HB0043eng 93rd General Assembly

093_HB0043eng

 
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 1        AN ACT in relation to health, which may be known  as  the
 2    Colleen O'Sullivan Law.

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

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

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

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

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

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

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

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

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

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

26        Section 20.  Training. The Department shall  adopt  rules
27    to  establish  programs  to  train  physical fitness facility
28    staff on the role of cardiopulmonary  resuscitation  and  the
29    use  of  automated external defibrillators. The rules must be
30    consistent with those adopted by the Department for  training
31    AED users under the Automated External Defibrillator Act.
 
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 1        Section 25.  Economic incentives.
 2        (a)  The  Department  must  work  with  physical  fitness
 3    facilities  and  manufacturers  and distributors of automated
 4    external defibrillators to develop a procedure by which 2  or
 5    more  facilities  may  submit a joint bid for the purchase of
 6    AEDs in order to maximize their purchasing power.
 7        (b)  A private physical fitness facility  that  purchases
 8    an  automated  external defibrillator in order to comply with
 9    this Act is eligible for  a  tax  exemption  as  provided  in
10    Section  3-5  of  the Use Tax Act, Section 3-5 of the Service
11    Use Tax Act, Section 3-5 of the Service Occupation  Tax  Act,
12    and Section 2-5 of the Retailers' Occupation Tax Act.

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

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

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

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

25        Section   50.  Compliance   dates;   private  and  public
26    physical fitness facilities.
27        (a)  Privately-owned physical fitness facilities.   Every
28    privately-owned or operated physical fitness facility must be
29    in compliance with this Act on or before July 1, 2004.
30        (b)  Publicly   owned  physical  fitness  facilities.   A
31    public entity owning or operating 4 or fewer physical fitness
 
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 1    facilities must have at least one such facility in compliance
 2    with this Act on or before July 1, 2004; its second  facility
 3    in  compliance  by  July  1,  2005;  its  third  facility  in
 4    compliance  by  July  1,  2006;  and  its  fourth facility in
 5    compliance by July 1, 2007.   Any  public  entity  owning  or
 6    operating  more  than 4 physical fitness facilities must have
 7    25% of its facilities in compliance by July 1, 2004;  50%  of
 8    its  facilities  in  compliance  by  July 1, 2005; 75% of its
 9    facilities in compliance by July 1, 2006;  and  100%  of  its
10    facilities in compliance by July 1, 2007.

11        Section  88.  The State Mandates Act is amended by adding
12    Section 8.27 as follows:

13        (30 ILCS 805/8.27 new)
14        Sec. 8.27. Exempt mandate.   Notwithstanding  Sections  6
15    and  8 of this Act, no reimbursement by the State is required
16    for  the  implementation  of  any  mandate  created  by  this
17    amendatory Act of the 93rd General Assembly.

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

20        (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
21        Sec.  3-5.  Exemptions.   Use  of  the following tangible
22    personal property is exempt from the tax imposed by this Act:
23        (1)  Personal  property  purchased  from  a  corporation,
24    society,    association,    foundation,    institution,    or
25    organization, other than a limited liability company, that is
26    organized and operated as a not-for-profit service enterprise
27    for the benefit of persons 65 years of age or  older  if  the
28    personal property was not purchased by the enterprise for the
29    purpose of resale by the enterprise.
30        (2)  Personal  property  purchased  by  a  not-for-profit
 
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 1    Illinois  county  fair  association  for  use  in conducting,
 2    operating, or 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)  Personal  property purchased by a governmental body,
19    by  a  corporation,  society,  association,  foundation,   or
20    institution    organized   and   operated   exclusively   for
21    charitable, religious,  or  educational  purposes,  or  by  a
22    not-for-profit corporation, society, association, foundation,
23    institution, or organization that has no compensated officers
24    or employees and that is organized and operated primarily for
25    the recreation of persons 55 years of age or older. A limited
26    liability  company  may  qualify for the exemption under this
27    paragraph only if the limited liability company is  organized
28    and  operated  exclusively  for  educational purposes. On and
29    after July 1, 1987, however, no entity otherwise eligible for
30    this exemption shall make tax-free purchases unless it has an
31    active  exemption  identification  number   issued   by   the
32    Department.
33        (5)  A passenger car that is a replacement vehicle to the
34    extent  that  the purchase price of the car is subject to the
 
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 1    Replacement Vehicle Tax.
 2        (6)  Graphic  arts  machinery  and  equipment,  including
 3    repair  and  replacement  parts,  both  new  and  used,   and
 4    including  that  manufactured  on special order, certified by
 5    the  purchaser  to  be  used  primarily  for   graphic   arts
 6    production,  and  including machinery and equipment purchased
 7    for lease.  Equipment includes chemicals or chemicals  acting
 8    as catalysts but only if the chemicals or chemicals acting as
 9    catalysts effect a direct and immediate change upon a graphic
10    arts product.
11        (7)  Farm chemicals.
12        (8)  Legal  tender,  currency,  medallions,  or  gold  or
13    silver   coinage   issued  by  the  State  of  Illinois,  the
14    government of the United States of America, or the government
15    of any foreign country, and bullion.
16        (9)  Personal property purchased from a teacher-sponsored
17    student  organization  affiliated  with  an   elementary   or
18    secondary school located in Illinois.
19        (10)  A  motor  vehicle  of  the  first division, a motor
20    vehicle of the second division that is a self-contained motor
21    vehicle designed or permanently converted to  provide  living
22    quarters  for  recreational,  camping,  or  travel  use, with
23    direct walk through to the living quarters from the  driver's
24    seat,  or  a  motor vehicle of the second division that is of
25    the van configuration designed for the transportation of  not
26    less  than  7  nor  more  than  16  passengers, as defined in
27    Section 1-146 of the Illinois Vehicle Code, that is used  for
28    automobile  renting,  as  defined  in  the Automobile Renting
29    Occupation and Use Tax Act.
30        (11)  Farm machinery and equipment, both  new  and  used,
31    including  that  manufactured  on special order, certified by
32    the purchaser to be used primarily for production agriculture
33    or  State  or  federal   agricultural   programs,   including
34    individual replacement parts for the machinery and equipment,
 
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 1    including  machinery  and  equipment purchased for lease, and
 2    including implements of husbandry defined in Section 1-130 of
 3    the Illinois Vehicle Code, farm  machinery  and  agricultural
 4    chemical  and fertilizer spreaders, and nurse wagons required
 5    to be registered under Section 3-809 of the Illinois  Vehicle
 6    Code,  but  excluding  other  motor  vehicles  required to be
 7    registered under the  Illinois  Vehicle  Code.  Horticultural
 8    polyhouses  or  hoop houses used for propagating, growing, or
 9    overwintering plants shall be considered farm  machinery  and
10    equipment  under this item (11). Agricultural chemical tender
11    tanks and dry boxes shall include units sold separately  from
12    a  motor  vehicle  required  to  be  licensed  and units sold
13    mounted on a motor vehicle required to  be  licensed  if  the
14    selling price of the tender is separately stated.
15        Farm  machinery  and  equipment  shall  include precision
16    farming equipment  that  is  installed  or  purchased  to  be
17    installed  on farm machinery and equipment including, but not
18    limited  to,  tractors,   harvesters,   sprayers,   planters,
19    seeders,  or spreaders. Precision farming equipment includes,
20    but is not  limited  to,  soil  testing  sensors,  computers,
21    monitors,  software,  global positioning and mapping systems,
22    and other such equipment.
23        Farm machinery and  equipment  also  includes  computers,
24    sensors,  software,  and  related equipment used primarily in
25    the computer-assisted  operation  of  production  agriculture
26    facilities,  equipment,  and  activities  such  as,  but  not
27    limited  to,  the  collection, monitoring, and correlation of
28    animal and crop data for the purpose  of  formulating  animal
29    diets  and  agricultural chemicals.  This item (11) is exempt
30    from the provisions of Section 3-90.
31        (12)  Fuel and petroleum products sold to or used  by  an
32    air  common  carrier, certified by the carrier to be used for
33    consumption, shipment, or  storage  in  the  conduct  of  its
34    business  as an air common carrier, for a flight destined for
 
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 1    or returning from a location or locations outside the  United
 2    States  without  regard  to  previous  or subsequent domestic
 3    stopovers.
 4        (13)  Proceeds of mandatory  service  charges  separately
 5    stated  on  customers' bills for the purchase and consumption
 6    of food and beverages purchased at retail from a retailer, to
 7    the extent that the proceeds of the  service  charge  are  in
 8    fact  turned  over as tips or as a substitute for tips to the
 9    employees who participate  directly  in  preparing,  serving,
10    hosting  or  cleaning  up  the food or beverage function with
11    respect to which the service charge is imposed.
12        (14)  Oil field  exploration,  drilling,  and  production
13    equipment, including (i) rigs and parts of rigs, rotary rigs,
14    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
15    goods, including casing and drill strings,  (iii)  pumps  and
16    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
17    individual  replacement  part  for  oil  field   exploration,
18    drilling,  and  production  equipment, and (vi) machinery and
19    equipment purchased for lease; but excluding  motor  vehicles
20    required to be registered under the Illinois Vehicle Code.
21        (15)  Photoprocessing  machinery and equipment, including
22    repair and replacement parts, both new  and  used,  including
23    that   manufactured   on  special  order,  certified  by  the
24    purchaser to  be  used  primarily  for  photoprocessing,  and
25    including  photoprocessing  machinery and equipment purchased
26    for lease.
27        (16)  Coal  exploration,  mining,   offhighway   hauling,
28    processing, maintenance, and reclamation equipment, including
29    replacement  parts  and  equipment,  and  including equipment
30    purchased for lease, but excluding motor vehicles required to
31    be registered under the Illinois Vehicle Code.
32        (17)  Distillation machinery and  equipment,  sold  as  a
33    unit   or  kit,  assembled  or  installed  by  the  retailer,
34    certified by the user to be used only for the  production  of
 
