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92_SB0392sam001 SRS92SB0392SBcpam01 1 AMENDMENT TO SENATE BILL 392 2 AMENDMENT NO. . Amend Senate Bill 392 by replacing 3 everything after the enacting clause with the following: 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. -2- SRS92SB0392SBcpam01 1 (g) The cost of building a baseload electric generation 2 plant with a nameplate capacity of 1,000 megawatts is over 3 $500,000,000. 4 Section 10. Definitions. 5 "Council" means the Energy Generation Resources 6 Development Coordinating Council. 7 "Department" means the Department of Commerce and 8 Community Affairs. 9 Section 15. Purpose. The State of Illinois is in need 10 of new electric generation facilities. The purpose of this 11 Act is to provide financial and other incentives that will 12 result in (i) the construction of 8 new baseload electric 13 generation plants in Illinois that are under construction 14 before December 31, 2004, (ii) a pilot program for a 15 wind-powered electric generating plant in Illinois that is 16 under construction before December 31, 2004, and (iii) the 17 construction of new transmission lines and the upgrading of 18 existing transmission lines before December 31, 2004. 19 Section 20. Energy Generation Resources Development 20 Coordinating Council. 21 (a) There is created the Energy Generation Resources 22 Development Coordinating Council. The Council shall consist 23 of 18 members as follows: the Director of Commerce and 24 Community Affairs and the Chairman of the Illinois Commerce 25 Commission, who shall serve as co-chairs; one member 26 appointed by the Director of Natural Resources, one member 27 appointed by the Director of Natural Resources from the State 28 Water Survey Division of the Department; one member appointed 29 by the Director of the Environmental Protection Agency; one 30 member appointed by the Governor and representing the 31 Governor's Energy Cabinet; one member appointed by the -3- SRS92SB0392SBcpam01 1 Governor and representing the Illinois Environmental Council; 2 one member appointed by the Governor and representing the 3 Environmental Law and Policy Center; one member appointed by 4 the Governor and representing the Illinois Energy Association 5 on behalf of Illinois electric utilities; one member 6 appointed by the Governor and representing the Illinois Coal 7 Association; one member appointed by the Governor and 8 representing the Alliance Regional Transmission Organization; 9 one member appointed by the Governor and representing the 10 Midwest Independent Power Producers; one member appointed by 11 the Governor and representing natural gas public utilities; 12 one member appointed by the Governor and representing gas 13 pipeline companies; one member of the Senate appointed by the 14 President of the Senate; one member of the Senate appointed 15 by the Minority Leader of the Senate; one member of the House 16 of Representatives appointed by the Speaker of the House of 17 Representatives; and one member of the House of 18 Representatives appointed by the Minority Leader of the House 19 of Representatives. 20 (b) The Council shall study the availability in Illinois 21 of natural resources such as coal and groundwater and the 22 availability of infrastructure such as natural gas pipelines 23 and transmission and distribution systems. 24 (c) The Council shall identify the following: 25 (1) Locations suitable for the development of new 26 generating capacity in each region of the State. 27 (2) Communities that are willing to host new 28 generating capacity. 29 (3) Financial incentives available to generators 30 who are building new capacity in Illinois. 31 Section 25. Energy summit. On or before July 1, 2002, 32 the Council shall hold an energy summit, bringing together 33 those persons that wish to build generating capacity in -4- SRS92SB0392SBcpam01 1 Illinois and communities that wish to host generation plants. 2 The Council shall encourage the groups to make presentations 3 and network with each other. 4 Section 30. Report. On or before July 1, 2002, the 5 Council shall submit a report to the General Assembly and the 6 Governor. The report shall do the following: 7 (1) Summarize the activities of the council. 8 (2) List the sites the Council has identified for 9 development of generation. 10 (3) List the communities willing to host generation 11 facilities. 12 (4) Identify any projects that have started due to 13 the efforts of the Council. 14 (5) Make recommendations for any legislative 15 changes that may be necessary to further facilitate the 16 development of generating plants in Illinois. 17 Section 35. Incentives for coal-fired electric 18 generating plants and clean-coal gasification process 19 electric generating plants. 20 (a) The entities chosen to construct the new Illinois 21 coal-fired electric generation plants or the clean-coal 22 gasification process electric generating plants in Illinois 23 must be allowed expedited access to funds and assistance from 24 the Coal Research Program, the Coal Development Program, and 25 the Coal Demonstration Program administered by the 26 Department. 27 (b) The entities chosen to construct the new Illinois 28 coal-fired electric generation plants the clean-coal 29 gasification process electric generating plants in Illinois 30 must be encouraged by the Council to seek a grant from the 31 Illinois Clean Energy Community Trust Fund. -5- SRS92SB0392SBcpam01 1 Section 40. Incentives for wind-powered electric 2 generating plants. 3 (a) The entity chosen for the pilot program to construct 4 a wind-powered electric generating plant must be encouraged 5 by the Council to apply for a one-time grant from the 6 Renewable Resources Energy Grant Program administered by the 7 Department. 8 (b) The entity chosen for the pilot program to construct 9 a wind-powered electric generating plant must be encouraged 10 by the Council to seek a grant from the Illinois Clean Energy 11 Community Trust Fund. 12 Section 45. Preparation by units of local government 13 interested in hosting new electric generation plants. The 14 Council must encourage any unit of local government 15 interested in hosting an electric generating plant to do the 16 following: 17 (1) Offer an abatement of property taxes for the 18 new generating plants. 19 (2) Make or accommodate the making of 20 infrastructure improvements. 21 (3) Expedite zoning and planning. 22 Section 50. Requirements to qualify for State 23 incentives. To qualify to receive the State incentives 24 offered under this Act, an entity proposing to build a new 25 electric generation plant must meet the following 26 requirements: 27 (1) Except for wind-powered electric generating 28 plants, the proposed plant must have a nameplate capacity 29 of 1,000 megawatts or greater. 30 (2) The entity must obtain a resolution of support 31 for the new plant from the unit of local government where 32 the plant is proposed to be built. -6- SRS92SB0392SBcpam01 1 (3) To the extent practical, the entity must commit 2 to sell its electricity to residential and business 3 customers in Illinois. 4 Section 55. Eligibility for incentives determined by 5 rule. The Department must adopt rules governing the award of 6 the State incentives provided for in this Act for (i) the 7 construction of 8 new baseload electric generation plants in 8 Illinois that will be under construction before December 31, 9 2004 and (ii) a pilot program for a wind-powered electric 10 generating plant in Illinois that will be under construction 11 before December 31, 2004. The rules must provide that the 12 incentives will be awarded on a "first-come, first-served" 13 basis. The Department must adopt the rules on or before 14 January 1, 2002. The Department may implement this Act 15 through the use of emergency rules in accordance with the 16 provisions of Section 5-45 of the Illinois Administrative 17 Procedure Act. For purposes of the Illinois Administrative 18 Procedure Act, the adoption of rules to implement this Act 19 shall be deemed an emergency and necessary for the public 20 interest, safety, and welfare. 21 Section 910. The Use Tax Act is amended by changing 22 Section 3-5 as follows: 23 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5) 24 Sec. 3-5. Exemptions. Use of the following tangible 25 personal property is exempt from the tax imposed by this Act: 26 (1) Personal property purchased from a corporation, 27 society, association, foundation, institution, or 28 organization, other than a limited liability company, that is 29 organized and operated as a not-for-profit service enterprise 30 for the benefit of persons 65 years of age or older if the 31 personal property was not purchased by the enterprise for the -7- SRS92SB0392SBcpam01 1 purpose of resale by the enterprise. 2 (2) Personal property purchased by a not-for-profit 3 Illinois county fair association for use in conducting, 4 operating, or promoting the county fair. 5 (3) Personal property purchased by a not-for-profit arts 6 or cultural organization that establishes, by proof required 7 by the Department by rule, that it has received an exemption 8 under Section 501(c)(3) of the Internal Revenue Code and that 9 is organized and operated for the presentation or support of 10 arts or cultural programming, activities, or services. These 11 organizations include, but are not limited to, music and 12 dramatic arts organizations such as symphony orchestras and 13 theatrical groups, arts and cultural service organizations, 14 local arts councils, visual arts organizations, and media 15 arts organizations. 16 (4) Personal property purchased by a governmental body, 17 by a corporation, society, association, foundation, or 18 institution organized and operated exclusively for 19 charitable, religious, or educational purposes, or by a 20 not-for-profit corporation, society, association, foundation, 21 institution, or organization that has no compensated officers 22 or employees and that is organized and operated primarily for 23 the recreation of persons 55 years of age or older. A limited 24 liability company may qualify for the exemption under this 25 paragraph only if the limited liability company is organized 26 and operated exclusively for educational purposes. On and 27 after July 1, 1987, however, no entity otherwise eligible for 28 this exemption shall make tax-free purchases unless it has an 29 active exemption identification number issued by the 30 Department. 31 (5) A passenger car that is a replacement vehicle to the 32 extent that the purchase price of the car is subject to the 33 Replacement Vehicle Tax. 34 (6) Graphic arts machinery and equipment, including -8- SRS92SB0392SBcpam01 1 repair and replacement parts, both new and used, and 2 including that manufactured on special order, certified by 3 the purchaser to be used primarily for graphic arts 4 production, and including machinery and equipment purchased 5 for lease. 6 (7) Farm chemicals. 7 (8) Legal tender, currency, medallions, or gold or 8 silver coinage issued by the State of Illinois, the 9 government of the United States of America, or the government 10 of any foreign country, and bullion. 11 (9) Personal property purchased from a teacher-sponsored 12 student organization affiliated with an elementary or 13 secondary school located in Illinois. 14 (10) A motor vehicle of the first division, a motor 15 vehicle of the second division that is a self-contained motor 16 vehicle designed or permanently converted to provide living 17 quarters for recreational, camping, or travel use, with 18 direct walk through to the living quarters from the driver's 19 seat, or a motor vehicle of the second division that is of 20 the van configuration designed for the transportation of not 21 less than 7 nor more than 16 passengers, as defined in 22 Section 1-146 of the Illinois Vehicle Code, that is used for 23 automobile renting, as defined in the Automobile Renting 24 Occupation and Use Tax Act. 25 (11) Farm machinery and equipment, both new and used, 26 including that manufactured on special order, certified by 27 the purchaser to be used primarily for production agriculture 28 or State or federal agricultural programs, including 29 individual replacement parts for the machinery and equipment, 30 including machinery and equipment purchased for lease, and 31 including implements of husbandry defined in Section 1-130 of 32 the Illinois Vehicle Code, farm machinery and agricultural 33 chemical and fertilizer spreaders, and nurse wagons required 34 to be registered under Section 3-809 of the Illinois Vehicle -9- SRS92SB0392SBcpam01 1 Code, but excluding other motor vehicles required to be 2 registered under the Illinois Vehicle Code. Horticultural 3 polyhouses or hoop houses used for propagating, growing, or 4 overwintering plants shall be considered farm machinery and 5 equipment under this item (11). Agricultural chemical tender 6 tanks and dry boxes shall include units sold separately from 7 a motor vehicle required to be licensed and units sold 8 mounted on a motor vehicle required to be licensed if the 9 selling price of the tender is separately stated. 