Illinois General Assembly - Full Text of SB3348
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Full Text of SB3348  97th General Assembly




State of Illinois
2011 and 2012


Introduced 2/7/2012, by Sen. Toi W. Hutchinson


New Act
30 ILCS 105/5.811 new

    Creates the Live Adult Entertainment Facility Tax Act. Imposes a tax on each operator who operates a live adult entertainment facility in this State. Provides that the amount of the tax is an amount equal to $5 for each entry by each customer admitted into the live adult entertainment facility. Creates the Sexual Assault Prevention Fund as a special fund in the State treasury. Requires that the proceeds of the tax be deposited into the Sexual Assault Prevention Fund. Provides that, from appropriation from the Fund, the Department of Human Services shall make grants to sexual assault organizations with whom the Department has contracts for the purpose of providing community-based assistance to victims of sexual assault and for activities concerning the prevention of sexual assault. Sets forth provisions for the administration of the tax.

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SB3348LRB097 17953 HLH 63176 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the Live
5Adult Entertainment Facility Tax Act.
6    Section 3. Findings. The General Assembly finds that:
7        (1) crime statistics show that all types of crimes,
8    especially sex-related crimes, occur with more frequency
9    in neighborhoods where sexually oriented businesses are
10    located;
11        (2) sexually oriented businesses contribute to a
12    culture that tolerates the sexual objectification and
13    exploitation of women, and contribute to the need for
14    community-based services to respond to victims of all forms
15    of sexual exploitation, including sexual harassment,
16    trafficking, and sexual assault;
17        (3) the consumption of alcoholic beverages on the
18    premises of sexually oriented businesses exacerbates the
19    negative secondary effects of those businesses on the
20    community; and
21        (4) the presence of sexually oriented businesses may
22    result in an increase in prohibited secondary sexual
23    activities, such as prostitution, in the surrounding



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1    community.
2    It is the intent of the General Assembly to ameliorate the
3negative secondary effects associated with the combination of
4sexually oriented businesses and alcohol so as to promote the
5health, safety, and welfare of the citizens of Illinois.
6    This Act is not intended to directly or indirectly impose
7limitations or restrictions on live nude dancing, nor is it the
8intent of this Act to restrict or deny access by adults to live
9nude dancing performances that may be protected by the First
10Amendment of the United States Constitution or by the Illinois
12    Section 5. Definitions. As used in this Act:
13    "Department" means the Department of Revenue.
14    "Live adult entertainment facility" means a striptease
15club or other business that, during at least 30 consecutive or
16nonconsecutive days in a calendar year, offers or provides
17activities by employees, agents, or contractors of the business
18that involve nude or partially denuded individuals that, when
19considered as a whole, appeal primarily to an interest in
20nudity or sex.
21    "Nude or partially denuded individual" means an individual
22who is:
23        (1) entirely unclothed; or
24        (2) clothed in a manner that leaves uncovered or
25    visible through less than fully opaque clothing any portion



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1    of the breasts below the top of the areola of the breasts,
2    if the person is female, or any portion of the genitals or
3    buttocks.
4    "Operator" means any person who owns or operates a live
5adult entertainment facility.
6    Section 10. Tax imposed; returns.
7    (a) A tax is imposed upon each operator who operates a live
8adult entertainment facility in this State that serves or
9permits the consumption of alcohol on its premises. The amount
10of the tax under this Act is an amount equal to $5 for each
11entry by each customer admitted into the live adult
12entertainment facility.
13    (b) For each live adult entertainment facility, the
14operator must make a return to the Department on a
15quarter-annual basis, with the return for January, February,
16and March of a given year being due by April 30 of that year;
17with the return for April, May, and June of a given year being
18due by July 31 of that year; with the return for July, August,
19and September of a given year being due by October 31 of that
20year; and with the return for October, November, and December
21of a given year being due by January 31 of the following year.
22Each return made to the Department must state the following:
23        (1) the name of the operator;
24        (2) the address of the live adult entertainment
25    facility and the address of the principal place of business



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1    (if that is a different address) of the operator;
2        (3) the total number of customers admitted to the
3    facility in the preceding calendar quarter;
4        (4) the total amount of tax collected in the preceding
5    calendar quarter; and
6        (5) any other information that the Department of
7    Revenue reasonably requires.
8    Notwithstanding any other provision of this subsection
9concerning the time within which an operator may file his or
10her return, if an operator ceases to operates a live adult
11entertainment facility, then he or she must file a final return
12under this Act with the Department not more than one calendar
13month after discontinuing that business.
14    (c) Persons subject to the tax imposed by this Act may
15reimburse themselves for their tax liability under this Act by
16separately stating such tax as an additional charge. If any
17operator collects an amount (however designated) that purports
18to reimburse the operator for the tax liability measured by
19receipts that are not subject to the tax under this Act, or if
20any operator, in collecting an amount (however designated) that
21purports to reimburse the operator for the tax liability under
22this Act, collects more from the customer than the operator's
23tax liability in the transaction, then the customer has a legal
24right to claim a refund of that amount from the operator. If,
25however, that amount is not refunded to the customer for any
26reason, then the operator is liable to pay that amount to the



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2    (d) The Department shall pay all proceeds collected from
3the tax imposed under this Act into the Sexual Assault
4Prevention Fund.
5    Section 15. The Sexual Assault Prevention Fund. The Sexual
6Assault Prevention Fund is created as a special fund in the
7State treasury. From appropriations from the Fund, the
8Department of Human Services shall make grants to sexual
9assault organizations with whom the Department has contracts
10for the purpose of providing community-based assistance to
11victims of sexual assault and for activities concerning the
12prevention of sexual assault. Moneys received for the purposes
13of this Act, including, without limitation, tax proceeds and
14gifts, grants, and awards from any public or private entity,
15must be deposited into the Fund. Any interest earnings that are
16attributable to moneys in the Fund must be deposited into the
18    The Fund is not subject to sweeps, administrative charges,
19or charge-backs, or any other fiscal or budgetary maneuver that
20would in any way transfer any moneys from the Fund into any
21other fund of the State.
22    Section 20. Books and records. Every operator shall keep
23separate books or records of his or her business as an operator
24to record the taxable admissions of customers under this Act.