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 1    ethyl alcohol that will be used for consumption as motor fuel
 2    or  as  a component of motor fuel for the personal use of the
 3    user, and not subject to sale or resale.
 4        (18)  Manufacturing   and   assembling   machinery    and
 5    equipment  used  primarily in the process of manufacturing or
 6    assembling tangible personal property for wholesale or retail
 7    sale or lease, whether that sale or lease is made directly by
 8    the  manufacturer  or  by  some  other  person,  whether  the
 9    materials used in the process are owned by  the  manufacturer
10    or  some  other person, or whether that sale or lease is made
11    apart from or as an incident to the seller's engaging in  the
12    service  occupation of producing machines, tools, dies, jigs,
13    patterns, gauges, or other similar  items  of  no  commercial
14    value on special order for a particular purchaser.
15        (19)  Personal  property  delivered  to  a  purchaser  or
16    purchaser's donee inside Illinois when the purchase order for
17    that  personal  property  was  received  by a florist located
18    outside Illinois who has a florist  located  inside  Illinois
19    deliver the personal property.
20        (20)  Semen used for artificial insemination of livestock
21    for direct agricultural production.
22        (21)  Horses, or interests in horses, registered with and
23    meeting  the  requirements  of  any of the Arabian Horse Club
24    Registry of America, Appaloosa Horse Club,  American  Quarter
25    Horse  Association,  United  States  Trotting Association, or
26    Jockey Club, as appropriate, used for purposes of breeding or
27    racing for prizes.
28        (22)  Computers and communications equipment utilized for
29    any hospital purpose and equipment  used  in  the  diagnosis,
30    analysis,  or  treatment  of hospital patients purchased by a
31    lessor who leases the equipment, under a lease of one year or
32    longer executed or in effect at the  time  the  lessor  would
33    otherwise  be  subject  to  the tax imposed by this Act, to a
34    hospital  that  has  been  issued  an  active  tax  exemption
 
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 1    identification  number  by the Department under Section 1g of
 2    the Retailers' Occupation  Tax  Act.   If  the  equipment  is
 3    leased  in  a manner that does not qualify for this exemption
 4    or is used in any other non-exempt manner, the  lessor  shall
 5    be  liable  for the tax imposed under this Act or the Service
 6    Use Tax Act, as the case may be, based  on  the  fair  market
 7    value  of  the  property  at  the time the non-qualifying use
 8    occurs.  No lessor shall collect or  attempt  to  collect  an
 9    amount  (however  designated) that purports to reimburse that
10    lessor for the tax imposed by this Act or the Service Use Tax
11    Act, as the case may be, if the tax has not been paid by  the
12    lessor.  If a lessor improperly collects any such amount from
13    the  lessee,  the  lessee shall have a legal right to claim a
14    refund of that amount from the  lessor.   If,  however,  that
15    amount  is  not  refunded  to  the lessee for any reason, the
16    lessor is liable to pay that amount to the Department.
17        (23)  Personal property purchased by a lessor who  leases
18    the  property,  under a lease of  one year or longer executed
19    or in effect at  the  time  the  lessor  would  otherwise  be
20    subject  to  the  tax  imposed by this Act, to a governmental
21    body that has been  issued  an  active  sales  tax  exemption
22    identification  number  by the Department under Section 1g of
23    the Retailers' Occupation Tax Act. If the property is  leased
24    in  a manner that does not qualify for this exemption or used
25    in any other non-exempt manner, the lessor  shall  be  liable
26    for  the  tax  imposed  under this Act or the Service Use Tax
27    Act, as the case may be, based on the fair  market  value  of
28    the  property  at the time the non-qualifying use occurs.  No
29    lessor shall collect or attempt to collect an amount (however
30    designated) that purports to reimburse that  lessor  for  the
31    tax  imposed  by  this Act or the Service Use Tax Act, as the
32    case may be, if the tax has not been paid by the lessor.   If
33    a lessor improperly collects any such amount from the lessee,
34    the lessee shall have a legal right to claim a refund of that
 
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 1    amount  from  the  lessor.   If,  however, that amount is not
 2    refunded to the lessee for any reason, the lessor  is  liable
 3    to pay that amount to the Department.
 4        (24)  Beginning  with  taxable  years  ending on or after
 5    December 31, 1995 and ending with taxable years ending on  or
 6    before  December  31, 2004, personal property that is donated
 7    for disaster relief to  be  used  in  a  State  or  federally
 8    declared disaster area in Illinois or bordering Illinois by a
 9    manufacturer  or retailer that is registered in this State to
10    a   corporation,   society,   association,   foundation,   or
11    institution that  has  been  issued  a  sales  tax  exemption
12    identification  number by the Department that assists victims
13    of the disaster who reside within the declared disaster area.
14        (25)  Beginning with taxable years  ending  on  or  after
15    December  31, 1995 and ending with taxable years ending on or
16    before December 31, 2004, personal property that is  used  in
17    the  performance  of  infrastructure  repairs  in this State,
18    including but not limited to  municipal  roads  and  streets,
19    access  roads,  bridges,  sidewalks,  waste disposal systems,
20    water and  sewer  line  extensions,  water  distribution  and
21    purification  facilities,  storm water drainage and retention
22    facilities, and sewage treatment facilities, resulting from a
23    State or federally declared disaster in Illinois or bordering
24    Illinois  when  such  repairs  are  initiated  on  facilities
25    located in the declared disaster area within 6  months  after
26    the disaster.
27        (26)  Beginning   July   1,  1999,  game  or  game  birds
28    purchased at a "game breeding and hunting preserve  area"  or
29    an  "exotic game hunting area" as those terms are used in the
30    Wildlife Code or at  a  hunting  enclosure  approved  through
31    rules  adopted  by the Department of Natural Resources.  This
32    paragraph is exempt from the provisions of Section 3-90.
33        (27)  A motor vehicle, as that term is defined in Section
34    1-146 of the Illinois Vehicle Code,  that  is  donated  to  a
 
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 1    corporation, limited liability company, society, association,
 2    foundation,   or   institution  that  is  determined  by  the
 3    Department to  be  organized  and  operated  exclusively  for
 4    educational  purposes.    For  purposes of this exemption, "a
 5    corporation, limited liability company, society, association,
 6    foundation, or institution organized and operated exclusively
 7    for educational  purposes"  means  all  tax-supported  public
 8    schools, private schools that offer systematic instruction in
 9    useful  branches  of  learning  by  methods  common to public
10    schools  and  that  compare  favorably  in  their  scope  and
11    intensity with the course of study presented in tax-supported
12    schools, and vocational or technical  schools  or  institutes
13    organized  and  operated  exclusively  to provide a course of
14    study of not less than  6  weeks  duration  and  designed  to
15    prepare  individuals to follow a trade or to pursue a manual,
16    technical, mechanical, industrial,  business,  or  commercial
17    occupation.
18        (28)  Beginning  January  1,  2000,   personal  property,
19    including  food, purchased through fundraising events for the
20    benefit of  a  public  or  private  elementary  or  secondary
21    school,  a  group  of  those  schools,  or one or more school
22    districts if the events are sponsored by an entity recognized
23    by the school district that consists primarily of  volunteers
24    and  includes  parents  and  teachers of the school children.
25    This paragraph does not apply to fundraising events  (i)  for
26    the benefit of private home instruction or (ii) for which the
27    fundraising  entity  purchases  the personal property sold at
28    the events from another individual or entity  that  sold  the
29    property  for the purpose of resale by the fundraising entity
30    and that profits from the sale  to  the  fundraising  entity.
31    This paragraph is exempt from the provisions of Section 3-90.
32        (29)  Beginning  January 1, 2000 and through December 31,
33    2001, new or used automatic vending machines that prepare and
34    serve hot food and beverages,  including  coffee,  soup,  and
 
HB0043 Engrossed            -15-     LRB093 02059 DRJ 02062 b
 1    other  items,  and  replacement  parts  for  these  machines.
 2    Beginning  January  1,  2002, machines and parts for machines
 3    used  in  commercial,  coin-operated  amusement  and  vending
 4    business if a use or occupation tax  is  paid  on  the  gross
 5    receipts   derived   from   the   use   of   the  commercial,
 6    coin-operated amusement and vending machines. This  paragraph
 7    is exempt from the provisions of Section 3-90.
 8        (30)  Food  for  human consumption that is to be consumed
 9    off the premises where  it  is  sold  (other  than  alcoholic
10    beverages,  soft  drinks, and food that has been prepared for
11    immediate consumption) and prescription  and  nonprescription
12    medicines,  drugs,  medical  appliances,  and  insulin, urine
13    testing materials, syringes, and needles used  by  diabetics,
14    for  human  use, when purchased for use by a person receiving
15    medical assistance under Article 5 of the Illinois Public Aid
16    Code who resides in a licensed long-term  care  facility,  as
17    defined in the Nursing Home Care Act.
18        (31)  Beginning  on the effective date of this amendatory
19    Act   of   the   92nd   General   Assembly,   computers   and
20    communications equipment utilized for  any  hospital  purpose
21    and  equipment  used in the diagnosis, analysis, or treatment
22    of hospital patients purchased by a  lessor  who  leases  the
23    equipment, under a lease of one year or longer executed or in
24    effect  at  the time the lessor would otherwise be subject to
25    the tax imposed by this Act, to  a  hospital  that  has  been
26    issued  an  active tax exemption identification number by the
27    Department under Section 1g of the Retailers' Occupation  Tax
28    Act.   If  the  equipment is leased in a manner that does not
29    qualify for this exemption or is used in any other  nonexempt
30    manner,  the lessor shall be liable for the tax imposed under
31    this Act or the Service Use Tax Act,  as  the  case  may  be,
32    based  on  the  fair market value of the property at the time
33    the nonqualifying use occurs.  No  lessor  shall  collect  or
34    attempt  to  collect  an  amount  (however  designated)  that
 
