Bill Text: IL HB0902 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Creates the Cannabis Legalization Equity Act. Provides that notwithstanding any other provision of law, except as otherwise provided in the Act, the following acts are lawful and shall not be a criminal or civil offense under State law or the law of any political subdivision of this State or be a basis for seizure or forfeiture of assets under State law for persons 21 years of age or older: (1) possessing, consuming, using, displaying, purchasing, or transporting cannabis accessories; (2) possessing, growing, processing, or transporting on one's own premises no more than 24 mature cannabis plants and possession of the cannabis produced by the plants on the premises where the plants were grown; (3) possessing outside one's premises no more than 224 grams of cannabis; and (4) assisting another person who is 21 years of age or older in any of the acts described in items (1) through (3). Provides that an excise tax is imposed at the rate of 10% of the sale price of the sale or transfer of cannabis from a cannabis cultivation facility to a retail cannabis store or cannabis product manufacturing facility. Provides that at least 51% of the licenses issued by the Department of Agriculture for cannabis cultivation facilities and at least 51% of the licenses issued by the Department of Financial and Professional Regulation for retail cannabis stores shall be in communities disproportionately harmed by the war on drugs. Amends various other Acts to make conforming changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2019-04-10 - Added Chief Co-Sponsor Rep. Emanuel Chris Welch [HB0902 Detail]

Download: Illinois-2019-HB0902-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB0902 Introduced , by Rep. Carol Ammons SYNOPSIS AS INTRODUCED:
See Index
Creates the Cannabis Legalization Equity Act. Provides that notwithstanding any other provision of law, except as otherwise provided in the Act, the following acts are lawful and shall not be a criminal or civil offense under State law or the law of any political subdivision of this State or be a basis for seizure or forfeiture of assets under State law for persons 21 years of age or older: (1) possessing, consuming, using, displaying, purchasing, or transporting cannabis accessories; (2) possessing, growing, processing, or transporting on one's own premises no more than 24 mature cannabis plants and possession of the cannabis produced by the plants on the premises where the plants were grown; (3) possessing outside one's premises no more than 224 grams of cannabis; and (4) assisting another person who is 21 years of age or older in any of the acts described in items (1) through (3). Provides that an excise tax is imposed at the rate of 10% of the sale price of the sale or transfer of cannabis from a cannabis cultivation facility to a retail cannabis store or cannabis product manufacturing facility. Provides that at least 51% of the licenses issued by the Department of Agriculture for cannabis cultivation facilities and at least 51% of the licenses issued by the Department of Financial and Professional Regulation for retail cannabis stores shall be in communities disproportionately harmed by the war on drugs. Amends various other Acts to make conforming changes. Effective immediately.
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CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning cannabis.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Cannabis Legalization Equity Act.
Section 5. Purpose and findings.
(a) In the interest of allowing law enforcement to focus on
violent and property crimes, generating revenue for education
and other public purposes, and individual freedom, the State
finds and declares that the use of cannabis shall be legal for
persons 21 years of age or older and taxed in a manner similar
to alcohol.
(b) In the interest of the health and public safety of our
citizenry, the people of this State further find and declare
that cannabis should be regulated in a manner similar to
alcohol so that:
(1) persons must show proof of age before purchasing
cannabis;
(2) selling, distributing, or transferring cannabis to
persons under 21 years of age shall remain illegal;
(3) driving under the influence of cannabis shall
remain illegal;
(4) legitimate, taxpaying business people, and not

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criminal actors, shall conduct sales of cannabis; and
(5) cannabis sold in this State shall be tested,
labeled, and subject to additional regulations to ensure
that consumers are informed and protected.
(c) In the interest of enacting rational policies for the
treatment of all variations of the cannabis plant, the State
further finds and declares that industrial hemp shall be
regulated separately from strains of cannabis with higher
delta-9 tetrahydrocannabinol (THC) concentrations.
(d) The State further finds and declares that it is
necessary to ensure consistency and fairness in the application
of this Act throughout the State and that the matters addressed
by this Act are, except as specified in this Act, matters of
statewide concern.
Section 10. Definitions. As used in this Act:
"Cannabis" means all parts of the plant of the genus
cannabis, the seeds of the plant of the genus cannabis, the
resin extracted from any part of the plant, and every compound,
manufacture, salt, derivative, mixture, or preparation of the
plant, its seeds, or its resin, including cannabis concentrate
and hashish. "Cannabis" does not include industrial hemp, nor
does it include fiber produced from the stalks, oil, or cake
made from the seeds of the plant, sterilized seed of the plant
which is incapable of germination, or the weight of any other
ingredient combined with cannabis to prepare topical or oral

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administrations, food, drink, or other product.
"Cannabis accessories" means any equipment, products, or
materials of any kind which are used, intended for use, or
designed for use in planting, propagating, cultivating,
growing, harvesting, composting, manufacturing, compounding,
converting, producing, processing, preparing, testing,
analyzing, packaging, repackaging, storing, vaporizing, or
containing cannabis, or for ingesting, inhaling, or otherwise
introducing cannabis into the human body.
"Cannabis cultivation facility" means an entity registered
to cultivate, prepare, and package cannabis and sell cannabis
to retail cannabis stores, to cannabis product manufacturing
facilities, and to other cannabis cultivation facilities, but
not to consumers. A cannabis cultivation facility may produce
cannabis concentrates, tinctures, extracts, or other cannabis
products.
"Cannabis establishment" means a cannabis cultivation
facility, a cannabis testing facility, a cannabis product
manufacturing facility, or a retail cannabis store.
"Cannabis product manufacturing facility" means an entity
registered to purchase cannabis; manufacture, prepare, and
package cannabis products; and sell cannabis and cannabis
products to other cannabis product manufacturing facilities
and to retail cannabis stores, but not to consumers.
"Cannabis products" means concentrated cannabis products
and cannabis products that are comprised of cannabis and other

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ingredients and are intended for use or consumption, such as,
but not limited to, edible products, ointments, and tinctures.
"Cannabis testing facility" means an entity registered to
analyze and certify the safety and potency of cannabis.
"Consumer" means a person 21 years of age or older who
purchases cannabis or cannabis products for personal use by
persons 21 years of age or older, but not for resale to others.
"Department" means the following:
(1) the Department of Agriculture, or its successor
agency, concerning the issuance, renewal, suspension, and
revocation of a registration to operate a cannabis
cultivation facility; or
(2) the Department of Financial and Professional
Regulation, or its successor agency, concerning the
issuance, renewal, suspension, and revocation of a
registration to operate a retail cannabis store, cannabis
product manufacturing facility, or cannabis testing
facility.
"Industrial hemp" means the plant of the genus cannabis and
any part of the plant, whether growing or not, with a delta-9
tetrahydrocannabinol concentration that does not exceed
three-tenths percent on a dry weight basis.
"Locality" means a municipality or, in reference to a
location outside the boundaries of a municipality, a county.
"Local regulatory authority" means the office or entity
designated to process cannabis establishment applications by a

