SB 1903 — ST BUDGET- CIVIL ADMIN CD-TECH

(i) On or after July 1, 2001 and until May 1, 2002, in addition to any other transfers that may be provided for by law, at the direction of and upon notification from the Governor, the State Comptroller shall direct and the State Treasurer shall transfer amounts not exceeding a total of $80,000,000 from the General Revenue Fund to the Tobacco Settlement Recovery Fund.

Any amounts so transferred shall be re-transferred by the State Comptroller and the State Treasurer from the Tobacco Settlement Recovery Fund to the General Revenue Fund at the direction of and upon notification from the Governor, but in any event on or before June 30, 2002.

(i-1) On or after July 1, 2002 and until May 1, 2003, in addition to any other transfers that may be provided for by law, at the direction of and upon notification from the Governor, the State Comptroller shall direct and the State Treasurer shall transfer amounts not exceeding a total of $80,000,000 from the General Revenue Fund to the Tobacco Settlement Recovery Fund.

Any amounts so transferred shall be re-transferred by the State Comptroller and the State Treasurer from the Tobacco Settlement Recovery Fund to the General Revenue Fund at the direction of and upon notification from the Governor, but in any event on or before June 30, 2003.

(j) On or after July 1, 2001 and no later than June 30, 2002, in addition to any other transfers that may be provided for by law, at the direction of and upon notification from the Governor, the State Comptroller shall direct and the State Treasurer shall transfer amounts not to exceed the SB1903 Enrolled -9- LRB093 08682 RCE 08912 b following sums into the Statistical Services Revolving Fund:

From the General Revenue Fund...............

$8,450,000 From the Public Utility Fund................

1,700,000 From the Transportation Regulatory Fund.....

2,650,000 From the Title III Social Security and Employment Fund...........................

3,700,000 From the Professions Indirect Cost Fund.....

4,050,000 From the Underground Storage Tank Fund......

550,000 From the Agricultural Premium Fund..........

750,000 From the State Pensions Fund................

200,000 From the Road Fund..........................

2,000,000 From the Health Facilities Planning Fund.............................

1,000,000 From the Savings and Residential Finance Regulatory Fund...........................

130,800 From the Appraisal Administration Fund......

28,600 From the Pawnbroker Regulation Fund.........

3,600 From the Auction Regulation Administration Fund.......................

35,800 From the Bank and Trust Company Fund........

634,800 From the Real Estate License Administration Fund.......................

313,600 (k) In addition to any other transfers that may be provided for by law, as soon as may be practical after the effective date of this amendatory Act of the 92nd General Assembly, the State Comptroller shall direct and the State Treasurer shall transfer the sum of $2,000,000 from the General Revenue Fund to the Teachers Health Insurance Security Fund.

(k-1) In addition to any other transfers that may be provided for by law, on July 1, 2002, or as soon as may be practical thereafter, the State Comptroller shall direct and the State Treasurer shall transfer the sum of $2,000,000 from the General Revenue Fund to the Teachers Health Insurance SB1903 Enrolled -10- LRB093 08682 RCE 08912 b Security Fund.

(k-2) In addition to any other transfers that may be provided for by law, on July 1, 2003, or as soon as may be practical thereafter, the State Comptroller shall direct and the State Treasurer shall transfer the sum of $2,000,000 from the General Revenue Fund to the Teachers Health Insurance Security Fund.

(k-3) On or after July 1, 2002 and no later than June 30, 2003, in addition to any other transfers that may be provided for by law, at the direction of and upon notification from the Governor, the State Comptroller shall direct and the State Treasurer shall transfer amounts not to exceed the following sums into the Statistical Services Revolving Fund:

Appraisal Administration Fund...............

$150,000 General Revenue Fund........................

10,440,000 Savings and Residential Finance Regulatory Fund........................

200,000 State Pensions Fund.........................

100,000 Bank and Trust Company Fund.................

100,000 Professions Indirect Cost Fund..............

3,400,000 Public Utility Fund.........................

2,081,200 Real Estate License Administration Fund.....

150,000 Title III Social Security and Employment Fund........................

1,000,000 Transportation Regulatory Fund..............

3,052,100 Underground Storage Tank Fund...............

50,000 (l) In addition to any other transfers that may be provided for by law, on July 1, 2002, or as soon as may be practical thereafter, the State Comptroller shall direct and the State Treasurer shall transfer the sum of $3,000,000 from the General Revenue Fund to the Presidential Library and Museum Operating Fund.

(m) In addition to any other transfers that may be SB1903 Enrolled -11- LRB093 08682 RCE 08912 b provided for by law, on July 1, 2002, or as soon thereafter as may be practical, the State Comptroller shall direct and the State Treasurer shall transfer the sum of $1,200,000 from the General Revenue Fund to the Violence Prevention Fund.

_n_____________________n______________________t_____________ _____d_____________________J______________________o_____________ _____y_____________________t________________________d___________ _____t_____________________t______________________,_____________ _____e_____________________o______________________r__________ _o_____________________1______________________t_____________ ______i____________________t______________________y_____________ _____b_____________________c______________________f_____________ _____o_____________________o______________________e_____________ _______T___________________r______________________t_____________ _____w_____________________h______________________ _r_____________________t______________________$____________ _p_____________________1______________________1_____________ _____i_____________________a______________________o_____________ _____a______________________a_____________________o_____________ _____n_____________________p______________________a_____________ _____u_____________________m_______________________a____________ _____0_____________________n______________________o_____________ _____e_____________________A______________________r_____________ _____a_____________________b______________________e_____________ _____G_____________________d_______________________o____________ _____i_____________________r_______________________o____________ _____3_________ _q_____________________n______________________t_____________ _____d______________________J_____________________o_____________ _____i_____________________S______________________l_____________ _____t_____________________t______________________,_____________ _____G_____________________d______________________l_____________ _____f_______ _r_____________________n______________________t_____________ SB1903 Enrolled -12- LRB093 08682 RCE 08912 b _____d______________________J_____________________o_____________ _____i_____________________S______________________l_____________ _____t_____________________t______________________,_____________ _____G_____________________d______________________l_____________ _____m_________________ _s_____________________n______________________t_____________ _____d_____________________n______________________0_____________ _____r_______________________a____________________a_____________ _____f_____________________,______________________i_____________ _____o_____________________n___________________ _t______________________a_______________________t___________ _____d______________________a_____________________,_____________ _____r_______________________a____________________a_____________ _____f_____________________0_______________________R____________ _____e_____________________n_______ (Source:

P.A.

91-25, eff.

6-9-99;

91-704, eff.

5-17-00;

92-11, eff.

6-11-01;

92-505, eff.

12-20-01;

92-600, eff.

6-28-02.) (30 ILCS 105/8h new) _e_____________________r______________________v_____________ _____t_____________________S______________________o_____________ _____t_____________________o_______________________t____________ _____t_______________________a______________________t___________ _____f_____________________f_______________________T____________ _____e_____________________n_______________________t____________ _____t_______________________f____________________o_____________ ______t____________________y______________________e_____________ _____d______________________t_____________________p_____________ _____f______________________o_____________________n_____________ _____u______________________b_______________________u___________ _____o_____________________h______________________t_____________ _____c_____________________a________________________t___________ _____n_____________________n_________________________t__________ SB1903 Enrolled -13- LRB093 08682 RCE 08912 b _____p_____________________u________________________y___________ _____o_____________________t______________________r_____________ _____a_____________________u______________________n_____________ ______T____________________t______________________i_____________ _____o_____________________r______________________r_____________ ______o____________________c______________________l_____________ ______t____________________e_______________________d____________ _____ _n_____________________a________________________a___________ _____t_____________________t______________________d_____________ _____f______________________a_____________________n_____________ _____a_____________________n___________________ _h_____________________d______________________t_____________ _____t_______________________t____________________o_____________ _____i_____________________g______________________r_____________ _____i______________________o______________ (30 ILCS 105/8j new) _e_______________________a____________________e_____________ _____a_____________________w_______________________l____________ _____a_____________________o______________________t_____________ _____a_____________________a______________________e_____________ _____h_____________________m______________________l_____________ _____8_____________________8______________________a_____________ _____h_____________________l______________________d_____________ _____o______________________r______________________t____________ _____u______________________o_____________________t_____________ _____t_____________________n______________________n_____________ _____t_____________________t______________________l_____________ _____v______________________t_____________________n_____________ _____u_____________________s______________________f_____________ _____h_______________ _n_____________________i______________________a_____________ _____t_____________________o______________________u_____________ SB1903 Enrolled -14- LRB093 08682 RCE 08912 b _____f_____________________n______________________t_____________ _____a_____________________n___________________ _p_______________________a____________________c_____________ _____a______________________t_____________________e_____________ _____u_____________________a______________________T_____________ _____r_____________________e______________________o_____________ _____f______________________a_____________________o_____________ _____a_____________________i______________________t_____________ _______n___________________n______________________a_____________ _____f______________________a_____________________n_____________ _____o______________________a_____________________e_____________ _____e_____________________a______________________t_____________ _____f____________ _h_____________________d______________________t_____________ _____t_______________________t____________________o_____________ _____i_____________________g______________________r_____________ _____i______________________o______________ Section 50-10.

The Illinois Income Tax Act is amended by changing Section 901 as follows:

(35 ILCS 5/901) (from Ch.

120, par.

9-901) Sec.

901.

Collection Authority.

(a) In general.

The Department shall collect the taxes imposed by this Act.