HB0043 Engrossed            -16-     LRB093 02059 DRJ 02062 b
 1    purports to reimburse that lessor for the tax imposed by this
 2    Act  or  the  Service Use Tax Act, as the case may be, if the
 3    tax has not been paid by the lessor.  If a lessor  improperly
 4    collects  any  such  amount from the lessee, the lessee shall
 5    have a legal right to claim a refund of that amount from  the
 6    lessor.   If,  however,  that  amount  is not refunded to the
 7    lessee for any reason, the  lessor  is  liable  to  pay  that
 8    amount  to  the Department. This paragraph is exempt from the
 9    provisions of Section 3-90.
10        (32)  Beginning on the effective date of this  amendatory
11    Act of the 92nd General Assembly, personal property purchased
12    by  a  lessor  who  leases the property, under a lease of one
13    year or longer executed or in effect at the time  the  lessor
14    would otherwise be subject to the tax imposed by this Act, to
15    a  governmental body that has been issued an active sales tax
16    exemption  identification  number  by  the  Department  under
17    Section 1g of the Retailers'  Occupation  Tax  Act.   If  the
18    property is leased in a manner that does not qualify for this
19    exemption  or  used in any other nonexempt manner, the lessor
20    shall be liable for the tax imposed under  this  Act  or  the
21    Service  Use  Tax  Act, as the case may be, based on the fair
22    market value of the property at the  time  the  nonqualifying
23    use occurs.  No lessor shall collect or attempt to collect an
24    amount  (however  designated) that purports to reimburse that
25    lessor for the tax imposed by this Act or the Service Use Tax
26    Act, as the case may be, if the tax has not been paid by  the
27    lessor.  If a lessor improperly collects any such amount from
28    the  lessee,  the  lessee shall have a legal right to claim a
29    refund of that amount from the  lessor.   If,  however,  that
30    amount  is  not  refunded  to  the lessee for any reason, the
31    lessor is liable to pay that amount to the Department.   This
32    paragraph is exempt from the provisions of Section 3-90.
33        (33)  Beginning  January  1, 2004 and ending December 31,
34    2006,  automated  external  defibrillators  purchased  by   a
 
HB0043 Engrossed            -17-     LRB093 02059 DRJ 02062 b
 1    physical  fitness  facility for the purpose of complying with
 2    the Physical Fitness Facility Medical Emergency  Preparedness
 3    Act, up to a maximum exemption of $300 per year. For purposes
 4    of  this  paragraph  (33),  "physical  fitness  facility"  is
 5    defined as in the Physical Fitness Facility Medical Emergency
 6    Preparedness  Act,  except that the term does not include any
 7    facility that is  owned  or  operated  by  a  unit  of  local
 8    government or a public school, college, or university.
 9    (Source:  P.A.  91-51,  eff.  6-30-99;  91-200, eff. 7-20-99;
10    91-439, eff.  8-6-99;  91-637,  eff.  8-20-99;  91-644,  eff.
11    8-20-99;  91-901,  eff.  1-1-01;  92-35, eff. 7-1-01; 92-227,
12    eff. 8-2-01; 92-337,  eff.  8-10-01;  92-484,  eff.  8-23-01;
13    92-651, eff. 7-11-02.)

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

16        (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
17        Sec. 3-5.  Exemptions.  Use  of  the  following  tangible
18    personal property is exempt from the tax imposed by this Act:
19        (1)  Personal  property  purchased  from  a  corporation,
20    society,    association,    foundation,    institution,    or
21    organization, other than a limited liability company, that is
22    organized and operated as a not-for-profit service enterprise
23    for  the  benefit  of persons 65 years of age or older if the
24    personal property was not purchased by the enterprise for the
25    purpose of resale by the enterprise.
26        (2)  Personal property purchased by a non-profit Illinois
27    county fair association for use in conducting, operating,  or
28    promoting the county fair.
29        (3)  Personal property purchased by a not-for-profit arts
30    or  cultural organization that establishes, by proof required
31    by the Department by rule, that it has received an  exemption
32    under Section 501(c)(3) of the Internal Revenue Code and that
 
HB0043 Engrossed            -18-     LRB093 02059 DRJ 02062 b
 1    is  organized  and operated primarily for the presentation or
 2    support of  arts  or  cultural  programming,  activities,  or
 3    services.   These  organizations include, but are not limited
 4    to, music and dramatic arts organizations  such  as  symphony
 5    orchestras  and  theatrical groups, arts and cultural service
 6    organizations,   local    arts    councils,    visual    arts
 7    organizations, and media arts organizations. On and after the
 8    effective  date  of  this  amendatory Act of the 92nd General
 9    Assembly, however, an  entity  otherwise  eligible  for  this
10    exemption  shall not make tax-free purchases unless it has an
11    active identification number issued by the Department.
12        (4)  Legal  tender,  currency,  medallions,  or  gold  or
13    silver  coinage  issued  by  the  State  of   Illinois,   the
14    government of the United States of America, or the government
15    of any foreign country, and bullion.
16        (5)  Graphic  arts  machinery  and  equipment,  including
17    repair   and  replacement  parts,  both  new  and  used,  and
18    including that manufactured on special order or purchased for
19    lease, certified by the purchaser to be  used  primarily  for
20    graphic  arts  production.  Equipment  includes  chemicals or
21    chemicals acting as catalysts but only if  the  chemicals  or
22    chemicals  acting  as catalysts effect a direct and immediate
23    change upon a graphic arts product.
24        (6)  Personal property purchased from a teacher-sponsored
25    student  organization  affiliated  with  an   elementary   or
26    secondary school located in Illinois.
27        (7)  Farm  machinery  and  equipment,  both new and used,
28    including that manufactured on special  order,  certified  by
29    the purchaser to be used primarily for production agriculture
30    or   State   or   federal  agricultural  programs,  including
31    individual replacement parts for the machinery and equipment,
32    including machinery and equipment purchased  for  lease,  and
33    including implements of husbandry defined in Section 1-130 of
34    the  Illinois  Vehicle  Code, farm machinery and agricultural
 
HB0043 Engrossed            -19-     LRB093 02059 DRJ 02062 b
 1    chemical and fertilizer spreaders, and nurse wagons  required
 2    to  be registered under Section 3-809 of the Illinois Vehicle
 3    Code, but excluding  other  motor  vehicles  required  to  be
 4    registered  under  the  Illinois  Vehicle Code. Horticultural
 5    polyhouses or hoop houses used for propagating,  growing,  or
 6    overwintering  plants  shall be considered farm machinery and
 7    equipment under this item (7). Agricultural  chemical  tender
 8    tanks  and dry boxes shall include units sold separately from
 9    a motor vehicle  required  to  be  licensed  and  units  sold
10    mounted  on  a  motor  vehicle required to be licensed if the
11    selling price of the tender is separately stated.
12        Farm machinery  and  equipment  shall  include  precision
13    farming  equipment  that  is  installed  or  purchased  to be
14    installed on farm machinery and equipment including, but  not
15    limited   to,   tractors,   harvesters,  sprayers,  planters,
16    seeders, or spreaders. Precision farming equipment  includes,
17    but  is  not  limited  to,  soil  testing sensors, computers,
18    monitors, software, global positioning and  mapping  systems,
19    and other such equipment.
20        Farm  machinery  and  equipment  also includes computers,
21    sensors, software, and related equipment  used  primarily  in
22    the  computer-assisted  operation  of  production agriculture
23    facilities,  equipment,  and  activities  such  as,  but  not
24    limited to, the collection, monitoring,  and  correlation  of
25    animal  and  crop  data for the purpose of formulating animal
26    diets and agricultural chemicals.  This item  (7)  is  exempt
27    from the provisions of Section 3-75.
28        (8)  Fuel  and  petroleum  products sold to or used by an
29    air common carrier, certified by the carrier to be  used  for
30    consumption,  shipment,  or  storage  in  the  conduct of its
31    business as an air common carrier, for a flight destined  for
32    or  returning from a location or locations outside the United
33    States without regard  to  previous  or  subsequent  domestic
34    stopovers.
 
HB0043 Engrossed            -20-     LRB093 02059 DRJ 02062 b
 1        (9)  Proceeds  of  mandatory  service  charges separately
 2    stated on customers' bills for the purchase  and  consumption
 3    of food and beverages acquired as an incident to the purchase
 4    of  a  service  from  a  serviceman,  to  the extent that the
 5    proceeds of the service charge are in  fact  turned  over  as
 6    tips  or  as  a  substitute  for  tips  to  the employees who
 7    participate  directly  in  preparing,  serving,  hosting   or
 8    cleaning  up  the  food  or beverage function with respect to
 9    which the service charge is imposed.
10        (10)  Oil field  exploration,  drilling,  and  production
11    equipment, including (i) rigs and parts of rigs, rotary rigs,
12    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
13    goods, including casing and drill strings,  (iii)  pumps  and
14    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
15    individual  replacement  part  for  oil  field   exploration,
16    drilling,  and  production  equipment, and (vi) machinery and
17    equipment purchased for lease; but excluding  motor  vehicles
18    required to be registered under the Illinois Vehicle Code.
19        (11)  Proceeds from the sale of photoprocessing machinery
20    and  equipment,  including repair and replacement parts, both
21    new and used, including that manufactured on  special  order,
22    certified   by   the  purchaser  to  be  used  primarily  for
23    photoprocessing, and including photoprocessing machinery  and
24    equipment purchased for lease.
25        (12)  Coal   exploration,   mining,  offhighway  hauling,
26    processing, maintenance, and reclamation equipment, including
27    replacement parts  and  equipment,  and  including  equipment
28    purchased for lease, but excluding motor vehicles required to
29    be registered under the Illinois Vehicle Code.
30        (13)  Semen used for artificial insemination of livestock
31    for direct agricultural production.
32        (14)  Horses, or interests in horses, registered with and
33    meeting  the  requirements  of  any of the Arabian Horse Club
34    Registry of America, Appaloosa Horse Club,  American  Quarter
 
