -39-     LRB093 02059 DRJ 02062 b
 1    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
 2    goods, including casing and drill strings,  (iii)  pumps  and
 3    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
 4    individual  replacement  part  for  oil  field   exploration,
 5    drilling,  and  production  equipment, and (vi) machinery and
 6    equipment purchased for lease; but excluding  motor  vehicles
 7    required to be registered under the Illinois Vehicle Code.
 8        (20)  Photoprocessing  machinery and equipment, including
 9    repair and replacement parts, both new  and  used,  including
10    that   manufactured   on  special  order,  certified  by  the
11    purchaser to  be  used  primarily  for  photoprocessing,  and
12    including  photoprocessing  machinery and equipment purchased
13    for lease.
14        (21)  Coal  exploration,  mining,   offhighway   hauling,
15    processing, maintenance, and reclamation equipment, including
16    replacement  parts  and  equipment,  and  including equipment
17    purchased for lease, but excluding motor vehicles required to
18    be registered under the Illinois Vehicle Code.
19        (22)  Fuel and petroleum products sold to or used  by  an
20    air  carrier,  certified  by  the  carrier  to  be  used  for
21    consumption,  shipment,  or  storage  in  the  conduct of its
22    business as an air common carrier, for a flight destined  for
23    or  returning from a location or locations outside the United
24    States without regard  to  previous  or  subsequent  domestic
25    stopovers.
26        (23)  A  transaction  in  which  the  purchase  order  is
27    received  by  a  florist who is located outside Illinois, but
28    who has a florist located in Illinois deliver the property to
29    the purchaser or the purchaser's donee in Illinois.
30        (24)  Fuel consumed or used in the  operation  of  ships,
31    barges,  or  vessels  that  are  used primarily in or for the
32    transportation of property or the conveyance of  persons  for
33    hire  on  rivers  bordering  on  this  State  if  the fuel is
34    delivered by the seller to the purchaser's  barge,  ship,  or
 
                            -40-     LRB093 02059 DRJ 02062 b
 1    vessel while it is afloat upon that bordering river.
 2        (25)  A motor vehicle sold in this State to a nonresident
 3    even though the motor vehicle is delivered to the nonresident
 4    in  this  State,  if the motor vehicle is not to be titled in
 5    this State, and if a drive-away permit is issued to the motor
 6    vehicle as provided in Section 3-603 of the Illinois  Vehicle
 7    Code or if the nonresident purchaser has vehicle registration
 8    plates to transfer to the motor vehicle upon returning to his
 9    or  her home state.  The issuance of the drive-away permit or
10    having the out-of-state registration plates to be transferred
11    is prima facie evidence that the motor vehicle  will  not  be
12    titled in this State.
13        (26)  Semen used for artificial insemination of livestock
14    for direct agricultural production.
15        (27)  Horses, or interests in horses, registered with and
16    meeting  the  requirements  of  any of the Arabian Horse Club
17    Registry of America, Appaloosa Horse Club,  American  Quarter
18    Horse  Association,  United  States  Trotting Association, or
19    Jockey Club, as appropriate, used for purposes of breeding or
20    racing for prizes.
21        (28)  Computers and communications equipment utilized for
22    any hospital purpose and equipment  used  in  the  diagnosis,
23    analysis,  or treatment of hospital patients sold to a lessor
24    who leases the equipment, under a lease of one year or longer
25    executed or in effect at the  time  of  the  purchase,  to  a
26    hospital  that  has  been  issued  an  active  tax  exemption
27    identification  number  by the Department under Section 1g of
28    this Act.
29        (29)  Personal property sold to a lessor who  leases  the
30    property,  under a lease of one year or longer executed or in
31    effect at the time of the purchase, to  a  governmental  body
32    that  has  been issued an active tax exemption identification
33    number by the Department under Section 1g of this Act.
34        (30)  Beginning with taxable years  ending  on  or  after
 