10 Farm machinery and equipment shall include precision 11 farming equipment that is installed or purchased to be 12 installed on farm machinery and equipment including, but not 13 limited to, tractors, harvesters, sprayers, planters, 14 seeders, or spreaders. Precision farming equipment includes, 15 but is not limited to, soil testing sensors, computers, 16 monitors, software, global positioning and mapping systems, 17 and other such equipment. 18 Farm machinery and equipment also includes computers, 19 sensors, software, and related equipment used primarily in 20 the computer-assisted operation of production agriculture 21 facilities, equipment, and activities such as, but not 22 limited to, the collection, monitoring, and correlation of 23 animal and crop data for the purpose of formulating animal 24 diets and agricultural chemicals. This item (11) is exempt 25 from the provisions of Section 3-90. 26 (12) Fuel and petroleum products sold to or used by an 27 air common carrier, certified by the carrier to be used for 28 consumption, shipment, or storage in the conduct of its 29 business as an air common carrier, for a flight destined for 30 or returning from a location or locations outside the United 31 States without regard to previous or subsequent domestic 32 stopovers. 33 (13) Proceeds of mandatory service charges separately 34 stated on customers' bills for the purchase and consumption -10- SRS92SB0392SBcpam01 1 of food and beverages purchased at retail from a retailer, to 2 the extent that the proceeds of the service charge are in 3 fact turned over as tips or as a substitute for tips to the 4 employees who participate directly in preparing, serving, 5 hosting or cleaning up the food or beverage function with 6 respect to which the service charge is imposed. 7 (14) Oil field exploration, drilling, and production 8 equipment, including (i) rigs and parts of rigs, rotary rigs, 9 cable tool rigs, and workover rigs, (ii) pipe and tubular 10 goods, including casing and drill strings, (iii) pumps and 11 pump-jack units, (iv) storage tanks and flow lines, (v) any 12 individual replacement part for oil field exploration, 13 drilling, and production equipment, and (vi) machinery and 14 equipment purchased for lease; but excluding motor vehicles 15 required to be registered under the Illinois Vehicle Code. 16 (15) Photoprocessing machinery and equipment, including 17 repair and replacement parts, both new and used, including 18 that manufactured on special order, certified by the 19 purchaser to be used primarily for photoprocessing, and 20 including photoprocessing machinery and equipment purchased 21 for lease. 22 (16) Coal exploration, mining, offhighway hauling, 23 processing, maintenance, and reclamation equipment, including 24 replacement parts and equipment, and including equipment 25 purchased for lease, but excluding motor vehicles required to 26 be registered under the Illinois Vehicle Code. 27 (17) Distillation machinery and equipment, sold as a 28 unit or kit, assembled or installed by the retailer, 29 certified by the user to be used only for the production of 30 ethyl alcohol that will be used for consumption as motor fuel 31 or as a component of motor fuel for the personal use of the 32 user, and not subject to sale or resale. 33 (18) Manufacturing and assembling machinery and 34 equipment used primarily in the process of manufacturing or -11- SRS92SB0392SBcpam01 1 assembling tangible personal property for wholesale or retail 2 sale or lease, whether that sale or lease is made directly by 3 the manufacturer or by some other person, whether the 4 materials used in the process are owned by the manufacturer 5 or some other person, or whether that sale or lease is made 6 apart from or as an incident to the seller's engaging in the 7 service occupation of producing machines, tools, dies, jigs, 8 patterns, gauges, or other similar items of no commercial 9 value on special order for a particular purchaser. 10 (19) Personal property delivered to a purchaser or 11 purchaser's donee inside Illinois when the purchase order for 12 that personal property was received by a florist located 13 outside Illinois who has a florist located inside Illinois 14 deliver the personal property. 15 (20) Semen used for artificial insemination of livestock 16 for direct agricultural production. 17 (21) 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 (22) Computers and communications equipment utilized for 24 any hospital purpose and equipment used in the diagnosis, 25 analysis, or treatment of hospital patients purchased by a 26 lessor who leases the equipment, under a lease of one year or 27 longer executed or in effect at the time the lessor would 28 otherwise be subject to the tax imposed by this Act, to a 29 hospital that has been issued an active tax exemption 30 identification number by the Department under Section 1g of 31 the Retailers' Occupation Tax Act. If the equipment is 32 leased in a manner that does not qualify for this exemption 33 or is used in any other non-exempt manner, the lessor shall 34 be liable for the tax imposed under this Act or the Service -12- SRS92SB0392SBcpam01 1 Use Tax Act, as the case may be, based on the fair market 2 value of the property at the time the non-qualifying use 3 occurs. No lessor shall collect or attempt to collect an 4 amount (however designated) that purports to reimburse that 5 lessor for the tax imposed by this Act or the Service Use Tax 6 Act, as the case may be, if the tax has not been paid by the 7 lessor. If a lessor improperly collects any such amount from 8 the lessee, the lessee shall have a legal right to claim a 9 refund of that amount from the lessor. If, however, that 10 amount is not refunded to the lessee for any reason, the 11 lessor is liable to pay that amount to the Department. 12 (23) Personal property purchased by a lessor who leases 13 the property, under a lease of one year or longer executed 14 or in effect at the time the lessor would otherwise be 15 subject to the tax imposed by this Act, to a governmental 16 body that has been issued an active sales tax exemption 17 identification number by the Department under Section 1g of 18 the Retailers' Occupation Tax Act. If the property is leased 19 in a manner that does not qualify for this exemption or used 20 in any other non-exempt manner, the lessor shall be liable 21 for the tax imposed under this Act or the Service Use Tax 22 Act, as the case may be, based on the fair market value of 23 the property at the time the non-qualifying use occurs. No 24 lessor shall collect or attempt to collect an amount (however 25 designated) that purports to reimburse that lessor for the 26 tax imposed by this Act or the Service Use Tax Act, as the 27 case may be, if the tax has not been paid by the lessor. If 28 a lessor improperly collects any such amount from the lessee, 29 the lessee shall have a legal right to claim a refund of that 30 amount from the lessor. If, however, that amount is not 31 refunded to the lessee for any reason, the lessor is liable 32 to pay that amount to the Department. 33 (24) Beginning with taxable years ending on or after 34 December 31, 1995 and ending with taxable years ending on or -13- SRS92SB0392SBcpam01 1 before December 31, 2004, personal property that is donated 2 for disaster relief to be used in a State or federally 3 declared disaster area in Illinois or bordering Illinois by a 4 manufacturer or retailer that is registered in this State to 5 a corporation, society, association, foundation, or 6 institution that has been issued a sales tax exemption 7 identification number by the Department that assists victims 8 of the disaster who reside within the declared disaster area. 9 (25) Beginning with taxable years ending on or after 10 December 31, 1995 and ending with taxable years ending on or 11 before December 31, 2004, personal property that is used in 12 the performance of infrastructure repairs in this State, 13 including but not limited to municipal roads and streets, 14 access roads, bridges, sidewalks, waste disposal systems, 15 water and sewer line extensions, water distribution and 16 purification facilities, storm water drainage and retention 17 facilities, and sewage treatment facilities, resulting from a 18 State or federally declared disaster in Illinois or bordering 19 Illinois when such repairs are initiated on facilities 20 located in the declared disaster area within 6 months after 21 the disaster. 22 (26) Beginning July 1, 1999, game or game birds 23 purchased at a "game breeding and hunting preserve area" or 24 an "exotic game hunting area" as those terms are used in the 25 Wildlife Code or at a hunting enclosure approved through 26 rules adopted by the Department of Natural Resources. This 27 paragraph is exempt from the provisions of Section 3-90. 28 (27) A motor vehicle, as that term is defined in Section 29 1-146 of the Illinois Vehicle Code, that is donated to a 30 corporation, limited liability company, society, association, 31 foundation, or institution that is determined by the 32 Department to be organized and operated exclusively for 33 educational purposes. For purposes of this exemption, "a 34 corporation, limited liability company, society, association, -14- SRS92SB0392SBcpam01 1 foundation, or institution organized and operated exclusively 2 for educational purposes" means all tax-supported public 3 schools, private schools that offer systematic instruction in 4 useful branches of learning by methods common to public 5 schools and that compare favorably in their scope and 6 intensity with the course of study presented in tax-supported 7 schools, and vocational or technical schools or institutes 8 organized and operated exclusively to provide a course of 9 study of not less than 6 weeks duration and designed to 10 prepare individuals to follow a trade or to pursue a manual, 11 technical, mechanical, industrial, business, or commercial 12 occupation. 13 (28) Beginning January 1, 2000, personal property, 14 including food, purchased through fundraising events for the 15 benefit of a public or private elementary or secondary 16 school, a group of those schools, or one or more school 17 districts if the events are sponsored by an entity recognized 18 by the school district that consists primarily of volunteers 19 and includes parents and teachers of the school children. 20 This paragraph does not apply to fundraising events (i) for 21 the benefit of private home instruction or (ii) for which the 22 fundraising entity purchases the personal property sold at 23 the events from another individual or entity that sold the 24 property for the purpose of resale by the fundraising entity 25 and that profits from the sale to the fundraising entity. 26 This paragraph is exempt from the provisions of Section 3-90. 27 (29) Beginning January 1, 2000, new or used automatic 28 vending machines that prepare and serve hot food and 29 beverages, including coffee, soup, and other items, and 30 replacement parts for these machines. This paragraph is 31 exempt from the provisions of Section 3-90. 32 (30) 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 -15- SRS92SB0392SBcpam01 1 immediate consumption) and prescription and nonprescription 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 (31) Beginning on the effective date of this amendatory 9 Act of the 92nd General Assembly and ending on the date on 10 which electricity is first generated at a new plant built 11 under the incentives provided under the Energy Resources 12 Policy Act, the construction of which begins on or after July 13 1, 2001, machinery and equipment used at that plant primarily 14 in the generation or production of electricity for wholesale 15 or retail sale, including repair and replacement parts and 16 equipment, both new and used, including repair and 17 replacement parts manufactured on special order, and 18 including machinery and equipment purchased for lease, but 19 excluding motor vehicles required to be registered under the 20 Illinois Vehicle Code. 21 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97; 22 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff. 23 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644, 24 eff. 8-20-99; 91-901, eff. 1-1-01.) 25 Section 915. The Service Use Tax Act is amended by 26 changing Section 3-5 as follows: 27 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5) 28 Sec. 3-5. Exemptions. Use of the following tangible 29 personal property is exempt from the tax imposed by this Act: 30 (1) Personal property purchased from a corporation, 31 society, association, foundation, institution, or 32 organization, other than a limited liability company, that is -16- SRS92SB0392SBcpam01 1 organized and operated as a not-for-profit service enterprise 2 for the benefit of persons 65 years of age or older if the 3 personal property was not purchased by the enterprise for the 4 purpose of resale by the enterprise. 