HB0043 Engrossed            -21-     LRB093 02059 DRJ 02062 b
 1    Horse  Association,  United  States  Trotting Association, or
 2    Jockey Club, as appropriate, used for purposes of breeding or
 3    racing for prizes.
 4        (15)  Computers and communications equipment utilized for
 5    any hospital purpose and equipment  used  in  the  diagnosis,
 6    analysis,  or  treatment  of hospital patients purchased by a
 7    lessor who leases the equipment, under a lease of one year or
 8    longer executed or in effect at the  time  the  lessor  would
 9    otherwise  be  subject  to  the tax imposed by this Act, to a
10    hospital  that  has  been  issued  an  active  tax  exemption
11    identification number by the Department under Section  1g  of
12    the Retailers' Occupation Tax Act. If the equipment is leased
13    in  a  manner  that does not qualify for this exemption or is
14    used in any other non-exempt  manner,  the  lessor  shall  be
15    liable for the tax imposed under this Act or the Use Tax Act,
16    as  the  case  may  be, based on the fair market value of the
17    property at the  time  the  non-qualifying  use  occurs.   No
18    lessor shall collect or attempt to collect an amount (however
19    designated)  that  purports  to reimburse that lessor for the
20    tax imposed by this Act or the Use Tax Act, as the  case  may
21    be,  if the tax has not been paid by the lessor.  If a lessor
22    improperly collects any such  amount  from  the  lessee,  the
23    lessee  shall  have  a  legal right to claim a refund of that
24    amount from the lessor.  If,  however,  that  amount  is  not
25    refunded  to  the lessee for any reason, the lessor is liable
26    to pay that amount to the Department.
27        (16)  Personal property purchased by a lessor who  leases
28    the property, under a lease of one year or longer executed or
29    in  effect  at the time the lessor would otherwise be subject
30    to the tax imposed by this Act, to a governmental  body  that
31    has been issued an active tax exemption identification number
32    by   the  Department  under  Section  1g  of  the  Retailers'
33    Occupation Tax Act.  If the property is leased  in  a  manner
34    that  does  not  qualify for this exemption or is used in any
 
HB0043 Engrossed            -22-     LRB093 02059 DRJ 02062 b
 1    other non-exempt manner, the lessor shall be liable  for  the
 2    tax  imposed  under  this Act or the Use Tax Act, as the case
 3    may be, based on the fair market value of the property at the
 4    time the non-qualifying use occurs.  No lessor shall  collect
 5    or  attempt  to  collect  an amount (however designated) that
 6    purports to reimburse that lessor for the tax imposed by this
 7    Act or the Use Tax Act, as the case may be, if  the  tax  has
 8    not been paid by the lessor.  If a lessor improperly collects
 9    any  such  amount  from  the  lessee, the lessee shall have a
10    legal right to claim a refund of that amount from the lessor.
11    If, however, that amount is not refunded to  the  lessee  for
12    any  reason,  the  lessor is liable to pay that amount to the
13    Department.
14        (17)  Beginning with taxable years  ending  on  or  after
15    December  31, 1995 and ending with taxable years ending on or
16    before December 31, 2004, personal property that  is  donated
17    for  disaster  relief  to  be  used  in  a State or federally
18    declared disaster area in Illinois or bordering Illinois by a
19    manufacturer or retailer that is registered in this State  to
20    a   corporation,   society,   association,   foundation,   or
21    institution  that  has  been  issued  a  sales  tax exemption
22    identification number by the Department that assists  victims
23    of the disaster who reside within the declared disaster area.
24        (18)  Beginning  with  taxable  years  ending on or after
25    December 31, 1995 and ending with taxable years ending on  or
26    before  December  31, 2004, personal property that is used in
27    the performance of  infrastructure  repairs  in  this  State,
28    including  but  not  limited  to municipal roads and streets,
29    access roads, bridges,  sidewalks,  waste  disposal  systems,
30    water  and  sewer  line  extensions,  water  distribution and
31    purification facilities, storm water drainage  and  retention
32    facilities, and sewage treatment facilities, resulting from a
33    State or federally declared disaster in Illinois or bordering
34    Illinois  when  such  repairs  are  initiated  on  facilities
 
HB0043 Engrossed            -23-     LRB093 02059 DRJ 02062 b
 1    located  in  the declared disaster area within 6 months after
 2    the disaster.
 3        (19)  Beginning  July  1,  1999,  game  or   game   birds
 4    purchased  at  a "game breeding and hunting preserve area" or
 5    an "exotic game hunting area" as those terms are used in  the
 6    Wildlife  Code  or  at  a  hunting enclosure approved through
 7    rules adopted by the Department of Natural  Resources.   This
 8    paragraph is exempt from the provisions of Section 3-75.
 9        (20)  A motor vehicle, as that term is defined in Section
10    1-146  of  the  Illinois  Vehicle  Code, that is donated to a
11    corporation, limited liability company, society, association,
12    foundation,  or  institution  that  is  determined   by   the
13    Department  to  be  organized  and  operated  exclusively for
14    educational purposes.  For purposes  of  this  exemption,  "a
15    corporation, limited liability company, society, association,
16    foundation, or institution organized and operated exclusively
17    for  educational  purposes"  means  all  tax-supported public
18    schools, private schools that offer systematic instruction in
19    useful branches of  learning  by  methods  common  to  public
20    schools  and  that  compare  favorably  in  their  scope  and
21    intensity with the course of study presented in tax-supported
22    schools,  and  vocational  or technical schools or institutes
23    organized and operated exclusively to  provide  a  course  of
24    study  of  not  less  than  6  weeks duration and designed to
25    prepare individuals to follow a trade or to pursue a  manual,
26    technical,  mechanical,  industrial,  business, or commercial
27    occupation.
28        (21)  Beginning  January  1,  2000,   personal  property,
29    including food, purchased through fundraising events for  the
30    benefit  of  a  public  or  private  elementary  or secondary
31    school, a group of those  schools,  or  one  or  more  school
32    districts if the events are sponsored by an entity recognized
33    by  the school district that consists primarily of volunteers
34    and includes parents and teachers  of  the  school  children.
 
HB0043 Engrossed            -24-     LRB093 02059 DRJ 02062 b
 1    This  paragraph  does not apply to fundraising events (i) for
 2    the benefit of private home instruction or (ii) for which the
 3    fundraising entity purchases the personal  property  sold  at
 4    the  events  from  another individual or entity that sold the
 5    property for the purpose of resale by the fundraising  entity
 6    and  that  profits  from  the sale to the fundraising entity.
 7    This paragraph is exempt from the provisions of Section 3-75.
 8        (22)  Beginning January 1, 2000 and through December  31,
 9    2001, new or used automatic vending machines that prepare and
10    serve  hot  food  and  beverages, including coffee, soup, and
11    other  items,  and  replacement  parts  for  these  machines.
12    Beginning January 1, 2002, machines and  parts  for  machines
13    used  in  commercial,  coin-operated  amusement  and  vending
14    business  if  a  use  or  occupation tax is paid on the gross
15    receipts  derived   from   the   use   of   the   commercial,
16    coin-operated  amusement and vending machines. This paragraph
17    is exempt from the provisions of Section 3-75.
18        (23)  Food for human consumption that is to  be  consumed
19    off  the  premises  where  it  is  sold (other than alcoholic
20    beverages, soft drinks, and food that has been  prepared  for
21    immediate  consumption)  and prescription and nonprescription
22    medicines, drugs,  medical  appliances,  and  insulin,  urine
23    testing  materials,  syringes, and needles used by diabetics,
24    for human use, when purchased for use by a  person  receiving
25    medical assistance under Article 5 of the Illinois Public Aid
26    Code  who  resides  in a licensed long-term care facility, as
27    defined in the Nursing Home Care Act.
28        (24)    Beginning  on  the   effective   date   of   this
29    amendatory  Act  of  the 92nd General Assembly, computers and
30    communications equipment utilized for  any  hospital  purpose
31    and  equipment  used in the diagnosis, analysis, or treatment
32    of hospital patients purchased by a  lessor  who  leases  the
33    equipment, under a lease of one year or longer executed or in
34    effect  at  the time the lessor would otherwise be subject to
 
HB0043 Engrossed            -25-     LRB093 02059 DRJ 02062 b
 1    the tax imposed by this Act, to  a  hospital  that  has  been
 2    issued  an  active tax exemption identification number by the
 3    Department under Section 1g of the Retailers' Occupation  Tax
 4    Act.   If  the  equipment is leased in a manner that does not
 5    qualify for this exemption or is used in any other  nonexempt
 6    manner,  the lessor shall be liable for the tax imposed under
 7    this Act or the Use Tax Act, as the case may be, based on the
 8    fair  market  value  of  the  property  at   the   time   the
 9    nonqualifying  use occurs. No lessor shall collect or attempt
10    to collect an amount (however designated)  that  purports  to
11    reimburse  that lessor for the tax imposed by this Act or the
12    Use Tax Act, as the case may be, if the tax has not been paid
13    by the lessor.  If a  lessor  improperly  collects  any  such
14    amount  from  the lessee, the lessee shall have a legal right
15    to claim a refund  of  that  amount  from  the  lessor.   If,
16    however,  that  amount  is not refunded to the lessee for any
17    reason, the lessor is  liable  to  pay  that  amount  to  the
18    Department.  This  paragraph is exempt from the provisions of
19    Section 3-75.
20        (25)  Beginning on the effective date of this  amendatory
21    Act of the 92nd General Assembly, personal property purchased
22    by  a  lessor  who  leases the property, under a lease of one
23    year or longer executed or in effect at the time  the  lessor
24    would otherwise be subject to the tax imposed by this Act, to
25    a  governmental  body  that  has  been  issued  an active tax
26    exemption  identification  number  by  the  Department  under
27    Section 1g of the Retailers'  Occupation  Tax  Act.   If  the
28    property is leased in a manner that does not qualify for this
29    exemption  or  is  used  in  any  other nonexempt manner, the
30    lessor shall be liable for the tax imposed under this Act  or
31    the Use Tax Act, as the case may be, based on the fair market
32    value  of  the  property  at  the  time the nonqualifying use
33    occurs.  No lessor shall collect or  attempt  to  collect  an
34    amount  (however  designated) that purports to reimburse that
 