The Department shall collect certified past due child support amounts under Section 2505-650 of the Department of Revenue Law (20 ILCS 2505/2505-650).

Except as provided in subsections (c) and (e) of this Section, money collected pursuant to subsections (a) and (b) of Section 201 of this Act shall be paid into the General Revenue Fund in the State treasury;

money collected pursuant to subsections (c) and (d) of Section 201 of this Act shall be paid into the Personal Property Tax Replacement Fund, a special fund in the State SB1903 Enrolled -15- LRB093 08682 RCE 08912 b Treasury;

and money collected under Section 2505-650 of the Department of Revenue Law (20 ILCS 2505/2505-650) shall be paid into the Child Support Enforcement Trust Fund, a special fund outside the State Treasury, or to the State Disbursement Unit established under Section 10-26 of the Illinois Public Aid Code, as directed by the Department of Public Aid.

(b) Local Governmental Distributive Fund.

Beginning August 1, 1969, and continuing through June 30, 1994, the Treasurer shall transfer each month from the General Revenue Fund to a special fund in the State treasury, to be known as the "Local Government Distributive Fund", an amount equal to 1/12 of the net revenue realized from the tax imposed by subsections (a) and (b) of Section 201 of this Act during the preceding month.

Beginning July 1, 1994, and continuing through June 30, 1995, the Treasurer shall transfer each month from the General Revenue Fund to the Local Government Distributive Fund an amount equal to 1/11 of the net revenue realized from the tax imposed by subsections (a) and (b) of Section 201 of this Act during the preceding month.

Beginning July 1, 1995, the Treasurer shall transfer each month from the General Revenue Fund to the Local Government Distributive Fund an amount equal to t__________ ___ 1/10 of the net revenue realized from the tax imposed by subsections (a) and (b) of Section 201 of the Illinois Income Tax Act during the preceding month ( _____________e_____________ _____0_____________________3______________________a_____________ _____1_____________.

Net revenue realized for a month shall be defined as the revenue from the tax imposed by subsections (a) and (b) of Section 201 of this Act which is deposited in the General Revenue Fund, the Educational Assistance Fund and the Income Tax Surcharge Local Government Distributive Fund during the month minus the amount paid out of the General Revenue Fund in State warrants during that same month as refunds to taxpayers for overpayment of liability under the SB1903 Enrolled -16- LRB093 08682 RCE 08912 b tax imposed by subsections (a) and (b) of Section 201 of this Act.

(c) Deposits Into Income Tax Refund Fund.

(1) Beginning on January 1, 1989 and thereafter, the Department shall deposit a percentage of the amounts collected pursuant to subsections (a) and (b)(1), (2), and (3), of Section 201 of this Act into a fund in the State treasury known as the Income Tax Refund Fund.

The Department shall deposit 6% of such amounts during the period beginning January 1, 1989 and ending on June 30, 1989.

Beginning with State fiscal year 1990 and for each fiscal year thereafter, the percentage deposited into the Income Tax Refund Fund during a fiscal year shall be the Annual Percentage.

For fiscal years 1999 through 2001, the Annual Percentage shall be 7.1%.

For fiscal year 2003, the Annual Percentage shall be 8%.

F ____f____________ _0_____________________r______________________.____ For all other fiscal years, the Annual Percentage shall be calculated as a fraction, the numerator of which shall be the amount of refunds approved for payment by the Department during the preceding fiscal year as a result of overpayment of tax liability under subsections (a) and (b)(1), (2), and (3) of Section 201 of this Act plus the amount of such refunds remaining approved but unpaid at the end of the preceding fiscal year, minus the amounts transferred into the Income Tax Refund Fund from the Tobacco Settlement Recovery Fund, and the denominator of which shall be the amounts which will be collected pursuant to subsections (a) and (b)(1), (2), and (3) of Section 201 of this Act during the preceding fiscal year;

except that in State fiscal year 2002, the Annual Percentage shall in no event exceed 7.6%.

The Director of Revenue shall certify the Annual Percentage to the Comptroller on the last business day of the fiscal year SB1903 Enrolled -17- LRB093 08682 RCE 08912 b immediately preceding the fiscal year for which it is to be effective.

(2) Beginning on January 1, 1989 and thereafter, the Department shall deposit a percentage of the amounts collected pursuant to subsections (a) and (b)(6), (7), and (8), (c) and (d) of Section 201 of this Act into a fund in the State treasury known as the Income Tax Refund Fund.

The Department shall deposit 18% of such amounts during the period beginning January 1, 1989 and ending on June 30, 1989.

Beginning with State fiscal year 1990 and for each fiscal year thereafter, the percentage deposited into the Income Tax Refund Fund during a fiscal year shall be the Annual Percentage.

For fiscal years 1999, 2000, and 2001, the Annual Percentage shall be 19%.

For fiscal year 2003, the Annual Percentage shall be 27%.

_o_____________________t______________________s_____________ For all other fiscal years, the Annual Percentage shall be calculated as a fraction, the numerator of which shall be the amount of refunds approved for payment by the Department during the preceding fiscal year as a result of overpayment of tax liability under subsections (a) and (b)(6), (7), and (8), (c) and (d) of Section 201 of this Act plus the amount of such refunds remaining approved but unpaid at the end of the preceding fiscal year, and the denominator of which shall be the amounts which will be collected pursuant to subsections (a) and (b)(6), (7), and (8), (c) and (d) of Section 201 of this Act during the preceding fiscal year;

except that in State fiscal year 2002, the Annual Percentage shall in no event exceed 23%.

The Director of Revenue shall certify the Annual Percentage to the Comptroller on the last business day of the fiscal year immediately preceding the fiscal year for which it is to be effective.

(3) The Comptroller shall order transferred and the SB1903 Enrolled -18- LRB093 08682 RCE 08912 b Treasurer shall transfer from the Tobacco Settlement Recovery Fund to the Income Tax Refund Fund (i) $35,000,000 in January, 2001, (ii) $35,000,000 in January, 2002, and (iii) $35,000,000 in January, 2003.

(d) Expenditures from Income Tax Refund Fund.

(1) Beginning January 1, 1989, money in the Income Tax Refund Fund shall be expended exclusively for the purpose of paying refunds resulting from overpayment of tax liability under Section 201 of this Act, for paying rebates under Section 208.1 in the event that the amounts in the Homeowners' Tax Relief Fund are insufficient for that purpose, and for making transfers pursuant to this subsection (d).

(2) The Director shall order payment of refunds resulting from overpayment of tax liability under Section 201 of this Act from the Income Tax Refund Fund only to the extent that amounts collected pursuant to Section 201 of this Act and transfers pursuant to this subsection (d) and item (3) of subsection (c) have been deposited and retained in the Fund.

(3) As soon as possible after the end of each fiscal year, the Director shall order transferred and the State Treasurer and State Comptroller shall transfer from the Income Tax Refund Fund to the Personal Property Tax Replacement Fund an amount, certified by the Director to the Comptroller, equal to the excess of the amount collected pursuant to subsections (c) and (d) of Section 201 of this Act deposited into the Income Tax Refund Fund during the fiscal year over the amount of refunds resulting from overpayment of tax liability under subsections (c) and (d) of Section 201 of this Act paid from the Income Tax Refund Fund during the fiscal year.

(4) As soon as possible after the end of each fiscal year, the Director shall order transferred and the SB1903 Enrolled -19- LRB093 08682 RCE 08912 b State Treasurer and State Comptroller shall transfer from the Personal Property Tax Replacement Fund to the Income Tax Refund Fund an amount, certified by the Director to the Comptroller, equal to the excess of the amount of refunds resulting from overpayment of tax liability under subsections (c) and (d) of Section 201 of this Act paid from the Income Tax Refund Fund during the fiscal year over the amount collected pursuant to subsections (c) and (d) of Section 201 of this Act deposited into the Income Tax Refund Fund during the fiscal year.

(4.5) As soon as possible after the end of fiscal year 1999 and of each fiscal year thereafter, the Director shall order transferred and the State Treasurer and State Comptroller shall transfer from the Income Tax Refund Fund to the General Revenue Fund any surplus remaining in the Income Tax Refund Fund as of the end of such fiscal year;

excluding for fiscal years 2000, 2001, and 2002 amounts attributable to transfers under item (3) of subsection (c) less refunds resulting from the earned income tax credit.

(5) This Act shall constitute an irrevocable and continuing appropriation from the Income Tax Refund Fund for the purpose of paying refunds upon the order of the Director in accordance with the provisions of this Section.

(e) Deposits into the Education Assistance Fund and the Income Tax Surcharge Local Government Distributive Fund.

On July 1, 1991, and thereafter, of the amounts collected pursuant to subsections (a) and (b) of Section 201 of this Act, minus deposits into the Income Tax Refund Fund, the Department shall deposit 7.3% into the Education Assistance Fund in the State Treasury.

Beginning July 1, 1991, and continuing through January 31, 1993, of the amounts collected pursuant to subsections (a) and (b) of Section 201 of the SB1903 Enrolled -20- LRB093 08682 RCE 08912 b Illinois Income Tax Act, minus deposits into the Income Tax Refund Fund, the Department shall deposit 3.0% into the Income Tax Surcharge Local Government Distributive Fund in the State Treasury.

Beginning February 1, 1993 and continuing through June 30, 1993, of the amounts collected pursuant to subsections (a) and (b) of Section 201 of the Illinois Income Tax Act, minus deposits into the Income Tax Refund Fund, the Department shall deposit 4.4% into the Income Tax Surcharge Local Government Distributive Fund in the State Treasury.