                            -41-     LRB093 02059 DRJ 02062 b
 1    December  31, 1995 and ending with taxable years ending on or
 2    before December 31, 2004, personal property that  is  donated
 3    for  disaster  relief  to  be  used  in  a State or federally
 4    declared disaster area in Illinois or bordering Illinois by a
 5    manufacturer or retailer that is registered in this State  to
 6    a   corporation,   society,   association,   foundation,   or
 7    institution  that  has  been  issued  a  sales  tax exemption
 8    identification number by the Department that assists  victims
 9    of the disaster who reside within the declared disaster area.
10        (31)  Beginning  with  taxable  years  ending on or after
11    December 31, 1995 and ending with taxable years ending on  or
12    before  December  31, 2004, personal property that is used in
13    the performance of  infrastructure  repairs  in  this  State,
14    including  but  not  limited  to municipal roads and streets,
15    access roads, bridges,  sidewalks,  waste  disposal  systems,
16    water  and  sewer  line  extensions,  water  distribution and
17    purification facilities, storm water drainage  and  retention
18    facilities, and sewage treatment facilities, resulting from a
19    State or federally declared disaster in Illinois or bordering
20    Illinois  when  such  repairs  are  initiated  on  facilities
21    located  in  the declared disaster area within 6 months after
22    the disaster.
23        (32)  Beginning July 1, 1999, game or game birds sold  at
24    a  "game  breeding  and  hunting preserve area" or an "exotic
25    game hunting area" as those terms are used  in  the  Wildlife
26    Code or at a hunting enclosure approved through rules adopted
27    by  the  Department  of Natural Resources.  This paragraph is
28    exempt from the provisions of Section 2-70.
29        (33)  A motor vehicle, as that term is defined in Section
30    1-146 of the Illinois Vehicle Code,  that  is  donated  to  a
31    corporation, limited liability company, society, association,
32    foundation,   or   institution  that  is  determined  by  the
33    Department to  be  organized  and  operated  exclusively  for
34    educational  purposes.   For  purposes  of this exemption, "a
 
                            -42-     LRB093 02059 DRJ 02062 b
 1    corporation, limited liability company, society, association,
 2    foundation, or institution organized and operated exclusively
 3    for educational  purposes"  means  all  tax-supported  public
 4    schools, private schools that offer systematic instruction in
 5    useful  branches  of  learning  by  methods  common to public
 6    schools  and  that  compare  favorably  in  their  scope  and
 7    intensity with the course of study presented in tax-supported
 8    schools, and vocational or technical  schools  or  institutes
 9    organized  and  operated  exclusively  to provide a course of
10    study of not less than  6  weeks  duration  and  designed  to
11    prepare  individuals to follow a trade or to pursue a manual,
12    technical, mechanical, industrial,  business,  or  commercial
13    occupation.
14        (34)  Beginning  January  1,  2000,   personal  property,
15    including  food, purchased through fundraising events for the
16    benefit of  a  public  or  private  elementary  or  secondary
17    school,  a  group  of  those  schools,  or one or more school
18    districts if the events are sponsored by an entity recognized
19    by the school district that consists primarily of  volunteers
20    and  includes  parents  and  teachers of the school children.
21    This paragraph does not apply to fundraising events  (i)  for
22    the benefit of private home instruction or (ii) for which the
23    fundraising  entity  purchases  the personal property sold at
24    the events from another individual or entity  that  sold  the
25    property  for the purpose of resale by the fundraising entity
26    and that profits from the sale  to  the  fundraising  entity.
27    This paragraph is exempt from the provisions of Section 2-70.
28        (35)  Beginning  January 1, 2000 and through December 31,
29    2001, new or used automatic vending machines that prepare and
30    serve hot food and beverages,  including  coffee,  soup,  and
31    other  items,  and  replacement  parts  for  these  machines.
32    Beginning  January  1,  2002, machines and parts for machines
33    used  in  commercial,  coin-operated  amusement  and  vending
34    business if a use or occupation tax  is  paid  on  the  gross
 
