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92_SB0392eng SB392 Engrossed SRS92SB0015SBcp 1 AN ACT concerning energy resources policy. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. Short title. This Act may be cited as the 5 Energy Resources Policy Act. 6 Section 5. Findings. The General Assembly finds that: 7 (a) There is a need to build new electric generation 8 facilities in Illinois. 9 (b) Illinois has a large amount of natural resources and 10 infrastructure that is conducive to building new electric 11 generation plants. 12 (c) The recent energy crisis in California has shown 13 that it is imperative that we have ample generation 14 available. 15 (d) The development of new generating capacity will help 16 the economy of the entire State of Illinois. 17 (e) Many communities in Illinois are looking for 18 economic development projects. 19 (f) The State of Illinois needs to coordinate the 20 matching of energy companies who are looking to build in 21 Illinois with communities that are willing to host the 22 generating plants. 23 (g) The cost of building a baseload electric generation 24 plant with a nameplate capacity of 1,000 megawatts is over 25 $500,000,000. 26 Section 10. Definitions. 27 "Council" means the Energy Generation Resources 28 Development Coordinating Council. 29 "Department" means the Department of Commerce and 30 Community Affairs. SB392 Engrossed -2- SRS92SB0015SBcp 1 Section 15. Purpose. The State of Illinois is in need 2 of new electric generation facilities. The purpose of this 3 Act is to provide financial and other incentives that will 4 result in (i) the construction of 8 new baseload electric 5 generation plants in Illinois that are under construction 6 before December 31, 2004, (ii) a pilot program for a 7 wind-powered electric generating plant in Illinois that is 8 under construction before December 31, 2004, and (iii) the 9 construction of new transmission lines and the upgrading of 10 existing transmission lines before December 31, 2004. 11 Section 20. Energy Generation Resources Development 12 Coordinating Council. 13 (a) There is created the Energy Generation Resources 14 Development Coordinating Council. The Council shall consist 15 of 18 members as follows: the Director of Commerce and 16 Community Affairs and the Chairman of the Illinois Commerce 17 Commission, who shall serve as co-chairs; one member 18 appointed by the Director of Natural Resources, one member 19 appointed by the Director of Natural Resources from the State 20 Water Survey Division of the Department; one member appointed 21 by the Director of the Environmental Protection Agency; one 22 member appointed by the Governor and representing the 23 Governor's Energy Cabinet; one member appointed by the 24 Governor and representing the Illinois Environmental Council; 25 one member appointed by the Governor and representing the 26 Environmental Law and Policy Center; one member appointed by 27 the Governor and representing the Illinois Energy Association 28 on behalf of Illinois electric utilities; one member 29 appointed by the Governor and representing the Illinois Coal 30 Association; one member appointed by the Governor and 31 representing the Alliance Regional Transmission Organization; 32 one member appointed by the Governor and representing the 33 Midwest Independent Power Producers; one member appointed by SB392 Engrossed -3- SRS92SB0015SBcp 1 the Governor and representing natural gas public utilities; 2 one member appointed by the Governor and representing gas 3 pipeline companies; one member of the Senate appointed by the 4 President of the Senate; one member of the Senate appointed 5 by the Minority Leader of the Senate; one member of the House 6 of Representatives appointed by the Speaker of the House of 7 Representatives; and one member of the House of 8 Representatives appointed by the Minority Leader of the House 9 of Representatives. 10 (b) The Council shall study the availability in Illinois 11 of natural resources such as coal and groundwater and the 12 availability of infrastructure such as natural gas pipelines 13 and transmission and distribution systems. 14 (c) The Council shall identify the following: 15 (1) Locations suitable for the development of new 16 generating capacity in each region of the State. 17 (2) Communities that are willing to host new 18 generating capacity. 19 (3) Financial incentives available to generators 20 who are building new capacity in Illinois. 21 Section 25. Energy summit. On or before July 1, 2002, 22 the Council shall hold an energy summit, bringing together 23 those persons that wish to build generating capacity in 24 Illinois and communities that wish to host generation plants. 25 The Council shall encourage the groups to make presentations 26 and network with each other. 27 Section 30. Report. On or before July 1, 2002, the 28 Council shall submit a report to the General Assembly and the 29 Governor. The report shall do the following: 30 (1) Summarize the activities of the council. 31 (2) List the sites the Council has identified for 32 development of generation. SB392 Engrossed -4- SRS92SB0015SBcp 1 (3) List the communities willing to host generation 2 facilities. 3 (4) Identify any projects that have started due to 4 the efforts of the Council. 5 (5) Make recommendations for any legislative 6 changes that may be necessary to further facilitate the 7 development of generating plants in Illinois. 8 Section 35. Incentives for coal-fired electric 9 generating plants and clean-coal gasification process 10 electric generating plants. 11 (a) The entities chosen to construct the new Illinois 12 coal-fired electric generation plants or the clean-coal 13 gasification process electric generating plants in Illinois 14 must be allowed expedited access to funds and assistance from 15 the Coal Research Program, the Coal Development Program, and 16 the Coal Demonstration Program administered by the 17 Department. 18 (b) The entities chosen to construct the new Illinois 19 coal-fired electric generation plants or the clean-coal 20 gasification process electric generating plants in Illinois 21 must be encouraged by the Council to seek a grant from the 22 Illinois Clean Energy Community Trust Fund. 23 Section 40. Incentives for wind-powered electric 24 generating plants. 25 (a) The entity chosen for the pilot program to construct 26 a wind-powered electric generating plant must be encouraged 27 by the Council to apply for a one-time grant from the 28 Renewable Resources Energy Grant Program administered by the 29 Department. 30 (b) The entity chosen for the pilot program to construct 31 a wind-powered electric generating plant must be encouraged 32 by the Council to seek a grant from the Illinois Clean Energy SB392 Engrossed -5- SRS92SB0015SBcp 1 Community Trust Fund. 2 Section 45. Preparation by units of local government 3 interested in hosting new electric generation plants. The 4 Council must encourage any unit of local government 5 interested in hosting an electric generating plant to do the 6 following: 7 (1) Offer an abatement of property taxes for the 8 new generating plants. 9 (2) Make or accommodate the making of 10 infrastructure improvements. 11 (3) Expedite zoning and planning. 12 Section 50. Requirements to qualify for State 13 incentives. To qualify to receive the State incentives 14 offered under this Act, an entity proposing to build a new 15 electric generation plant must meet the following 16 requirements: 17 (1) Except for wind-powered electric generating 18 plants, the proposed plant must have a nameplate capacity 19 of 1,000 megawatts or greater. 20 (2) The entity must obtain a resolution of support 21 for the new plant from the unit of local government where 22 the plant is proposed to be built. 23 (3) To the extent practical, the entity must commit 24 to sell its electricity to residential and business 25 customers in Illinois. 26 Section 55. Eligibility for incentives determined by 27 rule. The Department must adopt rules governing the award of 28 the State incentives provided for in this Act for (i) the 29 construction of 8 new baseload electric generation plants in 30 Illinois that will be under construction before December 31, 31 2004 and (ii) a pilot program for a wind-powered electric SB392 Engrossed -6- SRS92SB0015SBcp 1 generating plant in Illinois that will be under construction 2 before December 31, 2004. The rules must provide that the 3 incentives will be awarded on a "first-come, first-served" 4 basis. The Department must adopt the rules on or before 5 January 1, 2002. The Department may implement this Act 6 through the use of emergency rules in accordance with the 7 provisions of Section 5-45 of the Illinois Administrative 8 Procedure Act. For purposes of the Illinois Administrative 9 Procedure Act, the adoption of rules to implement this Act 10 shall be deemed an emergency and necessary for the public 11 interest, safety, and welfare. 12 Section 910. The Use Tax Act is amended by changing 13 Section 3-5 as follows: 14 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5) 15 Sec. 3-5. Exemptions. Use of the following tangible 16 personal property is exempt from the tax imposed by this Act: 17 (1) Personal property purchased from a corporation, 18 society, association, foundation, institution, or 19 organization, other than a limited liability company, that is 20 organized and operated as a not-for-profit service enterprise 21 for the benefit of persons 65 years of age or older if the 22 personal property was not purchased by the enterprise for the 23 purpose of resale by the enterprise. 24 (2) Personal property purchased by a not-for-profit 25 Illinois county fair association for use in conducting, 26 operating, or promoting the county fair. 27 (3) Personal property purchased by a not-for-profit arts 28 or cultural organization that establishes, by proof required 29 by the Department by rule, that it has received an exemption 30 under Section 501(c)(3) of the Internal Revenue Code and that 31 is organized and operated for the presentation or support of 32 arts or cultural programming, activities, or services. These SB392 Engrossed -7- SRS92SB0015SBcp 1 organizations include, but are not limited to, music and 2 dramatic arts organizations such as symphony orchestras and 3 theatrical groups, arts and cultural service organizations, 4 local arts councils, visual arts organizations, and media 5 arts organizations. 6 (4) Personal property purchased by a governmental body, 7 by a corporation, society, association, foundation, or 8 institution organized and operated exclusively for 9 charitable, religious, or educational purposes, or by a 10 not-for-profit corporation, society, association, foundation, 11 institution, or organization that has no compensated officers 12 or employees and that is organized and operated primarily for 13 the recreation of persons 55 years of age or older. A limited 14 liability company may qualify for the exemption under this 15 paragraph only if the limited liability company is organized 16 and operated exclusively for educational purposes. On and 17 after July 1, 1987, however, no entity otherwise eligible for 18 this exemption shall make tax-free purchases unless it has an 19 active exemption identification number issued by the 20 Department. 21 (5) A passenger car that is a replacement vehicle to the 22 extent that the purchase price of the car is subject to the 23 Replacement Vehicle Tax. 24 (6) Graphic arts machinery and equipment, including 25 repair and replacement parts, both new and used, and 26 including that manufactured on special order, certified by 27 the purchaser to be used primarily for graphic arts 28 production, and including machinery and equipment purchased 29 for lease. 30 (7) Farm chemicals. 31 (8) Legal tender, currency, medallions, or gold or 32 silver coinage issued by the State of Illinois, the 33 government of the United States of America, or the government 34 of any foreign country, and bullion. SB392 Engrossed -8- SRS92SB0015SBcp 1 (9) Personal property purchased from a teacher-sponsored 2 student organization affiliated with an elementary or 3 secondary school located in Illinois. 