HB3138 98TH GENERAL ASSEMBLY

LRB098 09144 HLH 39282 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3138

Introduced , by Rep. Derrick Smith

SYNOPSIS AS INTRODUCED:

815 ILCS 5/18.2 new

Amends the Illinois Securities Law of 1953. Provides that the Secretary of State may impose and collect a fee on the transfer of securities and derivative financial instruments. Provides a list of covered transactions and sets the fee rate to be collected by the Secretary.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning business.

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

Section 5. The Illinois Securities Law of 1953 is amended by adding Section 18.2 as follows:

(815 ILCS 5/18.2 new)

Sec. 18.2. Fee on trading transactions.

(a) Definitions. For purposes of this Section:

"Derivative financial instrument" means any option, forward contract, futures contract, notional principal contract, or any similar financial instrument.

"Specified base amount" means the fair market value of the security at the time of the covered transaction.

(b) In addition to any other fee that the Secretary of State may impose and collect pursuant to the authority contained in this Act, beginning on January 1, 2014 the Secretary of State shall also collect a fee on the transfer of ownership in each covered transaction with respect to any security.

(c) Rate of fee. The fee imposed under subsection (b) of this Section with respect to any covered transaction shall be $0.10 of the specified base amount with respect to the covered transaction.

(d) Covered transactions:

(1) except as provided in item (2) of this subsection, any purchase if that purchase occurs or is cleared on a facility located in Illinois; and

(2) any transaction with respect to a security described in item (4), (5), or (6) of subsection (e) of this Section if that security is traded or cleared on a facility located in Illinois.

(e) "Security" means:

(1) any share of stock in a corporation;

(2) any partnership or beneficial ownership interest in a partnership or trust;

(3) any note, bond, debenture, or other evidence of indebtedness, other than a State or local bond the interest of which is a excluded from gross income under Section 103(a) of the Internal Revenue Code;

(4) any evidence of an interest in, or a derivative financial instrument with respect to, any security or securities described above;

(5) any derivative financial instrument with respect to any currency or commodity including notional principal contracts; and

(6) any other derivative financial instrument any payment with respect to which is calculated by reference to any specified index.