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1The Department may adopt rules that establish requirements,
2including record forms and formats, for records required to be
3kept and maintained by taxpayers. For purposes of this Section,
4"records" means all data maintained by the taxpayer, including
5data on paper, microfilm, microfiche, or any type of
6machine-sensible data compilation.
7    Section 25. Application of Retailers' Occupation Tax
8provisions. All the provisions of Sections 4, 5, 5a, 5b, 5c,
95d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, and 13
10of the Retailers' Occupation Tax Act that are not inconsistent
11with this Act apply, as far as practicable, to the tax imposed
12by this Act to the same extent as if those provisions were
13included in this Act. References in the incorporated Sections
14of the Retailers' Occupation Tax Act to retailers, to sellers,
15or to persons engaged in the business of selling tangible
16personal property mean operators.
17    Section 30. Hearing; notice.
18    (a) The Department may adopt and enforce any reasonable
19rule to administer and enforce the tax imposed by this Act.
20    (b) Whenever the Department is required to provide notice
21to an operator under this Act, the notice may be personally
22served or given by United States certified or registered mail,
23addressed to the operator concerned at his or her last known
24address, and proof of this mailing is sufficient for the



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1purposes of this Act. In the case of a notice of hearing, the
2Department must mail the notice at least 7 days prior to the
3date fixed for the hearing.
4    (c) All hearings provided by the Department under this Act
5with respect to or concerning a operator having his or her
6principal place of business in this State other than in Cook
7County must be held at the Department's office nearest to the
8location of the operator's principal place of business. If the
9operator has his or her principal place of business in Cook
10County, then the hearing must be held in Cook County. If the
11operator does not have his or her principal place of business
12in this State, then the hearing must be held in Sangamon
14    (d) If any proceeding under this Act has been begun by the
15Department or by a person subject thereto and that person
16subsequently dies or becomes a person under legal disability
17before the proceeding has been concluded, then the legal
18representative of the deceased person or person under legal
19disability shall notify the Department of the death or legal
20disability. The Department must substitute the legal
21representative, as such, in place of and for the person. Within
2220 days after notice to the legal representative of the time
23fixed for that purpose, the proceeding may proceed in all
24respects and with like effect as though the person had not died
25or become a person under legal disability.



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1    Section 35. Administrative procedures. The Illinois
2Administrative Procedure Act is expressly adopted and applies
3to all administrative rules and procedures of the Department
4under this Act, except that: (1) paragraph (b) of Section 4 of
5the Illinois Administrative Procedure Act does not apply to
6final orders, decisions, and opinions of the Department; (2)
7subparagraph (a)(2) of Section 4 of the Illinois Administrative
8Procedure Act does not apply to forms established by the
9Department for use under this Act; and (3) the provisions of
10Section 13 of the Illinois Administrative Procedure Act
11regarding proposals for decision are excluded and not
12applicable to the Department under this Act.
13    Section 40. Review under the Administrative Review Law.
14    (a) The circuit court of any county in which a hearing is
15held has the power to review all final administrative decisions
16of the Department in administering the tax imposed under this
17Act. If, however, the administrative proceeding that is to be
18reviewed judicially is a claim for refund proceeding commenced
19under this Act and Section 2a of the State Officers and
20Employees Money Disposition Act, the circuit court having
21jurisdiction over the action for judicial review under this
22Section and under the Administrative Review Law is the same
23court that entered the temporary restraining order or
24preliminary injunction that is provided for in that Section 2a,
25and that enables the claim proceeding to be processed and



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1disposed of as a claim for refund proceeding other than as a
2claim for credit proceeding.
3    (b) The provisions of the Administrative Review Law apply
4to and govern all proceedings for the judicial review of final
5administrative decisions of the Department under this Title.
6The term "administrative decision" is defined as in Section
73-101 of the Code of Civil Procedure.
8    (c) Service of summons issued in any action to review a
9final administrative decision upon the Director or Assistant
10Director of Revenue shall be service upon the Department. The
11Department shall certify the record of its proceedings if the
12taxpayer pays to it the sum of $0.75 per page of testimony
13taken before the Department and $0.25 per page of all other
14matters contained in the record, except that these charges may
15be waived if the Department is satisfied that the aggrieved
16party cannot afford to pay these charges.
17    Section 45. Penalty. Any operator who fails to make a
18return or who makes a fraudulent return, or who willfully
19violates any rule or regulation of the Department for the
20administration and enforcement of the tax imposed under this
21Act, is guilty of a Class 4 felony.
22    Section 90. The State Finance Act is amended by adding
23Section 5.811 as follows:



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1    (30 ILCS 105/5.811 new)
2    Sec. 5.811. The Sexual Assault Prevention Fund.
3    Section 97. Severability. The provisions of this Act are
4severable under Section 1.31 of the Statute on Statutes.