5 (2) Personal property purchased by a non-profit Illinois 6 county fair association for use in conducting, operating, or 7 promoting the county fair. 8 (3) Personal property purchased by a not-for-profit arts 9 or cultural organization that establishes, by proof required 10 by the Department by rule, that it has received an exemption 11 under Section 501(c)(3) of the Internal Revenue Code and that 12 is organized and operated for the presentation or support of 13 arts or cultural programming, activities, or services. These 14 organizations include, but are not limited to, music and 15 dramatic arts organizations such as symphony orchestras and 16 theatrical groups, arts and cultural service organizations, 17 local arts councils, visual arts organizations, and media 18 arts organizations. 19 (4) Legal tender, currency, medallions, or gold or 20 silver coinage issued by the State of Illinois, the 21 government of the United States of America, or the government 22 of any foreign country, and bullion. 23 (5) Graphic arts machinery and equipment, including 24 repair and replacement parts, both new and used, and 25 including that manufactured on special order or purchased for 26 lease, certified by the purchaser to be used primarily for 27 graphic arts production. 28 (6) Personal property purchased from a teacher-sponsored 29 student organization affiliated with an elementary or 30 secondary school located in Illinois. 31 (7) Farm machinery and equipment, both new and used, 32 including that manufactured on special order, certified by 33 the purchaser to be used primarily for production agriculture 34 or State or federal agricultural programs, including -17- SRS92SB0392SBcpam01 1 individual replacement parts for the machinery and equipment, 2 including machinery and equipment purchased for lease, and 3 including implements of husbandry defined in Section 1-130 of 4 the Illinois Vehicle Code, farm machinery and agricultural 5 chemical and fertilizer spreaders, and nurse wagons required 6 to be registered under Section 3-809 of the Illinois Vehicle 7 Code, but excluding other motor vehicles required to be 8 registered under the Illinois Vehicle Code. Horticultural 9 polyhouses or hoop houses used for propagating, growing, or 10 overwintering plants shall be considered farm machinery and 11 equipment under this item (7). Agricultural chemical tender 12 tanks and dry boxes shall include units sold separately from 13 a motor vehicle required to be licensed and units sold 14 mounted on a motor vehicle required to be licensed if the 15 selling price of the tender is separately stated. 16 Farm machinery and equipment shall include precision 17 farming equipment that is installed or purchased to be 18 installed on farm machinery and equipment including, but not 19 limited to, tractors, harvesters, sprayers, planters, 20 seeders, or spreaders. Precision farming equipment includes, 21 but is not limited to, soil testing sensors, computers, 22 monitors, software, global positioning and mapping systems, 23 and other such equipment. 24 Farm machinery and equipment also includes computers, 25 sensors, software, and related equipment used primarily in 26 the computer-assisted operation of production agriculture 27 facilities, equipment, and activities such as, but not 28 limited to, the collection, monitoring, and correlation of 29 animal and crop data for the purpose of formulating animal 30 diets and agricultural chemicals. This item (7) is exempt 31 from the provisions of Section 3-75. 32 (8) Fuel and petroleum products sold to or used by an 33 air common carrier, certified by the carrier to be used for 34 consumption, shipment, or storage in the conduct of its -18- SRS92SB0392SBcpam01 1 business as an air common carrier, for a flight destined for 2 or returning from a location or locations outside the United 3 States without regard to previous or subsequent domestic 4 stopovers. 5 (9) Proceeds of mandatory service charges separately 6 stated on customers' bills for the purchase and consumption 7 of food and beverages acquired as an incident to the purchase 8 of a service from a serviceman, to the extent that the 9 proceeds of the service charge are in fact turned over as 10 tips or as a substitute for tips to the employees who 11 participate directly in preparing, serving, hosting or 12 cleaning up the food or beverage function with respect to 13 which the service charge is imposed. 14 (10) Oil field exploration, drilling, and production 15 equipment, including (i) rigs and parts of rigs, rotary rigs, 16 cable tool rigs, and workover rigs, (ii) pipe and tubular 17 goods, including casing and drill strings, (iii) pumps and 18 pump-jack units, (iv) storage tanks and flow lines, (v) any 19 individual replacement part for oil field exploration, 20 drilling, and production equipment, and (vi) machinery and 21 equipment purchased for lease; but excluding motor vehicles 22 required to be registered under the Illinois Vehicle Code. 23 (11) Proceeds from the sale of photoprocessing machinery 24 and equipment, including repair and replacement parts, both 25 new and used, including that manufactured on special order, 26 certified by the purchaser to be used primarily for 27 photoprocessing, and including photoprocessing machinery and 28 equipment purchased for lease. 29 (12) Coal exploration, mining, offhighway hauling, 30 processing, maintenance, and reclamation equipment, including 31 replacement parts and equipment, and including equipment 32 purchased for lease, but excluding motor vehicles required to 33 be registered under the Illinois Vehicle Code. 34 (13) Semen used for artificial insemination of livestock -19- SRS92SB0392SBcpam01 1 for direct agricultural production. 2 (14) Horses, or interests in horses, registered with and 3 meeting the requirements of any of the Arabian Horse Club 4 Registry of America, Appaloosa Horse Club, American Quarter 5 Horse Association, United States Trotting Association, or 6 Jockey Club, as appropriate, used for purposes of breeding or 7 racing for prizes. 8 (15) Computers and communications equipment utilized for 9 any hospital purpose and equipment used in the diagnosis, 10 analysis, or treatment of hospital patients purchased by a 11 lessor who leases the equipment, under a lease of one year or 12 longer executed or in effect at the time the lessor would 13 otherwise be subject to the tax imposed by this Act, to a 14 hospital that has been issued an active tax exemption 15 identification number by the Department under Section 1g of 16 the Retailers' Occupation Tax Act. If the equipment is leased 17 in a manner that does not qualify for this exemption or is 18 used in any other non-exempt manner, the lessor shall be 19 liable for the tax imposed under this Act or the Use Tax Act, 20 as the case may be, based on the fair market value of the 21 property at the time the non-qualifying use occurs. No 22 lessor shall collect or attempt to collect an amount (however 23 designated) that purports to reimburse that lessor for the 24 tax imposed by this Act or the Use Tax Act, as the case may 25 be, if the tax has not been paid by the lessor. If a lessor 26 improperly collects any such amount from the lessee, the 27 lessee shall have a legal right to claim a refund of that 28 amount from the lessor. If, however, that amount is not 29 refunded to the lessee for any reason, the lessor is liable 30 to pay that amount to the Department. 31 (16) Personal property purchased by a lessor who leases 32 the property, under a lease of one year or longer executed or 33 in effect at the time the lessor would otherwise be subject 34 to the tax imposed by this Act, to a governmental body that -20- SRS92SB0392SBcpam01 1 has been issued an active tax exemption identification number 2 by the Department under Section 1g of the Retailers' 3 Occupation Tax Act. If the property is leased in a manner 4 that does not qualify for this exemption or is used in any 5 other non-exempt manner, the lessor shall be liable for the 6 tax imposed under this Act or the Use Tax Act, as the case 7 may be, based on the fair market value of the property at the 8 time the non-qualifying use occurs. No lessor shall collect 9 or attempt to collect an amount (however designated) that 10 purports to reimburse that lessor for the tax imposed by this 11 Act or the Use Tax Act, as the case may be, if the tax has 12 not been paid by the lessor. If a lessor improperly collects 13 any such amount from the lessee, the lessee shall have a 14 legal right to claim a refund of that amount from the lessor. 15 If, however, that amount is not refunded to the lessee for 16 any reason, the lessor is liable to pay that amount to the 17 Department. 18 (17) 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 donated 21 for disaster relief to be used in a State or federally 22 declared disaster area in Illinois or bordering Illinois by a 23 manufacturer or retailer that is registered in this State to 24 a corporation, society, association, foundation, or 25 institution that has been issued a sales tax exemption 26 identification number by the Department that assists victims 27 of the disaster who reside within the declared disaster area. 28 (18) Beginning with taxable years ending on or after 29 December 31, 1995 and ending with taxable years ending on or 30 before December 31, 2004, personal property that is used in 31 the performance of infrastructure repairs in this State, 32 including but not limited to municipal roads and streets, 33 access roads, bridges, sidewalks, waste disposal systems, 34 water and sewer line extensions, water distribution and -21- SRS92SB0392SBcpam01 1 purification facilities, storm water drainage and retention 2 facilities, and sewage treatment facilities, resulting from a 3 State or federally declared disaster in Illinois or bordering 4 Illinois when such repairs are initiated on facilities 5 located in the declared disaster area within 6 months after 6 the disaster. 7 (19) Beginning July 1, 1999, game or game birds 8 purchased at a "game breeding and hunting preserve area" or 9 an "exotic game hunting area" as those terms are used in the 10 Wildlife Code or at a hunting enclosure approved through 11 rules adopted by the Department of Natural Resources. This 12 paragraph is exempt from the provisions of Section 3-75. 13 (20)(19)A motor vehicle, as that term is defined in 14 Section 1-146 of the Illinois Vehicle Code, that is donated 15 to a corporation, limited liability company, society, 16 association, foundation, or institution that is determined by 17 the Department to be organized and operated exclusively for 18 educational purposes. For purposes of this exemption, "a 19 corporation, limited liability company, society, association, 20 foundation, or institution organized and operated exclusively 21 for educational purposes" means all tax-supported public 22 schools, private schools that offer systematic instruction in 23 useful branches of learning by methods common to public 24 schools and that compare favorably in their scope and 25 intensity with the course of study presented in tax-supported 26 schools, and vocational or technical schools or institutes 27 organized and operated exclusively to provide a course of 28 study of not less than 6 weeks duration and designed to 29 prepare individuals to follow a trade or to pursue a manual, 30 technical, mechanical, industrial, business, or commercial 31 occupation. 32 (21)(20)Beginning January 1, 2000, personal property, 33 including food, purchased through fundraising events for the 34 benefit of a public or private elementary or secondary -22- SRS92SB0392SBcpam01 1 school, a group of those schools, or one or more school 2 districts if the events are sponsored by an entity recognized 3 by the school district that consists primarily of volunteers 4 and includes parents and teachers of the school children. 5 This paragraph does not apply to fundraising events (i) for 6 the benefit of private home instruction or (ii) for which the 7 fundraising entity purchases the personal property sold at 8 the events from another individual or entity that sold the 9 property for the purpose of resale by the fundraising entity 10 and that profits from the sale to the fundraising entity. 11 This paragraph is exempt from the provisions of Section 3-75. 12 (22)(19)Beginning January 1, 2000, new or used 13 automatic vending machines that prepare and serve hot food 14 and beverages, including coffee, soup, and other items, and 15 replacement parts for these machines. This paragraph is 16 exempt from the provisions of Section 3-75. 17 (23) Beginning on the effective date of this amendatory 18 Act of the 92nd General Assembly and ending on the date on 19 which electricity is first generated at a new plant built 20 under the incentives provided under the Energy Resources 21 Policy Act, the construction of which begins on or after July 22 1, 2001, machinery and equipment used at that plant primarily 23 in the generation or production of electricity for wholesale 24 or retail sale, including repair and replacement parts and 25 equipment, both new and used, including repair and 26 replacement parts manufactured on special order, and 27 including machinery and equipment purchased for lease, but 28 excluding motor vehicles required to be registered under the 29 Illinois Vehicle Code. 30 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97; 31 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff. 32 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644, 33 eff. 8-20-99; revised 9-29-99.) -23- SRS92SB0392SBcpam01 1 Section 920. The Service Occupation Tax Act is amended 2 by changing Section 3-5 as follows: 3 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5) 4 Sec. 3-5. Exemptions. The following tangible personal 5 property is exempt from the tax imposed by this Act: 6 (1) Personal property sold by a corporation, society, 7 association, foundation, institution, or organization, other 8 than a limited liability company, that is organized and 9 operated as a not-for-profit service enterprise for the 10 benefit of persons 65 years of age or older if the personal 11 property was not purchased by the enterprise for the purpose 12 of resale by the enterprise. 