4 (10) A motor vehicle of the first division, a motor 5 vehicle of the second division that is a self-contained motor 6 vehicle designed or permanently converted to provide living 7 quarters for recreational, camping, or travel use, with 8 direct walk through to the living quarters from the driver's 9 seat, or a motor vehicle of the second division that is of 10 the van configuration designed for the transportation of not 11 less than 7 nor more than 16 passengers, as defined in 12 Section 1-146 of the Illinois Vehicle Code, that is used for 13 automobile renting, as defined in the Automobile Renting 14 Occupation and Use Tax Act. 15 (11) Farm machinery and equipment, both new and used, 16 including that manufactured on special order, certified by 17 the purchaser to be used primarily for production agriculture 18 or State or federal agricultural programs, including 19 individual replacement parts for the machinery and equipment, 20 including machinery and equipment purchased for lease, and 21 including implements of husbandry defined in Section 1-130 of 22 the Illinois Vehicle Code, farm machinery and agricultural 23 chemical and fertilizer spreaders, and nurse wagons required 24 to be registered under Section 3-809 of the Illinois Vehicle 25 Code, but excluding other motor vehicles required to be 26 registered under the Illinois Vehicle Code. Horticultural 27 polyhouses or hoop houses used for propagating, growing, or 28 overwintering plants shall be considered farm machinery and 29 equipment under this item (11). Agricultural chemical tender 30 tanks and dry boxes shall include units sold separately from 31 a motor vehicle required to be licensed and units sold 32 mounted on a motor vehicle required to be licensed if the 33 selling price of the tender is separately stated. 34 Farm machinery and equipment shall include precision SB392 Engrossed -9- SRS92SB0015SBcp 1 farming equipment that is installed or purchased to be 2 installed on farm machinery and equipment including, but not 3 limited to, tractors, harvesters, sprayers, planters, 4 seeders, or spreaders. Precision farming equipment includes, 5 but is not limited to, soil testing sensors, computers, 6 monitors, software, global positioning and mapping systems, 7 and other such equipment. 8 Farm machinery and equipment also includes computers, 9 sensors, software, and related equipment used primarily in 10 the computer-assisted operation of production agriculture 11 facilities, equipment, and activities such as, but not 12 limited to, the collection, monitoring, and correlation of 13 animal and crop data for the purpose of formulating animal 14 diets and agricultural chemicals. This item (11) is exempt 15 from the provisions of Section 3-90. 16 (12) Fuel and petroleum products sold to or used by an 17 air common carrier, certified by the carrier to be used for 18 consumption, shipment, or storage in the conduct of its 19 business as an air common carrier, for a flight destined for 20 or returning from a location or locations outside the United 21 States without regard to previous or subsequent domestic 22 stopovers. 23 (13) Proceeds of mandatory service charges separately 24 stated on customers' bills for the purchase and consumption 25 of food and beverages purchased at retail from a retailer, to 26 the extent that the proceeds of the service charge are in 27 fact turned over as tips or as a substitute for tips to the 28 employees who participate directly in preparing, serving, 29 hosting or cleaning up the food or beverage function with 30 respect to which the service charge is imposed. 31 (14) Oil field exploration, drilling, and production 32 equipment, including (i) rigs and parts of rigs, rotary rigs, 33 cable tool rigs, and workover rigs, (ii) pipe and tubular 34 goods, including casing and drill strings, (iii) pumps and SB392 Engrossed -10- SRS92SB0015SBcp 1 pump-jack units, (iv) storage tanks and flow lines, (v) any 2 individual replacement part for oil field exploration, 3 drilling, and production equipment, and (vi) machinery and 4 equipment purchased for lease; but excluding motor vehicles 5 required to be registered under the Illinois Vehicle Code. 6 (15) Photoprocessing machinery and equipment, including 7 repair and replacement parts, both new and used, including 8 that manufactured on special order, certified by the 9 purchaser to be used primarily for photoprocessing, and 10 including photoprocessing machinery and equipment purchased 11 for lease. 12 (16) Coal exploration, mining, offhighway hauling, 13 processing, maintenance, and reclamation equipment, including 14 replacement parts and equipment, and including equipment 15 purchased for lease, but excluding motor vehicles required to 16 be registered under the Illinois Vehicle Code. 17 (17) Distillation machinery and equipment, sold as a 18 unit or kit, assembled or installed by the retailer, 19 certified by the user to be used only for the production of 20 ethyl alcohol that will be used for consumption as motor fuel 21 or as a component of motor fuel for the personal use of the 22 user, and not subject to sale or resale. 23 (18) Manufacturing and assembling machinery and 24 equipment used primarily in the process of manufacturing or 25 assembling tangible personal property for wholesale or retail 26 sale or lease, whether that sale or lease is made directly by 27 the manufacturer or by some other person, whether the 28 materials used in the process are owned by the manufacturer 29 or some other person, or whether that sale or lease is made 30 apart from or as an incident to the seller's engaging in the 31 service occupation of producing machines, tools, dies, jigs, 32 patterns, gauges, or other similar items of no commercial 33 value on special order for a particular purchaser. 34 (19) Personal property delivered to a purchaser or SB392 Engrossed -11- SRS92SB0015SBcp 1 purchaser's donee inside Illinois when the purchase order for 2 that personal property was received by a florist located 3 outside Illinois who has a florist located inside Illinois 4 deliver the personal property. 5 (20) Semen used for artificial insemination of livestock 6 for direct agricultural production. 7 (21) Horses, or interests in horses, registered with and 8 meeting the requirements of any of the Arabian Horse Club 9 Registry of America, Appaloosa Horse Club, American Quarter 10 Horse Association, United States Trotting Association, or 11 Jockey Club, as appropriate, used for purposes of breeding or 12 racing for prizes. 13 (22) Computers and communications equipment utilized for 14 any hospital purpose and equipment used in the diagnosis, 15 analysis, or treatment of hospital patients purchased by a 16 lessor who leases the equipment, under a lease of one year or 17 longer executed or in effect at the time the lessor would 18 otherwise be subject to the tax imposed by this Act, to a 19 hospital that has been issued an active tax exemption 20 identification number by the Department under Section 1g of 21 the Retailers' Occupation Tax Act. If the equipment is 22 leased in a manner that does not qualify for this exemption 23 or is used in any other non-exempt manner, the lessor shall 24 be liable for the tax imposed under this Act or the Service 25 Use Tax Act, as the case may be, based on the fair market 26 value of the property at the time the non-qualifying use 27 occurs. No lessor shall collect or attempt to collect an 28 amount (however designated) that purports to reimburse that 29 lessor for the tax imposed by this Act or the Service Use Tax 30 Act, as the case may be, if the tax has not been paid by the 31 lessor. If a lessor improperly collects any such amount from 32 the lessee, the lessee shall have a legal right to claim a 33 refund of that amount from the lessor. If, however, that 34 amount is not refunded to the lessee for any reason, the SB392 Engrossed -12- SRS92SB0015SBcp 1 lessor is liable to pay that amount to the Department. 2 (23) Personal property purchased by a lessor who leases 3 the property, under a lease of one year or longer executed 4 or in effect at the time the lessor would otherwise be 5 subject to the tax imposed by this Act, to a governmental 6 body that has been issued an active sales tax exemption 7 identification number by the Department under Section 1g of 8 the Retailers' Occupation Tax Act. If the property is leased 9 in a manner that does not qualify for this exemption or used 10 in any other non-exempt manner, the lessor shall be liable 11 for the tax imposed under this Act or the Service Use Tax 12 Act, as the case may be, based on the fair market value of 13 the property at the time the non-qualifying use occurs. No 14 lessor shall collect or attempt to collect an amount (however 15 designated) that purports to reimburse that lessor for the 16 tax imposed by this Act or the Service Use Tax Act, as the 17 case may be, if the tax has not been paid by the lessor. If 18 a lessor improperly collects any such amount from the lessee, 19 the lessee shall have a legal right to claim a refund of that 20 amount from the lessor. If, however, that amount is not 21 refunded to the lessee for any reason, the lessor is liable 22 to pay that amount to the Department. 23 (24) Beginning with taxable years ending on or after 24 December 31, 1995 and ending with taxable years ending on or 25 before December 31, 2004, personal property that is donated 26 for disaster relief to be used in a State or federally 27 declared disaster area in Illinois or bordering Illinois by a 28 manufacturer or retailer that is registered in this State to 29 a corporation, society, association, foundation, or 30 institution that has been issued a sales tax exemption 31 identification number by the Department that assists victims 32 of the disaster who reside within the declared disaster area. 33 (25) Beginning with taxable years ending on or after 34 December 31, 1995 and ending with taxable years ending on or SB392 Engrossed -13- SRS92SB0015SBcp 1 before December 31, 2004, personal property that is used in 2 the performance of infrastructure repairs in this State, 3 including but not limited to municipal roads and streets, 4 access roads, bridges, sidewalks, waste disposal systems, 5 water and sewer line extensions, water distribution and 6 purification facilities, storm water drainage and retention 7 facilities, and sewage treatment facilities, resulting from a 8 State or federally declared disaster in Illinois or bordering 9 Illinois when such repairs are initiated on facilities 10 located in the declared disaster area within 6 months after 11 the disaster. 12 (26) Beginning July 1, 1999, game or game birds 13 purchased at a "game breeding and hunting preserve area" or 14 an "exotic game hunting area" as those terms are used in the 15 Wildlife Code or at a hunting enclosure approved through 16 rules adopted by the Department of Natural Resources. This 17 paragraph is exempt from the provisions of Section 3-90. 18 (27) A motor vehicle, as that term is defined in Section 19 1-146 of the Illinois Vehicle Code, that is donated to a 20 corporation, limited liability company, society, association, 21 foundation, or institution that is determined by the 22 Department to be organized and operated exclusively for 23 educational purposes. For purposes of this exemption, "a 24 corporation, limited liability company, society, association, 25 foundation, or institution organized and operated exclusively 26 for educational purposes" means all tax-supported public 27 schools, private schools that offer systematic instruction in 28 useful branches of learning by methods common to public 29 schools and that compare favorably in their scope and 30 intensity with the course of study presented in tax-supported 31 schools, and vocational or technical schools or institutes 32 organized and operated exclusively to provide a course of 33 study of not less than 6 weeks duration and designed to 34 prepare individuals to follow a trade or to pursue a manual, SB392 Engrossed -14- SRS92SB0015SBcp 1 technical, mechanical, industrial, business, or commercial 2 occupation. 3 (28) Beginning January 1, 2000, personal property, 4 including food, purchased through fundraising events for the 5 benefit of a public or private elementary or secondary 6 school, a group of those schools, or one or more school 7 districts if the events are sponsored by an entity recognized 8 by the school district that consists primarily of volunteers 9 and includes parents and teachers of the school children. 10 This paragraph does not apply to fundraising events (i) for 11 the benefit of private home instruction or (ii) for which the 12 fundraising entity purchases the personal property sold at 13 the events from another individual or entity that sold the 14 property for the purpose of resale by the fundraising entity 15 and that profits from the sale to the fundraising entity. 16 This paragraph is exempt from the provisions of Section 3-90. 17 (29) Beginning January 1, 2000, new or used automatic 18 vending machines that prepare and serve hot food and 19 beverages, including coffee, soup, and other items, and 20 replacement parts for these machines. This paragraph is 21 exempt from the provisions of Section 3-90. 