Beginning July 1, 1993, and continuing through June 30, 1994, of the amounts collected under subsections (a) and (b) of Section 201 of this Act, minus deposits into the Income Tax Refund Fund, the Department shall deposit 1.475% into the Income Tax Surcharge Local Government Distributive Fund in the State Treasury.

90-479,91-212, eff.

8-17-97;7-20-99;

1-1-00.)1-1-00;

91-700, eff.

5-11-00;

91-704, eff.

7-1-00;

91-712, eff.

7-1-00;

92-11, eff.

6-11-01;

92-16, eff.

6-28-01;

92-600, eff.

6-28-02.) Section 50-15.

The Retailers' Occupation Tax Act is amended by changing Section 2d as follows:

(35 ILCS 120/2d) (from Ch.

120, par.

441d) Sec.

2d.

Tax prepayment by motor fuel retailer.

Any person engaged in the business of selling motor fuel at retail, as defined in the Motor Fuel Tax Law, and who is not a licensed distributor or supplier, as defined in the Motor Fuel Tax Law, shall prepay to his or her distributor, supplier, or other reseller of motor fuel a portion of the tax imposed by this Act if the distributor, supplier, or other reseller of motor fuel is registered under Section 2a or Section 2c of this Act.

The prepayment requirement provided for in this Section does not apply to liquid propane SB1903 Enrolled -21- LRB093 08682 RCE 08912 b gas.

Beginning on July 1, 2000 and through December 31, 2000, the Retailers' Occupation Tax paid to the distributor, supplier, or other reseller shall be an amount equal to $0.01 per gallon of the motor fuel, except gasohol as defined in Section 2-10 of this Act which shall be an amount equal to $0.01 per gallon, purchased from the distributor, supplier, or other reseller.

Before July 1, 2000 and then beginning on January 1, 2001 and _____________________2____ ----------, the Retailers' Occupation Tax paid to the distributor, supplier, or other reseller shall be an amount equal to $0.04 per gallon of the motor fuel, except gasohol as defined in Section 2-10 of this Act which shall be an amount equal to $0.03 per gallon, purchased from the distributor, supplier, or other reseller.

_e_____________________0______________________h_____________ _____a______________________d_____________________r_____________ _____l_____________________n______________________g_____________ ______f_____________________a______________________2____________ _____h_____________________u_______________________p____________ _____a_____________________u______________________e____________ Any person engaged in the business of selling motor fuel at retail shall be entitled to a credit against tax due under this Act in an amount equal to the tax paid to the distributor, supplier, or other reseller.

Every distributor, supplier, or other reseller registered as provided in Section 2a or Section 2c of this Act shall remit the prepaid tax on all motor fuel that is due from any person engaged in the business of selling at retail motor fuel with the returns filed under Section 2f or Section 3 of this Act, but the vendors discount provided in Section 3 shall not apply to the amount of prepaid tax that is remitted.

Any distributor or supplier who fails to properly collect and remit the tax shall be liable for the tax.

For SB1903 Enrolled -22- LRB093 08682 RCE 08912 b purposes of this Section, the prepaid tax is due on invoiced gallons sold during a month by the 20th day of the following month.

(Source:

P.A.

91-872, eff.

7-1-00.) Section 50-35.

The Motor Fuel Tax Law is amended by changing Sections 2b, 6, 6a, and 8 as follows:

(35 ILCS 505/2b) (from Ch.

120, par.

418b) Sec.

2b.

In addition to the tax collection and reporting responsibilities imposed elsewhere in this Act, a person who is required to pay the tax imposed by Section 2a of this Act shall pay the tax to the Department by return showing all fuel purchased, acquired or received and sold, distributed or used during the preceding calendar month including losses of fuel as the result of evaporation or shrinkage due to temperature variations, and such other reasonable information as the Department may require.

Losses of fuel as the result of evaporation or shrinkage due to temperature variations may not exceed 1% of the total gallons in storage at the beginning of the month, plus the receipts of gallonage during the month, minus the gallonage remaining in storage at the end of the month.

Any loss reported that is in excess of this amount shall be subject to the tax imposed by Section 2a of this Law.

On and after July 1, 2001, for each 6-month period January through June, net losses of fuel (for each category of fuel that is required to be reported on a return) as the result of evaporation or shrinkage due to temperature variations may not exceed 1% of the total gallons in storage at the beginning of each January, plus the receipts of gallonage each January through June, minus the gallonage remaining in storage at the end of each June.

On and after July 1, 2001, for each 6-month period July through December, net losses of fuel (for each category of fuel that is SB1903 Enrolled -23- LRB093 08682 RCE 08912 b required to be reported on a return) as the result of evaporation or shrinkage due to temperature variations may not exceed 1% of the total gallons in storage at the beginning of each July, plus the receipts of gallonage each July through December, minus the gallonage remaining in storage at the end of each December.

Any net loss reported that is in excess of this amount shall be subject to the tax imposed by Section 2a of this Law.

For purposes of this Section, "net loss" means the number of gallons gained through temperature variations minus the number of gallons lost through temperature variations or evaporation for each of the respective 6-month periods.

The return shall be prescribed by the Department and shall be filed between the 1st and 20th days of each calendar month.

The Department may, in its discretion, combine the returns filed under this Section, Section 5, and Section 5a of this Act.

The return must be accompanied by appropriate computer-generated magnetic media supporting schedule data in the format required by the Department, unless, as provided by rule, the Department grants an exception upon petition of a taxpayer.

If the return is filed timely, the seller shall take a discount of _____h______________________3_____________ _____a_____ -- which is allowed to reimburse the seller for the expenses incurred in keeping records, preparing and filing returns, collecting and remitting the tax and supplying data to the Department on request.

The 2 -- discount, however, shall be applicable only to the amount of payment which accompanies a return that is filed timely in accordance with this Section.

(Source:

P.A.

91-173, eff.

1-1-00;

92-30, eff.

7-1-01.) (35 ILCS 505/6) (from Ch.

120, par.

422) Sec.

6.

Collection of tax;

distributors.

A distributor who sells or distributes any motor fuel, which he is required SB1903 Enrolled -24- LRB093 08682 RCE 08912 b by Section 5 to report to the Department when filing a return, shall (except as hereinafter provided) collect at the time of such sale and distribution, the amount of tax imposed under this Act on all such motor fuel sold and distributed, and at the time of making a return, the distributor shall pay to the Department the amount so collected less a discount of _____h_____________________0______________________r_ -- which is allowed to reimburse the distributor for the expenses incurred in keeping records, preparing and filing returns, collecting and remitting the tax and supplying data to the Department on request, and shall also pay to the Department an amount equal to the amount that would be collectible as a tax in the event of a sale thereof on all such motor fuel used by said distributor during the period covered by the return.

However, no payment shall be made based upon dyed diesel fuel used by the distributor for non-highway purposes.

The -%- discount shall only be applicable to the amount of tax payment which accompanies a return which is filed timely in accordance with Section 5 of this Act.

In each subsequent sale of motor fuel on which the amount of tax imposed under this Act has been collected as provided in this Section, the amount so collected shall be added to the selling price, so that the amount of tax is paid ultimately by the user of the motor fuel.

However, no collection or payment shall be made in the case of the sale or use of any motor fuel to the extent to which such sale or use of motor fuel may not, under the constitution and statutes of the United States, be made the subject of taxation by this State.

A person whose license to act as a distributor of fuel has been revoked shall, at the time of making a return, also pay to the Department an amount equal to the amount that would be collectible as a tax in the event of a sale thereof on all motor fuel, which he is required by the second paragraph of Section 5 to report to the Department in making a return, and SB1903 Enrolled -25- LRB093 08682 RCE 08912 b which he had on hand on the date on which the license was revoked, and with respect to which no tax had been previously paid under this Act.

A distributor may make tax free sales of motor fuel, with respect to which he is otherwise required to collect the tax, when the motor fuel is delivered from a dispensing facility that has withdrawal facilities capable of dispensing motor fuel into the fuel supply tanks of motor vehicles only as specified in the following items 3, 4, and 5.

A distributor may make tax-free sales of motor fuel, with respect to which he is otherwise required to collect the tax, when the motor fuel is delivered from other facilities only as specified in the following items 1 through 7.

1.

When the sale is made to a person holding a valid unrevoked license as a distributor, by making a specific notation thereof on invoices or sales slip covering each sale.

2.

When the sale is made with delivery to a purchaser outside of this State.

3.

When the sale is made to the Federal Government or its instrumentalities.

4.

When the sale is made to a municipal corporation owning and operating a local transportation system for public service in this State when an official certificate of exemption is obtained in lieu of the tax.

5.

When the sale is made to a privately owned public utility owning and operating 2 axle vehicles designed and used for transporting more than 7 passengers, which vehicles are used as common carriers in general transportation of passengers, are not devoted to any specialized purpose and are operated entirely within the territorial limits of a single municipality or of any group of contiguous municipalities, or in a close radius thereof, and the operations of which are subject to the SB1903 Enrolled -26- LRB093 08682 RCE 08912 b regulations of the Illinois Commerce Commission, when an official certificate of exemption is obtained in lieu of the tax.

6.

When a sale of special fuel is made to a person holding a valid, unrevoked license as a supplier, by making a specific notation thereof on the invoice or sales slip covering each such sale.

7.