13 (2) Personal property purchased by a not-for-profit 14 Illinois county fair association for use in conducting, 15 operating, or promoting the county fair. 16 (3) Personal property purchased by any not-for-profit 17 arts or cultural organization that establishes, by proof 18 required by the Department by rule, that it has received an 19 exemption under Section 501(c)(3) of the Internal Revenue 20 Code and that is organized and operated for the presentation 21 or support of arts or cultural programming, activities, or 22 services. These organizations include, but are not limited 23 to, music and dramatic arts organizations such as symphony 24 orchestras and theatrical groups, arts and cultural service 25 organizations, local arts councils, visual arts 26 organizations, and media arts organizations. 27 (4) Legal tender, currency, medallions, or gold or 28 silver coinage issued by the State of Illinois, the 29 government of the United States of America, or the government 30 of any foreign country, and bullion. 31 (5) Graphic arts machinery and equipment, including 32 repair and replacement parts, both new and used, and 33 including that manufactured on special order or purchased for -24- SRS92SB0392SBcpam01 1 lease, certified by the purchaser to be used primarily for 2 graphic arts production. 3 (6) Personal property sold by a teacher-sponsored 4 student organization affiliated with an elementary or 5 secondary school located in Illinois. 6 (7) Farm machinery and equipment, both new and used, 7 including that manufactured on special order, certified by 8 the purchaser to be used primarily for production agriculture 9 or State or federal agricultural programs, including 10 individual replacement parts for the machinery and equipment, 11 including machinery and equipment purchased for lease, and 12 including implements of husbandry defined in Section 1-130 of 13 the Illinois Vehicle Code, farm machinery and agricultural 14 chemical and fertilizer spreaders, and nurse wagons required 15 to be registered under Section 3-809 of the Illinois Vehicle 16 Code, but excluding other motor vehicles required to be 17 registered under the Illinois Vehicle Code. Horticultural 18 polyhouses or hoop houses used for propagating, growing, or 19 overwintering plants shall be considered farm machinery and 20 equipment under this item (7). Agricultural chemical tender 21 tanks and dry boxes shall include units sold separately from 22 a motor vehicle required to be licensed and units sold 23 mounted on a motor vehicle required to be licensed if the 24 selling price of the tender is separately stated. 25 Farm machinery and equipment shall include precision 26 farming equipment that is installed or purchased to be 27 installed on farm machinery and equipment including, but not 28 limited to, tractors, harvesters, sprayers, planters, 29 seeders, or spreaders. Precision farming equipment includes, 30 but is not limited to, soil testing sensors, computers, 31 monitors, software, global positioning and mapping systems, 32 and other such equipment. 33 Farm machinery and equipment also includes computers, 34 sensors, software, and related equipment used primarily in -25- SRS92SB0392SBcpam01 1 the computer-assisted operation of production agriculture 2 facilities, equipment, and activities such as, but not 3 limited to, the collection, monitoring, and correlation of 4 animal and crop data for the purpose of formulating animal 5 diets and agricultural chemicals. This item (7) is exempt 6 from the provisions of Section 3-55. 7 (8) Fuel and petroleum products sold to or used by an 8 air common carrier, certified by the carrier to be used for 9 consumption, shipment, or storage in the conduct of its 10 business as an air common carrier, for a flight destined for 11 or returning from a location or locations outside the United 12 States without regard to previous or subsequent domestic 13 stopovers. 14 (9) Proceeds of mandatory service charges separately 15 stated on customers' bills for the purchase and consumption 16 of food and beverages, to the extent that the proceeds of the 17 service charge are in fact turned over as tips or as a 18 substitute for tips to the employees who participate directly 19 in preparing, serving, hosting or cleaning up the food or 20 beverage function with respect to which the service charge is 21 imposed. 22 (10) Oil field exploration, drilling, and production 23 equipment, including (i) rigs and parts of rigs, rotary rigs, 24 cable tool rigs, and workover rigs, (ii) pipe and tubular 25 goods, including casing and drill strings, (iii) pumps and 26 pump-jack units, (iv) storage tanks and flow lines, (v) any 27 individual replacement part for oil field exploration, 28 drilling, and production equipment, and (vi) machinery and 29 equipment purchased for lease; but excluding motor vehicles 30 required to be registered under the Illinois Vehicle Code. 31 (11) Photoprocessing machinery and equipment, including 32 repair and replacement parts, both new and used, including 33 that manufactured on special order, certified by the 34 purchaser to be used primarily for photoprocessing, and -26- SRS92SB0392SBcpam01 1 including photoprocessing machinery and equipment purchased 2 for lease. 3 (12) Coal exploration, mining, offhighway hauling, 4 processing, maintenance, and reclamation equipment, including 5 replacement parts and equipment, and including equipment 6 purchased for lease, but excluding motor vehicles required to 7 be registered under the Illinois Vehicle Code. 8 (13) Food for human consumption that is to be consumed 9 off the premises where it is sold (other than alcoholic 10 beverages, soft drinks and food that has been prepared for 11 immediate consumption) and prescription and non-prescription 12 medicines, drugs, medical appliances, and insulin, urine 13 testing materials, syringes, and needles used by diabetics, 14 for human use, when purchased for use by a person receiving 15 medical assistance under Article 5 of the Illinois Public Aid 16 Code who resides in a licensed long-term care facility, as 17 defined in the Nursing Home Care Act. 18 (14) Semen used for artificial insemination of livestock 19 for direct agricultural production. 20 (15) Horses, or interests in horses, registered with and 21 meeting the requirements of any of the Arabian Horse Club 22 Registry of America, Appaloosa Horse Club, American Quarter 23 Horse Association, United States Trotting Association, or 24 Jockey Club, as appropriate, used for purposes of breeding or 25 racing for prizes. 26 (16) Computers and communications equipment utilized for 27 any hospital purpose and equipment used in the diagnosis, 28 analysis, or treatment of hospital patients sold to a lessor 29 who leases the equipment, under a lease of one year or longer 30 executed or in effect at the time of the purchase, to a 31 hospital that has been issued an active tax exemption 32 identification number by the Department under Section 1g of 33 the Retailers' Occupation Tax Act. 34 (17) Personal property sold to a lessor who leases the -27- SRS92SB0392SBcpam01 1 property, under a lease of one year or longer executed or in 2 effect at the time of the purchase, to a governmental body 3 that has been issued an active tax exemption identification 4 number by the Department under Section 1g of the Retailers' 5 Occupation Tax Act. 6 (18) 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 donated 9 for disaster relief to be used in a State or federally 10 declared disaster area in Illinois or bordering Illinois by a 11 manufacturer or retailer that is registered in this State to 12 a corporation, society, association, foundation, or 13 institution that has been issued a sales tax exemption 14 identification number by the Department that assists victims 15 of the disaster who reside within the declared disaster area. 16 (19) Beginning with taxable years ending on or after 17 December 31, 1995 and ending with taxable years ending on or 18 before December 31, 2004, personal property that is used in 19 the performance of infrastructure repairs in this State, 20 including but not limited to municipal roads and streets, 21 access roads, bridges, sidewalks, waste disposal systems, 22 water and sewer line extensions, water distribution and 23 purification facilities, storm water drainage and retention 24 facilities, and sewage treatment facilities, resulting from a 25 State or federally declared disaster in Illinois or bordering 26 Illinois when such repairs are initiated on facilities 27 located in the declared disaster area within 6 months after 28 the disaster. 29 (20) Beginning July 1, 1999, game or game birds sold at 30 a "game breeding and hunting preserve area" or an "exotic 31 game hunting area" as those terms are used in the Wildlife 32 Code or at a hunting enclosure approved through rules adopted 33 by the Department of Natural Resources. This paragraph is 34 exempt from the provisions of Section 3-55. -28- SRS92SB0392SBcpam01 1 (21)(20)A motor vehicle, as that term is defined in 2 Section 1-146 of the Illinois Vehicle Code, that is donated 3 to a corporation, limited liability company, society, 4 association, foundation, or institution that is determined by 5 the Department to be organized and operated exclusively for 6 educational purposes. For purposes of this exemption, "a 7 corporation, limited liability company, society, association, 8 foundation, or institution organized and operated exclusively 9 for educational purposes" means all tax-supported public 10 schools, private schools that offer systematic instruction in 11 useful branches of learning by methods common to public 12 schools and that compare favorably in their scope and 13 intensity with the course of study presented in tax-supported 14 schools, and vocational or technical schools or institutes 15 organized and operated exclusively to provide a course of 16 study of not less than 6 weeks duration and designed to 17 prepare individuals to follow a trade or to pursue a manual, 18 technical, mechanical, industrial, business, or commercial 19 occupation. 20 (22)(21)Beginning January 1, 2000, personal property, 21 including food, purchased through fundraising events for the 22 benefit of a public or private elementary or secondary 23 school, a group of those schools, or one or more school 24 districts if the events are sponsored by an entity recognized 25 by the school district that consists primarily of volunteers 26 and includes parents and teachers of the school children. 27 This paragraph does not apply to fundraising events (i) for 28 the benefit of private home instruction or (ii) for which the 29 fundraising entity purchases the personal property sold at 30 the events from another individual or entity that sold the 31 property for the purpose of resale by the fundraising entity 32 and that profits from the sale to the fundraising entity. 33 This paragraph is exempt from the provisions of Section 3-55. 34 (23)(20)Beginning January 1, 2000, new or used -29- SRS92SB0392SBcpam01 1 automatic vending machines that prepare and serve hot food 2 and beverages, including coffee, soup, and other items, and 3 replacement parts for these machines. This paragraph is 4 exempt from the provisions of Section 3-55. 5 (24) Beginning on the effective date of this amendatory 6 Act of the 92nd General Assembly and ending on the date on 7 which electricity is first generated at a new plant built 8 under the incentives provided under the Energy Resources 9 Policy Act, the construction of which begins on or after July 10 1, 2001, machinery and equipment used at that plant primarily 11 in the generation or production of electricity for wholesale 12 or retail sale, including repair and replacement parts and 13 equipment, both new and used, including repair and 14 replacement parts manufactured on special order, and 15 including machinery and equipment purchased for lease, but 16 excluding motor vehicles required to be registered under the 17 Illinois Vehicle Code. 18 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97; 19 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff. 20 7-20-99; 91-439, eff. 8-6-99; 91-533, eff. 8-13-99; 91-637, 21 eff. 8-20-99; 91-644, eff. 8-20-99; revised 9-29-99.) 