22 (30) Food for human consumption that is to be consumed 23 off the premises where it is sold (other than alcoholic 24 beverages, soft drinks, and food that has been prepared for 25 immediate consumption) and prescription and nonprescription 26 medicines, drugs, medical appliances, and insulin, urine 27 testing materials, syringes, and needles used by diabetics, 28 for human use, when purchased for use by a person receiving 29 medical assistance under Article 5 of the Illinois Public Aid 30 Code who resides in a licensed long-term care facility, as 31 defined in the Nursing Home Care Act. 32 (31) Beginning on the effective date of this amendatory 33 Act of the 92nd General Assembly and ending on the date on 34 which electricity is first generated at a new plant built SB392 Engrossed -15- SRS92SB0015SBcp 1 under the incentives provided under the Energy Resources 2 Policy Act, the construction of which begins on or after July 3 1, 2001, machinery and equipment used at that plant primarily 4 in the generation or production of electricity for wholesale 5 or retail sale, including repair and replacement parts and 6 equipment, both new and used, including repair and 7 replacement parts manufactured on special order, and 8 including machinery and equipment purchased for lease, but 9 excluding motor vehicles required to be registered under the 10 Illinois Vehicle Code. 11 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97; 12 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff. 13 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644, 14 eff. 8-20-99; 91-901, eff. 1-1-01.) 15 Section 915. The Service Use Tax Act is amended by 16 changing Section 3-5 as follows: 17 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5) 18 Sec. 3-5. Exemptions. Use of the following tangible 19 personal property is exempt from the tax imposed by this Act: 20 (1) Personal property purchased from a corporation, 21 society, association, foundation, institution, or 22 organization, other than a limited liability company, that is 23 organized and operated as a not-for-profit service enterprise 24 for the benefit of persons 65 years of age or older if the 25 personal property was not purchased by the enterprise for the 26 purpose of resale by the enterprise. 27 (2) Personal property purchased by a non-profit Illinois 28 county fair association for use in conducting, operating, or 29 promoting the county fair. 30 (3) Personal property purchased by a not-for-profit arts 31 or cultural organization that establishes, by proof required 32 by the Department by rule, that it has received an exemption SB392 Engrossed -16- SRS92SB0015SBcp 1 under Section 501(c)(3) of the Internal Revenue Code and that 2 is organized and operated for the presentation or support of 3 arts or cultural programming, activities, or services. These 4 organizations include, but are not limited to, music and 5 dramatic arts organizations such as symphony orchestras and 6 theatrical groups, arts and cultural service organizations, 7 local arts councils, visual arts organizations, and media 8 arts organizations. 9 (4) Legal tender, currency, medallions, or gold or 10 silver coinage issued by the State of Illinois, the 11 government of the United States of America, or the government 12 of any foreign country, and bullion. 13 (5) 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. 18 (6) Personal property purchased from a teacher-sponsored 19 student organization affiliated with an elementary or 20 secondary school located in Illinois. 21 (7) Farm machinery and equipment, both new and used, 22 including that manufactured on special order, certified by 23 the purchaser to be used primarily for production agriculture 24 or State or federal agricultural programs, including 25 individual replacement parts for the machinery and equipment, 26 including machinery and equipment purchased for lease, and 27 including implements of husbandry defined in Section 1-130 of 28 the Illinois Vehicle Code, farm machinery and agricultural 29 chemical and fertilizer spreaders, and nurse wagons required 30 to be registered under Section 3-809 of the Illinois Vehicle 31 Code, but excluding other motor vehicles required to be 32 registered under the Illinois Vehicle Code. Horticultural 33 polyhouses or hoop houses used for propagating, growing, or 34 overwintering plants shall be considered farm machinery and SB392 Engrossed -17- SRS92SB0015SBcp 1 equipment under this item (7). Agricultural chemical tender 2 tanks and dry boxes shall include units sold separately from 3 a motor vehicle required to be licensed and units sold 4 mounted on a motor vehicle required to be licensed if the 5 selling price of the tender is separately stated. 6 Farm machinery and equipment shall include precision 7 farming equipment that is installed or purchased to be 8 installed on farm machinery and equipment including, but not 9 limited to, tractors, harvesters, sprayers, planters, 10 seeders, or spreaders. Precision farming equipment includes, 11 but is not limited to, soil testing sensors, computers, 12 monitors, software, global positioning and mapping systems, 13 and other such equipment. 14 Farm machinery and equipment also includes computers, 15 sensors, software, and related equipment used primarily in 16 the computer-assisted operation of production agriculture 17 facilities, equipment, and activities such as, but not 18 limited to, the collection, monitoring, and correlation of 19 animal and crop data for the purpose of formulating animal 20 diets and agricultural chemicals. This item (7) is exempt 21 from the provisions of Section 3-75. 22 (8) Fuel and petroleum products sold to or used by an 23 air common carrier, certified by the carrier to be used for 24 consumption, shipment, or storage in the conduct of its 25 business as an air common carrier, for a flight destined for 26 or returning from a location or locations outside the United 27 States without regard to previous or subsequent domestic 28 stopovers. 29 (9) Proceeds of mandatory service charges separately 30 stated on customers' bills for the purchase and consumption 31 of food and beverages acquired as an incident to the purchase 32 of a service from a serviceman, to the extent that the 33 proceeds of the service charge are in fact turned over as 34 tips or as a substitute for tips to the employees who SB392 Engrossed -18- SRS92SB0015SBcp 1 participate directly in preparing, serving, hosting or 2 cleaning up the food or beverage function with respect to 3 which the service charge is imposed. 4 (10) Oil field exploration, drilling, and production 5 equipment, including (i) rigs and parts of rigs, rotary rigs, 6 cable tool rigs, and workover rigs, (ii) pipe and tubular 7 goods, including casing and drill strings, (iii) pumps and 8 pump-jack units, (iv) storage tanks and flow lines, (v) any 9 individual replacement part for oil field exploration, 10 drilling, and production equipment, and (vi) machinery and 11 equipment purchased for lease; but excluding motor vehicles 12 required to be registered under the Illinois Vehicle Code. 13 (11) Proceeds from the sale of photoprocessing machinery 14 and equipment, including repair and replacement parts, both 15 new and used, including that manufactured on special order, 16 certified by the purchaser to be used primarily for 17 photoprocessing, and including photoprocessing machinery and 18 equipment purchased for lease. 19 (12) Coal exploration, mining, offhighway hauling, 20 processing, maintenance, and reclamation equipment, including 21 replacement parts and equipment, and including equipment 22 purchased for lease, but excluding motor vehicles required to 23 be registered under the Illinois Vehicle Code. 24 (13) Semen used for artificial insemination of livestock 25 for direct agricultural production. 26 (14) Horses, or interests in horses, registered with and 27 meeting the requirements of any of the Arabian Horse Club 28 Registry of America, Appaloosa Horse Club, American Quarter 29 Horse Association, United States Trotting Association, or 30 Jockey Club, as appropriate, used for purposes of breeding or 31 racing for prizes. 32 (15) Computers and communications equipment utilized for 33 any hospital purpose and equipment used in the diagnosis, 34 analysis, or treatment of hospital patients purchased by a SB392 Engrossed -19- SRS92SB0015SBcp 1 lessor who leases the equipment, under a lease of one year or 2 longer executed or in effect at the time the lessor would 3 otherwise be subject to the tax imposed by this Act, to a 4 hospital that has been issued an active tax exemption 5 identification number by the Department under Section 1g of 6 the Retailers' Occupation Tax Act. If the equipment is leased 7 in a manner that does not qualify for this exemption or is 8 used in any other non-exempt manner, the lessor shall be 9 liable for the tax imposed under this Act or the Use Tax Act, 10 as the case may be, based on the fair market value of the 11 property at the time the non-qualifying use occurs. No 12 lessor shall collect or attempt to collect an amount (however 13 designated) that purports to reimburse that lessor for the 14 tax imposed by this Act or the Use Tax Act, as the case may 15 be, if the tax has not been paid by the lessor. If a lessor 16 improperly collects any such amount from the lessee, the 17 lessee shall have a legal right to claim a refund of that 18 amount from the lessor. If, however, that amount is not 19 refunded to the lessee for any reason, the lessor is liable 20 to pay that amount to the Department. 21 (16) Personal property purchased by a lessor who leases 22 the property, under a lease of one year or longer executed or 23 in effect at the time the lessor would otherwise be subject 24 to the tax imposed by this Act, to a governmental body that 25 has been issued an active tax exemption identification number 26 by the Department under Section 1g of the Retailers' 27 Occupation Tax Act. If the property is leased in a manner 28 that does not qualify for this exemption or is used in any 29 other non-exempt manner, the lessor shall be liable for the 30 tax imposed under this Act or the Use Tax Act, as the case 31 may be, based on the fair market value of the property at the 32 time the non-qualifying use occurs. No lessor shall collect 33 or attempt to collect an amount (however designated) that 34 purports to reimburse that lessor for the tax imposed by this SB392 Engrossed -20- SRS92SB0015SBcp 1 Act or the Use Tax Act, as the case may be, if the tax has 2 not been paid by the lessor. If a lessor improperly collects 3 any such amount from the lessee, the lessee shall have a 4 legal right to claim a refund of that amount from the lessor. 5 If, however, that amount is not refunded to the lessee for 6 any reason, the lessor is liable to pay that amount to the 7 Department. 8 (17) Beginning with taxable years ending on or after 9 December 31, 1995 and ending with taxable years ending on or 10 before December 31, 2004, personal property that is donated 11 for disaster relief to be used in a State or federally 12 declared disaster area in Illinois or bordering Illinois by a 13 manufacturer or retailer that is registered in this State to 14 a corporation, society, association, foundation, or 15 institution that has been issued a sales tax exemption 16 identification number by the Department that assists victims 17 of the disaster who reside within the declared disaster area. 18 (18) Beginning with taxable years ending on or after 19 December 31, 1995 and ending with taxable years ending on or 20 before December 31, 2004, personal property that is used in 21 the performance of infrastructure repairs in this State, 22 including but not limited to municipal roads and streets, 23 access roads, bridges, sidewalks, waste disposal systems, 24 water and sewer line extensions, water distribution and 25 purification facilities, storm water drainage and retention 26 facilities, and sewage treatment facilities, resulting from a 27 State or federally declared disaster in Illinois or bordering 28 Illinois when such repairs are initiated on facilities 29 located in the declared disaster area within 6 months after 30 the disaster. 31 (19) Beginning July 1, 1999, game or game birds 32 purchased at a "game breeding and hunting preserve area" or 33 an "exotic game hunting area" as those terms are used in the 34 Wildlife Code or at a hunting enclosure approved through SB392 Engrossed -21- SRS92SB0015SBcp 1 rules adopted by the Department of Natural Resources. This 2 paragraph is exempt from the provisions of Section 3-75. 