When a sale of special fuel is made to someone other than a licensed distributor or a licensed supplier for a use other than in motor vehicles, by making a specific notation thereof on the invoice or sales slip covering such sale and obtaining such supporting documentation as may be required by the Department.

The distributor shall obtain and keep the supporting documentation in such form as the Department may require by rule.

8.

(Blank).

All special fuel sold or used for non-highway purposes must have a dye added in accordance with Section 4d of this Law.

All suits or other proceedings brought for the purpose of recovering any taxes, interest or penalties due the State of Illinois under this Act may be maintained in the name of the Department.

(Source:

P.A.

91-173, eff.

1-1-00.) (35 ILCS 505/6a) (from Ch.

120, par.

422a) Sec.

6a.

Collection of tax;

suppliers.

A supplier, other than a licensed distributor, who sells or distributes any special fuel, which he is required by Section 5a to report to the Department when filing a return, shall (except as hereinafter provided) collect at the time of such sale and distribution, the amount of tax imposed under this Act on all such special fuel sold and distributed, and at the time of SB1903 Enrolled -27- LRB093 08682 RCE 08912 b making a return, the supplier shall pay to the Department the amount so collected less a discount of 2______o_____________ _____a____________________ 2-- which is allowed to reimburse the supplier for the expenses incurred in keeping records, preparing and filing returns, collecting and remitting the tax and supplying data to the Department on request, and shall also pay to the Department an amount equal to the amount that would be collectible as a tax in the event of a sale thereof on all such special fuel used by said supplier during the period covered by the return.

However, no payment shall be made based upon dyed diesel fuel used by said supplier for non-highway purposes.

The 2 -- discount shall only be applicable to the amount of tax payment which accompanies a return which is filed timely in accordance with Section 5(a) of this Act.

In each subsequent sale of special fuel on which the amount of tax imposed under this Act has been collected as provided in this Section, the amount so collected shall be added to the selling price, so that the amount of tax is paid ultimately by the user of the special fuel.

However, no collection or payment shall be made in the case of the sale or use of any special fuel to the extent to which such sale or use of motor fuel may not, under the Constitution and statutes of the United States, be made the subject of taxation by this State.

A person whose license to act as supplier of special fuel has been revoked shall, at the time of making a return, also pay to the Department an amount equal to the amount that would be collectible as a tax in the event of a sale thereof on all special fuel, which he is required by the 1st paragraph of Section 5a to report to the Department in making a return.

A supplier may make tax-free sales of special fuel, with respect to which he is otherwise required to collect the tax, when the motor fuel is delivered from a dispensing facility SB1903 Enrolled -28- LRB093 08682 RCE 08912 b that has withdrawal facilities capable of dispensing special fuel into the fuel supply tanks of motor vehicles only as specified in the following items 1, 2, and 3.

A supplier may make tax-free sales of special fuel, with respect to which he is otherwise required to collect the tax, when the special fuel is delivered from other facilities only as specified in the following items 1 through 7.

1.

When the sale is made to the federal government or its instrumentalities.

2.

When the sale is made to a municipal corporation owning and operating a local transportation system for public service in this State when an official certificate of exemption is obtained in lieu of the tax.

3.

When the sale is made to a privately owned public utility owning and operating 2 axle vehicles designed and used for transporting more than 7 passengers, which vehicles are used as common carriers in general transportation of passengers, are not devoted to any specialized purpose and are operated entirely within the territorial limits of a single municipality or of any group of contiguous municipalities, or in a close radius thereof, and the operations of which are subject to the regulations of the Illinois Commerce Commission, when an official certificate of exemption is obtained in lieu of the tax.

4.

When a sale of special fuel is made to a person holding a valid unrevoked license as a supplier or a distributor by making a specific notation thereof on invoice or sales slip covering each such sale.

5.

When a sale of special fuel is made to someone other than a licensed distributor or licensed supplier for a use other than in motor vehicles, by making a specific notation thereof on the invoice or sales slip covering such sale and obtaining such supporting SB1903 Enrolled -29- LRB093 08682 RCE 08912 b documentation as may be required by the Department.

The supplier shall obtain and keep the supporting documentation in such form as the Department may require by rule.

6.

(Blank).

7.

When a sale of special fuel is made to a person where delivery is made outside of this State.

All special fuel sold or used for non-highway purposes must have a dye added in accordance with Section 4d of this Law.

All suits or other proceedings brought for the purpose of recovering any taxes, interest or penalties due the State of Illinois under this Act may be maintained in the name of the Department.

(Source:

P.A.

91-173, eff.

1-1-00;

92-30, eff.

7-1-01.) (35 ILCS 505/8) (from Ch.

120, par.

424) Sec.

8.

Except as provided in Section 8a, subdivision (h)(1) of Section 12a, Section 13a.6, and items 13, 14, 15, and 16 of Section 15, all money received by the Department under this Act, including payments made to the Department by member jurisdictions participating in the International Fuel Tax Agreement, shall be deposited in a special fund in the State treasury, to be known as the "Motor Fuel Tax Fund", and shall be used as follows:

(a) 2 1/2 cents per gallon of the tax collected on special fuel under paragraph (b) of Section 2 and Section 13a of this Act shall be transferred to the State Construction Account Fund in the State Treasury;

(b) $420,000 shall be transferred each month to the State Boating Act Fund to be used by the Department of Natural Resources for the purposes specified in Article X of the Boat Registration and Safety Act;

(c) $2,250,000 shall be transferred each month to the SB1903 Enrolled -30- LRB093 08682 RCE 08912 b Grade Crossing Protection Fund to be used as follows:

not less than $6,000,000 each fiscal year shall be used for the construction or reconstruction of rail highway grade separation structures;

b---i----------------------a------------- -----g---------------------,----------------------g------------- ------2--------------------n------------------- $2,250,000,----- -----0--- in fiscal year 2004 and each fiscal year thereafter shall be transferred to the Transportation Regulatory Fund and shall be accounted for as part of the rail carrier portion of such funds and shall be used to pay the cost of administration of the Illinois Commerce Commission's railroad safety program in connection with its duties under subsection (3) of Section 18c-7401 of the Illinois Vehicle Code, with the remainder to be used by the Department of Transportation upon order of the Illinois Commerce Commission, to pay that part of the cost apportioned by such Commission to the State to cover the interest of the public in the use of highways, roads, streets, or pedestrian walkways in the county highway system, township and district road system, or municipal street system as defined in the Illinois Highway Code, as the same may from time to time be amended, for separation of grades, for installation, construction or reconstruction of crossing protection or reconstruction, alteration, relocation including construction or improvement of any existing highway necessary for access to property or improvement of any grade crossing including the necessary highway approaches thereto of any railroad across the highway or public road, or for the installation, construction, reconstruction, or maintenance of a pedestrian walkway over or under a railroad right-of-way, as provided for in and in accordance with Section 18c-7401 of the Illinois Vehicle Code.

The Commission shall not order more than $2,000,000 per year in Grade Crossing Protection Fund moneys for pedestrian walkways.

In entering orders for projects for which payments from the Grade Crossing SB1903 Enrolled -31- LRB093 08682 RCE 08912 b Protection Fund will be made, the Commission shall account for expenditures authorized by the orders on a cash rather than an accrual basis.

For purposes of this requirement an "accrual basis" assumes that the total cost of the project is expended in the fiscal year in which the order is entered, while a "cash basis" allocates the cost of the project among fiscal years as expenditures are actually made.

To meet the requirements of this subsection, the Illinois Commerce Commission shall develop annual and 5-year project plans of rail crossing capital improvements that will be paid for with moneys from the Grade Crossing Protection Fund.

The annual project plan shall identify projects for the succeeding fiscal year and the 5-year project plan shall identify projects for the 5 directly succeeding fiscal years.

The Commission shall submit the annual and 5-year project plans for this Fund to the Governor, the President of the Senate, the Senate Minority Leader, the Speaker of the House of Representatives, and the Minority Leader of the House of Representatives on the first Wednesday in April of each year;

(d) of the amount remaining after allocations provided for in subsections (a), (b) and (c), a sufficient amount shall be reserved to pay all of the following:

(1) the costs of the Department of Revenue in administering this Act;

(2) the costs of the Department of Transportation in performing its duties imposed by the Illinois Highway Code for supervising the use of motor fuel tax funds apportioned to municipalities, counties and road districts;

(3) refunds provided for in Section 13 of this Act and under the terms of the International Fuel Tax Agreement referenced in Section 14a;

(4) from October 1, 1985 until June 30, 1994, the administration of the Vehicle Emissions Inspection Law, SB1903 Enrolled -32- LRB093 08682 RCE 08912 b which amount shall be certified monthly by the Environmental Protection Agency to the State Comptroller and shall promptly be transferred by the State Comptroller and Treasurer from the Motor Fuel Tax Fund to the Vehicle Inspection Fund, and for the period July 1, 1994 through June 30, 2000, one-twelfth of $25,000,000 each month, --- for the period July 1, 2000 through June 30, 2____ ----, one-twelfth of $30,000,000 each month, _n_____________________J______________________1_____________ _a_____________________0______________________c_____________ _o______________________1_____________________3_________ for the administration of the Vehicle Emissions Inspection Law of 1995, to be transferred by the State Comptroller and Treasurer from the Motor Fuel Tax Fund into the Vehicle Inspection Fund;

(5) amounts ordered paid by the Court of Claims;

and (6) payment of motor fuel use taxes due to member jurisdictions under the terms of the International Fuel Tax Agreement.