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municipality or, in reference to a location outside the
boundaries of a municipality, a county.
"Public place" means any place to which the general public
has access.
"Retail cannabis store" means an entity registered to
purchase cannabis from cannabis cultivation facilities and
cannabis and cannabis products from cannabis product
manufacturing facilities and to sell cannabis and cannabis
products to consumers.
"Unreasonably impracticable" means that the measures
necessary to comply with the regulations require a high
investment of risk, money, time, or any other resource or asset
that the operation of a cannabis establishment is not worthy of
being carried out in practice by a reasonably prudent business
person.
Section 15. Personal use of cannabis. Notwithstanding any
other provision of law, except as otherwise provided in this
Act, the following acts are lawful and shall not be a criminal
or civil offense under State law or the law of any political
subdivision of this State or be a basis for seizure or
forfeiture of assets under State law for persons 21 years of
age or older:
(1) possessing, consuming, using, displaying,
purchasing, or transporting cannabis accessories;
(2) possessing, growing, processing, or transporting

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on one's own premises no more than 24 mature cannabis
plants and possession of the cannabis produced by the
plants on the premises where the plants were grown;
(3) possessing outside his or her premises no more than
224 grams of cannabis; or
(4) assisting another person who is 21 years of age or
older in any of the acts described in paragraphs (1)
through (3) of this Section.
Section 20. Restrictions on personal cultivation; penalty.
(a) It is unlawful for a person who is 21 years of age or
older to cultivate cannabis plants in a manner that is contrary
to this Section. Cannabis cultivation may only occur on
property lawfully in possession of the cultivator or with the
consent of the person in lawful possession of the property.
(b) A person who violates this Section is guilty of a civil
law violation punishable by a fine not to exceed $750.
Section 30. False identification; penalty.
(a) A person who is under 21 years of age may not present
or offer to a cannabis establishment or the cannabis
establishment's agent or employee any written or oral evidence
of age that is false, fraudulent, or not actually the person's
own, for the purpose of:
(1) purchasing, attempting to purchase, or otherwise
procuring or attempting to procure cannabis; or

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(2) gaining access to a cannabis establishment.
(b) A person who violates this Section is guilty of a civil
law violation punishable by a fine of not less than $200 and
not more than $400.
Section 35. Cannabis accessories authorized.
(a) Notwithstanding any other provision of law, it is
lawful and shall not be an offense under State law or the law
of any political subdivision of this State or be a basis for
seizure or forfeiture of assets under State law for persons 21
years of age or older to manufacture, possess, or purchase
cannabis accessories, or to distribute or sell cannabis
accessories to a person who is 21 years of age or older.
(b) A person who is 21 years of age or older may
manufacture, possess, and purchase cannabis accessories, and
distribute or sell cannabis accessories to a person who is 21
years of age or older.
Section 40. Lawful operation of cannabis-related
facilities.
(a) Notwithstanding any other provision of law, the
following acts, when performed by a retail cannabis store with
a current, valid registration, or a person 21 years of age or
older who is acting in his or her capacity as an owner,
employee, or agent of a retail cannabis store, are lawful and
shall not be an offense under State law or be a basis for

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seizure or forfeiture of assets under State law:
(1) possessing, displaying, storing, or transporting
cannabis or cannabis products, provided that cannabis and
cannabis products may not be displayed in a manner that is
visible to the general public from a public right-of-way;
(2) purchasing cannabis from a cannabis cultivation
facility;
(3) purchasing cannabis or cannabis products from a
cannabis product manufacturing facility; and
(4) delivering, distributing, or selling cannabis or
cannabis products to consumers.
(b) Notwithstanding any other provision of law, the
following acts, when performed by a cannabis cultivation
facility with a current, valid registration, or a person 21
years of age or older who is acting in his or her capacity as an
owner, employee, or agent of a cannabis cultivation facility,
are lawful and shall not be an offense under State law or be a
basis for seizure or forfeiture of assets under State law:
(1) cultivating, harvesting, processing, packaging,
transporting, displaying, storing, or possessing cannabis;
(2) delivering or transferring cannabis to a cannabis
testing facility;
(3) delivering, distributing, or selling cannabis to a
cannabis cultivation facility, a cannabis product
manufacturing facility, or a retail cannabis store;
(4) receiving or purchasing cannabis from a cannabis

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cultivation facility; and
(5) receiving cannabis seeds or immature cannabis
plants from a person 21 years of age or older.
(c) Notwithstanding any other provision of law, the
following acts, when performed by a product manufacturing
facility with a current, valid registration, or a person 21
years of age or older who is acting in his or her capacity as an
owner, employee, or agent of a product manufacturing facility,
are lawful and shall not be an offense under State law or be a
basis for seizure or forfeiture of assets under State law:
(1) packaging, processing, transporting,
manufacturing, displaying, or possessing cannabis or
cannabis products;
(2) delivering or transferring cannabis or cannabis
products to a cannabis testing facility;
(3) delivering or selling cannabis or cannabis
products to a retail cannabis store or a cannabis product
manufacturing facility;
(4) purchasing cannabis from a cannabis cultivation
facility;
(5) purchasing cannabis or cannabis products from a
cannabis product manufacturing facility; and
(6) leasing or otherwise allowing the use of property
owned, occupied, or controlled by any person, corporation,
or other entity for any of the activities conducted
lawfully under paragraphs (1) through (3) of this

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subsection.
(d) Notwithstanding any other provision of law, the
following acts, when performed by a cannabis testing facility
with a current, valid registration, or a person 21 years of age
or older who is acting in his or her capacity as an owner,
employee, or agent of a cannabis testing facility, are lawful
and shall not be an offense under State law or be a basis for
seizure or forfeiture of assets under State law:
(1) possessing, cultivating, processing, repackaging,
storing, transporting, or displaying cannabis;
(2) receiving cannabis from a cannabis cultivation
facility, a cannabis retail store, a cannabis products
manufacturer, or a person 21 years of age or older;
(3) returning cannabis to a cannabis cultivation
facility, cannabis retail store, cannabis products
manufacturer, or a person 21 years of age or older; and
(4) leasing or otherwise allowing the use of property
owned, occupied, or controlled by any person, corporation,
or other entity for any of the activities conducted
lawfully under paragraphs (1) through (3) of this
subsection.
(e) Nothing in this Section prevents the imposition of
penalties for violating this Act or rules adopted by the
Department or localities under this Act.
Section 45. Rulemaking.

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(a) Not later than 180 days after the effective date of
this Act, the Department shall adopt rules necessary for
implementation of this Act. The rules shall not prohibit the
operation of cannabis establishments, either expressly or
through rules that make their operation unreasonably
impracticable. The rules shall include:
(1) procedures for the issuance, renewal, suspension,
and revocation of a registration to operate a cannabis
establishment, with the procedures subject to all
requirements of the Illinois Administrative Procedure Act;
(2) a schedule of application, registration, and
renewal fees, provided, application fees shall not exceed
$5,000, with this upper limit adjusted annually for
inflation, unless the Department determines a greater fee
is necessary to carry out its responsibilities under this
Act;
(3) qualifications for registration that are directly
and demonstrably related to the operation of a cannabis
establishment;
(4) security requirements for cannabis establishments,
including for the transportation of cannabis by cannabis
establishments;
(5) requirements to prevent the sale or diversion of
cannabis and cannabis products to persons under 21 years of
age;
(6) labeling requirements for cannabis and cannabis