3 (20)(19)A motor vehicle, as that term is defined in 4 Section 1-146 of the Illinois Vehicle Code, that is donated 5 to a corporation, limited liability company, society, 6 association, foundation, or institution that is determined by 7 the Department to be organized and operated exclusively for 8 educational purposes. For purposes of this exemption, "a 9 corporation, limited liability company, society, association, 10 foundation, or institution organized and operated exclusively 11 for educational purposes" means all tax-supported public 12 schools, private schools that offer systematic instruction in 13 useful branches of learning by methods common to public 14 schools and that compare favorably in their scope and 15 intensity with the course of study presented in tax-supported 16 schools, and vocational or technical schools or institutes 17 organized and operated exclusively to provide a course of 18 study of not less than 6 weeks duration and designed to 19 prepare individuals to follow a trade or to pursue a manual, 20 technical, mechanical, industrial, business, or commercial 21 occupation. 22 (21)(20)Beginning January 1, 2000, personal property, 23 including food, purchased through fundraising events for the 24 benefit of a public or private elementary or secondary 25 school, a group of those schools, or one or more school 26 districts if the events are sponsored by an entity recognized 27 by the school district that consists primarily of volunteers 28 and includes parents and teachers of the school children. 29 This paragraph does not apply to fundraising events (i) for 30 the benefit of private home instruction or (ii) for which the 31 fundraising entity purchases the personal property sold at 32 the events from another individual or entity that sold the 33 property for the purpose of resale by the fundraising entity 34 and that profits from the sale to the fundraising entity. SB392 Engrossed -22- SRS92SB0015SBcp 1 This paragraph is exempt from the provisions of Section 3-75. 2 (22)(19)Beginning January 1, 2000, new or used 3 automatic vending machines that prepare and serve hot food 4 and beverages, including coffee, soup, and other items, and 5 replacement parts for these machines. This paragraph is 6 exempt from the provisions of Section 3-75. 7 (23) Beginning on the effective date of this amendatory 8 Act of the 92nd General Assembly and ending on the date on 9 which electricity is first generated at a new plant built 10 under the incentives provided under the Energy Resources 11 Policy Act, the construction of which begins on or after July 12 1, 2001, machinery and equipment used at that plant primarily 13 in the generation or production of electricity for wholesale 14 or retail sale, including repair and replacement parts and 15 equipment, both new and used, including repair and 16 replacement parts manufactured on special order, and 17 including machinery and equipment purchased for lease, but 18 excluding motor vehicles required to be registered under the 19 Illinois Vehicle Code. 20 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97; 21 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff. 22 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644, 23 eff. 8-20-99; revised 9-29-99.) 24 Section 920. The Service Occupation Tax Act is amended 25 by 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 SB392 Engrossed -23- SRS92SB0015SBcp 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 for the presentation 12 or 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. 18 (4) Legal tender, currency, medallions, or gold or 19 silver coinage issued by the State of Illinois, the 20 government of the United States of America, or the government 21 of any foreign country, and bullion. 22 (5) Graphic arts machinery and equipment, including 23 repair and replacement parts, both new and used, and 24 including that manufactured on special order or purchased for 25 lease, certified by the purchaser to be used primarily for 26 graphic arts production. 27 (6) Personal property sold by a teacher-sponsored 28 student organization affiliated with an elementary or 29 secondary school located in Illinois. 30 (7) 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, SB392 Engrossed -24- SRS92SB0015SBcp 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 (7). 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 (7) is exempt 30 from the provisions of Section 3-55. 31 (8) 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 SB392 Engrossed -25- SRS92SB0015SBcp 1 or returning from a location or locations outside the United 2 States without regard to previous or subsequent domestic 3 stopovers. 4 (9) Proceeds of mandatory service charges separately 5 stated on customers' bills for the purchase and consumption 6 of 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 (10) 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 (11) 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 (12) 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 (13) Food for human consumption that is to be consumed 33 off the premises where it is sold (other than alcoholic 34 beverages, soft drinks and food that has been prepared for SB392 Engrossed -26- SRS92SB0015SBcp 1 immediate consumption) and prescription and non-prescription 2 medicines, drugs, medical appliances, and insulin, urine 3 testing materials, syringes, and needles used by diabetics, 4 for human use, when purchased for use by a person receiving 5 medical assistance under Article 5 of the Illinois Public Aid 6 Code who resides in a licensed long-term care facility, as 7 defined in the Nursing Home Care Act. 8 (14) Semen used for artificial insemination of livestock 9 for direct agricultural production. 10 (15) Horses, or interests in horses, registered with and 11 meeting the requirements of any of the Arabian Horse Club 12 Registry of America, Appaloosa Horse Club, American Quarter 13 Horse Association, United States Trotting Association, or 14 Jockey Club, as appropriate, used for purposes of breeding or 15 racing for prizes. 16 (16) Computers and communications equipment utilized for 17 any hospital purpose and equipment used in the diagnosis, 18 analysis, or treatment of hospital patients sold to a lessor 19 who leases the equipment, under a lease of one year or longer 20 executed or in effect at the time of the purchase, to a 21 hospital that has been issued an active tax exemption 22 identification number by the Department under Section 1g of 23 the Retailers' Occupation Tax Act. 24 (17) Personal property sold to a lessor who leases the 25 property, under a lease of one year or longer executed or in 26 effect at the time of the purchase, to a governmental body 27 that has been issued an active tax exemption identification 28 number by the Department under Section 1g of the Retailers' 29 Occupation Tax Act. 30 (18) Beginning with taxable years ending on or after 31 December 31, 1995 and ending with taxable years ending on or 32 before December 31, 2004, personal property that is donated 33 for disaster relief to be used in a State or federally 34 declared disaster area in Illinois or bordering Illinois by a SB392 Engrossed -27- SRS92SB0015SBcp 1 manufacturer or retailer that is registered in this State to 2 a corporation, society, association, foundation, or 3 institution that has been issued a sales tax exemption 4 identification number by the Department that assists victims 5 of the disaster who reside within the declared disaster area. 6 (19) Beginning with taxable years ending on or after 7 December 31, 1995 and ending with taxable years ending on or 8 before December 31, 2004, personal property that is used in 9 the performance of infrastructure repairs in this State, 10 including but not limited to municipal roads and streets, 11 access roads, bridges, sidewalks, waste disposal systems, 12 water and sewer line extensions, water distribution and 13 purification facilities, storm water drainage and retention 14 facilities, and sewage treatment facilities, resulting from a 15 State or federally declared disaster in Illinois or bordering 16 Illinois when such repairs are initiated on facilities 17 located in the declared disaster area within 6 months after 18 the disaster. 19 (20) Beginning July 1, 1999, game or game birds sold at 20 a "game breeding and hunting preserve area" or an "exotic 21 game hunting area" as those terms are used in the Wildlife 22 Code or at a hunting enclosure approved through rules adopted 23 by the Department of Natural Resources. This paragraph is 24 exempt from the provisions of Section 3-55. 25 (21)(20)A motor vehicle, as that term is defined in 26 Section 1-146 of the Illinois Vehicle Code, that is donated 27 to a corporation, limited liability company, society, 28 association, foundation, or institution that is determined by 29 the Department to be organized and operated exclusively for 30 educational purposes. For purposes of this exemption, "a 31 corporation, limited liability company, society, association, 32 foundation, or institution organized and operated exclusively 33 for educational purposes" means all tax-supported public 34 schools, private schools that offer systematic instruction in SB392 Engrossed -28- SRS92SB0015SBcp 1 useful branches of learning by methods common to public 2 schools and that compare favorably in their scope and 3 intensity with the course of study presented in tax-supported 4 schools, and vocational or technical schools or institutes 5 organized and operated exclusively to provide a course of 6 study of not less than 6 weeks duration and designed to 7 prepare individuals to follow a trade or to pursue a manual, 8 technical, mechanical, industrial, business, or commercial 9 occupation. 10 (22)(21)Beginning January 1, 2000, personal property, 11 including food, purchased through fundraising events for the 12 benefit of a public or private elementary or secondary 13 school, a group of those schools, or one or more school 14 districts if the events are sponsored by an entity recognized 15 by the school district that consists primarily of volunteers 16 and includes parents and teachers of the school children. 17 This paragraph does not apply to fundraising events (i) for 18 the benefit of private home instruction or (ii) for which the 19 fundraising entity purchases the personal property sold at 20 the events from another individual or entity that sold the 21 property for the purpose of resale by the fundraising entity 22 and that profits from the sale to the fundraising entity. 23 This paragraph is exempt from the provisions of Section 3-55. 24 (23)(20)Beginning January 1, 2000, new or used 25 automatic vending machines that prepare and serve hot food 26 and beverages, including coffee, soup, and other items, and 27 replacement parts for these machines. This paragraph is 28 exempt from the provisions of Section 3-55. 29 (24) Beginning on the effective date of this amendatory 30 Act of the 92nd General Assembly and ending on the date on 31 which electricity is first generated at a new plant built 32 under the incentives provided under the Energy Resources 33 Policy Act, the construction of which begins on or after July 34 1, 2001, machinery and equipment used at that plant primarily SB392 Engrossed -29- SRS92SB0015SBcp 1 in the generation or production of electricity for wholesale 2 or retail sale, including repair and replacement parts and 3 equipment, both new and used, including repair and 4 replacement parts manufactured on special order, and 5 including machinery and equipment purchased for lease, but 6 excluding motor vehicles required to be registered under the 7 Illinois Vehicle Code. 8 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97; 9 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff. 10 7-20-99; 91-439, eff. 8-6-99; 91-533, eff. 8-13-99; 91-637, 11 eff. 8-20-99; 91-644, eff. 8-20-99; revised 9-29-99.) 12 Section 925. The Retailers' Occupation Tax Act is 13 amended by changing Section 2-5 as follows: 14 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5) 15 Sec. 2-5. Exemptions. Gross receipts from proceeds from 16 the sale of the following tangible personal property are 17 exempt from the tax imposed by this Act: 18 (1) Farm chemicals. 19 (2) Farm machinery and equipment, both new and used, 20 including that manufactured on special order, certified by 21 the purchaser to be used primarily for production agriculture 22 or State or federal agricultural programs, including 23 individual replacement parts for the machinery and equipment, 24 including machinery and equipment purchased for lease, and 25 including implements of husbandry defined in Section 1-130 of 26 the Illinois Vehicle Code, farm machinery and agricultural 27 chemical and fertilizer spreaders, and nurse wagons required 28 to be registered under Section 3-809 of the Illinois Vehicle 29 Code, but excluding other motor vehicles required to be 30 registered under the Illinois Vehicle Code. Horticultural 31 polyhouses or hoop houses used for propagating, growing, or 32 overwintering plants shall be considered farm machinery and SB392 Engrossed -30- SRS92SB0015SBcp 1 equipment under this item (2). Agricultural chemical tender 2 tanks and dry boxes shall include units sold separately from 3 a motor vehicle required to be licensed and units sold 4 mounted on a motor vehicle required to be licensed, if the 5 selling price of the tender is separately stated. 