HB0043 Engrossed            -26-     LRB093 02059 DRJ 02062 b
 1    lessor for the tax imposed by this Act or the Use Tax Act, as
 2    the case may be, if the tax has not been paid by the  lessor.
 3    If  a  lessor  improperly  collects  any such amount from the
 4    lessee, the lessee shall have a legal right to claim a refund
 5    of that amount from the lessor.  If, however, that amount  is
 6    not  refunded  to  the  lessee  for any reason, the lessor is
 7    liable to pay that amount to the Department.  This  paragraph
 8    is exempt from the provisions of Section 3-75.
 9        (26)    Beginning January 1, 2004 and ending December 31,
10    2006,  automated  external  defibrillators  purchased  by   a
11    physical  fitness  facility for the purpose of complying with
12    the Physical Fitness Facility Medical Emergency  Preparedness
13    Act, up to a maximum exemption of $300 per year. For purposes
14    of  this  paragraph  (26),  "physical  fitness  facility"  is
15    defined as in the Physical Fitness Facility Medical Emergency
16    Preparedness  Act,  except that the term does not include any
17    facility that is  owned  or  operated  by  a  unit  of  local
18    government or a public school, college, or university.
19    (Source:  P.A.  91-51,  eff.  6-30-99;  91-200, eff. 7-20-99;
20    91-439, eff.  8-6-99;  91-637,  eff.  8-20-99;  91-644,  eff.
21    8-20-99;  92-16,  eff.  6-28-01;  92-35, eff. 7-1-01; 92-227,
22    eff. 8-2-01; 92-337,  eff.  8-10-01;  92-484,  eff.  8-23-01;
23    92-651, eff. 7-11-02.)

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

26        (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
27        Sec.  3-5.  Exemptions.   The following tangible personal
28    property is exempt from the tax imposed by this Act:
29        (1)  Personal property sold by  a  corporation,  society,
30    association,  foundation, institution, or organization, other
31    than a limited  liability  company,  that  is  organized  and
32    operated  as  a  not-for-profit  service  enterprise  for the
 
HB0043 Engrossed            -27-     LRB093 02059 DRJ 02062 b
 1    benefit of persons 65 years of age or older if  the  personal
 2    property  was not purchased by the enterprise for the purpose
 3    of resale by the enterprise.
 4        (2)  Personal  property  purchased  by  a  not-for-profit
 5    Illinois county  fair  association  for  use  in  conducting,
 6    operating, or promoting the county fair.
 7        (3)  Personal  property  purchased  by any not-for-profit
 8    arts or cultural  organization  that  establishes,  by  proof
 9    required  by  the Department by rule, that it has received an
10    exemption  under Section 501(c)(3) of  the  Internal  Revenue
11    Code  and  that  is  organized and operated primarily for the
12    presentation or support  of  arts  or  cultural  programming,
13    activities,  or  services.   These organizations include, but
14    are not limited to, music  and  dramatic  arts  organizations
15    such  as  symphony orchestras and theatrical groups, arts and
16    cultural service organizations, local arts  councils,  visual
17    arts  organizations,  and  media  arts  organizations. On and
18    after the effective date of this amendatory Act of  the  92nd
19    General  Assembly,  however, an entity otherwise eligible for
20    this exemption shall not make tax-free  purchases  unless  it
21    has an active identification number issued by the Department.
22        (4)  Legal  tender,  currency,  medallions,  or  gold  or
23    silver   coinage   issued  by  the  State  of  Illinois,  the
24    government of the United States of America, or the government
25    of any foreign country, and bullion.
26        (5)  Graphic  arts  machinery  and  equipment,  including
27    repair  and  replacement  parts,  both  new  and  used,   and
28    including that manufactured on special order or purchased for
29    lease,  certified  by  the purchaser to be used primarily for
30    graphic arts  production.  Equipment  includes  chemicals  or
31    chemicals  acting  as  catalysts but only if the chemicals or
32    chemicals acting as catalysts effect a direct  and  immediate
33    change upon a graphic arts product.
34        (6)  Personal   property   sold  by  a  teacher-sponsored
 
HB0043 Engrossed            -28-     LRB093 02059 DRJ 02062 b
 1    student  organization  affiliated  with  an   elementary   or
 2    secondary school located in Illinois.
 3        (7)  Farm  machinery  and  equipment,  both new and used,
 4    including that manufactured on special  order,  certified  by
 5    the purchaser to be used primarily for production agriculture
 6    or   State   or   federal  agricultural  programs,  including
 7    individual replacement parts for the machinery and equipment,
 8    including machinery and equipment purchased  for  lease,  and
 9    including implements of husbandry defined in Section 1-130 of
10    the  Illinois  Vehicle  Code, farm machinery and agricultural
11    chemical and fertilizer spreaders, and nurse wagons  required
12    to  be registered under Section 3-809 of the Illinois Vehicle
13    Code, but excluding  other  motor  vehicles  required  to  be
14    registered  under  the  Illinois  Vehicle Code. Horticultural
15    polyhouses or hoop houses used for propagating,  growing,  or
16    overwintering  plants  shall be considered farm machinery and
17    equipment under this item (7). Agricultural  chemical  tender
18    tanks  and dry boxes shall include units sold separately from
19    a motor vehicle  required  to  be  licensed  and  units  sold
20    mounted  on  a  motor  vehicle required to be licensed if the
21    selling price of the tender is separately stated.
22        Farm machinery  and  equipment  shall  include  precision
23    farming  equipment  that  is  installed  or  purchased  to be
24    installed on farm machinery and equipment including, but  not
25    limited   to,   tractors,   harvesters,  sprayers,  planters,
26    seeders, or spreaders. Precision farming equipment  includes,
27    but  is  not  limited  to,  soil  testing sensors, computers,
28    monitors, software, global positioning and  mapping  systems,
29    and other such equipment.
30        Farm  machinery  and  equipment  also includes computers,
31    sensors, software, and related equipment  used  primarily  in
32    the  computer-assisted  operation  of  production agriculture
33    facilities,  equipment,  and  activities  such  as,  but  not
34    limited to, the collection, monitoring,  and  correlation  of
 
HB0043 Engrossed            -29-     LRB093 02059 DRJ 02062 b
 1    animal  and  crop  data for the purpose of formulating animal
 2    diets and agricultural chemicals.  This item  (7)  is  exempt
 3    from the provisions of Section 3-55.
 4        (8)  Fuel  and  petroleum  products sold to or used by an
 5    air common carrier, certified by the carrier to be  used  for
 6    consumption,  shipment,  or  storage  in  the  conduct of its
 7    business as an air common carrier, for a flight destined  for
 8    or  returning from a location or locations outside the United
 9    States without regard  to  previous  or  subsequent  domestic
10    stopovers.
11        (9)  Proceeds  of  mandatory  service  charges separately
12    stated on customers' bills for the purchase  and  consumption
13    of food and beverages, to the extent that the proceeds of the
14    service  charge  are  in  fact  turned  over  as tips or as a
15    substitute for tips to the employees who participate directly
16    in preparing, serving, hosting or cleaning  up  the  food  or
17    beverage function with respect to which the service charge is
18    imposed.
19        (10)  Oil  field  exploration,  drilling,  and production
20    equipment, including (i) rigs and parts of rigs, rotary rigs,
21    cable tool rigs, and workover rigs,  (ii)  pipe  and  tubular
22    goods,  including  casing  and drill strings, (iii) pumps and
23    pump-jack units, (iv) storage tanks and flow lines,  (v)  any
24    individual   replacement  part  for  oil  field  exploration,
25    drilling, and production equipment, and  (vi)  machinery  and
26    equipment  purchased  for lease; but excluding motor vehicles
27    required to be registered under the Illinois Vehicle Code.
28        (11)  Photoprocessing machinery and equipment,  including
29    repair  and  replacement  parts, both new and used, including
30    that  manufactured  on  special  order,  certified   by   the
31    purchaser  to  be  used  primarily  for  photoprocessing, and
32    including photoprocessing machinery and  equipment  purchased
33    for lease.
34        (12)  Coal   exploration,   mining,  offhighway  hauling,
 
HB0043 Engrossed            -30-     LRB093 02059 DRJ 02062 b
 1    processing, maintenance, and reclamation equipment, including
 2    replacement parts  and  equipment,  and  including  equipment
 3    purchased for lease, but excluding motor vehicles required to
 4    be registered under the Illinois Vehicle Code.
 5        (13)  Food  for  human consumption that is to be consumed
 6    off the premises where  it  is  sold  (other  than  alcoholic
 7    beverages,  soft  drinks  and food that has been prepared for
 8    immediate consumption) and prescription and  non-prescription
 9    medicines,  drugs,  medical  appliances,  and  insulin, urine
10    testing materials, syringes, and needles used  by  diabetics,
11    for  human  use, when purchased for use by a person receiving
12    medical assistance under Article 5 of the Illinois Public Aid
13    Code who resides in a licensed long-term  care  facility,  as
14    defined in the Nursing Home Care Act.
15        (14)  Semen used for artificial insemination of livestock
16    for direct agricultural production.
17        (15)  Horses, or interests in horses, registered with and
18    meeting  the  requirements  of  any of the Arabian Horse Club
19    Registry of America, Appaloosa Horse Club,  American  Quarter
20    Horse  Association,  United  States  Trotting Association, or
21    Jockey Club, as appropriate, used for purposes of breeding or
22    racing for prizes.
23        (16)  Computers and communications equipment utilized for
24    any hospital purpose and equipment  used  in  the  diagnosis,
25    analysis,  or treatment of hospital patients sold to a lessor
26    who leases the equipment, under a lease of one year or longer
27    executed or in effect at the  time  of  the  purchase,  to  a
28    hospital  that  has  been  issued  an  active  tax  exemption
29    identification  number  by the Department under Section 1g of
30    the Retailers' Occupation Tax Act.
31        (17)  Personal property sold to a lessor who  leases  the
32    property,  under a lease of one year or longer executed or in
33    effect at the time of the purchase, to  a  governmental  body
34    that  has  been issued an active tax exemption identification
 