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products sold or distributed by a cannabis establishment;
(7) health and safety rules and standards for the
manufacture of cannabis products and both the indoor and
outdoor cultivation of cannabis by cannabis
establishments;
(8) restrictions on the advertising and display of
cannabis and cannabis products; and
(9) civil law violations for the failure to comply with
rules made under this Act.
(b) Not later than 180 days after the effective date of
this Act, the Department of Revenue shall adopt rules for
collecting taxes levied on cannabis cultivation facilities.
(c) In order to ensure that individual privacy is
protected, notwithstanding paragraph (1) of subsection (a) of
this Section, the Department shall not require a consumer to
provide a retail cannabis store with personal information other
than government-issued identification to determine the
consumer's age, and a retail cannabis store shall not be
required to acquire and record personal information about
consumers.
Section 50. Cannabis establishment registrations.
(a) Each application or renewal application for an annual
registration to operate a cannabis establishment shall be
submitted to the Department. A renewal application may be
submitted up to 90 days prior to the expiration of the cannabis

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establishment's registration.
(b) The Department shall begin accepting and processing
applications to operate cannabis establishments one year after
the effective date of this Act.
(c) Upon receiving an application or renewal application
for a cannabis establishment, the Department shall immediately
forward a copy of each application and half of the registration
application fee to the local regulatory authority for the
locality in which the applicant desires to operate the cannabis
establishment, unless the locality has not designated a local
regulatory authority.
(d) Within 45 to 90 days after receiving an application or
renewal application, the Department shall issue an annual
registration to the applicant, unless the Department finds the
applicant is not in compliance with rules adopted under Section
45 of this Act or the Department is notified by the relevant
locality that the applicant is not in compliance with
ordinances and rules made under Section 55 of this Act and in
effect at the time of application.
(e) If a locality has enacted a numerical limit on the
number of cannabis establishments and a greater number of
applicants seek registration, the Department shall solicit and
consider input from the local regulatory authority as to the
locality's preference or preferences for registration.
(f) Upon denial of an application, the Department shall
notify the applicant in writing of the specific reason for its

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denial.
(g) Every cannabis establishment registration shall
specify the location where the cannabis establishment will
operate. A separate registration shall be required for each
location at which a cannabis establishment operates.
(h) Cannabis establishments and the books and records
maintained and created by cannabis establishments are subject
to inspection by the Department.
(i) Until the Department adopts rules under this Act for
the issuance of licenses for cannabis cultivation facilities
and retail cannabis stores, a cultivation center or retail
cannabis store registered under the Compassionate Use of
Medical Cannabis Pilot Program Act is considered a licensed
cannabis cultivation facility or retail cannabis store under
this Act. After the Department adopts rules for the issuance of
licenses for cannabis cultivation facilities or retail
cannabis stores under this Act, the facility or store must
obtain a license under this Act.
Section 51. Licenses issued to cannabis cultivation
facilities and retail cannabis stores located in communities
disproportionately harmed by the war on drugs.
(a) In this Section, "community disproportionately harmed
by the war on drugs" means a census tract or tracts in which a
majority of the population is any of the following:
(1) Black or African American;

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(2) American Indian or Alaska Native; or
(3) Hispanic or Latino.
(b) At least 51% of the licenses issued by the Department
of Agriculture for cannabis cultivation facilities and at least
51% of the licenses issued by the Department of Financial and
Professional Regulation for retail cannabis stores shall be in
communities disproportionately harmed by the war on drugs.
(c) The Department of Agriculture may not deny licenses for
operation of cannabis cultivation facilities and the
Department of Financial and Professional Regulation may not
deny licenses for operation of retail cannabis stores to
persons who apply for them to be located in communities
disproportionately harmed by the war on drugs because of the
applicants' prior felony convictions under the Cannabis
Control Act, Illinois Controlled Substances Act, or
Methamphetamine Control and Community Protection Act or
similar federal laws or laws of another state or territory of
the United States or any foreign country.
Section 52. Net income from cannabis cultivation
facilities, retail cannabis stores, and on-site consumption
facilities reinvested in local community.
(a) In this Section:
"Densely populated" means a population of over 10,000
people per square mile and having a total population of over
75,000.

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"Local community" means an area located within a 5 mile
radius of the facility's or store's location, except in areas
that are densely populated, in which case "local community"
means an area located within a one mile radius of the
facility's or store's location,
"Net income" has the meaning ascribed to it in Section 202
of the Illinois Income Tax Act.
(b) At least 10% of the net income from a cannabis
cultivation facility, at least 10% of the net income from a
retail cannabis store, and at least 10% of the net income from
an on-site consumption facility shall be reinvested in the
local community where it operates.
Section 55. Local control.
(a) A locality may prohibit the operation of cannabis
cultivation facilities, cannabis product manufacturing
facilities, cannabis testing facilities, or retail cannabis
stores through the enactment of an ordinance or through an
initiated or referred measure, provided, any initiated or
referred measure to prohibit the operation of cannabis
cultivation facilities, cannabis product manufacturing
facilities, cannabis testing facilities, or retail cannabis
stores must appear on a general election ballot.
(b) A locality may enact ordinances or regulations not in
conflict with this Act, or with rules adopted under this Act,
governing the time, place, manner, and number of cannabis

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establishment operations. A locality may punish as a civil law
violation of an ordinance or regulations governing the time,
place, and manner of a cannabis establishment that may operate
in the locality.
(c) A locality may designate a local regulatory authority
that is responsible for processing applications submitted for a
registration to operate a cannabis establishment within the
boundaries of the locality. The locality may provide that the
local regulatory authority may issue the registrations should
the issuance by the locality become necessary because of a
failure by the Department to adopt rules under Section 45 of
this Act or to accept or process applications under Section 50
of this Act.
(d) A locality may establish procedures for the issuance,
suspension, and revocation of a registration issued by the
locality under subsection (f) or subsection (g) of this
Section. These procedures are subject to all requirements of
the Illinois Administrative Procedure Act.
(e) A locality may establish a schedule of annual
operating, registration, and application fees for cannabis
establishments, provided, the application fee shall only be due
if an application is submitted to a locality under subsection
(f) of this Section and a registration fee shall only be due if
a registration is issued by a locality under subsection (f) or
(g) of this Section.
(f) If the Department does not issue a registration to an

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applicant within 90 days of receipt of the application filed
under Section 50 of this Act and does not notify the applicant
of the specific, permissible reason for its denial, in writing
and within the time period, or if the Department has adopted
rules under Section 45 of this Act and has accepted
applications under Section 50 of this Act but has not issued
any registrations within 15 months after the effective date of
this Act, the applicant may resubmit its application directly
to the local regulatory authority, under subsection (c) of this
Section, and the local regulatory authority may issue an annual
registration to the applicant. If an application is submitted
to a local regulatory authority under this paragraph, the
Department shall forward to the local regulatory authority the
application fee paid by the applicant to the Department upon
request by the local regulatory authority.
(g) If the Department does not adopt rules required by
Section 45 of this Act, an applicant may submit an application
directly to a local regulatory authority after one year from
the effective date of this Act, and the local regulatory
authority may issue an annual registration to the applicant.
(h) A local regulatory authority issuing a registration to
an applicant shall do so within 90 days of receipt of the
submitted or resubmitted application, unless the local
regulatory authority finds and notifies the applicant that the
applicant is not in compliance with ordinances and regulations
made under subsection (b) of this Section in effect at the time