The Department shall certify these amounts to the Comptroller by the 15th day of each month;

the Comptroller shall cause orders to be drawn for such amounts, and the Treasurer shall administer those amounts on or before the last day of each month;

(e) after allocations for the purposes set forth in subsections (a), (b), (c) and (d), the remaining amount shall be apportioned as follows:

(1) Until January 1, 2000, 58.4%, and beginning January 1, 2000, 45.6% shall be deposited as follows:

(A) 37% into the State Construction Account Fund, and (B) 63% into the Road Fund, $1,250,000 of which shall be reserved each month for the Department of Transportation to be used in SB1903 Enrolled -33- LRB093 08682 RCE 08912 b accordance with the provisions of Sections 6-901 through 6-906 of the Illinois Highway Code;

(2) Until January 1, 2000, 41.6%, and beginning January 1, 2000, 54.4% shall be transferred to the Department of Transportation to be distributed as follows:

(A) 49.10% to the municipalities of the State, (B) 16.74% to the counties of the State having 1,000,000 or more inhabitants, (C) 18.27% to the counties of the State having less than 1,000,000 inhabitants, (D) 15.89% to the road districts of the State.

As soon as may be after the first day of each month the Department of Transportation shall allot to each municipality its share of the amount apportioned to the several municipalities which shall be in proportion to the population of such municipalities as determined by the last preceding municipal census if conducted by the Federal Government or Federal census.

If territory is annexed to any municipality subsequent to the time of the last preceding census the corporate authorities of such municipality may cause a census to be taken of such annexed territory and the population so ascertained for such territory shall be added to the population of the municipality as determined by the last preceding census for the purpose of determining the allotment for that municipality.

If the population of any municipality was not determined by the last Federal census preceding any apportionment, the apportionment to such municipality shall be in accordance with any census taken by such municipality.

Any municipal census used in accordance with this Section shall be certified to the Department of Transportation by the clerk of such municipality, and the accuracy thereof shall be subject to approval of the Department which may make such corrections as it ascertains to be necessary.

SB1903 Enrolled -34- LRB093 08682 RCE 08912 b As soon as may be after the first day of each month the Department of Transportation shall allot to each county its share of the amount apportioned to the several counties of the State as herein provided.

Each allotment to the several counties having less than 1,000,000 inhabitants shall be in proportion to the amount of motor vehicle license fees received from the residents of such counties, respectively, during the preceding calendar year.

The Secretary of State shall, on or before April 15 of each year, transmit to the Department of Transportation a full and complete report showing the amount of motor vehicle license fees received from the residents of each county, respectively, during the preceding calendar year.

The Department of Transportation shall, each month, use for allotment purposes the last such report received from the Secretary of State.

As soon as may be after the first day of each month, the Department of Transportation shall allot to the several counties their share of the amount apportioned for the use of road districts.

The allotment shall be apportioned among the several counties in the State in the proportion which the total mileage of township or district roads in the respective counties bears to the total mileage of all township and district roads in the State.

Funds allotted to the respective counties for the use of road districts therein shall be allocated to the several road districts in the county in the proportion which the total mileage of such township or district roads in the respective road districts bears to the total mileage of all such township or district roads in the county.

After July 1 of any year, no allocation shall be made for any road district unless it levied a tax for road and bridge purposes in an amount which will require the extension of such tax against the taxable property in any such road district at a rate of not less than either .08% of the value thereof, based upon the assessment for the year SB1903 Enrolled -35- LRB093 08682 RCE 08912 b immediately prior to the year in which such tax was levied and as equalized by the Department of Revenue or, in DuPage County, an amount equal to or greater than $12,000 per mile of road under the jurisdiction of the road district, whichever is less.

If any road district has levied a special tax for road purposes pursuant to Sections 6-601, 6-602 and 6-603 of the Illinois Highway Code, and such tax was levied in an amount which would require extension at a rate of not less than .08% of the value of the taxable property thereof, as equalized or assessed by the Department of Revenue, or, in DuPage County, an amount equal to or greater than $12,000 per mile of road under the jurisdiction of the road district, whichever is less, such levy shall, however, be deemed a proper compliance with this Section and shall qualify such road district for an allotment under this Section.

If a township has transferred to the road and bridge fund money which, when added to the amount of any tax levy of the road district would be the equivalent of a tax levy requiring extension at a rate of at least .08%, or, in DuPage County, an amount equal to or greater than $12,000 per mile of road under the jurisdiction of the road district, whichever is less, such transfer, together with any such tax levy, shall be deemed a proper compliance with this Section and shall qualify the road district for an allotment under this Section.

In counties in which a property tax extension limitation is imposed under the Property Tax Extension Limitation Law, road districts may retain their entitlement to a motor fuel tax allotment if, at the time the property tax extension limitation was imposed, the road district was levying a road and bridge tax at a rate sufficient to entitle it to a motor fuel tax allotment and continues to levy the maximum allowable amount after the imposition of the property tax extension limitation.

Any road district may in all SB1903 Enrolled -36- LRB093 08682 RCE 08912 b circumstances retain its entitlement to a motor fuel tax allotment if it levied a road and bridge tax in an amount that will require the extension of the tax against the taxable property in the road district at a rate of not less than 0.08% of the assessed value of the property, based upon the assessment for the year immediately preceding the year in which the tax was levied and as equalized by the Department of Revenue or, in DuPage County, an amount equal to or greater than $12,000 per mile of road under the jurisdiction of the road district, whichever is less.

As used in this Section the term "road district" means any road district, including a county unit road district, provided for by the Illinois Highway Code;

and the term "township or district road" means any road in the township and district road system as defined in the Illinois Highway Code.

For the purposes of this Section, "road district" also includes park districts, forest preserve districts and conservation districts organized under Illinois law and "township or district road" also includes such roads as are maintained by park districts, forest preserve districts and conservation districts.

The Department of Transportation shall determine the mileage of all township and district roads for the purposes of making allotments and allocations of motor fuel tax funds for use in road districts.

Payment of motor fuel tax moneys to municipalities and counties shall be made as soon as possible after the allotment is made.

The treasurer of the municipality or county may invest these funds until their use is required and the interest earned by these investments shall be limited to the same uses as the principal funds.

(Source:

P.A.

91-37, eff.

7-1-99;

91-59, eff.

6-30-99;

91-173, eff.

1-1-00;

91-357, eff.

7-29-99;

91-704, eff.

7-1-00;

91-725, eff.

6-2-00;

91-794, eff.

6-9-00;

92-16, eff.

6-28-01;

92-30, eff.

7-1-01.) SB1903 Enrolled -37- LRB093 08682 RCE 08912 b Section 50-40.

The Uniform Penalty and Interest Act is amended by changing Sections 3-2 and 3-3 and by adding Section 3-4.5 as follows:

(35 ILCS 735/3-2) (from Ch.

120, par.

2603-2) Sec.

3-2.

Interest.

(a) Interest paid by the Department to taxpayers and interest charged to taxpayers by the Department shall be paid at the annual rate determined by the Department.

F ____________ ______t___________________ that rate shall be the underpayment rate established under Section 6621 of the Internal Revenue Code.

F____________________c________________________r___________ ___ _________________y______________________w_____________ _f_____________________o______________________-_____________ _a_____________________r______________________t_____________ _e____________ _________________r______________________d_____________ _n_____________________r______________________(_____________ _u_____________________d______________________l_____________ _e_____________________t____________________ (b) The interest rate shall be adjusted on a semiannual basis, on January 1 and July 1, based upon the underpayment rate ____________________r_________ going into effect on that January 1 or July 1 under Section 6621 of the Internal Revenue Code.

(c) This subsection (c) is applicable to returns due on and before December 31, 2000.

Interest shall be simple interest calculated on a daily basis.

Interest shall accrue upon tax and penalty due.

If notice and demand is made for the payment of any amount of tax due and if the amount due is paid within 30 days after the date of such notice and demand, interest under this Section on the amount so paid shall not be imposed for the period after the date of the notice and SB1903 Enrolled -38- LRB093 08682 RCE 08912 b demand.

(c-5) This subsection (c-5) is applicable to returns due on and after January 1, 2001.

Interest shall be simple interest calculated on a daily basis.

Interest shall accrue upon tax due.

If notice and demand is made for the payment of any amount of tax due and if the amount due is paid within 30 days after the date of the notice and demand, interest under this Section on the amount so paid shall not be imposed for the period after the date of the notice and demand.

(d) No interest shall be paid upon any overpayment of tax if the overpayment is refunded or a credit approved within 90 days after the last date prescribed for filing the original return, or within 90 days of the receipt of the processable return, or within 90 days after the date of overpayment, whichever date is latest, as determined without regard to processing time by the Comptroller or without regard to the date on which the credit is applied to the taxpayer's account.

In order for an original return to be processable for purposes of this Section, it must be in the form prescribed or approved by the Department, signed by the person authorized by law, and contain all information, schedules, and support documents necessary to determine the tax due and to make allocations of tax as prescribed by law.

For the purposes of computing interest, a return shall be deemed to be processable unless the Department notifies the taxpayer that the return is not processable within 90 days after the receipt of the return;

however, interest shall not accumulate for the period following this date of notice.

Interest on amounts refunded or credited pursuant to the filing of an amended return or claim for refund shall be determined from the due date of the original return or the date of overpayment, whichever is later, to the date of payment by the Department without regard to processing time by the Comptroller or the date of credit by the Department or SB1903 Enrolled -39- LRB093 08682 RCE 08912 b without regard to the date on which the credit is applied to the taxpayer's account.