HB0043 Engrossed            -31-     LRB093 02059 DRJ 02062 b
 1    number by the Department under Section 1g of  the  Retailers'
 2    Occupation Tax Act.
 3        (18)  Beginning  with  taxable  years  ending on or after
 4    December 31, 1995 and ending with taxable years ending on  or
 5    before  December  31, 2004, personal property that is donated
 6    for disaster relief to  be  used  in  a  State  or  federally
 7    declared disaster area in Illinois or bordering Illinois by a
 8    manufacturer  or retailer that is registered in this State to
 9    a   corporation,   society,   association,   foundation,   or
10    institution that  has  been  issued  a  sales  tax  exemption
11    identification  number by the Department that assists victims
12    of the disaster who reside within the declared disaster area.
13        (19)  Beginning with taxable years  ending  on  or  after
14    December  31, 1995 and ending with taxable years ending on or
15    before December 31, 2004, personal property that is  used  in
16    the  performance  of  infrastructure  repairs  in this State,
17    including but not limited to  municipal  roads  and  streets,
18    access  roads,  bridges,  sidewalks,  waste disposal systems,
19    water and  sewer  line  extensions,  water  distribution  and
20    purification  facilities,  storm water drainage and retention
21    facilities, and sewage treatment facilities, resulting from a
22    State or federally declared disaster in Illinois or bordering
23    Illinois  when  such  repairs  are  initiated  on  facilities
24    located in the declared disaster area within 6  months  after
25    the disaster.
26        (20)  Beginning  July 1, 1999, game or game birds sold at
27    a "game breeding and hunting preserve  area"  or  an  "exotic
28    game  hunting  area"  as those terms are used in the Wildlife
29    Code or at a hunting enclosure approved through rules adopted
30    by the Department of Natural Resources.   This  paragraph  is
31    exempt from the provisions of Section 3-55.
32        (21)  A motor vehicle, as that term is defined in Section
33    1-146  of  the  Illinois  Vehicle  Code, that is donated to a
34    corporation, limited liability company, society, association,
 
HB0043 Engrossed            -32-     LRB093 02059 DRJ 02062 b
 1    foundation,  or  institution  that  is  determined   by   the
 2    Department  to  be  organized  and  operated  exclusively for
 3    educational purposes.  For purposes  of  this  exemption,  "a
 4    corporation, limited liability company, society, association,
 5    foundation, or institution organized and operated exclusively
 6    for  educational  purposes"  means  all  tax-supported public
 7    schools, private schools that offer systematic instruction in
 8    useful branches of  learning  by  methods  common  to  public
 9    schools  and  that  compare  favorably  in  their  scope  and
10    intensity with the course of study presented in tax-supported
11    schools,  and  vocational  or technical schools or institutes
12    organized and operated exclusively to  provide  a  course  of
13    study  of  not  less  than  6  weeks duration and designed to
14    prepare individuals to follow a trade or to pursue a  manual,
15    technical,  mechanical,  industrial,  business, or commercial
16    occupation.
17        (22)  Beginning  January  1,  2000,   personal  property,
18    including food, purchased through fundraising events for  the
19    benefit  of  a  public  or  private  elementary  or secondary
20    school, a group of those  schools,  or  one  or  more  school
21    districts if the events are sponsored by an entity recognized
22    by  the school district that consists primarily of volunteers
23    and includes parents and teachers  of  the  school  children.
24    This  paragraph  does not apply to fundraising events (i) for
25    the benefit of private home instruction or (ii) for which the
26    fundraising entity purchases the personal  property  sold  at
27    the  events  from  another individual or entity that sold the
28    property for the purpose of resale by the fundraising  entity
29    and  that  profits  from  the sale to the fundraising entity.
30    This paragraph is exempt from the provisions of Section 3-55.
31        (23)  Beginning January 1, 2000 and through December  31,
32    2001, new or used automatic vending machines that prepare and
33    serve  hot  food  and  beverages, including coffee, soup, and
34    other  items,  and  replacement  parts  for  these  machines.
 
HB0043 Engrossed            -33-     LRB093 02059 DRJ 02062 b
 1    Beginning January 1, 2002, machines and  parts  for  machines
 2    used  in  commercial,  coin-operated  amusement  and  vending
 3    business  if  a  use  or  occupation tax is paid on the gross
 4    receipts  derived   from   the   use   of   the   commercial,
 5    coin-operated amusement and vending machines.  This paragraph
 6    is exempt from the provisions of Section 3-55.
 7        (24)  Beginning  on the effective date of this amendatory
 8    Act   of   the   92nd   General   Assembly,   computers   and
 9    communications equipment utilized for  any  hospital  purpose
10    and  equipment  used in the diagnosis, analysis, or treatment
11    of  hospital  patients  sold  to  a  lessor  who  leases  the
12    equipment, under a lease of one year or longer executed or in
13    effect at the time of the purchase, to a  hospital  that  has
14    been  issued an active tax exemption identification number by
15    the Department under Section 1g of the Retailers'  Occupation
16    Tax  Act.   This  paragraph  is exempt from the provisions of
17    Section 3-55.
18        (25)  Beginning on the effective date of this  amendatory
19    Act of the 92nd General Assembly, personal property sold to a
20    lessor  who leases the property, under a lease of one year or
21    longer executed or in effect at the time of the purchase,  to
22    a  governmental  body  that  has  been  issued  an active tax
23    exemption  identification  number  by  the  Department  under
24    Section 1g  of  the  Retailers'  Occupation  Tax  Act.   This
25    paragraph is exempt from the provisions of Section 3-55.
26        (26)  Beginning  on  January  1,  2002, tangible personal
27    property purchased from an Illinois retailer  by  a  taxpayer
28    engaged  in centralized purchasing activities in Illinois who
29    will, upon receipt of the property in  Illinois,  temporarily
30    store  the  property  in  Illinois  (i)  for  the  purpose of
31    subsequently transporting it outside this State  for  use  or
32    consumption  thereafter solely outside this State or (ii) for
33    the purpose of being processed, fabricated,  or  manufactured
34    into,  attached  to,  or  incorporated  into  other  tangible
 
HB0043 Engrossed            -34-     LRB093 02059 DRJ 02062 b
 1    personal  property  to  be transported outside this State and
 2    thereafter used or consumed solely outside this  State.   The
 3    Director  of  Revenue  shall,  pursuant  to  rules adopted in
 4    accordance with the Illinois  Administrative  Procedure  Act,
 5    issue  a  permit  to  any  taxpayer in good standing with the
 6    Department who is  eligible  for  the  exemption  under  this
 7    paragraph  (26).  The permit issued under this paragraph (26)
 8    shall authorize the holder, to the extent and in  the  manner
 9    specified  in  the  rules adopted under this Act, to purchase
10    tangible personal property from a retailer  exempt  from  the
11    taxes  imposed  by  this  Act.   Taxpayers shall maintain all
12    necessary books and  records  to  substantiate  the  use  and
13    consumption of all such tangible personal property outside of
14    the State of Illinois.
15        (27)  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  (27),  "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;  91-533,  eff.  8-13-99;  91-637,  eff.
27    8-20-99;  91-644,  eff.  8-20-99; 92-16, eff. 6-28-01; 92-35,
28    eff. 7-1-01;  92-227,  eff.  8-2-01;  92-337,  eff.  8-10-01;
29    92-484,  eff.  8-23-01;  92-488,  eff.  8-23-01; 92-651, eff.
30    7-11-02.)

31        Section 93.  The Retailers' Occupation Tax Act is amended
32    by changing Section 2-5 as follows:
 
HB0043 Engrossed            -35-     LRB093 02059 DRJ 02062 b
 1        (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
 2        Sec. 2-5.  Exemptions.  Gross receipts from proceeds from
 3    the sale of the  following  tangible  personal  property  are
 4    exempt from the tax imposed by this Act:
 5        (1)  Farm chemicals.
 6        (2)  Farm  machinery  and  equipment,  both new and used,
 7    including that manufactured on special  order,  certified  by
 8    the purchaser to be used primarily for production agriculture
 9    or   State   or   federal  agricultural  programs,  including
10    individual replacement parts for the machinery and equipment,
11    including machinery and equipment purchased  for  lease,  and
12    including implements of husbandry defined in Section 1-130 of
13    the  Illinois  Vehicle  Code, farm machinery and agricultural
14    chemical and fertilizer spreaders, and nurse wagons  required
15    to  be registered under Section 3-809 of the Illinois Vehicle
16    Code, but excluding  other  motor  vehicles  required  to  be
17    registered  under  the  Illinois  Vehicle Code. Horticultural
18    polyhouses or hoop houses used for propagating,  growing,  or
19    overwintering  plants  shall be considered farm machinery and
20    equipment under this item (2). Agricultural  chemical  tender
21    tanks  and dry boxes shall include units sold separately from
22    a motor vehicle  required  to  be  licensed  and  units  sold
23    mounted  on  a  motor vehicle required to be licensed, if the
24    selling price of the tender is separately stated.
25        Farm machinery  and  equipment  shall  include  precision
26    farming  equipment  that  is  installed  or  purchased  to be
27    installed on farm machinery and equipment including, but  not
28    limited   to,   tractors,   harvesters,  sprayers,  planters,
29    seeders, or spreaders. Precision farming equipment  includes,
30    but  is  not  limited  to,  soil  testing sensors, computers,
31    monitors, software, global positioning and  mapping  systems,
32    and other such equipment.
33        Farm  machinery  and  equipment  also includes computers,
34    sensors, software, and related equipment  used  primarily  in
 