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the application is submitted to the local regulatory authority.
The locality shall notify the Department if an annual
registration has been issued to the applicant.
(i) A registration issued by a locality under subsection
(f) or (g) of this Section shall have the same force and effect
as a registration issued by the Department under Section 50 of
this Act. The holder of the registration shall not be subject
to regulation or enforcement by the Department during the term
of that registration.
(j) A subsequent or renewed registration may be issued
under subsection (f) of this Section on an annual basis only
upon resubmission to the locality of a new application
submitted to the Department under Section 50 of this Act.
(k) A subsequent or renewed registration may be issued
under subsection (g) of this Section on an annual basis if the
Department has not adopted rules required by Section 45 of this
Act at least 90 days prior to the date upon which the
subsequent or renewed registration would be effective, or if
the Department has adopted rules under Section 45 of this Act
but has not, at least 90 days after the adoption of those
rules, issued registrations under Section 50 of this Act.
(l) A locality may create a license for or prohibit on-site
consumption of cannabis by persons legally able to purchase
cannabis at a retail cannabis store.
(m) Nothing in this Section limits the relief as may be
available to an aggrieved party under the Illinois

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Administrative Procedure Act.
(n) A locality, including a home rule unit, may not
regulate the possession, sale, transfer, or cultivation of
cannabis in a manner less restrictive than the regulation by
the State of the possession, sale, transfer, or cultivation of
cannabis under this Act. This Section is a limitation under
subsection (i) of Section 6 of Article VII of the Illinois
Constitution on the concurrent exercise by home rule units of
powers and functions exercised by the State.
Section 60. Preserving the integrity of State law. The
Attorney General shall zealously and in good faith advocate to
quash any federal subpoena for records involving cannabis
establishments.
Section 65. Employers, minors, and control of property.
(a) Nothing in this Act requires an employer to permit or
accommodate the use, consumption, possession, transfer,
display, transportation, sale, or growing of cannabis in the
workplace or to affect the ability of employers to have
policies restricting the use of cannabis by employees or
discipline employees who are under the influence of cannabis in
the workplace.
(b) Nothing in this Act permits the transfer of cannabis,
with or without remuneration, to a person under 21 years of age
or to allow a person under 21 years of age to purchase,

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possess, use, transport, grow, or consume cannabis.
(c) Nothing in this Act prohibits a person, employer,
school, hospital, detention facility, corporation, or any
other entity who occupies, owns, or controls a property from
prohibiting or otherwise regulating the possession,
consumption, use, display, transfer, distribution, sale,
transportation, or growing of cannabis on or in that property.
Section 70. Research authorized. Scientific and medical
researchers who have previously published may purchase,
possess, and securely store cannabis for purposes of conducting
research. Scientific and medical researchers may administer
and distribute cannabis to participants in research who are 21
years of age or older after receiving informed consent from the
subjects.
Section 75. Cannabis Regulation Fund. The Cannabis
Regulation Fund is created as a special fund in the State
treasury consisting of fees collected and fines imposed under
this Act. The Department of Agriculture and the Department of
Financial and Professional Regulation shall administer the
fund.
Section 80. Excise tax on cannabis.
(a) An excise tax is imposed on the sale or transfer of
cannabis from a cannabis cultivation facility to a retail

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cannabis store or cannabis product manufacturing facility.
Each cannabis cultivation facility shall pay an excise tax at
the rate of 10% of the sale price of cannabis that is sold or
transferred from a cannabis cultivation facility to a retail
cannabis store or cannabis product manufacturing facility.
(b) The Department of Revenue shall adjust the rate
annually to account for inflation or deflation based on the
Consumer Price Index for All Urban Consumers as issued by the
United States Department of Labor. If the tax rate is changed
under this subsection (b), the Department of Revenue shall
publish the adjusted rate on its website and in a newspaper of
general circulation in the State not less than 60 days prior to
the effective date of the rate adjustment.
(c) On or before the 15th day of each month, each cannabis
cultivation facility shall pay to the Department of Revenue the
excise tax due under this Section on sales and transfers of
cannabis made by that cannabis cultivation facility in the
immediately preceding calendar month. Payment shall be
accompanied by a return filed in the form and manner prescribed
by the Department of Revenue and containing the information as
the Department of Revenue may require. 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.
(d) The provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e,

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5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, 10, and 12 of the
Retailers' Occupation Tax Act which are not inconsistent with
this Act, and Section 3-7 of the Uniform Penalty and Interest
Act, shall apply as far as practicable to the tax imposed under
this Section to the same extent as if those provisions were
included in this Act.
Section 85. Distribution of excise tax proceeds. All moneys
received by the Department of Revenue under Section 80 of this
Act shall be deposited into the Cannabis Excise Tax Fund, a
special fund in the State treasury. Moneys in the Fund shall be
used by the Department of Agriculture and the Department of
Financial and Professional Regulation to implement and enforce
this Act. Within 90 days after the effective date of this Act
and every year thereafter, the Director of Revenue shall
certify the amounts needed to implement and enforce this Act by
the Department of Revenue, and the Comptroller shall order
transferred and the Treasurer shall transfer from the Cannabis
Excise Tax Fund the following amounts every 3 months:
(1) 30% shall be distributed to the Common School Fund to
be used at the discretion of the State Board of Education for
its duties prescribed by law;
(2) 5% percent shall be distributed to the Department of
Human Services for use in voluntary programs for the treatment
of alcohol, tobacco, and cannabis abuse;
(3) 5% percent shall be distributed to the Department of

HB0902 - 24 - LRB101 08006 RLC 53065 b
Public Health for a scientifically and medically accurate
public education campaign educating youth and adults about the
health and safety risks of alcohol, tobacco, and cannabis;
(4) 50% percent shall be deposited into the General Revenue
Fund;
(5) 2.5% shall be distributed to the State Employees'
Retirement System of Illinois;
(6) 2.5% shall be distributed to the Teachers' Retirement
System of the State of Illinois;
(7) 2.5% shall be distributed to the State Universities
Retirement System; and
(8) 2.5% shall be distributed to the Department of State
Police for the employment and training of drug recognition
experts.
Section 90. Privileges and rights under the Compassionate
Use of Medical Cannabis Pilot Program Act. Nothing in this Act
shall be construed to limit any privileges or rights of a
medical cannabis qualifying patient, designated caregiver,
cultivation center, cultivation center agent, medical cannabis
dispensing organization, or medical cannabis dispensing
organization agent under the Compassionate Use of Medical
Cannabis Pilot Program Act.
Section 95. Nonviolent cannabis offenders; application for
commutation of sentence; dismissal of charges. A person

HB0902 - 25 - LRB101 08006 RLC 53065 b
convicted of a violation of the Cannabis Control Act who is
serving a sentence in a correctional institution may, within 90
days after the effective date of this Act, file a petition for
commutation of his or her sentence under Section 3-3-13 of the
Unified Code of Corrections addressed to the Governor and filed
with the Prisoner Review Board. The petition shall be in
writing and signed by the person under conviction or by a
person on his or her behalf. It shall contain a brief history
of the case, the reasons for seeking executive clemency, and
other relevant information the Board may require. The person
may apply to the State's Attorney of the county where his or
her prosecution is pending for dismissal of any pending
cannabis charges against the person after a review of the
person's criminal record. Nonviolent offenders who have
violated the terms of their parole, mandatory supervised
release, probation, or conditional discharge for testing
positive for cannabis may also apply for commutation of their
sentences. The person may apply to: (i) the circuit court for
expungement of his or her arrest and conviction records; and
(ii) the State's Attorney for dismissal of any pending cannabis
charges against the person. The circuit court or State's
Attorney shall review the person's criminal record.
Section 100. Conflicting provisions. Except as otherwise
provided in this Act, in case of a conflict between this Act
and any other law or ordinance, the provisions of this Act