6 Farm machinery and equipment shall include precision 7 farming equipment that is installed or purchased to be 8 installed on farm machinery and equipment including, but not 9 limited to, tractors, harvesters, sprayers, planters, 10 seeders, or spreaders. Precision farming equipment includes, 11 but is not limited to, soil testing sensors, computers, 12 monitors, software, global positioning and mapping systems, 13 and other such equipment. 14 Farm machinery and equipment also includes computers, 15 sensors, software, and related equipment used primarily in 16 the computer-assisted operation of production agriculture 17 facilities, equipment, and activities such as, but not 18 limited to, the collection, monitoring, and correlation of 19 animal and crop data for the purpose of formulating animal 20 diets and agricultural chemicals. This item (7) is exempt 21 from the provisions of Section 2-70. 22 (3) Distillation machinery and equipment, sold as a unit 23 or kit, assembled or installed by the retailer, certified by 24 the user to be used only for the production of ethyl alcohol 25 that will be used for consumption as motor fuel or as a 26 component of motor fuel for the personal use of the user, and 27 not subject to sale or resale. 28 (4) Graphic arts machinery and equipment, including 29 repair and replacement parts, both new and used, and 30 including that manufactured on special order or purchased for 31 lease, certified by the purchaser to be used primarily for 32 graphic arts production. 33 (5) A motor vehicle of the first division, a motor 34 vehicle of the second division that is a self-contained motor SB392 Engrossed -31- SRS92SB0015SBcp 1 vehicle designed or permanently converted to provide living 2 quarters for recreational, camping, or travel use, with 3 direct walk through access to the living quarters from the 4 driver's seat, or a motor vehicle of the second division that 5 is of the van configuration designed for the transportation 6 of not less than 7 nor more than 16 passengers, as defined in 7 Section 1-146 of the Illinois Vehicle Code, that is used for 8 automobile renting, as defined in the Automobile Renting 9 Occupation and Use Tax Act. 10 (6) Personal property sold by a teacher-sponsored 11 student organization affiliated with an elementary or 12 secondary school located in Illinois. 13 (7) Proceeds of that portion of the selling price of a 14 passenger car the sale of which is subject to the Replacement 15 Vehicle Tax. 16 (8) Personal property sold to an Illinois county fair 17 association for use in conducting, operating, or promoting 18 the county fair. 19 (9) Personal property sold to a not-for-profit arts or 20 cultural organization that establishes, by proof required by 21 the Department by rule, that it has received an exemption 22 under Section 501(c)(3) of the Internal Revenue Code and that 23 is organized and operated for the presentation or support of 24 arts or cultural programming, activities, or services. These 25 organizations include, but are not limited to, music and 26 dramatic arts organizations such as symphony orchestras and 27 theatrical groups, arts and cultural service organizations, 28 local arts councils, visual arts organizations, and media 29 arts organizations. 30 (10) Personal property sold by a corporation, society, 31 association, foundation, institution, or organization, other 32 than a limited liability company, that is organized and 33 operated as a not-for-profit service enterprise for the 34 benefit of persons 65 years of age or older if the personal SB392 Engrossed -32- SRS92SB0015SBcp 1 property was not purchased by the enterprise for the purpose 2 of resale by the enterprise. 3 (11) Personal property sold to a governmental body, to a 4 corporation, society, association, foundation, or institution 5 organized and operated exclusively for charitable, religious, 6 or educational purposes, or to a not-for-profit corporation, 7 society, association, foundation, institution, or 8 organization that has no compensated officers or employees 9 and that is organized and operated primarily for the 10 recreation of persons 55 years of age or older. A limited 11 liability company may qualify for the exemption under this 12 paragraph only if the limited liability company is organized 13 and operated exclusively for educational purposes. On and 14 after July 1, 1987, however, no entity otherwise eligible for 15 this exemption shall make tax-free purchases unless it has an 16 active identification number issued by the Department. 17 (12) Personal property sold to interstate carriers for 18 hire for use as rolling stock moving in interstate commerce 19 or to lessors under leases of one year or longer executed or 20 in effect at the time of purchase by interstate carriers for 21 hire for use as rolling stock moving in interstate commerce 22 and equipment operated by a telecommunications provider, 23 licensed as a common carrier by the Federal Communications 24 Commission, which is permanently installed in or affixed to 25 aircraft moving in interstate commerce. 26 (13) Proceeds from sales to owners, lessors, or shippers 27 of tangible personal property that is utilized by interstate 28 carriers for hire for use as rolling stock moving in 29 interstate commerce and equipment operated by a 30 telecommunications provider, licensed as a common carrier by 31 the Federal Communications Commission, which is permanently 32 installed in or affixed to aircraft moving in interstate 33 commerce. 34 (14) Machinery and equipment that will be used by the SB392 Engrossed -33- SRS92SB0015SBcp 1 purchaser, or a lessee of the purchaser, primarily in the 2 process of manufacturing or assembling tangible personal 3 property for wholesale or retail sale or lease, whether the 4 sale or lease is made directly by the manufacturer or by some 5 other person, whether the materials used in the process are 6 owned by the manufacturer or some other person, or whether 7 the sale or lease is made apart from or as an incident to the 8 seller's engaging in the service occupation of producing 9 machines, tools, dies, jigs, patterns, gauges, or other 10 similar items of no commercial value on special order for a 11 particular purchaser. 12 (15) Proceeds of mandatory service charges separately 13 stated on customers' bills for purchase and consumption of 14 food and beverages, to the extent that the proceeds of the 15 service charge are in fact turned over as tips or as a 16 substitute for tips to the employees who participate directly 17 in preparing, serving, hosting or cleaning up the food or 18 beverage function with respect to which the service charge is 19 imposed. 20 (16) Petroleum products sold to a purchaser if the 21 seller is prohibited by federal law from charging tax to the 22 purchaser. 23 (17) Tangible personal property sold to a common carrier 24 by rail or motor that receives the physical possession of the 25 property in Illinois and that transports the property, or 26 shares with another common carrier in the transportation of 27 the property, out of Illinois on a standard uniform bill of 28 lading showing the seller of the property as the shipper or 29 consignor of the property to a destination outside Illinois, 30 for use outside Illinois. 31 (18) Legal tender, currency, medallions, or gold or 32 silver coinage issued by the State of Illinois, the 33 government of the United States of America, or the government 34 of any foreign country, and bullion. SB392 Engrossed -34- SRS92SB0015SBcp 1 (19) Oil field exploration, drilling, and production 2 equipment, including (i) rigs and parts of rigs, rotary rigs, 3 cable tool rigs, and workover rigs, (ii) pipe and tubular 4 goods, including casing and drill strings, (iii) pumps and 5 pump-jack units, (iv) storage tanks and flow lines, (v) any 6 individual replacement part for oil field exploration, 7 drilling, and production equipment, and (vi) machinery and 8 equipment purchased for lease; but excluding motor vehicles 9 required to be registered under the Illinois Vehicle Code. 10 (20) Photoprocessing machinery and equipment, including 11 repair and replacement parts, both new and used, including 12 that manufactured on special order, certified by the 13 purchaser to be used primarily for photoprocessing, and 14 including photoprocessing machinery and equipment purchased 15 for lease. 16 (21) Coal exploration, mining, offhighway hauling, 17 processing, maintenance, and reclamation equipment, including 18 replacement parts and equipment, and including equipment 19 purchased for lease, but excluding motor vehicles required to 20 be registered under the Illinois Vehicle Code. 21 (22) Fuel and petroleum products sold to or used by an 22 air carrier, certified by the carrier to be used for 23 consumption, shipment, or storage in the conduct of its 24 business as an air common carrier, for a flight destined for 25 or returning from a location or locations outside the United 26 States without regard to previous or subsequent domestic 27 stopovers. 28 (23) A transaction in which the purchase order is 29 received by a florist who is located outside Illinois, but 30 who has a florist located in Illinois deliver the property to 31 the purchaser or the purchaser's donee in Illinois. 32 (24) Fuel consumed or used in the operation of ships, 33 barges, or vessels that are used primarily in or for the 34 transportation of property or the conveyance of persons for SB392 Engrossed -35- SRS92SB0015SBcp 1 hire on rivers bordering on this State if the fuel is 2 delivered by the seller to the purchaser's barge, ship, or 3 vessel while it is afloat upon that bordering river. 4 (25) A motor vehicle sold in this State to a nonresident 5 even though the motor vehicle is delivered to the nonresident 6 in this State, if the motor vehicle is not to be titled in 7 this State, and if a driveaway decal permit is issued to the 8 motor vehicle as provided in Section 3-603 of the Illinois 9 Vehicle Code or if the nonresident purchaser has vehicle 10 registration plates to transfer to the motor vehicle upon 11 returning to his or her home state. The issuance of the 12 driveaway decal permit or having the out-of-state 13 registration plates to be transferred is prima facie evidence 14 that the motor vehicle will not be titled in this State. 15 (26) Semen used for artificial insemination of livestock 16 for direct agricultural production. 17 (27) 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 (28) 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 this Act. 31 (29) 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 SB392 Engrossed -36- SRS92SB0015SBcp 1 number by the Department under Section 1g of this Act. 2 (30) Beginning with taxable years ending on or after 3 December 31, 1995 and ending with taxable years ending on or 4 before December 31, 2004, personal property that is donated 5 for disaster relief to be used in a State or federally 6 declared disaster area in Illinois or bordering Illinois by a 7 manufacturer or retailer that is registered in this State to 8 a corporation, society, association, foundation, or 9 institution that has been issued a sales tax exemption 10 identification number by the Department that assists victims 11 of the disaster who reside within the declared disaster area. 12 (31) Beginning with taxable years ending on or after 13 December 31, 1995 and ending with taxable years ending on or 14 before December 31, 2004, personal property that is used in 15 the performance of infrastructure repairs in this State, 16 including but not limited to municipal roads and streets, 17 access roads, bridges, sidewalks, waste disposal systems, 18 water and sewer line extensions, water distribution and 19 purification facilities, storm water drainage and retention 20 facilities, and sewage treatment facilities, resulting from a 21 State or federally declared disaster in Illinois or bordering 22 Illinois when such repairs are initiated on facilities 23 located in the declared disaster area within 6 months after 24 the disaster. 25 (32) Beginning July 1, 1999, game or game birds sold at 26 a "game breeding and hunting preserve area" or an "exotic 27 game hunting area" as those terms are used in the Wildlife 28 Code or at a hunting enclosure approved through rules adopted 29 by the Department of Natural Resources. This paragraph is 30 exempt from the provisions of Section 2-70. 