22 Section 925. The Retailers' Occupation Tax Act is 23 amended by changing Section 2-5 as follows: 24 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5) 25 Sec. 2-5. Exemptions. Gross receipts from proceeds from 26 the sale of the following tangible personal property are 27 exempt from the tax imposed by this Act: 28 (1) Farm chemicals. 29 (2) Farm machinery and equipment, both new and used, 30 including that manufactured on special order, certified by 31 the purchaser to be used primarily for production agriculture 32 or State or federal agricultural programs, including -30- SRS92SB0392SBcpam01 1 individual replacement parts for the machinery and equipment, 2 including machinery and equipment purchased for lease, and 3 including implements of husbandry defined in Section 1-130 of 4 the Illinois Vehicle Code, farm machinery and agricultural 5 chemical and fertilizer spreaders, and nurse wagons required 6 to be registered under Section 3-809 of the Illinois Vehicle 7 Code, but excluding other motor vehicles required to be 8 registered under the Illinois Vehicle Code. Horticultural 9 polyhouses or hoop houses used for propagating, growing, or 10 overwintering plants shall be considered farm machinery and 11 equipment under this item (2). Agricultural chemical tender 12 tanks and dry boxes shall include units sold separately from 13 a motor vehicle required to be licensed and units sold 14 mounted on a motor vehicle required to be licensed, if the 15 selling price of the tender is separately stated. 16 Farm machinery and equipment shall include precision 17 farming equipment that is installed or purchased to be 18 installed on farm machinery and equipment including, but not 19 limited to, tractors, harvesters, sprayers, planters, 20 seeders, or spreaders. Precision farming equipment includes, 21 but is not limited to, soil testing sensors, computers, 22 monitors, software, global positioning and mapping systems, 23 and other such equipment. 24 Farm machinery and equipment also includes computers, 25 sensors, software, and related equipment used primarily in 26 the computer-assisted operation of production agriculture 27 facilities, equipment, and activities such as, but not 28 limited to, the collection, monitoring, and correlation of 29 animal and crop data for the purpose of formulating animal 30 diets and agricultural chemicals. This item (7) is exempt 31 from the provisions of Section 2-70. 32 (3) Distillation machinery and equipment, sold as a unit 33 or kit, assembled or installed by the retailer, certified by 34 the user to be used only for the production of ethyl alcohol -31- SRS92SB0392SBcpam01 1 that will be used for consumption as motor fuel or as a 2 component of motor fuel for the personal use of the user, and 3 not subject to sale or resale. 4 (4) Graphic arts machinery and equipment, including 5 repair and replacement parts, both new and used, and 6 including that manufactured on special order or purchased for 7 lease, certified by the purchaser to be used primarily for 8 graphic arts production. 9 (5) A motor vehicle of the first division, a motor 10 vehicle of the second division that is a self-contained motor 11 vehicle designed or permanently converted to provide living 12 quarters for recreational, camping, or travel use, with 13 direct walk through access to the living quarters from the 14 driver's seat, or a motor vehicle of the second division that 15 is of the van configuration designed for the transportation 16 of not less than 7 nor more than 16 passengers, as defined in 17 Section 1-146 of the Illinois Vehicle Code, that is used for 18 automobile renting, as defined in the Automobile Renting 19 Occupation and Use Tax Act. 20 (6) Personal property sold by a teacher-sponsored 21 student organization affiliated with an elementary or 22 secondary school located in Illinois. 23 (7) Proceeds of that portion of the selling price of a 24 passenger car the sale of which is subject to the Replacement 25 Vehicle Tax. 26 (8) Personal property sold to an Illinois county fair 27 association for use in conducting, operating, or promoting 28 the county fair. 29 (9) Personal property sold to a not-for-profit arts or 30 cultural organization that establishes, by proof required by 31 the Department by rule, that it has received an exemption 32 under Section 501(c)(3) of the Internal Revenue Code and that 33 is organized and operated for the presentation or support of 34 arts or cultural programming, activities, or services. These -32- SRS92SB0392SBcpam01 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 (10) Personal property sold by a corporation, society, 7 association, foundation, institution, or organization, other 8 than a limited liability company, that is organized and 9 operated as a not-for-profit service enterprise for the 10 benefit of persons 65 years of age or older if the personal 11 property was not purchased by the enterprise for the purpose 12 of resale by the enterprise. 13 (11) Personal property sold to a governmental body, to a 14 corporation, society, association, foundation, or institution 15 organized and operated exclusively for charitable, religious, 16 or educational purposes, or to a not-for-profit corporation, 17 society, association, foundation, institution, or 18 organization that has no compensated officers or employees 19 and that is organized and operated primarily for the 20 recreation of persons 55 years of age or older. A limited 21 liability company may qualify for the exemption under this 22 paragraph only if the limited liability company is organized 23 and operated exclusively for educational purposes. On and 24 after July 1, 1987, however, no entity otherwise eligible for 25 this exemption shall make tax-free purchases unless it has an 26 active identification number issued by the Department. 27 (12) Personal property sold to interstate carriers for 28 hire for use as rolling stock moving in interstate commerce 29 or to lessors under leases of one year or longer executed or 30 in effect at the time of purchase by interstate carriers for 31 hire for use as rolling stock moving in interstate commerce 32 and equipment operated by a telecommunications provider, 33 licensed as a common carrier by the Federal Communications 34 Commission, which is permanently installed in or affixed to -33- SRS92SB0392SBcpam01 1 aircraft moving in interstate commerce. 2 (13) Proceeds from sales to owners, lessors, or shippers 3 of tangible personal property that is utilized by interstate 4 carriers for hire for use as rolling stock moving in 5 interstate commerce and equipment operated by a 6 telecommunications provider, licensed as a common carrier by 7 the Federal Communications Commission, which is permanently 8 installed in or affixed to aircraft moving in interstate 9 commerce. 10 (14) Machinery and equipment that will be used by the 11 purchaser, or a lessee of the purchaser, primarily in the 12 process of manufacturing or assembling tangible personal 13 property for wholesale or retail sale or lease, whether the 14 sale or lease is made directly by the manufacturer or by some 15 other person, whether the materials used in the process are 16 owned by the manufacturer or some other person, or whether 17 the sale or lease is made apart from or as an incident to the 18 seller's engaging in the service occupation of producing 19 machines, tools, dies, jigs, patterns, gauges, or other 20 similar items of no commercial value on special order for a 21 particular purchaser. 22 (15) Proceeds of mandatory service charges separately 23 stated on customers' bills for purchase and consumption of 24 food and beverages, to the extent that the proceeds of the 25 service charge are in fact turned over as tips or as a 26 substitute for tips to the employees who participate directly 27 in preparing, serving, hosting or cleaning up the food or 28 beverage function with respect to which the service charge is 29 imposed. 30 (16) Petroleum products sold to a purchaser if the 31 seller is prohibited by federal law from charging tax to the 32 purchaser. 33 (17) Tangible personal property sold to a common carrier 34 by rail or motor that receives the physical possession of the -34- SRS92SB0392SBcpam01 1 property in Illinois and that transports the property, or 2 shares with another common carrier in the transportation of 3 the property, out of Illinois on a standard uniform bill of 4 lading showing the seller of the property as the shipper or 5 consignor of the property to a destination outside Illinois, 6 for use outside Illinois. 7 (18) Legal tender, currency, medallions, or gold or 8 silver coinage issued by the State of Illinois, the 9 government of the United States of America, or the government 10 of any foreign country, and bullion. 11 (19) Oil field exploration, drilling, and production 12 equipment, including (i) rigs and parts of rigs, rotary rigs, 13 cable tool rigs, and workover rigs, (ii) pipe and tubular 14 goods, including casing and drill strings, (iii) pumps and 15 pump-jack units, (iv) storage tanks and flow lines, (v) any 16 individual replacement part for oil field exploration, 17 drilling, and production equipment, and (vi) machinery and 18 equipment purchased for lease; but excluding motor vehicles 19 required to be registered under the Illinois Vehicle Code. 20 (20) Photoprocessing machinery and equipment, including 21 repair and replacement parts, both new and used, including 22 that manufactured on special order, certified by the 23 purchaser to be used primarily for photoprocessing, and 24 including photoprocessing machinery and equipment purchased 25 for lease. 26 (21) Coal exploration, mining, offhighway hauling, 27 processing, maintenance, and reclamation equipment, including 28 replacement parts and equipment, and including equipment 29 purchased for lease, but excluding motor vehicles required to 30 be registered under the Illinois Vehicle Code. 31 (22) Fuel and petroleum products sold to or used by an 32 air 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 -35- SRS92SB0392SBcpam01 1 or returning from a location or locations outside the United 2 States without regard to previous or subsequent domestic 3 stopovers. 4 (23) A transaction in which the purchase order is 5 received by a florist who is located outside Illinois, but 6 who has a florist located in Illinois deliver the property to 7 the purchaser or the purchaser's donee in Illinois. 8 (24) Fuel consumed or used in the operation of ships, 9 barges, or vessels that are used primarily in or for the 10 transportation of property or the conveyance of persons for 11 hire on rivers bordering on this State if the fuel is 12 delivered by the seller to the purchaser's barge, ship, or 13 vessel while it is afloat upon that bordering river. 14 (25) A motor vehicle sold in this State to a nonresident 15 even though the motor vehicle is delivered to the nonresident 16 in this State, if the motor vehicle is not to be titled in 17 this State, and if a driveaway decal permit is issued to the 18 motor vehicle as provided in Section 3-603 of the Illinois 19 Vehicle Code or if the nonresident purchaser has vehicle 20 registration plates to transfer to the motor vehicle upon 21 returning to his or her home state. The issuance of the 22 driveaway decal permit or having the out-of-state 23 registration plates to be transferred is prima facie evidence 24 that the motor vehicle will not be titled in this State. 25 (26) Semen used for artificial insemination of livestock 26 for direct agricultural production. 27 (27) Horses, or interests in horses, registered with and 28 meeting the requirements of any of the Arabian Horse Club 29 Registry of America, Appaloosa Horse Club, American Quarter 30 Horse Association, United States Trotting Association, or 31 Jockey Club, as appropriate, used for purposes of breeding or 32 racing for prizes. 33 (28) Computers and communications equipment utilized for 34 any hospital purpose and equipment used in the diagnosis, -36- SRS92SB0392SBcpam01 1 analysis, or treatment of hospital patients sold to a lessor 2 who leases the equipment, under a lease of one year or longer 3 executed or in effect at the time of the purchase, to a 4 hospital that has been issued an active tax exemption 5 identification number by the Department under Section 1g of 6 this Act. 7 (29) Personal property sold to a lessor who leases the 8 property, under a lease of one year or longer executed or in 9 effect at the time of the purchase, to a governmental body 10 that has been issued an active tax exemption identification 11 number by the Department under Section 1g of this Act. 12 (30) 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 donated 15 for disaster relief to be used in a State or federally 16 declared disaster area in Illinois or bordering Illinois by a 17 manufacturer or retailer that is registered in this State to 18 a corporation, society, association, foundation, or 19 institution that has been issued a sales tax exemption 20 identification number by the Department that assists victims 21 of the disaster who reside within the declared disaster area. 22 (31) Beginning with taxable years ending on or after 23 December 31, 1995 and ending with taxable years ending on or 24 before December 31, 2004, personal property that is used in 25 the performance of infrastructure repairs in this State, 26 including but not limited to municipal roads and streets, 27 access roads, bridges, sidewalks, waste disposal systems, 28 water and sewer line extensions, water distribution and 29 purification facilities, storm water drainage and retention 30 facilities, and sewage treatment facilities, resulting from a 31 State or federally declared disaster in Illinois or bordering 32 Illinois when such repairs are initiated on facilities 33 located in the declared disaster area within 6 months after 34 the disaster. -37- SRS92SB0392SBcpam01 1 (32) Beginning July 1, 1999, game or game birds sold at 2 a "game breeding and hunting preserve area" or an "exotic 3 game hunting area" as those terms are used in the Wildlife 4 Code or at a hunting enclosure approved through rules adopted 5 by the Department of Natural Resources. This paragraph is 6 exempt from the provisions of Section 2-70. 