HB0902 - 26 - LRB101 08006 RLC 53065 b
shall control.
Section 900. The Alcoholism and Other Drug Abuse and
Dependency Act is amended by changing Section 40-5 as follows:
(20 ILCS 301/40-5)
Sec. 40-5. Election of treatment. An individual with a
substance use disorder who is charged with or convicted of a
crime or any other person charged with or convicted of a
misdemeanor violation of the Use of Intoxicating Compounds Act
and who has not been previously convicted of a violation of
that Act may elect treatment under the supervision of a program
holding a valid intervention license for designated program
services issued by the Department, referred to in this Article
as "designated program", unless:
(1) the crime is a crime of violence;
(2) the crime is a violation of Section 401(a), 401(b),
401(c) where the person electing treatment has been
previously convicted of a non-probationable felony or the
violation is non-probationable, 401(d) where the violation
is non-probationable, 401.1, 402(a), 405 or 407 of the
Illinois Controlled Substances Act, or Section 12-7.3 of
the Criminal Code of 2012, or Section 4(d), 4(e), 4(f),
4(g), 5(d), 5(e), 5(f), 5(g), 5.1, 7 or 9 of the Cannabis
Control Act or Section 15, 20, 55, 60(b)(3), 60(b)(4),
60(b)(5), 60(b)(6), or 65 of the Methamphetamine Control

HB0902 - 27 - LRB101 08006 RLC 53065 b
and Community Protection Act or is otherwise ineligible for
probation under Section 70 of the Methamphetamine Control
and Community Protection Act;
(3) the person has a record of 2 or more convictions of
a crime of violence;
(4) other criminal proceedings alleging commission of
a felony are pending against the person;
(5) the person is on probation or parole and the
appropriate parole or probation authority does not consent
to that election;
(6) the person elected and was admitted to a designated
program on 2 prior occasions within any consecutive 2-year
period;
(7) the person has been convicted of residential
burglary and has a record of one or more felony
convictions;
(8) the crime is a violation of Section 11-501 of the
Illinois Vehicle Code or a similar provision of a local
ordinance; or
(9) the crime is a reckless homicide or a reckless
homicide of an unborn child, as defined in Section 9-3 or
9-3.2 of the Criminal Code of 1961 or the Criminal Code of
2012, in which the cause of death consists of the driving
of a motor vehicle by a person under the influence of
alcohol or any other drug or drugs at the time of the
violation.

HB0902 - 28 - LRB101 08006 RLC 53065 b
Nothing in this Section shall preclude an individual who is
charged with or convicted of a crime that is a violation of
Section 60(b)(1) or 60(b)(2) of the Methamphetamine Control and
Community Protection Act, and who is otherwise eligible to make
the election provided for under this Section, from being
eligible to make an election for treatment as a condition of
probation as provided for under this Article.
(Source: P.A. 99-78, eff. 7-20-15; 100-759, eff. 1-1-19.)
Section 905. The Criminal Identification Act is amended by
changing Sections 5 and 5.2 as follows:
(20 ILCS 2630/5) (from Ch. 38, par. 206-5)
Sec. 5. Arrest reports. All policing bodies of this State
shall furnish to the Department, daily, in the form and detail
the Department requires, fingerprints, descriptions, and
ethnic and racial background data as provided in Section 4.5 of
this Act of all persons who are arrested on charges of
violating any penal statute of this State for offenses that are
classified as felonies and Class A or B misdemeanors and of all
minors of the age of 10 and over who have been arrested for an
offense which would be a felony if committed by an adult, and
may forward such fingerprints and descriptions for minors
arrested for Class A or B misdemeanors. Moving or nonmoving
traffic violations under the Illinois Vehicle Code shall not be
reported except for violations of Chapter 4, Section 11-204.1,

HB0902 - 29 - LRB101 08006 RLC 53065 b
or Section 11-501 of that Code. In addition, conservation
offenses, as defined in the Supreme Court Rule 501(c), that are
classified as Class B misdemeanors shall not be reported. Civil
law violations of the Cannabis Legalization Equity Act, the
Cannabis Control Act, and Section 111-3.1 of the Code of
Criminal Procedure of 1963 shall not be reported. Those law
enforcement records maintained by the Department for minors
arrested for an offense prior to their 17th birthday, or minors
arrested for a non-felony offense, if committed by an adult,
prior to their 18th birthday, shall not be forwarded to the
Federal Bureau of Investigation unless those records relate to
an arrest in which a minor was charged as an adult under any of
the transfer provisions of the Juvenile Court Act of 1987.
(Source: P.A. 98-528, eff. 1-1-15.)
(20 ILCS 2630/5.2)
Sec. 5.2. Expungement, sealing, and immediate sealing.
(a) General Provisions.
(1) Definitions. In this Act, words and phrases have
the meanings set forth in this subsection, except when a
particular context clearly requires a different meaning.
(A) The following terms shall have the meanings
ascribed to them in the Unified Code of Corrections,
730 ILCS 5/5-1-2 through 5/5-1-22:
(i) Business Offense (730 ILCS 5/5-1-2),
(ii) Charge (730 ILCS 5/5-1-3),

HB0902 - 30 - LRB101 08006 RLC 53065 b
(iii) Court (730 ILCS 5/5-1-6),
(iv) Defendant (730 ILCS 5/5-1-7),
(v) Felony (730 ILCS 5/5-1-9),
(vi) Imprisonment (730 ILCS 5/5-1-10),
(vii) Judgment (730 ILCS 5/5-1-12),
(viii) Misdemeanor (730 ILCS 5/5-1-14),
(ix) Offense (730 ILCS 5/5-1-15),
(x) Parole (730 ILCS 5/5-1-16),
(xi) Petty Offense (730 ILCS 5/5-1-17),
(xii) Probation (730 ILCS 5/5-1-18),
(xiii) Sentence (730 ILCS 5/5-1-19),
(xiv) Supervision (730 ILCS 5/5-1-21), and
(xv) Victim (730 ILCS 5/5-1-22).
(B) As used in this Section, "charge not initiated
by arrest" means a charge (as defined by 730 ILCS
5/5-1-3) brought against a defendant where the
defendant is not arrested prior to or as a direct
result of the charge.
(C) "Conviction" means a judgment of conviction or
sentence entered upon a plea of guilty or upon a
verdict or finding of guilty of an offense, rendered by
a legally constituted jury or by a court of competent
jurisdiction authorized to try the case without a jury.
An order of supervision successfully completed by the
petitioner is not a conviction. An order of qualified
probation (as defined in subsection (a)(1)(J))