If a claim for refund relates to an overpayment attributable to a net loss carryback as provided by Section 207 of the Illinois Income Tax Act, the date of overpayment shall be the last day of the taxable year in which the loss was incurred.

(e) Interest on erroneous refunds.

Any portion of the tax imposed by an Act to which this Act is applicable or any interest or penalty which has been erroneously refunded and which is recoverable by the Department shall bear interest from the date of payment of the refund.

However, no interest will be charged if the erroneous refund is for an amount less than $500 and is due to a mistake of the Department.

(Source:

P.A.

91-803, eff.

1-1-01.) (35 ILCS 735/3-3) (from Ch.

120, par.

2603-3) Sec.

3-3.

Penalty for failure to file or pay.

(a) This subsection (a) is applicable before January 1, 1996.

A penalty of 5% of the tax required to be shown due on a return shall be imposed for failure to file the tax return on or before the due date prescribed for filing determined with regard for any extension of time for filing (penalty for late filing or nonfiling).

If any unprocessable return is corrected and filed within 21 days after notice by the Department, the late filing or nonfiling penalty shall not apply.

If a penalty for late filing or nonfiling is imposed in addition to a penalty for late payment, the total penalty due shall be the sum of the late filing penalty and the applicable late payment penalty.

Beginning on the effective date of this amendatory Act of 1995, in the case of any type of tax return required to be filed more frequently than annually, when the failure to file the tax return on or before the date prescribed for filing (including any extensions) is shown to be nonfraudulent and has not occurred SB1903 Enrolled -40- LRB093 08682 RCE 08912 b in the 2 years immediately preceding the failure to file on the prescribed due date, the penalty imposed by Section 3-3(a) shall be abated.

(a-5) This subsection (a-5) is applicable to returns due on and after January 1, 1996 and on or before December 31, 2000.

A penalty equal to 2% of the tax required to be shown due on a return, up to a maximum amount of $250, determined without regard to any part of the tax that is paid on time or by any credit that was properly allowable on the date the return was required to be filed, shall be imposed for failure to file the tax return on or before the due date prescribed for filing determined with regard for any extension of time for filing.

However, if any return is not filed within 30 days after notice of nonfiling mailed by the Department to the last known address of the taxpayer contained in Department records, an additional penalty amount shall be imposed equal to the greater of $250 or 2% of the tax shown on the return.

However, the additional penalty amount may not exceed $5,000 and is determined without regard to any part of the tax that is paid on time or by any credit that was properly allowable on the date the return was required to be filed (penalty for late filing or nonfiling).

If any unprocessable return is corrected and filed within 30 days after notice by the Department, the late filing or nonfiling penalty shall not apply.

If a penalty for late filing or nonfiling is imposed in addition to a penalty for late payment, the total penalty due shall be the sum of the late filing penalty and the applicable late payment penalty.

In the case of any type of tax return required to be filed more frequently than annually, when the failure to file the tax return on or before the date prescribed for filing (including any extensions) is shown to be nonfraudulent and has not occurred in the 2 years immediately preceding the failure to file on the prescribed due date, the penalty imposed by SB1903 Enrolled -41- LRB093 08682 RCE 08912 b Section 3-3(a-5) shall be abated.

(a-10) This subsection (a-10) is applicable to returns due on and after January 1, 2001.

A penalty equal to 2% of the tax required to be shown due on a return, up to a maximum amount of $250, reduced by any tax that is paid on time or by any credit that was properly allowable on the date the return was required to be filed, shall be imposed for failure to file the tax return on or before the due date prescribed for filing determined with regard for any extension of time for filing.

However, if any return is not filed within 30 days after notice of nonfiling mailed by the Department to the last known address of the taxpayer contained in Department records, an additional penalty amount shall be imposed equal to the greater of $250 or 2% of the tax shown on the return.

However, the additional penalty amount may not exceed $5,000 and is determined without regard to any part of the tax that is paid on time or by any credit that was properly allowable on the date the return was required to be filed (penalty for late filing or nonfiling).

If any unprocessable return is corrected and filed within 30 days after notice by the Department, the late filing or nonfiling penalty shall not apply.

If a penalty for late filing or nonfiling is imposed in addition to a penalty for late payment, the total penalty due shall be the sum of the late filing penalty and the applicable late payment penalty.

In the case of any type of tax return required to be filed more frequently than annually, when the failure to file the tax return on or before the date prescribed for filing (including any extensions) is shown to be nonfraudulent and has not occurred in the 2 years immediately preceding the failure to file on the prescribed due date, the penalty imposed by Section 3-3(a-10) shall be abated.

(b) This subsection is applicable before January 1, 1998.

A penalty of 15% of the tax shown on the return or the SB1903 Enrolled -42- LRB093 08682 RCE 08912 b tax required to be shown due on the return shall be imposed for failure to pay:

(1) the tax shown due on the return on or before the due date prescribed for payment of that tax, an amount of underpayment of estimated tax, or an amount that is reported in an amended return other than an amended return timely filed as required by subsection (b) of Section 506 of the Illinois Income Tax Act (penalty for late payment or nonpayment of admitted liability);

or (2) the full amount of any tax required to be shown due on a return and which is not shown (penalty for late payment or nonpayment of additional liability), within 30 days after a notice of arithmetic error, notice and demand, or a final assessment is issued by the Department.

In the case of a final assessment arising following a protest and hearing, the 30-day period shall not begin until all proceedings in court for review of the final assessment have terminated or the period for obtaining a review has expired without proceedings for a review having been instituted.

In the case of a notice of tax liability that becomes a final assessment without a protest and hearing, the penalty provided in this paragraph (2) shall be imposed at the expiration of the period provided for the filing of a protest.

(b-5) This subsection is applicable to returns due on and after January 1, 1998 and on or before December 31, 2000.

A penalty of 20% of the tax shown on the return or the tax required to be shown due on the return shall be imposed for failure to pay:

(1) the tax shown due on the return on or before the due date prescribed for payment of that tax, an amount of underpayment of estimated tax, or an amount that is reported in an amended return other than an amended return timely filed as required by subsection (b) SB1903 Enrolled -43- LRB093 08682 RCE 08912 b of Section 506 of the Illinois Income Tax Act (penalty for late payment or nonpayment of admitted liability);

or (2) the full amount of any tax required to be shown due on a return and which is not shown (penalty for late payment or nonpayment of additional liability), within 30 days after a notice of arithmetic error, notice and demand, or a final assessment is issued by the Department.

In the case of a final assessment arising following a protest and hearing, the 30-day period shall not begin until all proceedings in court for review of the final assessment have terminated or the period for obtaining a review has expired without proceedings for a review having been instituted.

In the case of a notice of tax liability that becomes a final assessment without a protest and hearing, the penalty provided in this paragraph (2) shall be imposed at the expiration of the period provided for the filing of a protest.

(b-10) This subsection (b-10) is applicable to returns due on and after January 1, 2001 a____________f_____________ _____0___.

A penalty shall be imposed for failure to pay:

(1) the tax shown due on a return on or before the due date prescribed for payment of that tax, an amount of underpayment of estimated tax, or an amount that is reported in an amended return other than an amended return timely filed as required by subsection (b) of Section 506 of the Illinois Income Tax Act (penalty for late payment or nonpayment of admitted liability).

The amount of penalty imposed under this subsection (b-10)(1) shall be 2% of any amount that is paid no later than 30 days after the due date, 5% of any amount that is paid later than 30 days after the due date and not later than 90 days after the due date, 10% of any amount that is paid later than 90 days after the due date and not later than 180 days after the due date, and 15% of any amount SB1903 Enrolled -44- LRB093 08682 RCE 08912 b that is paid later than 180 days after the due date.

If notice and demand is made for the payment of any amount of tax due and if the amount due is paid within 30 days after the date of the notice and demand, then the penalty for late payment or nonpayment of admitted liability under this subsection (b-10)(1) on the amount so paid shall not accrue for the period after the date of the notice and demand.

(2) the full amount of any tax required to be shown due on a return and that is not shown (penalty for late payment or nonpayment of additional liability), within 30 days after a notice of arithmetic error, notice and demand, or a final assessment is issued by the Department.

In the case of a final assessment arising following a protest and hearing, the 30-day period shall not begin until all proceedings in court for review of the final assessment have terminated or the period for obtaining a review has expired without proceedings for a review having been instituted.

The amount of penalty imposed under this subsection (b-10)(2) shall be 20% of any amount that is not paid within the 30-day period.

In the case of a notice of tax liability that becomes a final assessment without a protest and hearing, the penalty provided in this subsection (b-10)(2) shall be imposed at the expiration of the period provided for the filing of a protest.