7 (33)(32)A motor vehicle, as that term is defined in 8 Section 1-146 of the Illinois Vehicle Code, that is donated 9 to a corporation, limited liability company, society, 10 association, foundation, or institution that is determined by 11 the Department to be organized and operated exclusively for 12 educational purposes. For purposes of this exemption, "a 13 corporation, limited liability company, society, association, 14 foundation, or institution organized and operated exclusively 15 for educational purposes" means all tax-supported public 16 schools, private schools that offer systematic instruction in 17 useful branches of learning by methods common to public 18 schools and that compare favorably in their scope and 19 intensity with the course of study presented in tax-supported 20 schools, and vocational or technical schools or institutes 21 organized and operated exclusively to provide a course of 22 study of not less than 6 weeks duration and designed to 23 prepare individuals to follow a trade or to pursue a manual, 24 technical, mechanical, industrial, business, or commercial 25 occupation. 26 (34)(33)Beginning January 1, 2000, personal property, 27 including food, purchased through fundraising events for the 28 benefit of a public or private elementary or secondary 29 school, a group of those schools, or one or more school 30 districts if the events are sponsored by an entity recognized 31 by the school district that consists primarily of volunteers 32 and includes parents and teachers of the school children. 33 This paragraph does not apply to fundraising events (i) for 34 the benefit of private home instruction or (ii) for which the -38- SRS92SB0392SBcpam01 1 fundraising entity purchases the personal property sold at 2 the events from another individual or entity that sold the 3 property for the purpose of resale by the fundraising entity 4 and that profits from the sale to the fundraising entity. 5 This paragraph is exempt from the provisions of Section 2-70. 6 (35)(32)Beginning January 1, 2000, new or used 7 automatic vending machines that prepare and serve hot food 8 and beverages, including coffee, soup, and other items, and 9 replacement parts for these machines. This paragraph is 10 exempt from the provisions of Section 2-70. 11 (36) Beginning on the effective date of this amendatory 12 Act of the 92nd General Assembly and ending on the date on 13 which electricity is first generated at a new plant built 14 under the incentives provided under the Energy Resources 15 Policy Act, the construction of which begins on or after July 16 1, 2001, machinery and equipment used at that plant primarily 17 in the generation or production of electricity for wholesale 18 or retail sale, including repair and replacement parts and 19 equipment, both new and used, including repair and 20 replacement parts manufactured on special order, and 21 including machinery and equipment purchased for lease, but 22 excluding motor vehicles required to be registered under the 23 Illinois Vehicle Code. 24 (Source: P.A. 90-14, eff. 7-1-97; 90-519, eff. 6-1-98; 25 90-552, eff. 12-12-97; 90-605, eff. 6-30-98; 91-51, eff. 26 6-30-99; 91-200, eff. 7-20-99; 91-439, eff. 8-6-99; 91-533, 27 eff. 8-13-99; 91-637, eff. 8-20-99; 91-644, eff. 8-20-99; 28 revised 9-28-99.) 29 Section 930. The Property Tax Code is amended by 30 changing Section 18-165 as follows: 31 (35 ILCS 200/18-165) 32 Sec. 18-165. Abatement of taxes. -39- SRS92SB0392SBcpam01 1 (a) Any taxing district, upon a majority vote of its 2 governing authority, may, after the determination of the 3 assessed valuation of its property, order the clerk of that 4 county to abate any portion of its taxes on the following 5 types of property: 6 (1) Commercial and industrial. 7 (A) The property of any commercial or 8 industrial firm, including but not limited to the 9 property of (i) any firm that is used for 10 collecting, separating, storing, or processing 11 recyclable materials or (ii) any firm that is used 12 for producing or generating electricity, locating 13 within the taxing district during the immediately 14 preceding year from another state, territory, or 15 country, or having been newly created within this 16 State during the immediately preceding year, or 17 expanding an existing facility. The abatement shall 18 not exceed a period of 10 years and the aggregate 19 amount of abated taxes for all taxing districts 20 combined shall not exceed $4,000,000; or 21 (B) The property of any commercial or 22 industrial development of at least 500 acres having 23 been created within the taxing district. The 24 abatement shall not exceed a period of 20 years and 25 the aggregate amount of abated taxes for all taxing 26 districts combined shall not exceed $12,000,000. 27 (C) The property of any commercial or 28 industrial firm currently located in the taxing 29 district that expands a facility or its number of 30 employees. The abatement shall not exceed a period 31 of 10 years and the aggregate amount of abated taxes 32 for all taxing districts combined shall not exceed 33 $4,000,000. The abatement period may be renewed at 34 the option of the taxing districts. -40- SRS92SB0392SBcpam01 1 (2) Horse racing. Any property in the taxing 2 district which is used for the racing of horses and upon 3 which capital improvements consisting of expansion, 4 improvement or replacement of existing facilities have 5 been made since July 1, 1987. The combined abatements 6 for such property from all taxing districts in any county 7 shall not exceed $5,000,000 annually and shall not exceed 8 a period of 10 years. 9 (3) Auto racing. Any property designed exclusively 10 for the racing of motor vehicles. Such abatement shall 11 not exceed a period of 10 years. 12 (4) Academic or research institute. The property 13 of any academic or research institute in the taxing 14 district that (i) is an exempt organization under 15 paragraph (3) of Section 501(c) of the Internal Revenue 16 Code, (ii) operates for the benefit of the public by 17 actually and exclusively performing scientific research 18 and making the results of the research available to the 19 interested public on a non-discriminatory basis, and 20 (iii) employs more than 100 employees. An abatement 21 granted under this paragraph shall be for at least 15 22 years and the aggregate amount of abated taxes for all 23 taxing districts combined shall not exceed $5,000,000. 24 (5) Housing for older persons. Any property in the 25 taxing district that is devoted exclusively to affordable 26 housing for older households. For purposes of this 27 paragraph, "older households" means those households (i) 28 living in housing provided under any State or federal 29 program that the Department of Human Rights determines is 30 specifically designed and operated to assist elderly 31 persons and is solely occupied by persons 55 years of age 32 or older and (ii) whose annual income does not exceed 80% 33 of the area gross median income, adjusted for family 34 size, as such gross income and median income are -41- SRS92SB0392SBcpam01 1 determined from time to time by the United States 2 Department of Housing and Urban Development. The 3 abatement shall not exceed a period of 15 years, and the 4 aggregate amount of abated taxes for all taxing districts 5 shall not exceed $3,000,000. 6 (6) Historical society. For assessment years 1998 7 through 2000, the property of an historical society 8 qualifying as an exempt organization under Section 9 501(c)(3) of the federal Internal Revenue Code. 10 (7) Recreational facilities. Any property in the 11 taxing district (i) that is used for a municipal airport, 12 (ii) that is subject to a leasehold assessment under 13 Section 9-195 of this Code and (iii) which is sublet from 14 a park district that is leasing the property from a 15 municipality, but only if the property is used 16 exclusively for recreational facilities or for parking 17 lots used exclusively for those facilities. The 18 abatement shall not exceed a period of 10 years. 19 (b) Upon a majority vote of its governing authority, any 20 municipality may, after the determination of the assessed 21 valuation of its property, order the county clerk to abate 22 any portion of its taxes on any property that is located 23 within the corporate limits of the municipality in accordance 24 with Section 8-3-18 of the Illinois Municipal Code. 25 (Source: P.A. 90-46, eff. 7-3-97; 90-415, eff. 8-15-97; 26 90-568, eff. 1-1-99; 90-655, eff. 7-30-98; 91-644, eff. 27 8-20-99; 91-885, eff. 7-6-00.) 28 Section 935. The Environmental Protection Act is amended 29 by changing Section 39 as follows: 30 (415 ILCS 5/39) (from Ch. 111 1/2, par. 1039) 31 Sec. 39. Issuance of permits; procedures. 32 (a) When the Board has by regulation required a permit -42- SRS92SB0392SBcpam01 1 for the construction, installation, or operation of any type 2 of facility, equipment, vehicle, vessel, or aircraft, the 3 applicant shall apply to the Agency for such permit and it 4 shall be the duty of the Agency to issue such a permit upon 5 proof by the applicant that the facility, equipment, vehicle, 6 vessel, or aircraft will not cause a violation of this Act or 7 of regulations hereunder. The Agency shall adopt such 8 procedures as are necessary to carry out its duties under 9 this Section. In granting permits the Agency may impose such 10 conditions as may be necessary to accomplish the purposes of 11 this Act, and as are not inconsistent with the regulations 12 promulgated by the Board hereunder. Except as otherwise 13 provided in this Act, a bond or other security shall not be 14 required as a condition for the issuance of a permit. If the 15 Agency denies any permit under this Section, the Agency shall 16 transmit to the applicant within the time limitations of this 17 Section specific, detailed statements as to the reasons the 18 permit application was denied. Such statements shall 19 include, but not be limited to the following: 20 (i) the Sections of this Act which may be violated 21 if the permit were granted; 22 (ii) the provision of the regulations, promulgated 23 under this Act, which may be violated if the permit were 24 granted; 25 (iii) the specific type of information, if any, 26 which the Agency deems the applicant did not provide the 27 Agency; and 28 (iv) a statement of specific reasons why the Act 29 and the regulations might not be met if the permit were 30 granted. 31 If there is no final action by the Agency within 90 days 32 after the filing of the application for permit, the applicant 33 may deem the permit issued; except that this time period 34 shall be extended to 180 days when (1) notice and -43- SRS92SB0392SBcpam01 1 opportunity for public hearing are required by State or 2 federal law or regulation, (2) the application which was 3 filed is for any permit to develop a landfill subject to 4 issuance pursuant to this subsection, or (3) the application 5 that was filed is for a MSWLF unit required to issue public 6 notice under subsection (p) of Section 39. 7 The Agency shall publish notice of all final permit 8 determinations for development permits for MSWLF units and 9 for significant permit modifications for lateral expansions 10 for existing MSWLF units one time in a newspaper of general 11 circulation in the county in which the unit is or is proposed 12 to be located. 13 After January 1, 1994 and until July 1, 1998, operating 14 permits issued under this Section by the Agency for sources 15 of air pollution permitted to emit less than 25 tons per year 16 of any combination of regulated air pollutants, as defined in 17 Section 39.5 of this Act, shall be required to be renewed 18 only upon written request by the Agency consistent with 19 applicable provisions of this Act and regulations promulgated 20 hereunder. Such operating permits shall expire 180 days 21 after the date of such a request. The Board shall revise its 22 regulations for the existing State air pollution operating 23 permit program consistent with this provision by January 1, 24 1994. 