31 (33)(32)A motor vehicle, as that term is defined in 32 Section 1-146 of the Illinois Vehicle Code, that is donated 33 to a corporation, limited liability company, society, 34 association, foundation, or institution that is determined by SB392 Engrossed -37- SRS92SB0015SBcp 1 the Department to be organized and operated exclusively for 2 educational purposes. For purposes of this exemption, "a 3 corporation, limited liability company, society, association, 4 foundation, or institution organized and operated exclusively 5 for educational purposes" means all tax-supported public 6 schools, private schools that offer systematic instruction in 7 useful branches of learning by methods common to public 8 schools and that compare favorably in their scope and 9 intensity with the course of study presented in tax-supported 10 schools, and vocational or technical schools or institutes 11 organized and operated exclusively to provide a course of 12 study of not less than 6 weeks duration and designed to 13 prepare individuals to follow a trade or to pursue a manual, 14 technical, mechanical, industrial, business, or commercial 15 occupation. 16 (34)(33)Beginning January 1, 2000, personal property, 17 including food, purchased through fundraising events for the 18 benefit of a public or private elementary or secondary 19 school, a group of those schools, or one or more school 20 districts if the events are sponsored by an entity recognized 21 by the school district that consists primarily of volunteers 22 and includes parents and teachers of the school children. 23 This paragraph does not apply to fundraising events (i) for 24 the benefit of private home instruction or (ii) for which the 25 fundraising entity purchases the personal property sold at 26 the events from another individual or entity that sold the 27 property for the purpose of resale by the fundraising entity 28 and that profits from the sale to the fundraising entity. 29 This paragraph is exempt from the provisions of Section 2-70. 30 (35)(32)Beginning January 1, 2000, new or used 31 automatic vending machines that prepare and serve hot food 32 and beverages, including coffee, soup, and other items, and 33 replacement parts for these machines. This paragraph is 34 exempt from the provisions of Section 2-70. SB392 Engrossed -38- SRS92SB0015SBcp 1 (36) Beginning on the effective date of this amendatory 2 Act of the 92nd General Assembly and ending on the date on 3 which electricity is first generated at a new plant built 4 under the incentives provided under the Energy Resources 5 Policy Act, the construction of which begins on or after July 6 1, 2001, machinery and equipment used at that plant primarily 7 in the generation or production of electricity for wholesale 8 or retail sale, including repair and replacement parts and 9 equipment, both new and used, including repair and 10 replacement parts manufactured on special order, and 11 including machinery and equipment purchased for lease, but 12 excluding motor vehicles required to be registered under the 13 Illinois Vehicle Code. 14 (Source: P.A. 90-14, eff. 7-1-97; 90-519, eff. 6-1-98; 15 90-552, eff. 12-12-97; 90-605, eff. 6-30-98; 91-51, eff. 16 6-30-99; 91-200, eff. 7-20-99; 91-439, eff. 8-6-99; 91-533, 17 eff. 8-13-99; 91-637, eff. 8-20-99; 91-644, eff. 8-20-99; 18 revised 9-28-99.) 19 Section 930. The Property Tax Code is amended by 20 changing Section 18-165 as follows: 21 (35 ILCS 200/18-165) 22 Sec. 18-165. Abatement of taxes. 23 (a) Any taxing district, upon a majority vote of its 24 governing authority, may, after the determination of the 25 assessed valuation of its property, order the clerk of that 26 county to abate any portion of its taxes on the following 27 types of property: 28 (1) Commercial and industrial. 29 (A) The property of any commercial or 30 industrial firm, including but not limited to the 31 property of (i) any firm that is used for 32 collecting, separating, storing, or processing SB392 Engrossed -39- SRS92SB0015SBcp 1 recyclable materials or (ii) any firm that is used 2 for producing or generating electricity, locating 3 within the taxing district during the immediately 4 preceding year from another state, territory, or 5 country, or having been newly created within this 6 State during the immediately preceding year, or 7 expanding an existing facility. The abatement shall 8 not exceed a period of 10 years and the aggregate 9 amount of abated taxes for all taxing districts 10 combined shall not exceed $4,000,000; or 11 (B) The property of any commercial or 12 industrial development of at least 500 acres having 13 been created within the taxing district. The 14 abatement shall not exceed a period of 20 years and 15 the aggregate amount of abated taxes for all taxing 16 districts combined shall not exceed $12,000,000. 17 (C) The property of any commercial or 18 industrial firm currently located in the taxing 19 district that expands a facility or its number of 20 employees. The abatement shall not exceed a period 21 of 10 years and the aggregate amount of abated taxes 22 for all taxing districts combined shall not exceed 23 $4,000,000. The abatement period may be renewed at 24 the option of the taxing districts. 25 (2) Horse racing. Any property in the taxing 26 district which is used for the racing of horses and upon 27 which capital improvements consisting of expansion, 28 improvement or replacement of existing facilities have 29 been made since July 1, 1987. The combined abatements 30 for such property from all taxing districts in any county 31 shall not exceed $5,000,000 annually and shall not exceed 32 a period of 10 years. 33 (3) Auto racing. Any property designed exclusively 34 for the racing of motor vehicles. Such abatement shall SB392 Engrossed -40- SRS92SB0015SBcp 1 not exceed a period of 10 years. 2 (4) Academic or research institute. The property 3 of any academic or research institute in the taxing 4 district that (i) is an exempt organization under 5 paragraph (3) of Section 501(c) of the Internal Revenue 6 Code, (ii) operates for the benefit of the public by 7 actually and exclusively performing scientific research 8 and making the results of the research available to the 9 interested public on a non-discriminatory basis, and 10 (iii) employs more than 100 employees. An abatement 11 granted under this paragraph shall be for at least 15 12 years and the aggregate amount of abated taxes for all 13 taxing districts combined shall not exceed $5,000,000. 14 (5) Housing for older persons. Any property in the 15 taxing district that is devoted exclusively to affordable 16 housing for older households. For purposes of this 17 paragraph, "older households" means those households (i) 18 living in housing provided under any State or federal 19 program that the Department of Human Rights determines is 20 specifically designed and operated to assist elderly 21 persons and is solely occupied by persons 55 years of age 22 or older and (ii) whose annual income does not exceed 80% 23 of the area gross median income, adjusted for family 24 size, as such gross income and median income are 25 determined from time to time by the United States 26 Department of Housing and Urban Development. The 27 abatement shall not exceed a period of 15 years, and the 28 aggregate amount of abated taxes for all taxing districts 29 shall not exceed $3,000,000. 30 (6) Historical society. For assessment years 1998 31 through 2000, the property of an historical society 32 qualifying as an exempt organization under Section 33 501(c)(3) of the federal Internal Revenue Code. 34 (7) Recreational facilities. Any property in the SB392 Engrossed -41- SRS92SB0015SBcp 1 taxing district (i) that is used for a municipal airport, 2 (ii) that is subject to a leasehold assessment under 3 Section 9-195 of this Code and (iii) which is sublet from 4 a park district that is leasing the property from a 5 municipality, but only if the property is used 6 exclusively for recreational facilities or for parking 7 lots used exclusively for those facilities. The 8 abatement shall not exceed a period of 10 years. 9 (b) Upon a majority vote of its governing authority, any 10 municipality may, after the determination of the assessed 11 valuation of its property, order the county clerk to abate 12 any portion of its taxes on any property that is located 13 within the corporate limits of the municipality in accordance 14 with Section 8-3-18 of the Illinois Municipal Code. 15 (Source: P.A. 90-46, eff. 7-3-97; 90-415, eff. 8-15-97; 16 90-568, eff. 1-1-99; 90-655, eff. 7-30-98; 91-644, eff. 17 8-20-99; 91-885, eff. 7-6-00.) 18 Section 935. The Environmental Protection Act is amended 19 by changing Section 39 as follows: 20 (415 ILCS 5/39) (from Ch. 111 1/2, par. 1039) 21 Sec. 39. Issuance of permits; procedures. 22 (a) When the Board has by regulation required a permit 23 for the construction, installation, or operation of any type 24 of facility, equipment, vehicle, vessel, or aircraft, the 25 applicant shall apply to the Agency for such permit and it 26 shall be the duty of the Agency to issue such a permit upon 27 proof by the applicant that the facility, equipment, vehicle, 28 vessel, or aircraft will not cause a violation of this Act or 29 of regulations hereunder. The Agency shall adopt such 30 procedures as are necessary to carry out its duties under 31 this Section. In granting permits the Agency may impose such 32 conditions as may be necessary to accomplish the purposes of SB392 Engrossed -42- SRS92SB0015SBcp 1 this Act, and as are not inconsistent with the regulations 2 promulgated by the Board hereunder. Except as otherwise 3 provided in this Act, a bond or other security shall not be 4 required as a condition for the issuance of a permit. If the 5 Agency denies any permit under this Section, the Agency shall 6 transmit to the applicant within the time limitations of this 7 Section specific, detailed statements as to the reasons the 8 permit application was denied. Such statements shall 9 include, but not be limited to the following: 10 (i) the Sections of this Act which may be violated 11 if the permit were granted; 12 (ii) the provision of the regulations, promulgated 13 under this Act, which may be violated if the permit were 14 granted; 15 (iii) the specific type of information, if any, 16 which the Agency deems the applicant did not provide the 17 Agency; and 18 (iv) a statement of specific reasons why the Act 19 and the regulations might not be met if the permit were 20 granted. 21 If there is no final action by the Agency within 90 days 22 after the filing of the application for permit, the applicant 23 may deem the permit issued; except that this time period 24 shall be extended to 180 days when (1) notice and 25 opportunity for public hearing are required by State or 26 federal law or regulation, (2) the application which was 27 filed is for any permit to develop a landfill subject to 28 issuance pursuant to this subsection, or (3) the application 29 that was filed is for a MSWLF unit required to issue public 30 notice under subsection (p) of Section 39. 31 The Agency shall publish notice of all final permit 32 determinations for development permits for MSWLF units and 33 for significant permit modifications for lateral expansions 34 for existing MSWLF units one time in a newspaper of general SB392 Engrossed -43- SRS92SB0015SBcp 1 circulation in the county in which the unit is or is proposed 2 to be located. 3 After January 1, 1994 and until July 1, 1998, operating 4 permits issued under this Section by the Agency for sources 5 of air pollution permitted to emit less than 25 tons per year 6 of any combination of regulated air pollutants, as defined in 7 Section 39.5 of this Act, shall be required to be renewed 8 only upon written request by the Agency consistent with 9 applicable provisions of this Act and regulations promulgated 10 hereunder. Such operating permits shall expire 180 days 11 after the date of such a request. The Board shall revise its 12 regulations for the existing State air pollution operating 13 permit program consistent with this provision by January 1, 14 1994. 15 After June 30, 1998, operating permits issued under this 16 Section by the Agency for sources of air pollution that are 17 not subject to Section 39.5 of this Act and are not required 18 to have a federally enforceable State operating permit shall 19 be required to be renewed only upon written request by the 20 Agency consistent with applicable provisions of this Act and 21 its rules. Such operating permits shall expire 180 days 22 after the date of such a request. Before July 1, 1998, the 23 Board shall revise its rules for the existing State air 24 pollution operating permit program consistent with this 25 paragraph and shall adopt rules that require a source to 26 demonstrate that it qualifies for a permit under this 27 paragraph. 