HB0902 - 31 - LRB101 08006 RLC 53065 b
successfully completed by the petitioner is not a
conviction. An order of supervision or an order of
qualified probation that is terminated
unsatisfactorily is a conviction, unless the
unsatisfactory termination is reversed, vacated, or
modified and the judgment of conviction, if any, is
reversed or vacated.
(D) "Criminal offense" means a petty offense,
business offense, misdemeanor, felony, or municipal
ordinance violation (as defined in subsection
(a)(1)(H)). As used in this Section, a minor traffic
offense (as defined in subsection (a)(1)(G)) shall not
be considered a criminal offense.
(E) "Expunge" means to physically destroy the
records or return them to the petitioner and to
obliterate the petitioner's name from any official
index or public record, or both. Nothing in this Act
shall require the physical destruction of the circuit
court file, but such records relating to arrests or
charges, or both, ordered expunged shall be impounded
as required by subsections (d)(9)(A)(ii) and
(d)(9)(B)(ii).
(F) As used in this Section, "last sentence" means
the sentence, order of supervision, or order of
qualified probation (as defined by subsection
(a)(1)(J)), for a criminal offense (as defined by

HB0902 - 32 - LRB101 08006 RLC 53065 b
subsection (a)(1)(D)) that terminates last in time in
any jurisdiction, regardless of whether the petitioner
has included the criminal offense for which the
sentence or order of supervision or qualified
probation was imposed in his or her petition. If
multiple sentences, orders of supervision, or orders
of qualified probation terminate on the same day and
are last in time, they shall be collectively considered
the "last sentence" regardless of whether they were
ordered to run concurrently.
(G) "Minor traffic offense" means a petty offense,
business offense, or Class C misdemeanor under the
Illinois Vehicle Code or a similar provision of a
municipal or local ordinance.
(H) "Municipal ordinance violation" means an
offense defined by a municipal or local ordinance that
is criminal in nature and with which the petitioner was
charged or for which the petitioner was arrested and
released without charging.
(I) "Petitioner" means an adult or a minor
prosecuted as an adult who has applied for relief under
this Section.
(J) "Qualified probation" means an order of
probation under Section 10 of the Cannabis Control Act,
Section 410 of the Illinois Controlled Substances Act,
Section 70 of the Methamphetamine Control and

HB0902 - 33 - LRB101 08006 RLC 53065 b
Community Protection Act, Section 5-6-3.3 or 5-6-3.4
of the Unified Code of Corrections, Section
12-4.3(b)(1) and (2) of the Criminal Code of 1961 (as
those provisions existed before their deletion by
Public Act 89-313), Section 10-102 of the Illinois
Alcoholism and Other Drug Dependency Act, Section
40-10 of the Substance Use Disorder Act, or Section 10
of the Steroid Control Act. For the purpose of this
Section, "successful completion" of an order of
qualified probation under Section 10-102 of the
Illinois Alcoholism and Other Drug Dependency Act and
Section 40-10 of the Substance Use Disorder Act means
that the probation was terminated satisfactorily and
the judgment of conviction was vacated.
(K) "Seal" means to physically and electronically
maintain the records, unless the records would
otherwise be destroyed due to age, but to make the
records unavailable without a court order, subject to
the exceptions in Sections 12 and 13 of this Act. The
petitioner's name shall also be obliterated from the
official index required to be kept by the circuit court
clerk under Section 16 of the Clerks of Courts Act, but
any index issued by the circuit court clerk before the
entry of the order to seal shall not be affected.
(L) "Sexual offense committed against a minor"
includes but is not limited to the offenses of indecent

HB0902 - 34 - LRB101 08006 RLC 53065 b
solicitation of a child or criminal sexual abuse when
the victim of such offense is under 18 years of age.
(M) "Terminate" as it relates to a sentence or
order of supervision or qualified probation includes
either satisfactory or unsatisfactory termination of
the sentence, unless otherwise specified in this
Section. A sentence is terminated notwithstanding any
outstanding financial legal obligation.
(2) Minor Traffic Offenses. Orders of supervision or
convictions for minor traffic offenses shall not affect a
petitioner's eligibility to expunge or seal records
pursuant to this Section.
(2.5) Commencing 180 days after July 29, 2016 (the
effective date of Public Act 99-697), the law enforcement
agency issuing the citation shall automatically expunge,
on or before January 1 and July 1 of each year, the law
enforcement records of a person found to have committed a
civil law violation of subsection (a) of Section 4 of the
Cannabis Control Act or subsection (c) of Section 3.5 of
the Drug Paraphernalia Control Act in the law enforcement
agency's possession or control and which contains the final
satisfactory disposition which pertain to the person
issued a citation for that offense. The law enforcement
agency shall provide by rule the process for access,
review, and to confirm the automatic expungement by the law
enforcement agency issuing the citation. Commencing 180

HB0902 - 35 - LRB101 08006 RLC 53065 b
days after July 29, 2016 (the effective date of Public Act
99-697), the clerk of the circuit court shall expunge, upon
order of the court, or in the absence of a court order on
or before January 1 and July 1 of each year, the court
records of a person found in the circuit court to have
committed a civil law violation of subsection (a) of
Section 4 of the Cannabis Control Act or subsection (c) of
Section 3.5 of the Drug Paraphernalia Control Act in the
clerk's possession or control and which contains the final
satisfactory disposition which pertain to the person
issued a citation for any of those offenses.
(2.6) Commencing 180 days after the effective date of
this amendatory Act of the 101st General Assembly, the law
enforcement agency issuing the citation shall
automatically expunge, on or before January 1 and July 1 of
each year, the law enforcement records of a person found to
have committed a Class 4 felony or a Class A, B, or C
misdemeanor violation of the Cannabis Control Act in the
law enforcement agency's possession or control and which
contains the final satisfactory disposition which pertain
to the person issued a citation for that offense. The law
enforcement agency shall provide by rule the process for
access, review, and to confirm the automatic expungement by
the law enforcement agency issuing the citation.
Commencing 180 days after the effective date of this
amendatory Act of the 101st General Assembly, the clerk of

HB0902 - 36 - LRB101 08006 RLC 53065 b
the circuit court shall expunge, upon order of the court,
or in the absence of a court order on or before January 1
and July 1 of each year, the court records of a person
found in the circuit court to have committed a Class 4
felony or a Class A, B, or C misdemeanor violation of the
Cannabis Control Act in the clerk's possession or control
and which contains the final satisfactory disposition
which pertain to the person issued a citation for any of
those offenses. This paragraph (2.6) applies to civil law
violations of the Cannabis Legalization Equity Act, the
Cannabis Control Act, and Section 111-3.1 of the Code of
Criminal Procedure of 1963 and any criminal violation that
would no longer be an offense under this amendatory Act of
the 101st General Assembly and any criminal violation
committed by a person under 21 years of age who if he or
she were 21 years of age or older would not be in violation
of law as result of this amendatory Act of the 101st
General Assembly. This paragraph (2.6) does not apply if in
the sentencing order for the cannabis violation the court
determined that the conduct that gave rise to the
conviction occurred during the commission of a crime of
violence as defined in Section 2 of the Crime Victims
Compensation Act.
(3) Exclusions. Except as otherwise provided in
subsections (b)(5), (b)(6), (b)(8), (e), (e-5), and (e-6)
of this Section, the court shall not order:

HB0902 - 37 - LRB101 08006 RLC 53065 b
(A) the sealing or expungement of the records of
arrests or charges not initiated by arrest that result
in an order of supervision for or conviction of: (i)
any sexual offense committed against a minor; (ii)
Section 11-501 of the Illinois Vehicle Code or a
similar provision of a local ordinance; or (iii)
Section 11-503 of the Illinois Vehicle Code or a
similar provision of a local ordinance, unless the
arrest or charge is for a misdemeanor violation of
subsection (a) of Section 11-503 or a similar provision
of a local ordinance, that occurred prior to the
offender reaching the age of 25 years and the offender
has no other conviction for violating Section 11-501 or
11-503 of the Illinois Vehicle Code or a similar
provision of a local ordinance.
(B) the sealing or expungement of records of minor
traffic offenses (as defined in subsection (a)(1)(G)),
unless the petitioner was arrested and released
without charging.
(C) the sealing of the records of arrests or
charges not initiated by arrest which result in an
order of supervision or a conviction for the following
offenses:
(i) offenses included in Article 11 of the
Criminal Code of 1961 or the Criminal Code of 2012
or a similar provision of a local ordinance, except

HB0902 - 38 - LRB101 08006 RLC 53065 b
Section 11-14 and a misdemeanor violation of
Section 11-30 of the Criminal Code of 1961 or the
Criminal Code of 2012, or a similar provision of a
local ordinance;
(ii) Section 11-1.50, 12-3.4, 12-15, 12-30,
26-5, or 48-1 of the Criminal Code of 1961 or the
Criminal Code of 2012, or a similar provision of a
local ordinance;
(iii) Sections 12-3.1 or 12-3.2 of the
Criminal Code of 1961 or the Criminal Code of 2012,
or Section 125 of the Stalking No Contact Order
Act, or Section 219 of the Civil No Contact Order
Act, or a similar provision of a local ordinance;
(iv) Class A misdemeanors or felony offenses
under the Humane Care for Animals Act; or
(v) any offense or attempted offense that
would subject a person to registration under the
Sex Offender Registration Act.
(D) (blank).
(b) Expungement.
(1) A petitioner may petition the circuit court to
expunge the records of his or her arrests and charges not
initiated by arrest when each arrest or charge not
initiated by arrest sought to be expunged resulted in: (i)
acquittal, dismissal, or the petitioner's release without
charging, unless excluded by subsection (a)(3)(B); (ii) a

HB0902 - 39 - LRB101 08006 RLC 53065 b
conviction which was vacated or reversed, unless excluded
by subsection (a)(3)(B); (iii) an order of supervision and
such supervision was successfully completed by the
petitioner, unless excluded by subsection (a)(3)(A) or
(a)(3)(B); or (iv) an order of qualified probation (as
defined in subsection (a)(1)(J)) and such probation was
successfully completed by the petitioner.
(1.5) When a petitioner seeks to have a record of
arrest expunged under this Section, and the offender has
been convicted of a criminal offense, the State's Attorney
may object to the expungement on the grounds that the
records contain specific relevant information aside from
the mere fact of the arrest.
(2) Time frame for filing a petition to expunge.
(A) When the arrest or charge not initiated by
arrest sought to be expunged resulted in an acquittal,
dismissal, the petitioner's release without charging,
or the reversal or vacation of a conviction, there is
no waiting period to petition for the expungement of
such records.
(B) When the arrest or charge not initiated by
arrest sought to be expunged resulted in an order of
supervision, successfully completed by the petitioner,
the following time frames will apply:
(i) Those arrests or charges that resulted in
orders of supervision under Section 3-707, 3-708,

HB0902 - 40 - LRB101 08006 RLC 53065 b
3-710, or 5-401.3 of the Illinois Vehicle Code or a
similar provision of a local ordinance, or under
Section 11-1.50, 12-3.2, or 12-15 of the Criminal
Code of 1961 or the Criminal Code of 2012, or a
similar provision of a local ordinance, shall not
be eligible for expungement until 5 years have
passed following the satisfactory termination of
the supervision.
(i-5) Those arrests or charges that resulted
in orders of supervision for a misdemeanor
violation of subsection (a) of Section 11-503 of
the Illinois Vehicle Code or a similar provision of
a local ordinance, that occurred prior to the
offender reaching the age of 25 years and the
offender has no other conviction for violating
Section 11-501 or 11-503 of the Illinois Vehicle
Code or a similar provision of a local ordinance
shall not be eligible for expungement until the
petitioner has reached the age of 25 years.
(ii) Those arrests or charges that resulted in
orders of supervision for any other offenses shall
not be eligible for expungement until 2 years have
passed following the satisfactory termination of
the supervision.
(C) When the arrest or charge not initiated by
arrest sought to be expunged resulted in an order of

HB0902 - 41 - LRB101 08006 RLC 53065 b
qualified probation, successfully completed by the
petitioner, such records shall not be eligible for
expungement until 5 years have passed following the
satisfactory termination of the probation.
(3) Those records maintained by the Department for
persons arrested prior to their 17th birthday shall be
expunged as provided in Section 5-915 of the Juvenile Court
Act of 1987.
(4) Whenever a person has been arrested for or
convicted of any offense, in the name of a person whose
identity he or she has stolen or otherwise come into
possession of, the aggrieved person from whom the identity
was stolen or otherwise obtained without authorization,
upon learning of the person having been arrested using his
or her identity, may, upon verified petition to the Chief
Judge chief judge of the circuit wherein the arrest was
made, have a court order entered nunc pro tunc by the Chief
Judge to correct the arrest record, conviction record, if
any, and all official records of the arresting authority,
the Department, other criminal justice agencies, the
prosecutor, and the trial court concerning such arrest, if
any, by removing his or her name from all such records in
connection with the arrest and conviction, if any, and by
inserting in the records the name of the offender, if known
or ascertainable, in lieu of the aggrieved's name. The
records of the circuit court clerk shall be sealed until

HB0902 - 42 - LRB101 08006 RLC 53065 b
further order of the court upon good cause shown and the
name of the aggrieved person obliterated on the official
index required to be kept by the circuit court clerk under
Section 16 of the Clerks of Courts Act, but the order shall
not affect any index issued by the circuit court clerk
before the entry of the order. Nothing in this Section
shall limit the Department of State Police or other
criminal justice agencies or prosecutors from listing
under an offender's name the false names he or she has
used.
(5) Whenever a person has been convicted of criminal
sexual assault, aggravated criminal sexual assault,
predatory criminal sexual assault of a child, criminal
sexual abuse, or aggravated criminal sexual abuse, the
victim of that offense may request that the State's
Attorney of the county in which the conviction occurred
file a verified petition with the presiding trial judge at
the petitioner's trial to have a court order entered to
seal the records of the circuit court clerk in connection
with the proceedings of the trial court concerning that
offense. However, the records of the arresting authority
and the Department of State Police concerning the offense
shall not be sealed. The court, upon good cause shown,
shall make the records of the circuit court clerk in
connection with the proceedings of the trial court
concerning the offense available for public inspection.