25 After June 30, 1998, operating permits issued under this 26 Section by the Agency for sources of air pollution that are 27 not subject to Section 39.5 of this Act and are not required 28 to have a federally enforceable State operating permit shall 29 be required to be renewed only upon written request by the 30 Agency consistent with applicable provisions of this Act and 31 its rules. Such operating permits shall expire 180 days 32 after the date of such a request. Before July 1, 1998, the 33 Board shall revise its rules for the existing State air 34 pollution operating permit program consistent with this -44- SRS92SB0392SBcpam01 1 paragraph and shall adopt rules that require a source to 2 demonstrate that it qualifies for a permit under this 3 paragraph. 4 Notwithstanding any other provision of this Section, for 5 permits issued to an entity that is determined by the 6 Department of Commerce and Community Affairs to be eligible 7 for State incentives under the Energy Resources Policy Act, 8 if there is no final action by the Agency within 90 days 9 after filing the application for permit, the applicant may 10 deem the permit issued. The Agency shall also waive the fee 11 for obtaining an initial operating permit for an entity that 12 is determined by the Department of Commerce and Community 13 Affairs to be eligible for State incentives under the Energy 14 Resources Policy Act. 15 (b) The Agency may issue NPDES permits exclusively under 16 this subsection for the discharge of contaminants from point 17 sources into navigable waters, all as defined in the Federal 18 Water Pollution Control Act, as now or hereafter amended, 19 within the jurisdiction of the State, or into any well. 20 All NPDES permits shall contain those terms and 21 conditions, including but not limited to schedules of 22 compliance, which may be required to accomplish the purposes 23 and provisions of this Act. 24 The Agency may issue general NPDES permits for discharges 25 from categories of point sources which are subject to the 26 same permit limitations and conditions. Such general permits 27 may be issued without individual applications and shall 28 conform to regulations promulgated under Section 402 of the 29 Federal Water Pollution Control Act, as now or hereafter 30 amended. 31 The Agency may include, among such conditions, effluent 32 limitations and other requirements established under this 33 Act, Board regulations, the Federal Water Pollution Control 34 Act, as now or hereafter amended, and regulations pursuant -45- SRS92SB0392SBcpam01 1 thereto, and schedules for achieving compliance therewith at 2 the earliest reasonable date. 3 The Agency shall adopt filing requirements and procedures 4 which are necessary and appropriate for the issuance of NPDES 5 permits, and which are consistent with the Act or regulations 6 adopted by the Board, and with the Federal Water Pollution 7 Control Act, as now or hereafter amended, and regulations 8 pursuant thereto. 9 The Agency, subject to any conditions which may be 10 prescribed by Board regulations, may issue NPDES permits to 11 allow discharges beyond deadlines established by this Act or 12 by regulations of the Board without the requirement of a 13 variance, subject to the Federal Water Pollution Control Act, 14 as now or hereafter amended, and regulations pursuant 15 thereto. 16 (c) Except for those facilities owned or operated by 17 sanitary districts organized under the Metropolitan Water 18 Reclamation District Act, no permit for the development or 19 construction of a new pollution control facility may be 20 granted by the Agency unless the applicant submits proof to 21 the Agency that the location of the facility has been 22 approved by the County Board of the county if in an 23 unincorporated area, or the governing body of the 24 municipality when in an incorporated area, in which the 25 facility is to be located in accordance with Section 39.2 of 26 this Act. 27 In the event that siting approval granted pursuant to 28 Section 39.2 has been transferred to a subsequent owner or 29 operator, that subsequent owner or operator may apply to the 30 Agency for, and the Agency may grant, a development or 31 construction permit for the facility for which local siting 32 approval was granted. Upon application to the Agency for a 33 development or construction permit by that subsequent owner 34 or operator, the permit applicant shall cause written notice -46- SRS92SB0392SBcpam01 1 of the permit application to be served upon the appropriate 2 county board or governing body of the municipality that 3 granted siting approval for that facility and upon any party 4 to the siting proceeding pursuant to which siting approval 5 was granted. In that event, the Agency shall conduct an 6 evaluation of the subsequent owner or operator's prior 7 experience in waste management operations in the manner 8 conducted under subsection (i) of Section 39 of this Act. 9 Beginning August 20, 1993, if the pollution control 10 facility consists of a hazardous or solid waste disposal 11 facility for which the proposed site is located in an 12 unincorporated area of a county with a population of less 13 than 100,000 and includes all or a portion of a parcel of 14 land that was, on April 1, 1993, adjacent to a municipality 15 having a population of less than 5,000, then the local siting 16 review required under this subsection (c) in conjunction with 17 any permit applied for after that date shall be performed by 18 the governing body of that adjacent municipality rather than 19 the county board of the county in which the proposed site is 20 located; and for the purposes of that local siting review, 21 any references in this Act to the county board shall be 22 deemed to mean the governing body of that adjacent 23 municipality; provided, however, that the provisions of this 24 paragraph shall not apply to any proposed site which was, on 25 April 1, 1993, owned in whole or in part by another 26 municipality. 27 In the case of a pollution control facility for which a 28 development permit was issued before November 12, 1981, if an 29 operating permit has not been issued by the Agency prior to 30 August 31, 1989 for any portion of the facility, then the 31 Agency may not issue or renew any development permit nor 32 issue an original operating permit for any portion of such 33 facility unless the applicant has submitted proof to the 34 Agency that the location of the facility has been approved by -47- SRS92SB0392SBcpam01 1 the appropriate county board or municipal governing body 2 pursuant to Section 39.2 of this Act. 3 After January 1, 1994, if a solid waste disposal 4 facility, any portion for which an operating permit has been 5 issued by the Agency, has not accepted waste disposal for 5 6 or more consecutive calendars years, before that facility may 7 accept any new or additional waste for disposal, the owner 8 and operator must obtain a new operating permit under this 9 Act for that facility unless the owner and operator have 10 applied to the Agency for a permit authorizing the temporary 11 suspension of waste acceptance. The Agency may not issue a 12 new operation permit under this Act for the facility unless 13 the applicant has submitted proof to the Agency that the 14 location of the facility has been approved or re-approved by 15 the appropriate county board or municipal governing body 16 under Section 39.2 of this Act after the facility ceased 17 accepting waste. 18 Except for those facilities owned or operated by sanitary 19 districts organized under the Metropolitan Water Reclamation 20 District Act, and except for new pollution control facilities 21 governed by Section 39.2, and except for fossil fuel mining 22 facilities, the granting of a permit under this Act shall not 23 relieve the applicant from meeting and securing all necessary 24 zoning approvals from the unit of government having zoning 25 jurisdiction over the proposed facility. 26 Before beginning construction on any new sewage treatment 27 plant or sludge drying site to be owned or operated by a 28 sanitary district organized under the Metropolitan Water 29 Reclamation District Act for which a new permit (rather than 30 the renewal or amendment of an existing permit) is required, 31 such sanitary district shall hold a public hearing within the 32 municipality within which the proposed facility is to be 33 located, or within the nearest community if the proposed 34 facility is to be located within an unincorporated area, at -48- SRS92SB0392SBcpam01 1 which information concerning the proposed facility shall be 2 made available to the public, and members of the public shall 3 be given the opportunity to express their views concerning 4 the proposed facility. 5 The Agency may issue a permit for a municipal waste 6 transfer station without requiring approval pursuant to 7 Section 39.2 provided that the following demonstration is 8 made: 9 (1) the municipal waste transfer station was in 10 existence on or before January 1, 1979 and was in 11 continuous operation from January 1, 1979 to January 1, 12 1993; 13 (2) the operator submitted a permit application to 14 the Agency to develop and operate the municipal waste 15 transfer station during April of 1994; 16 (3) the operator can demonstrate that the county 17 board of the county, if the municipal waste transfer 18 station is in an unincorporated area, or the governing 19 body of the municipality, if the station is in an 20 incorporated area, does not object to resumption of the 21 operation of the station; and 22 (4) the site has local zoning approval. 23 (d) The Agency may issue RCRA permits exclusively under 24 this subsection to persons owning or operating a facility for 25 the treatment, storage, or disposal of hazardous waste as 26 defined under this Act. 27 All RCRA permits shall contain those terms and 28 conditions, including but not limited to schedules of 29 compliance, which may be required to accomplish the purposes 30 and provisions of this Act. The Agency may include among 31 such conditions standards and other requirements established 32 under this Act, Board regulations, the Resource Conservation 33 and Recovery Act of 1976 (P.L. 94-580), as amended, and 34 regulations pursuant thereto, and may include schedules for -49- SRS92SB0392SBcpam01 1 achieving compliance therewith as soon as possible. The 2 Agency shall require that a performance bond or other 3 security be provided as a condition for the issuance of a 4 RCRA permit. 5 In the case of a permit to operate a hazardous waste or 6 PCB incinerator as defined in subsection (k) of Section 44, 7 the Agency shall require, as a condition of the permit, that 8 the operator of the facility perform such analyses of the 9 waste to be incinerated as may be necessary and appropriate 10 to ensure the safe operation of the incinerator. 11 The Agency shall adopt filing requirements and procedures 12 which are necessary and appropriate for the issuance of RCRA 13 permits, and which are consistent with the Act or regulations 14 adopted by the Board, and with the Resource Conservation and 15 Recovery Act of 1976 (P.L. 94-580), as amended, and 16 regulations pursuant thereto. 17 The applicant shall make available to the public for 18 inspection all documents submitted by the applicant to the 19 Agency in furtherance of an application, with the exception 20 of trade secrets, at the office of the county board or 21 governing body of the municipality. Such documents may be 22 copied upon payment of the actual cost of reproduction during 23 regular business hours of the local office. The Agency shall 24 issue a written statement concurrent with its grant or denial 25 of the permit explaining the basis for its decision. 26 (e) The Agency may issue UIC permits exclusively under 27 this subsection to persons owning or operating a facility for 28 the underground injection of contaminants as defined under 29 this Act. 30 All UIC permits shall contain those terms and conditions, 31 including but not limited to schedules of compliance, which 32 may be required to accomplish the purposes and provisions of 33 this Act. The Agency may include among such conditions 34 standards and other requirements established under this Act, -50- SRS92SB0392SBcpam01 1 Board regulations, the Safe Drinking Water Act (P.L. 93-523), 2 as amended, and regulations pursuant thereto, and may include 3 schedules for achieving compliance therewith. The Agency 4 shall require that a performance bond or other security be 5 provided as a condition for the issuance of a UIC permit. 6 The Agency shall adopt filing requirements and procedures 7 which are necessary and appropriate for the issuance of UIC 8 permits, and which are consistent with the Act or regulations 9 adopted by the Board, and with the Safe Drinking Water Act 10 (P.L. 93-523), as amended, and regulations pursuant thereto. 11 The applicant shall make available to the public for 12 inspection, all documents submitted by the applicant to the 13 Agency in furtherance of an application, with the exception 14 of trade secrets, at the office of the county board or 15 governing body of the municipality. Such documents may be 16 copied upon payment of the actual cost of reproduction during 17 regular business hours of the local office. The Agency shall 18 issue a written statement concurrent with its grant or denial 19 of the permit explaining the basis for its decision. 