HB0043 Engrossed            -36-     LRB093 02059 DRJ 02062 b
 1    the  computer-assisted  operation  of  production agriculture
 2    facilities,  equipment,  and  activities  such  as,  but  not
 3    limited to, the collection, monitoring,  and  correlation  of
 4    animal  and  crop  data for the purpose of formulating animal
 5    diets and agricultural chemicals.  This item  (7)  is  exempt
 6    from the provisions of Section 2-70.
 7        (3)  Distillation machinery and equipment, sold as a unit
 8    or  kit, assembled or installed by the retailer, certified by
 9    the user to be used only for the production of ethyl  alcohol
10    that  will  be  used  for  consumption  as motor fuel or as a
11    component of motor fuel for the personal use of the user, and
12    not subject to sale or resale.
13        (4)  Graphic  arts  machinery  and  equipment,  including
14    repair  and  replacement  parts,  both  new  and  used,   and
15    including that manufactured on special order or purchased for
16    lease,  certified  by  the purchaser to be used primarily for
17    graphic arts  production.  Equipment  includes  chemicals  or
18    chemicals  acting  as  catalysts but only if the chemicals or
19    chemicals acting as catalysts effect a direct  and  immediate
20    change upon a graphic arts product.
21        (5)  A  motor  vehicle  of  the  first  division, a motor
22    vehicle of the second division that is a self-contained motor
23    vehicle designed or permanently converted to  provide  living
24    quarters  for  recreational,  camping,  or  travel  use, with
25    direct walk through access to the living  quarters  from  the
26    driver's seat, or a motor vehicle of the second division that
27    is  of  the van configuration designed for the transportation
28    of not less than 7 nor more than 16 passengers, as defined in
29    Section 1-146 of the Illinois Vehicle Code, that is used  for
30    automobile  renting,  as  defined  in  the Automobile Renting
31    Occupation and Use Tax Act.
32        (6)  Personal  property  sold  by   a   teacher-sponsored
33    student   organization   affiliated  with  an  elementary  or
34    secondary school located in Illinois.
 
HB0043 Engrossed            -37-     LRB093 02059 DRJ 02062 b
 1        (7)  Proceeds of that portion of the selling price  of  a
 2    passenger car the sale of which is subject to the Replacement
 3    Vehicle Tax.
 4        (8)  Personal  property  sold  to an Illinois county fair
 5    association for use in conducting,  operating,  or  promoting
 6    the county fair.
 7        (9)  Personal  property  sold to a not-for-profit arts or
 8    cultural organization that establishes, by proof required  by
 9    the  Department  by  rule,  that it has received an exemption
10    under Section 501(c)(3) of the Internal Revenue Code and that
11    is organized and operated primarily for the  presentation  or
12    support  of  arts  or  cultural  programming,  activities, or
13    services.  These organizations include, but are  not  limited
14    to,  music  and  dramatic arts organizations such as symphony
15    orchestras and theatrical groups, arts and  cultural  service
16    organizations,    local    arts    councils,    visual   arts
17    organizations, and media arts organizations. On and after the
18    effective date of this amendatory Act  of  the  92nd  General
19    Assembly,  however,  an  entity  otherwise  eligible for this
20    exemption shall not make tax-free purchases unless it has  an
21    active identification number issued by the Department.
22        (10)  Personal  property  sold by a corporation, society,
23    association, foundation, institution, or organization,  other
24    than  a  limited  liability  company,  that  is organized and
25    operated as  a  not-for-profit  service  enterprise  for  the
26    benefit  of  persons 65 years of age or older if the personal
27    property was not purchased by the enterprise for the  purpose
28    of resale by the enterprise.
29        (11)  Personal property sold to a governmental body, to a
30    corporation, society, association, foundation, or institution
31    organized and operated exclusively for charitable, religious,
32    or  educational purposes, or to a not-for-profit corporation,
33    society,    association,    foundation,    institution,    or
34    organization that has no compensated  officers  or  employees
 
HB0043 Engrossed            -38-     LRB093 02059 DRJ 02062 b
 1    and   that  is  organized  and  operated  primarily  for  the
 2    recreation of persons 55 years of age  or  older.  A  limited
 3    liability  company  may  qualify for the exemption under this
 4    paragraph only if the limited liability company is  organized
 5    and  operated  exclusively  for  educational purposes. On and
 6    after July 1, 1987, however, no entity otherwise eligible for
 7    this exemption shall make tax-free purchases unless it has an
 8    active identification number issued by the Department.
 9        (12)  Personal property sold to interstate  carriers  for
10    hire  for  use as rolling stock moving in interstate commerce
11    or to lessors under leases of one year or longer executed  or
12    in  effect at the time of purchase by interstate carriers for
13    hire for use as rolling stock moving in  interstate  commerce
14    and  equipment  operated  by  a  telecommunications provider,
15    licensed as a common carrier by  the  Federal  Communications
16    Commission,  which  is permanently installed in or affixed to
17    aircraft moving in interstate commerce.
18        (13)  Proceeds from sales to owners, lessors, or shippers
19    of tangible personal property that is utilized by  interstate
20    carriers  for  hire  for  use  as  rolling  stock  moving  in
21    interstate    commerce    and   equipment   operated   by   a
22    telecommunications provider, licensed as a common carrier  by
23    the  Federal  Communications Commission, which is permanently
24    installed in or affixed  to  aircraft  moving  in  interstate
25    commerce.
26        (14)  Machinery  and  equipment  that will be used by the
27    purchaser, or a lessee of the  purchaser,  primarily  in  the
28    process  of  manufacturing  or  assembling  tangible personal
29    property for wholesale or retail sale or lease,  whether  the
30    sale or lease is made directly by the manufacturer or by some
31    other  person,  whether the materials used in the process are
32    owned by the manufacturer or some other  person,  or  whether
33    the sale or lease is made apart from or as an incident to the
34    seller's  engaging  in  the  service  occupation of producing
 
HB0043 Engrossed            -39-     LRB093 02059 DRJ 02062 b
 1    machines, tools,  dies,  jigs,  patterns,  gauges,  or  other
 2    similar  items  of no commercial value on special order for a
 3    particular purchaser.
 4        (15)  Proceeds of mandatory  service  charges  separately
 5    stated  on  customers'  bills for purchase and consumption of
 6    food and beverages, to the extent that the  proceeds  of  the
 7    service  charge  are  in  fact  turned  over  as tips or as a
 8    substitute for tips to the employees who participate directly
 9    in preparing, serving, hosting or cleaning  up  the  food  or
10    beverage function with respect to which the service charge is
11    imposed.
12        (16)  Petroleum  products  sold  to  a  purchaser  if the
13    seller is prohibited by federal law from charging tax to  the
14    purchaser.
15        (17)  Tangible personal property sold to a common carrier
16    by rail or motor that receives the physical possession of the
17    property  in  Illinois  and  that transports the property, or
18    shares with another common carrier in the  transportation  of
19    the  property,  out of Illinois on a standard uniform bill of
20    lading showing the seller of the property as the  shipper  or
21    consignor  of the property to a destination outside Illinois,
22    for use outside Illinois.
23        (18)  Legal tender,  currency,  medallions,  or  gold  or
24    silver   coinage   issued  by  the  State  of  Illinois,  the
25    government of the United States of America, or the government
26    of any foreign country, and bullion.
27        (19)  Oil field  exploration,  drilling,  and  production
28    equipment, including (i) rigs and parts of rigs, rotary rigs,
29    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
30    goods, including casing and drill strings,  (iii)  pumps  and
31    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
32    individual  replacement  part  for  oil  field   exploration,
33    drilling,  and  production  equipment, and (vi) machinery and
34    equipment purchased for lease; but excluding  motor  vehicles
 
HB0043 Engrossed            -40-     LRB093 02059 DRJ 02062 b
 1    required to be registered under the Illinois Vehicle Code.
 2        (20)  Photoprocessing  machinery and equipment, including
 3    repair and replacement parts, both new  and  used,  including
 4    that   manufactured   on  special  order,  certified  by  the
 5    purchaser to  be  used  primarily  for  photoprocessing,  and
 6    including  photoprocessing  machinery and equipment purchased
 7    for lease.
 8        (21)  Coal  exploration,  mining,   offhighway   hauling,
 9    processing, maintenance, and reclamation equipment, including
10    replacement  parts  and  equipment,  and  including equipment
11    purchased for lease, but excluding motor vehicles required to
12    be registered under the Illinois Vehicle Code.
13        (22)  Fuel and petroleum products sold to or used  by  an
14    air  carrier,  certified  by  the  carrier  to  be  used  for
15    consumption,  shipment,  or  storage  in  the  conduct of its
16    business as an air common carrier, for a flight destined  for
17    or  returning from a location or locations outside the United
18    States without regard  to  previous  or  subsequent  domestic
19    stopovers.
20        (23)  A  transaction  in  which  the  purchase  order  is
21    received  by  a  florist who is located outside Illinois, but
22    who has a florist located in Illinois deliver the property to
23    the purchaser or the purchaser's donee in Illinois.
24        (24)  Fuel consumed or used in the  operation  of  ships,
25    barges,  or  vessels  that  are  used primarily in or for the
26    transportation of property or the conveyance of  persons  for
27    hire  on  rivers  bordering  on  this  State  if  the fuel is
28    delivered by the seller to the purchaser's  barge,  ship,  or
29    vessel while it is afloat upon that bordering river.
30        (25)  A motor vehicle sold in this State to a nonresident
31    even though the motor vehicle is delivered to the nonresident
32    in  this  State,  if the motor vehicle is not to be titled in
33    this State, and if a drive-away permit is issued to the motor
34    vehicle as provided in Section 3-603 of the Illinois  Vehicle
 