28 Notwithstanding any other provision of this Section, for 29 permits issued to an entity that is determined by the 30 Department of Commerce and Community Affairs to be eligible 31 for State incentives under the Energy Resources Policy Act, 32 if there is no final action by the Agency within 90 days 33 after filing the application for permit, the applicant may 34 deem the permit issued. The Agency shall also waive the fee SB392 Engrossed -44- SRS92SB0015SBcp 1 for obtaining an initial operating permit for an entity that 2 is determined by the Department of Commerce and Community 3 Affairs to be eligible for State incentives under the Energy 4 Resources Policy Act. 5 (b) The Agency may issue NPDES permits exclusively under 6 this subsection for the discharge of contaminants from point 7 sources into navigable waters, all as defined in the Federal 8 Water Pollution Control Act, as now or hereafter amended, 9 within the jurisdiction of the State, or into any well. 10 All NPDES permits shall contain those terms and 11 conditions, including but not limited to schedules of 12 compliance, which may be required to accomplish the purposes 13 and provisions of this Act. 14 The Agency may issue general NPDES permits for discharges 15 from categories of point sources which are subject to the 16 same permit limitations and conditions. Such general permits 17 may be issued without individual applications and shall 18 conform to regulations promulgated under Section 402 of the 19 Federal Water Pollution Control Act, as now or hereafter 20 amended. 21 The Agency may include, among such conditions, effluent 22 limitations and other requirements established under this 23 Act, Board regulations, the Federal Water Pollution Control 24 Act, as now or hereafter amended, and regulations pursuant 25 thereto, and schedules for achieving compliance therewith at 26 the earliest reasonable date. 27 The Agency shall adopt filing requirements and procedures 28 which are necessary and appropriate for the issuance of NPDES 29 permits, and which are consistent with the Act or regulations 30 adopted by the Board, and with the Federal Water Pollution 31 Control Act, as now or hereafter amended, and regulations 32 pursuant thereto. 33 The Agency, subject to any conditions which may be 34 prescribed by Board regulations, may issue NPDES permits to SB392 Engrossed -45- SRS92SB0015SBcp 1 allow discharges beyond deadlines established by this Act or 2 by regulations of the Board without the requirement of a 3 variance, subject to the Federal Water Pollution Control Act, 4 as now or hereafter amended, and regulations pursuant 5 thereto. 6 (c) Except for those facilities owned or operated by 7 sanitary districts organized under the Metropolitan Water 8 Reclamation District Act, no permit for the development or 9 construction of a new pollution control facility may be 10 granted by the Agency unless the applicant submits proof to 11 the Agency that the location of the facility has been 12 approved by the County Board of the county if in an 13 unincorporated area, or the governing body of the 14 municipality when in an incorporated area, in which the 15 facility is to be located in accordance with Section 39.2 of 16 this Act. 17 In the event that siting approval granted pursuant to 18 Section 39.2 has been transferred to a subsequent owner or 19 operator, that subsequent owner or operator may apply to the 20 Agency for, and the Agency may grant, a development or 21 construction permit for the facility for which local siting 22 approval was granted. Upon application to the Agency for a 23 development or construction permit by that subsequent owner 24 or operator, the permit applicant shall cause written notice 25 of the permit application to be served upon the appropriate 26 county board or governing body of the municipality that 27 granted siting approval for that facility and upon any party 28 to the siting proceeding pursuant to which siting approval 29 was granted. In that event, the Agency shall conduct an 30 evaluation of the subsequent owner or operator's prior 31 experience in waste management operations in the manner 32 conducted under subsection (i) of Section 39 of this Act. 33 Beginning August 20, 1993, if the pollution control 34 facility consists of a hazardous or solid waste disposal SB392 Engrossed -46- SRS92SB0015SBcp 1 facility for which the proposed site is located in an 2 unincorporated area of a county with a population of less 3 than 100,000 and includes all or a portion of a parcel of 4 land that was, on April 1, 1993, adjacent to a municipality 5 having a population of less than 5,000, then the local siting 6 review required under this subsection (c) in conjunction with 7 any permit applied for after that date shall be performed by 8 the governing body of that adjacent municipality rather than 9 the county board of the county in which the proposed site is 10 located; and for the purposes of that local siting review, 11 any references in this Act to the county board shall be 12 deemed to mean the governing body of that adjacent 13 municipality; provided, however, that the provisions of this 14 paragraph shall not apply to any proposed site which was, on 15 April 1, 1993, owned in whole or in part by another 16 municipality. 17 In the case of a pollution control facility for which a 18 development permit was issued before November 12, 1981, if an 19 operating permit has not been issued by the Agency prior to 20 August 31, 1989 for any portion of the facility, then the 21 Agency may not issue or renew any development permit nor 22 issue an original operating permit for any portion of such 23 facility unless the applicant has submitted proof to the 24 Agency that the location of the facility has been approved by 25 the appropriate county board or municipal governing body 26 pursuant to Section 39.2 of this Act. 27 After January 1, 1994, if a solid waste disposal 28 facility, any portion for which an operating permit has been 29 issued by the Agency, has not accepted waste disposal for 5 30 or more consecutive calendars years, before that facility may 31 accept any new or additional waste for disposal, the owner 32 and operator must obtain a new operating permit under this 33 Act for that facility unless the owner and operator have 34 applied to the Agency for a permit authorizing the temporary SB392 Engrossed -47- SRS92SB0015SBcp 1 suspension of waste acceptance. The Agency may not issue a 2 new operation permit under this Act for the facility unless 3 the applicant has submitted proof to the Agency that the 4 location of the facility has been approved or re-approved by 5 the appropriate county board or municipal governing body 6 under Section 39.2 of this Act after the facility ceased 7 accepting waste. 8 Except for those facilities owned or operated by sanitary 9 districts organized under the Metropolitan Water Reclamation 10 District Act, and except for new pollution control facilities 11 governed by Section 39.2, and except for fossil fuel mining 12 facilities, the granting of a permit under this Act shall not 13 relieve the applicant from meeting and securing all necessary 14 zoning approvals from the unit of government having zoning 15 jurisdiction over the proposed facility. 16 Before beginning construction on any new sewage treatment 17 plant or sludge drying site to be owned or operated by a 18 sanitary district organized under the Metropolitan Water 19 Reclamation District Act for which a new permit (rather than 20 the renewal or amendment of an existing permit) is required, 21 such sanitary district shall hold a public hearing within the 22 municipality within which the proposed facility is to be 23 located, or within the nearest community if the proposed 24 facility is to be located within an unincorporated area, at 25 which information concerning the proposed facility shall be 26 made available to the public, and members of the public shall 27 be given the opportunity to express their views concerning 28 the proposed facility. 29 The Agency may issue a permit for a municipal waste 30 transfer station without requiring approval pursuant to 31 Section 39.2 provided that the following demonstration is 32 made: 33 (1) the municipal waste transfer station was in 34 existence on or before January 1, 1979 and was in SB392 Engrossed -48- SRS92SB0015SBcp 1 continuous operation from January 1, 1979 to January 1, 2 1993; 3 (2) the operator submitted a permit application to 4 the Agency to develop and operate the municipal waste 5 transfer station during April of 1994; 6 (3) the operator can demonstrate that the county 7 board of the county, if the municipal waste transfer 8 station is in an unincorporated area, or the governing 9 body of the municipality, if the station is in an 10 incorporated area, does not object to resumption of the 11 operation of the station; and 12 (4) the site has local zoning approval. 13 (d) The Agency may issue RCRA permits exclusively under 14 this subsection to persons owning or operating a facility for 15 the treatment, storage, or disposal of hazardous waste as 16 defined under this Act. 17 All RCRA permits shall contain those terms and 18 conditions, including but not limited to schedules of 19 compliance, which may be required to accomplish the purposes 20 and provisions of this Act. The Agency may include among 21 such conditions standards and other requirements established 22 under this Act, Board regulations, the Resource Conservation 23 and Recovery Act of 1976 (P.L. 94-580), as amended, and 24 regulations pursuant thereto, and may include schedules for 25 achieving compliance therewith as soon as possible. The 26 Agency shall require that a performance bond or other 27 security be provided as a condition for the issuance of a 28 RCRA permit. 29 In the case of a permit to operate a hazardous waste or 30 PCB incinerator as defined in subsection (k) of Section 44, 31 the Agency shall require, as a condition of the permit, that 32 the operator of the facility perform such analyses of the 33 waste to be incinerated as may be necessary and appropriate 34 to ensure the safe operation of the incinerator. SB392 Engrossed -49- SRS92SB0015SBcp 1 The Agency shall adopt filing requirements and procedures 2 which are necessary and appropriate for the issuance of RCRA 3 permits, and which are consistent with the Act or regulations 4 adopted by the Board, and with the Resource Conservation and 5 Recovery Act of 1976 (P.L. 94-580), as amended, and 6 regulations pursuant thereto. 7 The applicant shall make available to the public for 8 inspection all documents submitted by the applicant to the 9 Agency in furtherance of an application, with the exception 10 of trade secrets, at the office of the county board or 11 governing body of the municipality. Such documents may be 12 copied upon payment of the actual cost of reproduction during 13 regular business hours of the local office. The Agency shall 14 issue a written statement concurrent with its grant or denial 15 of the permit explaining the basis for its decision. 16 (e) The Agency may issue UIC permits exclusively under 17 this subsection to persons owning or operating a facility for 18 the underground injection of contaminants as defined under 19 this Act. 20 All UIC permits shall contain those terms and conditions, 21 including but not limited to schedules of compliance, which 22 may be required to accomplish the purposes and provisions of 23 this Act. The Agency may include among such conditions 24 standards and other requirements established under this Act, 25 Board regulations, the Safe Drinking Water Act (P.L. 93-523), 26 as amended, and regulations pursuant thereto, and may include 27 schedules for achieving compliance therewith. The Agency 28 shall require that a performance bond or other security be 29 provided as a condition for the issuance of a UIC permit. 30 The Agency shall adopt filing requirements and procedures 31 which are necessary and appropriate for the issuance of UIC 32 permits, and which are consistent with the Act or regulations 33 adopted by the Board, and with the Safe Drinking Water Act 34 (P.L. 93-523), as amended, and regulations pursuant thereto. SB392 Engrossed -50- SRS92SB0015SBcp 1 The applicant shall make available to the public for 2 inspection, all documents submitted by the applicant to the 3 Agency in furtherance of an application, with the exception 4 of trade secrets, at the office of the county board or 5 governing body of the municipality. Such documents may be 6 copied upon payment of the actual cost of reproduction during 7 regular business hours of the local office. The Agency shall 8 issue a written statement concurrent with its grant or denial 9 of the permit explaining the basis for its decision. 10 (f) In making any determination pursuant to Section 9.1 11 of this Act: 12 (1) The Agency shall have authority to make the 13 determination of any question required to be determined 14 by the Clean Air Act, as now or hereafter amended, this 15 Act, or the regulations of the Board, including the 16 determination of the Lowest Achievable Emission Rate, 17 Maximum Achievable Control Technology, or Best Available 18 Control Technology, consistent with the Board's 19 regulations, if any. 20 (2) The Agency shall, after conferring with the 21 applicant, give written notice to the applicant of its 22 proposed decision on the application including the terms 23 and conditions of the permit to be issued and the facts, 24 conduct or other basis upon which the Agency will rely to 25 support its proposed action. 