_b_____________________n________________________t___________ _____n_____________________,_______ _________________s______________________a_____________ _h_____________________e______________________e_____________ _n_____________________a______________________m_____________ _a_____________________n______________________e_____________ _m_____________________d________________________o___________ _n_____________________e______________________b_____________ SB1903 Enrolled -45- LRB093 08682 RCE 08912 b _b_____________________o______________________o_____________ _p_____________________a________________________o___________ _i_______________________o______________________u___________ _u______________________s_____________________m_____________ _a_____________________d______________________e_____________ _m_____________________t_______________________t____________ _n_____________________d______________________e_____________ _m_____________________t_______________________t____________ _n______________________d_____________________t_____________ _f______________________p_____________________a_____________ _u_____________________d______________________h_____________ _n_____________________a______________________d_____________ _i_____________________t______________________e_____________ _h_______________________l____________________o_____________ _d_____________________e______________________1_____________ _m_____________________n______________________i_____________ _a______________________d_______ _________________a______________________l_____________ __r_____________________a_____________________u_____________ _n_____________________e______________________n_____________ _m_____________________s______________________l_____ ____________n______________________h_____________ _________________e______________________r_____________ _________________e______________________f_____________ _________________n_______________________s____________ __________________r______________________t____________ _________________i______________________i_____________ ________________ ____________a______________________h_____________ _________________e______________________r_____________ _________________e______________________f_____________ _________________n_______________________s____________ _________________d______________________f_____________ ___________________h_______________________a__________ SB1903 Enrolled -46- LRB093 08682 RCE 08912 b _________________t______________________r_____________ _________________i______________________x_____________ _________________s______________________a_____________ __________________D_____________________p_____________ _________________n______________________r_ _____________a_____________________t_____________ _________________e______________________t_____________ _________________e______________________a_____________ _________________e______________________l_____________ _________________h______________________e_____________ _________________n____________________ (c) For purposes of the late payment penalties, the basis of the penalty shall be the tax shown or required to be shown on a return, whichever is applicable, reduced by any part of the tax which is paid on time and by any credit which was properly allowable on the date the return was required to be filed.

(d) A penalty shall be applied to the tax required to be shown even if that amount is less than the tax shown on the return.

(e) This subsection (e) is applicable to returns due before January 1, 2001.

If both a subsection (b)(1) or (b-5)(1) penalty and a subsection (b)(2) or (b-5)(2) penalty are assessed against the same return, the subsection (b)(2) or (b-5)(2) penalty shall be assessed against only the additional tax found to be due.

(e-5) This subsection (e-5) is applicable to returns due on and after January 1, 2001.

If both a subsection (b-10)(1) penalty and a subsection (b-10)(2) penalty are assessed against the same return, the subsection (b-10)(2) penalty shall be assessed against only the additional tax found to be due.

(f) If the taxpayer has failed to file the return, the Department shall determine the correct tax according to its SB1903 Enrolled -47- LRB093 08682 RCE 08912 b best judgment and information, which amount shall be prima facie evidence of the correctness of the tax due.

(g) The time within which to file a return or pay an amount of tax due without imposition of a penalty does not extend the time within which to file a protest to a notice of tax liability or a notice of deficiency.

(h) No return shall be determined to be unprocessable because of the omission of any information requested on the return pursuant to Section 2505-575 of the Department of Revenue Law (20 ILCS 2505/2505-575).

(Source:

P.A.

91-239, eff.

1-1-00;

91-803, eff.

1-1-01;

92-742, eff.

7-25-02.) (35 ILCS 735/3-4.5 new) _e_____________________n__________ _a_____________________t______________________i_____________ _____t_____________________s________________________o___________ _____y______________________a_____________________a_____________ ______i____________________p______________________s_____________ _____c_____________________t______________________a_____________ _____e_____________________h______________________e_____________ _____f_____________________d_______________________t____________ _____h_____________________d______________________t_____________ _____e_____________________r______________________c_____________ _____e___ _b_____________________e_______________________t____________ ______b____________________a_______________________p____________ _____d_____________________d______________________f_____________ _____d_____________________f_______________________l____________ _____d____________________ _c_____________________d______________________h________ _________________s______________________o_____________ _i_____________________t______________________n_____________ _d______________________o_____________________p_____________ SB1903 Enrolled -48- LRB093 08682 RCE 08912 b _e_____________________h______________________u_____________ _f_____________________s_________________ _________________y______________________a_____________ _i_____________________e______________________,_____________ _d______________________o______________________p____________ _e_____________________h______________________u_____________ _f_____________________0____________ Section 50-50.

The Illinois Insurance Code is amended by adding Section 416 as follows:

(215 ILCS 5/416 new) _e_____________________l______________________t_____________ _____a_____ _a_____________________t______________________d_____________ _____9_____________________l______________________l_____________ _____r_____________________o______________________n_____________ _____i_____________________i_______________________t____________ _____n_____________________r______________________D_____________ ______r____________________r______________________o_____________ _____t______________________r_____________________n_____________ ______o____________________h______________________t_____________ ______p_____________________d________________________I__________ _____s_____________________n_______________________t____________ _____n_____________________p______________________f_____________ _____r_____________________e______________________n_____________ _____i_____________________s______________________a_____________ _____r_____________________e______________________i_____________ _____,______________________d_____________________n_____________ _____e_____________________,______________________h_____________ _____v____________________ _b_____________________i______________________(_____________ _____o_____________________y______________________r_____________ _____i______________________a_____________________l_____________ SB1903 Enrolled -49- LRB093 08682 RCE 08912 b _____t_____________________e______________________y_____________ _____c_____________________t________________________i___________ _____e_____________________r______________________i_____________ ______t____________________a_______________________O____________ _____s______________________i_____________________u_____________ ______f____________________r______________________o_____________ _____t_____________________e______________________r_____________ _____c_____________________j______________________(_____________ _____o_____________________a______________________r_____________ _____h_____________________f______________________u_____________ _____c_____________________t______________________h_____________ _____i_____________________a________________________r___________ _____s______________________a_____________________t_____________ _____I_____________________n______________________n_____________ _____u____ _b_____________________1______________________s_____________ _____o_____________________s______________________a_____________ ______S____________________o______________________,_____________ ______M____________________n______________________s_____________ _____c_____________________p______________________m_____________ _____t_____________________t_______________________e____________ _____n______________________t_____________________r_____________ _____t_____________________a______________________m_____________ _____a______________________p_____________________n_____________ _____e_____________ _c______________________t_____________________c_____________ ______A____________________C______________________l_____________ _____r_____________________s______________________s_____________ _____n_____________________u______________________h_____________ _____D______________________h_____________________e_____________ ______t_____________________p_____________________t_____________ _____n_____________________p_______________________s____________ _____t_____________________d________________________i___________ _____t_____________________h_________________ SB1903 Enrolled -50- LRB093 08682 RCE 08912 b _d_____________________f______________________a_____________ _____l_____________________o______________________S_____________ ______o____________________i______________________l_____________ _____m_____________________y______________________1_____________ _____t_____________________e______________________m_____________ _____m_____________________e____________________ _e_____________________o______________________e_____________ _____c_____________________q______________________y_____________ _____o______________________i_____________________y_____________ _____c_____________________e______________________y_____________ ______t____________________t___ _f_____________________e______________________c_____________ _____t_____________________s______________________t_____________ _____t_____________________r_______________________i____________ _____c_____________________g_______________________t____________ _____i______________________c_____________________r_____________ _______t___________________c______________________i_____________ _____e_____________________2______________________t_____________ _____n_____________________y______________________e_____________ _____d_____________________g_______________________S____________ _____c_____________________u_______________________o____________ _____d_____________________o______________________s_____________ ______c_____________________r_____________________i_____________ _____c_____________________r_______________________p____________ _____i___________________ _g_____________________o______________________r_____________ ______o____________________c______________________t_____________ _____a_____________________t__________ Section 50-57.

The Public Utilities Act is amended by changing Section 16-111.1 as follows:

(220 ILCS 5/16-111.1) Sec.

16-111.1.

Illinois Clean Energy Community Trust.

SB1903 Enrolled -51- LRB093 08682 RCE 08912 b (a) An electric utility which has sold or transferred generating facilities in a transaction to which subsection (k) of Section 16-111 applies is authorized to establish an Illinois clean energy community trust or foundation for the purposes of providing financial support and assistance to entities, public or private, within the State of Illinois including, but not limited to, units of State and local government, educational institutions, corporations, and charitable, educational, environmental and community organizations, for programs and projects that benefit the public by improving energy efficiency, developing renewable energy resources, supporting other energy related projects that improve the State's environmental quality, and supporting projects and programs intended to preserve or enhance the natural habitats and wildlife areas of the State.

Provided, however, that the trust or foundation funds shall not be used for the remediation of environmentally impaired property.

The trust or foundation may also assist in identifying other energy and environmental grant opportunities.

(b) Such trust or foundation shall be governed by a declaration of trust or articles of incorporation and bylaws which shall, at a minimum, provide that:

(1) There shall be 6 voting trustees of the trust or foundation, one of whom shall be appointed by the Governor, one of whom shall be appointed by the President of the Illinois Senate, one of whom shall be appointed by the Minority Leader of the Illinois Senate, one of whom shall be appointed by the Speaker of the Illinois House of Representatives, one of whom shall be appointed by the Minority Leader of the Illinois House of Representatives, and one of whom shall be appointed by the electric utility establishing the trust or foundation, provided that the voting trustee appointed by the utility shall be SB1903 Enrolled -52- LRB093 08682 RCE 08912 b a representative of a recognized environmental action group selected by the utility.

The Governor shall designate one of the 6 voting trustees to serve as chairman of the trust or foundation, who shall serve as chairman of the trust or foundation at the pleasure of the Governor.

In addition, there shall be 4 non-voting trustees, one of whom shall be appointed by the Director of the Department of Commerce and Community Affairs, one of whom shall be appointed by the Director of the Illinois Environmental Protection Agency, one of whom shall be appointed by the Director of the Department of Natural Resources, and one of whom shall be appointed by the electric utility establishing the trust or foundation, provided that the non-voting trustee appointed by the utility shall bring financial expertise to the trust or foundation and shall have appropriate credentials therefor.