HB0043 Engrossed            -41-     LRB093 02059 DRJ 02062 b
 1    Code or if the nonresident purchaser has vehicle registration
 2    plates to transfer to the motor vehicle upon returning to his
 3    or  her home state.  The issuance of the drive-away permit or
 4    having the out-of-state registration plates to be transferred
 5    is prima facie evidence that the motor vehicle  will  not  be
 6    titled in this State.
 7        (26)  Semen used for artificial insemination of livestock
 8    for direct agricultural production.
 9        (27)  Horses, or interests in horses, registered with and
10    meeting  the  requirements  of  any of the Arabian Horse Club
11    Registry of America, Appaloosa Horse Club,  American  Quarter
12    Horse  Association,  United  States  Trotting Association, or
13    Jockey Club, as appropriate, used for purposes of breeding or
14    racing for prizes.
15        (28)  Computers and communications equipment utilized for
16    any hospital purpose and equipment  used  in  the  diagnosis,
17    analysis,  or treatment of hospital patients sold to a lessor
18    who leases the equipment, under a lease of one year or longer
19    executed or in effect at the  time  of  the  purchase,  to  a
20    hospital  that  has  been  issued  an  active  tax  exemption
21    identification  number  by the Department under Section 1g of
22    this Act.
23        (29)  Personal property sold to a lessor who  leases  the
24    property,  under a lease of one year or longer executed or in
25    effect at the time of the purchase, to  a  governmental  body
26    that  has  been issued an active tax exemption identification
27    number by the Department under Section 1g of this Act.
28        (30)  Beginning with taxable years  ending  on  or  after
29    December  31, 1995 and ending with taxable years ending on or
30    before December 31, 2004, personal property that  is  donated
31    for  disaster  relief  to  be  used  in  a State or federally
32    declared disaster area in Illinois or bordering Illinois by a
33    manufacturer or retailer that is registered in this State  to
34    a   corporation,   society,   association,   foundation,   or
 
HB0043 Engrossed            -42-     LRB093 02059 DRJ 02062 b
 1    institution  that  has  been  issued  a  sales  tax exemption
 2    identification number by the Department that assists  victims
 3    of the disaster who reside within the declared disaster area.
 4        (31)  Beginning  with  taxable  years  ending on or after
 5    December 31, 1995 and ending with taxable years ending on  or
 6    before  December  31, 2004, personal property that is used in
 7    the performance of  infrastructure  repairs  in  this  State,
 8    including  but  not  limited  to municipal roads and streets,
 9    access roads, bridges,  sidewalks,  waste  disposal  systems,
10    water  and  sewer  line  extensions,  water  distribution and
11    purification facilities, storm water drainage  and  retention
12    facilities, and sewage treatment facilities, resulting from a
13    State or federally declared disaster in Illinois or bordering
14    Illinois  when  such  repairs  are  initiated  on  facilities
15    located  in  the declared disaster area within 6 months after
16    the disaster.
17        (32)  Beginning July 1, 1999, game or game birds sold  at
18    a  "game  breeding  and  hunting preserve area" or an "exotic
19    game hunting area" as those terms are used  in  the  Wildlife
20    Code or at a hunting enclosure approved through rules adopted
21    by  the  Department  of Natural Resources.  This paragraph is
22    exempt from the provisions of Section 2-70.
23        (33)  A motor vehicle, as that term is defined in Section
24    1-146 of the Illinois Vehicle Code,  that  is  donated  to  a
25    corporation, limited liability company, society, association,
26    foundation,   or   institution  that  is  determined  by  the
27    Department to  be  organized  and  operated  exclusively  for
28    educational  purposes.   For  purposes  of this exemption, "a
29    corporation, limited liability company, society, association,
30    foundation, or institution organized and operated exclusively
31    for educational  purposes"  means  all  tax-supported  public
32    schools, private schools that offer systematic instruction in
33    useful  branches  of  learning  by  methods  common to public
34    schools  and  that  compare  favorably  in  their  scope  and
 
HB0043 Engrossed            -43-     LRB093 02059 DRJ 02062 b
 1    intensity with the course of study presented in tax-supported
 2    schools, and vocational or technical  schools  or  institutes
 3    organized  and  operated  exclusively  to provide a course of
 4    study of not less than  6  weeks  duration  and  designed  to
 5    prepare  individuals to follow a trade or to pursue a manual,
 6    technical, mechanical, industrial,  business,  or  commercial
 7    occupation.
 8        (34)  Beginning   January  1,  2000,  personal  property,
 9    including food, purchased through fundraising events for  the
10    benefit  of  a  public  or  private  elementary  or secondary
11    school, a group of those  schools,  or  one  or  more  school
12    districts if the events are sponsored by an entity recognized
13    by  the school district that consists primarily of volunteers
14    and includes parents and teachers  of  the  school  children.
15    This  paragraph  does not apply to fundraising events (i) for
16    the benefit of private home instruction or (ii) for which the
17    fundraising entity purchases the personal  property  sold  at
18    the  events  from  another individual or entity that sold the
19    property for the purpose of resale by the fundraising  entity
20    and  that  profits  from  the sale to the fundraising entity.
21    This paragraph is exempt from the provisions of Section 2-70.
22        (35)  Beginning January 1, 2000 and through December  31,
23    2001, new or used automatic vending machines that prepare and
24    serve  hot  food  and  beverages, including coffee, soup, and
25    other  items,  and  replacement  parts  for  these  machines.
26    Beginning January 1, 2002, machines and  parts  for  machines
27    used  in  commercial,  coin-operated  amusement  and  vending
28    business  if  a  use  or  occupation tax is paid on the gross
29    receipts  derived   from   the   use   of   the   commercial,
30    coin-operated amusement and vending machines.  This paragraph
31    is exempt from the provisions of Section 2-70.
32        (35-5)  (36)  Food  for  human  consumption that is to be
33    consumed off the  premises  where  it  is  sold  (other  than
34    alcoholic  beverages,  soft  drinks,  and  food that has been
 
HB0043 Engrossed            -44-     LRB093 02059 DRJ 02062 b
 1    prepared for  immediate  consumption)  and  prescription  and
 2    nonprescription  medicines,  drugs,  medical  appliances, and
 3    insulin, urine testing materials, syringes, and needles  used
 4    by  diabetics,  for  human  use,  when purchased for use by a
 5    person receiving medical assistance under Article  5  of  the
 6    Illinois  Public Aid Code who resides in a licensed long-term
 7    care facility, as defined in the Nursing Home Care Act.
 8        (36)  Beginning August 2, 2001 on the effective  date  of
 9    this  amendatory  Act of the 92nd General Assembly, computers
10    and  communications  equipment  utilized  for  any   hospital
11    purpose  and  equipment  used  in the diagnosis, analysis, or
12    treatment of hospital patients sold to a  lessor  who  leases
13    the  equipment,  under a lease of one year or longer executed
14    or in effect at the time of the purchase, to a hospital  that
15    has been issued an active tax exemption identification number
16    by  the  Department  under  Section  1g  of  this  Act.  This
17    paragraph is exempt from the provisions of Section 2-70.
18        (37)  Beginning August 2, 2001 on the effective  date  of
19    this  amendatory  Act  of the 92nd General Assembly, personal
20    property sold to a lessor who leases the  property,  under  a
21    lease of one year or longer executed or in effect at the time
22    of  the purchase, to a governmental body that has been issued
23    an  active  tax  exemption  identification  number   by   the
24    Department  under  Section 1g of this Act.  This paragraph is
25    exempt from the provisions of Section 2-70.
26        (38)  Beginning on January  1,  2002,  tangible  personal
27    property  purchased  from  an Illinois retailer by a taxpayer
28    engaged in centralized purchasing activities in Illinois  who
29    will,  upon  receipt of the property in Illinois, temporarily
30    store the  property  in  Illinois  (i)  for  the  purpose  of
31    subsequently  transporting  it  outside this State for use or
32    consumption thereafter solely outside this State or (ii)  for
33    the  purpose  of being processed, fabricated, or manufactured
34    into,  attached  to,  or  incorporated  into  other  tangible
 
HB0043 Engrossed            -45-     LRB093 02059 DRJ 02062 b
 1    personal property to be transported outside  this  State  and
 2    thereafter  used  or consumed solely outside this State.  The
 3    Director of Revenue  shall,  pursuant  to  rules  adopted  in
 4    accordance  with  the  Illinois Administrative Procedure Act,
 5    issue a permit to any taxpayer  in  good  standing  with  the
 6    Department  who  is  eligible  for  the  exemption under this
 7    paragraph (38).  The permit issued under this paragraph  (38)
 8    shall  authorize  the holder, to the extent and in the manner
 9    specified in the rules adopted under this  Act,  to  purchase
10    tangible  personal  property  from a retailer exempt from the
11    taxes imposed by this  Act.   Taxpayers  shall  maintain  all
12    necessary  books  and  records  to  substantiate  the use and
13    consumption of all such tangible personal property outside of
14    the State of Illinois.
15        (39)  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
20    purposes  of this paragraph (39), "physical fitness facility"
21    is defined  as  in  the  Physical  Fitness  Facility  Medical
22    Emergency  Preparedness  Act,  except  that the term does not
23    include any facility that is owned or operated by a  unit  of
24    local 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;  91-533,  eff.  8-13-99;  91-637,  eff.
27    8-20-99;  91-644,  eff. 8-20-99;  92-16, eff. 6-28-01; 92-35,
28    eff. 7-1-01;  92-227,  eff.  8-2-01;  92-337,  eff.  8-10-01;
29    92-484,  eff.  8-23-01;  92-488,  eff.  8-23-01; 92-651, eff.
30    7-11-02; 92-680, eff. 7-16-02; revised 1-26-03.)