26 (3) Following such notice, the Agency shall give 27 the applicant an opportunity for a hearing in accordance 28 with the provisions of Sections 10-25 through 10-60 of 29 the Illinois Administrative Procedure Act. 30 (g) The Agency shall include as conditions upon all 31 permits issued for hazardous waste disposal sites such 32 restrictions upon the future use of such sites as are 33 reasonably necessary to protect public health and the 34 environment, including permanent prohibition of the use of SB392 Engrossed -51- SRS92SB0015SBcp 1 such sites for purposes which may create an unreasonable risk 2 of injury to human health or to the environment. After 3 administrative and judicial challenges to such restrictions 4 have been exhausted, the Agency shall file such restrictions 5 of record in the Office of the Recorder of the county in 6 which the hazardous waste disposal site is located. 7 (h) A hazardous waste stream may not be deposited in a 8 permitted hazardous waste site unless specific authorization 9 is obtained from the Agency by the generator and disposal 10 site owner and operator for the deposit of that specific 11 hazardous waste stream. The Agency may grant specific 12 authorization for disposal of hazardous waste streams only 13 after the generator has reasonably demonstrated that, 14 considering technological feasibility and economic 15 reasonableness, the hazardous waste cannot be reasonably 16 recycled for reuse, nor incinerated or chemically, physically 17 or biologically treated so as to neutralize the hazardous 18 waste and render it nonhazardous. In granting authorization 19 under this Section, the Agency may impose such conditions as 20 may be necessary to accomplish the purposes of the Act and 21 are consistent with this Act and regulations promulgated by 22 the Board hereunder. If the Agency refuses to grant 23 authorization under this Section, the applicant may appeal as 24 if the Agency refused to grant a permit, pursuant to the 25 provisions of subsection (a) of Section 40 of this Act. For 26 purposes of this subsection (h), the term "generator" has the 27 meaning given in Section 3.12 of this Act, unless: (1) the 28 hazardous waste is treated, incinerated, or partially 29 recycled for reuse prior to disposal, in which case the last 30 person who treats, incinerates, or partially recycles the 31 hazardous waste prior to disposal is the generator; or (2) 32 the hazardous waste is from a response action, in which case 33 the person performing the response action is the generator. 34 This subsection (h) does not apply to any hazardous waste SB392 Engrossed -52- SRS92SB0015SBcp 1 that is restricted from land disposal under 35 Ill. Adm. Code 2 728. 3 (i) Before issuing any RCRA permit or any permit for a 4 waste storage site, sanitary landfill, waste disposal site, 5 waste transfer station, waste treatment facility, waste 6 incinerator, or any waste-transportation operation, the 7 Agency shall conduct an evaluation of the prospective owner's 8 or operator's prior experience in waste management 9 operations. The Agency may deny such a permit if the 10 prospective owner or operator or any employee or officer of 11 the prospective owner or operator has a history of: 12 (1) repeated violations of federal, State, or local 13 laws, regulations, standards, or ordinances in the 14 operation of waste management facilities or sites; or 15 (2) conviction in this or another State of any 16 crime which is a felony under the laws of this State, or 17 conviction of a felony in a federal court; or 18 (3) proof of gross carelessness or incompetence in 19 handling, storing, processing, transporting or disposing 20 of waste. 21 (j) The issuance under this Act of a permit to engage in 22 the surface mining of any resources other than fossil fuels 23 shall not relieve the permittee from its duty to comply with 24 any applicable local law regulating the commencement, 25 location or operation of surface mining facilities. 26 (k) A development permit issued under subsection (a) of 27 Section 39 for any facility or site which is required to have 28 a permit under subsection (d) of Section 21 shall expire at 29 the end of 2 calendar years from the date upon which it was 30 issued, unless within that period the applicant has taken 31 action to develop the facility or the site. In the event that 32 review of the conditions of the development permit is sought 33 pursuant to Section 40 or 41, or permittee is prevented from 34 commencing development of the facility or site by any other SB392 Engrossed -53- SRS92SB0015SBcp 1 litigation beyond the permittee's control, such two-year 2 period shall be deemed to begin on the date upon which such 3 review process or litigation is concluded. 4 (l) No permit shall be issued by the Agency under this 5 Act for construction or operation of any facility or site 6 located within the boundaries of any setback zone established 7 pursuant to this Act, where such construction or operation is 8 prohibited. 9 (m) The Agency may issue permits to persons owning or 10 operating a facility for composting landscape waste. In 11 granting such permits, the Agency may impose such conditions 12 as may be necessary to accomplish the purposes of this Act, 13 and as are not inconsistent with applicable regulations 14 promulgated by the Board. Except as otherwise provided in 15 this Act, a bond or other security shall not be required as a 16 condition for the issuance of a permit. If the Agency denies 17 any permit pursuant to this subsection, the Agency shall 18 transmit to the applicant within the time limitations of this 19 subsection specific, detailed statements as to the reasons 20 the permit application was denied. Such statements shall 21 include but not be limited to the following: 22 (1) the Sections of this Act that may be violated 23 if the permit were granted; 24 (2) the specific regulations promulgated pursuant 25 to this Act that may be violated if the permit were 26 granted; 27 (3) the specific information, if any, the Agency 28 deems the applicant did not provide in its application to 29 the Agency; and 30 (4) a statement of specific reasons why the Act and 31 the regulations might be violated if the permit were 32 granted. 33 If no final action is taken by the Agency within 90 days 34 after the filing of the application for permit, the applicant SB392 Engrossed -54- SRS92SB0015SBcp 1 may deem the permit issued. Any applicant for a permit may 2 waive the 90 day limitation by filing a written statement 3 with the Agency. 4 The Agency shall issue permits for such facilities upon 5 receipt of an application that includes a legal description 6 of the site, a topographic map of the site drawn to the scale 7 of 200 feet to the inch or larger, a description of the 8 operation, including the area served, an estimate of the 9 volume of materials to be processed, and documentation that: 10 (1) the facility includes a setback of at least 200 11 feet from the nearest potable water supply well; 12 (2) the facility is located outside the boundary of 13 the 10-year floodplain or the site will be floodproofed; 14 (3) the facility is located so as to minimize 15 incompatibility with the character of the surrounding 16 area, including at least a 200 foot setback from any 17 residence, and in the case of a facility that is 18 developed or the permitted composting area of which is 19 expanded after November 17, 1991, the composting area is 20 located at least 1/8 mile from the nearest residence 21 (other than a residence located on the same property as 22 the facility); 23 (4) the design of the facility will prevent any 24 compost material from being placed within 5 feet of the 25 water table, will adequately control runoff from the 26 site, and will collect and manage any leachate that is 27 generated on the site; 28 (5) the operation of the facility will include 29 appropriate dust and odor control measures, limitations 30 on operating hours, appropriate noise control measures 31 for shredding, chipping and similar equipment, management 32 procedures for composting, containment and disposal of 33 non-compostable wastes, procedures to be used for 34 terminating operations at the site, and recordkeeping SB392 Engrossed -55- SRS92SB0015SBcp 1 sufficient to document the amount of materials received, 2 composted and otherwise disposed of; and 3 (6) the operation will be conducted in accordance 4 with any applicable rules adopted by the Board. 5 The Agency shall issue renewable permits of not longer 6 than 10 years in duration for the composting of landscape 7 wastes, as defined in Section 3.70 of this Act, based on the 8 above requirements. 9 The operator of any facility permitted under this 10 subsection (m) must submit a written annual statement to the 11 Agency on or before April 1 of each year that includes an 12 estimate of the amount of material, in tons, received for 13 composting. 14 (n) The Agency shall issue permits jointly with the 15 Department of Transportation for the dredging or deposit of 16 material in Lake Michigan in accordance with Section 18 of 17 the Rivers, Lakes, and Streams Act. 18 (o) From September 4, 1990 until December 31, 1993, no 19 permit shall be issued by the Agency for the development or 20 construction of any new facility intended to be used for the 21 incineration of any hazardous waste. This subsection shall 22 not apply to facilities intended for use for combustion of 23 potentially infectious medical waste, for use as part of a 24 State or federally designated clean-up action, or for use 25 solely for the conduct of research and the development and 26 demonstration of technologies for the incineration of 27 hazardous waste. 28 (p) (1) Any person submitting an application for a 29 permit for a new MSWLF unit or for a lateral expansion under 30 subsection (t) of Section 21 of this Act for an existing 31 MSWLF unit that has not received and is not subject to local 32 siting approval under Section 39.2 of this Act shall publish 33 notice of the application in a newspaper of general 34 circulation in the county in which the MSWLF unit is or is SB392 Engrossed -56- SRS92SB0015SBcp 1 proposed to be located. The notice must be published at 2 least 15 days before submission of the permit application to 3 the Agency. The notice shall state the name and address of 4 the applicant, the location of the MSWLF unit or proposed 5 MSWLF unit, the nature and size of the MSWLF unit or proposed 6 MSWLF unit, the nature of the activity proposed, the probable 7 life of the proposed activity, the date the permit 8 application will be submitted, and a statement that persons 9 may file written comments with the Agency concerning the 10 permit application within 30 days after the filing of the 11 permit application unless the time period to submit comments 12 is extended by the Agency. 13 When a permit applicant submits information to the Agency 14 to supplement a permit application being reviewed by the 15 Agency, the applicant shall not be required to reissue the 16 notice under this subsection. 17 (2) The Agency shall accept written comments concerning 18 the permit application that are postmarked no later than 30 19 days after the filing of the permit application, unless the 20 time period to accept comments is extended by the Agency. 21 (3) Each applicant for a permit described in part (1) of 22 this subsection shall file a copy of the permit application 23 with the county board or governing body of the municipality 24 in which the MSWLF unit is or is proposed to be located at 25 the same time the application is submitted to the Agency. 26 The permit application filed with the county board or 27 governing body of the municipality shall include all 28 documents submitted to or to be submitted to the Agency, 29 except trade secrets as determined under Section 7.1 of this 30 Act. The permit application and other documents on file with 31 the county board or governing body of the municipality shall 32 be made available for public inspection during regular 33 business hours at the office of the county board or the 34 governing body of the municipality and may be copied upon SB392 Engrossed -57- SRS92SB0015SBcp 1 payment of the actual cost of reproduction. 2 (Source: P.A. 89-487, eff. 6-21-96; 89-556, eff. 7-26-96; 3 90-14, eff. 7-1-97; 90-367, eff. 8-10-97; 90-537, eff. 4 11-26-97; 90-655, eff 7-30-98.) 5 Section 99. Effective date. This Act takes effect upon 6 becoming law.