                            -43-     LRB093 02059 DRJ 02062 b
 1    receipts   derived   from   the   use   of   the  commercial,
 2    coin-operated amusement and vending machines. This  paragraph
 3    is exempt from the provisions of Section 2-70.
 4        (36)  Beginning  on the effective date of this amendatory
 5    Act   of   the   92nd   General   Assembly,   computers   and
 6    communications equipment utilized for  any  hospital  purpose
 7    and  equipment  used in the diagnosis, analysis, or treatment
 8    of  hospital  patients  sold  to  a  lessor  who  leases  the
 9    equipment, under a lease of one year or longer executed or in
10    effect at the time of the purchase, to a  hospital  that  has
11    been  issued an active tax exemption identification number by
12    the Department under Section 1g of this Act.  This  paragraph
13    is exempt from the provisions of Section 2-70.
14        (37)  Beginning  on the effective date of this amendatory
15    Act of the 92nd General Assembly, personal property sold to a
16    lessor who leases the property, under a lease of one year  or
17    longer  executed or in effect at the time of the purchase, to
18    a governmental body  that  has  been  issued  an  active  tax
19    exemption  identification  number  by  the  Department  under
20    Section  1g  of  this Act.  This paragraph is exempt from the
21    provisions of Section 2-70.
22        (38)  Beginning on January  1,  2002,  tangible  personal
23    property  purchased  from  an Illinois retailer by a taxpayer
24    engaged in centralized purchasing activities in Illinois  who
25    will,  upon  receipt of the property in Illinois, temporarily
26    store the  property  in  Illinois  (i)  for  the  purpose  of
27    subsequently  transporting  it  outside this State for use or
28    consumption thereafter solely outside this State or (ii)  for
29    the  purpose  of being processed, fabricated, or manufactured
30    into,  attached  to,  or  incorporated  into  other  tangible
31    personal property to be transported outside  this  State  and
32    thereafter  used  or consumed solely outside this State.  The
33    Director of Revenue  shall,  pursuant  to  rules  adopted  in
34    accordance  with  the  Illinois Administrative Procedure Act,
 
                            -44-     LRB093 02059 DRJ 02062 b
 1    issue a permit to any taxpayer  in  good  standing  with  the
 2    Department  who  is  eligible  for  the  exemption under this
 3    paragraph (38).  The permit issued under this paragraph  (38)
 4    shall  authorize  the holder, to the extent and in the manner
 5    specified in the rules adopted under this  Act,  to  purchase
 6    tangible  personal  property  from a retailer exempt from the
 7    taxes imposed by this  Act.   Taxpayers  shall  maintain  all
 8    necessary  books  and  records  to  substantiate  the use and
 9    consumption of all such tangible personal property outside of
10    the State of Illinois.
11        (39) Beginning January 1, 2004 and  ending  December  31,
12    2006,   automated  external  defibrillators  purchased  by  a
13    physical fitness facility for the purpose of  complying  with
14    the  Physical Fitness Facility Medical Emergency Preparedness
15    Act, up to  a  maximum  exemption  of  $300  per  year.   For
16    purposes  of this paragraph (39), "physical fitness facility"
17    is defined  as  in  the  Physical  Fitness  Facility  Medical
18    Emergency  Preparedness  Act,  except  that the term does not
19    include any facility that is owned or operated by a  unit  of
20    local government or a public school, college, or university.
21    (Source: P.A.  91-51,  eff.  6-30-99;  91-200,  eff. 7-20-99;
22    91-439, eff.  8-6-99;  91-533,  eff.  8-13-99;  91-637,  eff.
23    8-20-99;  91-644,  eff.  8-20-99; 92-16, eff. 6-28-01; 92-35,
24    eff. 7-1-01;  92-227,  eff.  8-2-01;  92-337,  eff.  8-10-01;
25    92-484,  eff.  8-23-01;  92-488,  eff.  8-23-01; 92-651, eff.
26    7-11-02; 92-680, eff. 7-16-02.)