20 (f) In making any determination pursuant to Section 9.1 21 of this Act: 22 (1) The Agency shall have authority to make the 23 determination of any question required to be determined 24 by the Clean Air Act, as now or hereafter amended, this 25 Act, or the regulations of the Board, including the 26 determination of the Lowest Achievable Emission Rate, 27 Maximum Achievable Control Technology, or Best Available 28 Control Technology, consistent with the Board's 29 regulations, if any. 30 (2) The Agency shall, after conferring with the 31 applicant, give written notice to the applicant of its 32 proposed decision on the application including the terms 33 and conditions of the permit to be issued and the facts, 34 conduct or other basis upon which the Agency will rely to -51- SRS92SB0392SBcpam01 1 support its proposed action. 2 (3) Following such notice, the Agency shall give 3 the applicant an opportunity for a hearing in accordance 4 with the provisions of Sections 10-25 through 10-60 of 5 the Illinois Administrative Procedure Act. 6 (g) The Agency shall include as conditions upon all 7 permits issued for hazardous waste disposal sites such 8 restrictions upon the future use of such sites as are 9 reasonably necessary to protect public health and the 10 environment, including permanent prohibition of the use of 11 such sites for purposes which may create an unreasonable risk 12 of injury to human health or to the environment. After 13 administrative and judicial challenges to such restrictions 14 have been exhausted, the Agency shall file such restrictions 15 of record in the Office of the Recorder of the county in 16 which the hazardous waste disposal site is located. 17 (h) A hazardous waste stream may not be deposited in a 18 permitted hazardous waste site unless specific authorization 19 is obtained from the Agency by the generator and disposal 20 site owner and operator for the deposit of that specific 21 hazardous waste stream. The Agency may grant specific 22 authorization for disposal of hazardous waste streams only 23 after the generator has reasonably demonstrated that, 24 considering technological feasibility and economic 25 reasonableness, the hazardous waste cannot be reasonably 26 recycled for reuse, nor incinerated or chemically, physically 27 or biologically treated so as to neutralize the hazardous 28 waste and render it nonhazardous. In granting authorization 29 under this Section, the Agency may impose such conditions as 30 may be necessary to accomplish the purposes of the Act and 31 are consistent with this Act and regulations promulgated by 32 the Board hereunder. If the Agency refuses to grant 33 authorization under this Section, the applicant may appeal as 34 if the Agency refused to grant a permit, pursuant to the -52- SRS92SB0392SBcpam01 1 provisions of subsection (a) of Section 40 of this Act. For 2 purposes of this subsection (h), the term "generator" has the 3 meaning given in Section 3.12 of this Act, unless: (1) the 4 hazardous waste is treated, incinerated, or partially 5 recycled for reuse prior to disposal, in which case the last 6 person who treats, incinerates, or partially recycles the 7 hazardous waste prior to disposal is the generator; or (2) 8 the hazardous waste is from a response action, in which case 9 the person performing the response action is the generator. 10 This subsection (h) does not apply to any hazardous waste 11 that is restricted from land disposal under 35 Ill. Adm. Code 12 728. 13 (i) Before issuing any RCRA permit or any permit for a 14 waste storage site, sanitary landfill, waste disposal site, 15 waste transfer station, waste treatment facility, waste 16 incinerator, or any waste-transportation operation, the 17 Agency shall conduct an evaluation of the prospective owner's 18 or operator's prior experience in waste management 19 operations. The Agency may deny such a permit if the 20 prospective owner or operator or any employee or officer of 21 the prospective owner or operator has a history of: 22 (1) repeated violations of federal, State, or local 23 laws, regulations, standards, or ordinances in the 24 operation of waste management facilities or sites; or 25 (2) conviction in this or another State of any 26 crime which is a felony under the laws of this State, or 27 conviction of a felony in a federal court; or 28 (3) proof of gross carelessness or incompetence in 29 handling, storing, processing, transporting or disposing 30 of waste. 31 (j) The issuance under this Act of a permit to engage in 32 the surface mining of any resources other than fossil fuels 33 shall not relieve the permittee from its duty to comply with 34 any applicable local law regulating the commencement, -53- SRS92SB0392SBcpam01 1 location or operation of surface mining facilities. 2 (k) A development permit issued under subsection (a) of 3 Section 39 for any facility or site which is required to have 4 a permit under subsection (d) of Section 21 shall expire at 5 the end of 2 calendar years from the date upon which it was 6 issued, unless within that period the applicant has taken 7 action to develop the facility or the site. In the event that 8 review of the conditions of the development permit is sought 9 pursuant to Section 40 or 41, or permittee is prevented from 10 commencing development of the facility or site by any other 11 litigation beyond the permittee's control, such two-year 12 period shall be deemed to begin on the date upon which such 13 review process or litigation is concluded. 14 (l) No permit shall be issued by the Agency under this 15 Act for construction or operation of any facility or site 16 located within the boundaries of any setback zone established 17 pursuant to this Act, where such construction or operation is 18 prohibited. 19 (m) The Agency may issue permits to persons owning or 20 operating a facility for composting landscape waste. In 21 granting such permits, the Agency may impose such conditions 22 as may be necessary to accomplish the purposes of this Act, 23 and as are not inconsistent with applicable regulations 24 promulgated by the Board. Except as otherwise provided in 25 this Act, a bond or other security shall not be required as a 26 condition for the issuance of a permit. If the Agency denies 27 any permit pursuant to this subsection, the Agency shall 28 transmit to the applicant within the time limitations of this 29 subsection specific, detailed statements as to the reasons 30 the permit application was denied. Such statements shall 31 include but not be limited to the following: 32 (1) the Sections of this Act that may be violated 33 if the permit were granted; 34 (2) the specific regulations promulgated pursuant -54- SRS92SB0392SBcpam01 1 to this Act that may be violated if the permit were 2 granted; 3 (3) the specific information, if any, the Agency 4 deems the applicant did not provide in its application to 5 the Agency; and 6 (4) a statement of specific reasons why the Act and 7 the regulations might be violated if the permit were 8 granted. 9 If no final action is taken by the Agency within 90 days 10 after the filing of the application for permit, the applicant 11 may deem the permit issued. Any applicant for a permit may 12 waive the 90 day limitation by filing a written statement 13 with the Agency. 14 The Agency shall issue permits for such facilities upon 15 receipt of an application that includes a legal description 16 of the site, a topographic map of the site drawn to the scale 17 of 200 feet to the inch or larger, a description of the 18 operation, including the area served, an estimate of the 19 volume of materials to be processed, and documentation that: 20 (1) the facility includes a setback of at least 200 21 feet from the nearest potable water supply well; 22 (2) the facility is located outside the boundary of 23 the 10-year floodplain or the site will be floodproofed; 24 (3) the facility is located so as to minimize 25 incompatibility with the character of the surrounding 26 area, including at least a 200 foot setback from any 27 residence, and in the case of a facility that is 28 developed or the permitted composting area of which is 29 expanded after November 17, 1991, the composting area is 30 located at least 1/8 mile from the nearest residence 31 (other than a residence located on the same property as 32 the facility); 33 (4) the design of the facility will prevent any 34 compost material from being placed within 5 feet of the -55- SRS92SB0392SBcpam01 1 water table, will adequately control runoff from the 2 site, and will collect and manage any leachate that is 3 generated on the site; 4 (5) the operation of the facility will include 5 appropriate dust and odor control measures, limitations 6 on operating hours, appropriate noise control measures 7 for shredding, chipping and similar equipment, management 8 procedures for composting, containment and disposal of 9 non-compostable wastes, procedures to be used for 10 terminating operations at the site, and recordkeeping 11 sufficient to document the amount of materials received, 12 composted and otherwise disposed of; and 13 (6) the operation will be conducted in accordance 14 with any applicable rules adopted by the Board. 15 The Agency shall issue renewable permits of not longer 16 than 10 years in duration for the composting of landscape 17 wastes, as defined in Section 3.70 of this Act, based on the 18 above requirements. 19 The operator of any facility permitted under this 20 subsection (m) must submit a written annual statement to the 21 Agency on or before April 1 of each year that includes an 22 estimate of the amount of material, in tons, received for 23 composting. 24 (n) The Agency shall issue permits jointly with the 25 Department of Transportation for the dredging or deposit of 26 material in Lake Michigan in accordance with Section 18 of 27 the Rivers, Lakes, and Streams Act. 28 (o) From September 4, 1990 until December 31, 1993, no 29 permit shall be issued by the Agency for the development or 30 construction of any new facility intended to be used for the 31 incineration of any hazardous waste. This subsection shall 32 not apply to facilities intended for use for combustion of 33 potentially infectious medical waste, for use as part of a 34 State or federally designated clean-up action, or for use -56- SRS92SB0392SBcpam01 1 solely for the conduct of research and the development and 2 demonstration of technologies for the incineration of 3 hazardous waste. 4 (p) (1) Any person submitting an application for a 5 permit for a new MSWLF unit or for a lateral expansion under 6 subsection (t) of Section 21 of this Act for an existing 7 MSWLF unit that has not received and is not subject to local 8 siting approval under Section 39.2 of this Act shall publish 9 notice of the application in a newspaper of general 10 circulation in the county in which the MSWLF unit is or is 11 proposed to be located. The notice must be published at 12 least 15 days before submission of the permit application to 13 the Agency. The notice shall state the name and address of 14 the applicant, the location of the MSWLF unit or proposed 15 MSWLF unit, the nature and size of the MSWLF unit or proposed 16 MSWLF unit, the nature of the activity proposed, the probable 17 life of the proposed activity, the date the permit 18 application will be submitted, and a statement that persons 19 may file written comments with the Agency concerning the 20 permit application within 30 days after the filing of the 21 permit application unless the time period to submit comments 22 is extended by the Agency. 23 When a permit applicant submits information to the Agency 24 to supplement a permit application being reviewed by the 25 Agency, the applicant shall not be required to reissue the 26 notice under this subsection. 27 (2) The Agency shall accept written comments concerning 28 the permit application that are postmarked no later than 30 29 days after the filing of the permit application, unless the 30 time period to accept comments is extended by the Agency. 31 (3) Each applicant for a permit described in part (1) of 32 this subsection shall file a copy of the permit application 33 with the county board or governing body of the municipality 34 in which the MSWLF unit is or is proposed to be located at -57- SRS92SB0392SBcpam01 1 the same time the application is submitted to the Agency. 2 The permit application filed with the county board or 3 governing body of the municipality shall include all 4 documents submitted to or to be submitted to the Agency, 5 except trade secrets as determined under Section 7.1 of this 6 Act. The permit application and other documents on file with 7 the county board or governing body of the municipality shall 8 be made available for public inspection during regular 9 business hours at the office of the county board or the 10 governing body of the municipality and may be copied upon 11 payment of the actual cost of reproduction. 12 (Source: P.A. 89-487, eff. 6-21-96; 89-556, eff. 7-26-96; 13 90-14, eff. 7-1-97; 90-367, eff. 8-10-97; 90-537, eff. 14 11-26-97; 90-655, eff 7-30-98.) 15 Section 99. Effective date. This Act takes effect upon 16 becoming law.".