(2) All voting trustees and the non-voting trustee with financial expertise shall be entitled to compensation for their services as trustees, provided, however, that no member of the General Assembly and no employee of the electric utility establishing the trust or foundation serving as a voting trustee shall receive any compensation for his or her services as a trustee, and provided further that the compensation to the chairman of the trust shall not exceed $25,000 annually and the compensation to any other trustee shall not exceed $20,000 annually.

All trustees shall be entitled to reimbursement for reasonable expenses incurred on behalf of the trust in the performance of their duties as trustees.

All such compensation and reimbursements shall be paid out of the trust.

(3) Trustees shall be appointed within 30 days after the creation of the trust or foundation and shall SB1903 Enrolled -53- LRB093 08682 RCE 08912 b serve for a term of 5 years commencing upon the date of their respective appointments, until their respective successors are appointed and qualified.

(4) A vacancy in the office of trustee shall be filled by the person holding the office responsible for appointing the trustee whose death or resignation creates the vacancy, and a trustee appointed to fill a vacancy shall serve the remainder of the term of the trustee whose resignation or death created the vacancy.

(5) The trust or foundation shall have an indefinite term, and shall terminate at such time as no trust assets remain.

(6) The trust or foundation shall be funded in the minimum amount of $250,000,000, with the allocation and disbursement of funds for the various purposes for which the trust or foundation is established to be determined by the trustees in accordance with the declaration of trust or the articles of incorporation and bylaws;

provided, however, that this amount may be reduced by up to $25,000,000 if, at the time the trust or foundation is funded, a corresponding amount is contributed by the electric utility establishing the trust or foundation to the Board of Trustees of Southern Illinois University for the purpose of funding programs or projects related to clean coal and provided further that $25,000,000 of the amount contributed to the trust or foundation shall be available to fund programs or projects related to clean coal.

(7) The trust or foundation shall be authorized to employ an executive director and other employees, to enter into leases, contracts and other obligations on behalf of the trust or foundation, and to incur expenses that the trustees deem necessary or appropriate for the fulfillment of the purposes for which the trust or SB1903 Enrolled -54- LRB093 08682 RCE 08912 b foundation is established, provided, however, that salaries and administrative expenses incurred on behalf of the trust or foundation shall not exceed $500,000 in the first fiscal year after the trust or foundation is established and shall not exceed $1,000,000 in each subsequent fiscal year.

(8) The trustees may create and appoint advisory boards or committees to assist them with the administration of the trust or foundation, and to advise and make recommendations to them regarding the contribution and disbursement of the trust or foundation funds.

(c)(1) In addition to the allocation and disbursement of funds for the purposes set forth in subsection (a) of this Section, the trustees of the trust or foundation shall annually contribute funds in amounts set forth in subparagraph (2) of this subsection to the Citizens Utility Board created by the Citizens Utility Board Act;

provided, however, that any such funds shall be used solely for the representation of the interests of utility consumers before the Illinois Commerce Commission, the Federal Energy Regulatory Commission, and the Federal Communications Commission and for the provision of consumer education on utility service and prices and on benefits and methods of energy conservation.

Provided, however, that no part of such funds shall be used to support (i) any lobbying activity, (ii) activities related to fundraising, (iii) advertising or other marketing efforts regarding a particular utility, or (iv) solicitation of support for, or advocacy of, a particular position regarding any specific utility or a utility's docketed proceeding.

(2) In the calendar year in which the trust or foundation is first funded, the trustees shall contribute SB1903 Enrolled -55- LRB093 08682 RCE 08912 b $1,000,000 to the Citizens Utility Board within 60 days after such trust or foundation is established;

provided, however, that such contribution shall be made after December 31, 1999.

In each of the 6 calendar years subsequent to the first contribution, if the trust or foundation is in existence, the trustees shall contribute to the Citizens Utility Board an amount equal to the total expenditures by such organization in the prior calendar year, as set forth in the report filed by the Citizens Utility Board with the chairman of such trust or foundation as required by subparagraph (3) of this subsection.

Such subsequent contributions shall be made within 30 days of submission by the Citizens Utility Board of such report to the Chairman of the trust or foundation, but in no event shall any annual contribution by the trustees to the Citizens Utility Board exceed $1,000,000.

Following such 7-year period, an Illinois statutory consumer protection agency may petition the trust or foundation for contributions to fund expenditures of the type identified in paragraph (1), but in no event shall annual contributions by the trust or foundation for such expenditures exceed $1,000,000.

(3) The Citizens Utility Board shall file a report with the chairman of such trust or foundation for each year in which it expends any funds received from the trust or foundation setting forth the amount of any expenditures (regardless of the source of funds for such expenditures) for:

(i) the representation of the interests of utility consumers before the Illinois Commerce Commission, the Federal Energy Regulatory Commission, and the Federal Communications Commission, and (ii) the provision of consumer education on utility service and prices and on benefits and methods of energy conservation.

Such report shall separately state the SB1903 Enrolled -56- LRB093 08682 RCE 08912 b total amount of expenditures for the purposes or activities identified by items (i) and (ii) of this paragraph, the name and address of the external recipient of any such expenditure, if applicable, and the specific purposes or activities (including internal purposes or activities) for which each expenditure was made.

Any report required by this subsection shall be filed with the chairman of such trust or foundation no later than March 31 of the year immediately following the year for which the report is required.

_d______________________o______________________d____________ _____u_____________________o_______________________t____________ _____a_____________________e______________________,_____________ _____d_____________________e______________________e_____________ _____e_____________________S______________________s_____________ _____m_____________________a______________________e_____________ _____o_____________________e_______________________A____________ _____d______________________a_____________________e_____________ _____n_____________________o______________________t_____________ _____n_____________________p______________________e_____________ _____i_____________________o______________________t_____________ _____f_____________________m______________________B_____________ _____t_____________________d______________________s_____________ _____p_____________________s_______________________t____________ ______t____________________o______________________f_____________ (Source:

P.A.

91-50, eff.

6-30-99;

91-781, eff.

6-9-00.) Section 50-61.

The Liquor Control Act of 1934 is amended by changing Section 12-4 as follows:

(235 ILCS 5/12-4) Sec.

12-4.

Grape and Wine Resources Fund.

Beginning July 1, 1999 and ending June 30, 2 ____ ----, on the first day of each State fiscal year, or as soon thereafter as may be SB1903 Enrolled -57- LRB093 08682 RCE 08912 b practical, the State Comptroller shall transfer the sum of $500,000 from the General Revenue Fund to the Grape and Wine Resources Fund, which is hereby continued as a special fund in the State Treasury.

By January 1, 2004, the Department of Commerce and Community Affairs shall review the activities of the Council and report to the General Assembly and the Governor its recommendation of whether or not the funding under this Section should be continued.

The Grape and Wine Resources Fund shall be administered by the Department of Commerce and Community Affairs, which shall serve as the lead administrative agency for allocation and auditing of funds as well as monitoring program implementation.

The Department shall make an annual grant of moneys from the Fund to the Council, which shall be used to pay for the Council's operations and expenses.

These moneys shall be used by the Council to achieve the Council's objectives and shall not be used for any political or legislative purpose.

Money remaining in the Fund at the end of the fiscal year shall remain in the Fund for use during the following year and shall not be transferred to any other State fund.

(Source:

P.A.

91-472, eff.

8-10-99.) Section 50-62.

The Environmental Protection Act is amended by changing Sections 55 and 55.8 and adding Section 55.6a as follows:

(415 ILCS 5/55) (from Ch.

111 1/2, par.

1055) Sec.

55.

Prohibited activities.

(a) No person shall:

(1) Cause or allow the open dumping of any used or waste tire.

(2) Cause or allow the open burning of any used or waste tire.

SB1903 Enrolled -58- LRB093 08682 RCE 08912 b (3) Except at a tire storage site which contains more than 50 used tires, cause or allow the storage of any used tire unless the tire is altered, reprocessed, converted, covered, or otherwise prevented from accumulating water.

(4) Cause or allow the operation of a tire storage site except in compliance with Board regulations.

(5) Abandon, dump or dispose of any used or waste tire on private or public property, except in a sanitary landfill approved by the Agency pursuant to regulations adopted by the Board.

(6) Fail to submit required reports, tire removal agreements, or Board regulations.

(b) (Blank.) (b-1) Beginning January 1, 1995, no person shall knowingly mix any used or waste tire, either whole or cut, with municipal waste, and no owner or operator of a sanitary landfill shall accept any used or waste tire for final disposal;

except that used or waste tires, when separated from other waste, may be accepted if:

(1) the sanitary landfill provides and maintains a means for shredding, slitting, or chopping whole tires and so treats whole tires and, if approved by the Agency in a permit issued under this Act, uses the used or waste tires for alternative uses, which may include on-site practices such as lining of roadways with tire scraps, alternative daily cover, or use in a leachate collection system or (2) the sanitary landfill, by its notification to the Illinois Industrial Materials Exchange Service, makes available the used or waste tire to an appropriate facility for reuse, reprocessing, or converting, including use as an alternate energy fuel.

If, within 30 days after notification to the Illinois Industrial Materials Exchange Service of the availability of waste tires, no specific request for the used or waste tires is received by SB1903 Enrolled -59- LRB093 08682 RCE 08912 b the sanitary landfill, and the sanitary landfill determines it has no alternative use for those used or waste tires, the sanitary landfill may dispose of slit, chopped, or shredded used or waste tires in the sanitary landfill.