HB0902 - 43 - LRB101 08006 RLC 53065 b
(6) If a conviction has been set aside on direct review
or on collateral attack and the court determines by clear
and convincing evidence that the petitioner was factually
innocent of the charge, the court that finds the petitioner
factually innocent of the charge shall enter an expungement
order for the conviction for which the petitioner has been
determined to be innocent as provided in subsection (b) of
Section 5-5-4 of the Unified Code of Corrections.
(7) Nothing in this Section shall prevent the
Department of State Police from maintaining all records of
any person who is admitted to probation upon terms and
conditions and who fulfills those terms and conditions
pursuant to Section 10 of the Cannabis Control Act, Section
410 of the Illinois Controlled Substances Act, Section 70
of the Methamphetamine Control and Community Protection
Act, Section 5-6-3.3 or 5-6-3.4 of the Unified Code of
Corrections, Section 12-4.3 or subdivision (b)(1) of
Section 12-3.05 of the Criminal Code of 1961 or the
Criminal Code of 2012, Section 10-102 of the Illinois
Alcoholism and Other Drug Dependency Act, Section 40-10 of
the Substance Use Disorder Act, or Section 10 of the
Steroid Control Act.
(8) If the petitioner has been granted a certificate of
innocence under Section 2-702 of the Code of Civil
Procedure, the court that grants the certificate of
innocence shall also enter an order expunging the

HB0902 - 44 - LRB101 08006 RLC 53065 b
conviction for which the petitioner has been determined to
be innocent as provided in subsection (h) of Section 2-702
of the Code of Civil Procedure.
(c) Sealing.
(1) Applicability. Notwithstanding any other provision
of this Act to the contrary, and cumulative with any rights
to expungement of criminal records, this subsection
authorizes the sealing of criminal records of adults and of
minors prosecuted as adults. Subsection (g) of this Section
provides for immediate sealing of certain records.
(2) Eligible Records. The following records may be
sealed:
(A) All arrests resulting in release without
charging;
(B) Arrests or charges not initiated by arrest
resulting in acquittal, dismissal, or conviction when
the conviction was reversed or vacated, except as
excluded by subsection (a)(3)(B);
(C) Arrests or charges not initiated by arrest
resulting in orders of supervision, including orders
of supervision for municipal ordinance violations,
successfully completed by the petitioner, unless
excluded by subsection (a)(3);
(D) Arrests or charges not initiated by arrest
resulting in convictions, including convictions on
municipal ordinance violations, unless excluded by

HB0902 - 45 - LRB101 08006 RLC 53065 b
subsection (a)(3);
(E) Arrests or charges not initiated by arrest
resulting in orders of first offender probation under
Section 10 of the Cannabis Control Act, Section 410 of
the Illinois Controlled Substances Act, Section 70 of
the Methamphetamine Control and Community Protection
Act, or Section 5-6-3.3 of the Unified Code of
Corrections; and
(F) Arrests or charges not initiated by arrest
resulting in felony convictions unless otherwise
excluded by subsection (a) paragraph (3) of this
Section.
(3) When Records Are Eligible to Be Sealed. Records
identified as eligible under subsection (c)(2) may be
sealed as follows:
(A) Records identified as eligible under
subsection (c)(2)(A) and (c)(2)(B) may be sealed at any
time.
(B) Except as otherwise provided in subparagraph
(E) of this paragraph (3), records identified as
eligible under subsection (c)(2)(C) may be sealed 2
years after the termination of petitioner's last
sentence (as defined in subsection (a)(1)(F)).
(C) Except as otherwise provided in subparagraph
(E) of this paragraph (3), records identified as
eligible under subsections (c)(2)(D), (c)(2)(E), and

HB0902 - 46 - LRB101 08006 RLC 53065 b
(c)(2)(F) may be sealed 3 years after the termination
of the petitioner's last sentence (as defined in
subsection (a)(1)(F)). Convictions requiring public
registration under the Arsonist Registration Act, the
Sex Offender Registration Act, or the Murderer and
Violent Offender Against Youth Registration Act may
not be sealed until the petitioner is no longer
required to register under that relevant Act.
(D) Records identified in subsection
(a)(3)(A)(iii) may be sealed after the petitioner has
reached the age of 25 years.
(E) Records identified as eligible under
subsections (c)(2)(C), (c)(2)(D), (c)(2)(E), or
(c)(2)(F) may be sealed upon termination of the
petitioner's last sentence if the petitioner earned a
high school diploma, associate's degree, career
certificate, vocational technical certification, or
bachelor's degree, or passed the high school level Test
of General Educational Development, during the period
of his or her sentence, aftercare release, or mandatory
supervised release. This subparagraph shall apply only
to a petitioner who has not completed the same
educational goal prior to the period of his or her
sentence, aftercare release, or mandatory supervised
release. If a petition for sealing eligible records
filed under this subparagraph is denied by the court,

HB0902 - 47 - LRB101 08006 RLC 53065 b
the time periods under subparagraph (B) or (C) shall
apply to any subsequent petition for sealing filed by
the petitioner.
(4) Subsequent felony convictions. A person may not
have subsequent felony conviction records sealed as
provided in this subsection (c) if he or she is convicted
of any felony offense after the date of the sealing of
prior felony convictions as provided in this subsection
(c). The court may, upon conviction for a subsequent felony
offense, order the unsealing of prior felony conviction
records previously ordered sealed by the court.
(5) Notice of eligibility for sealing. Upon entry of a
disposition for an eligible record under this subsection
(c), the petitioner shall be informed by the court of the
right to have the records sealed and the procedures for the
sealing of the records.
(d) Procedure. The following procedures apply to
expungement under subsections (b), (e), and (e-6) and sealing
under subsections (c) and (e-5):
(1) Filing the petition. Upon becoming eligible to
petition for the expungement or sealing of records under
this Section, the petitioner shall file a petition
requesting the expungement or sealing of records with the
clerk of the court where the arrests occurred or the
charges were brought, or both. If arrests occurred or
charges were brought in multiple jurisdictions, a petition

HB0902 - 48 - LRB101 08006 RLC 53065 b
must be filed in each such jurisdiction. The petitioner
shall pay the applicable fee, except no fee shall be
required if the petitioner has obtained a court order
waiving fees under Supreme Court Rule 298 or it is
otherwise waived.
(1.5) County fee waiver pilot program. In a county of
3,000,000 or more inhabitants, no fee shall be required to
be paid by a petitioner if the records sought to be
expunged or sealed were arrests resulting in release
without charging or arrests or charges not initiated by
arrest resulting in acquittal, dismissal, or conviction
when the conviction was reversed or vacated, unless
excluded by subsection (a)(3)(B). The provisions of this
paragraph (1.5), other than this sentence, are inoperative
on and after January 1, 2019.
(2) Contents of petition. The petition shall be
verified and shall contain the petitioner's name, date of
birth, current address and, for each arrest or charge not
initiated by arrest sought to be sealed or expunged, the
case number, the date of arrest (if any), the identity of
the arresting authority, and such other information as the
court may require. During the pendency of the proceeding,
the petitioner shall promptly notify the circuit court
clerk of any change of his or her address. If the
petitioner has received a certificate of eligibility for
sealing from the Prisoner Review Board under paragraph (10)

HB0902 - 49 - LRB101 08006 RLC 53065 b
of subsection (a) of Section 3-3-2 of the Unified Code of
Corrections, the certificate shall be attached to the
petition.
(3) Drug test. The petitioner must attach to the
petition proof that the petitioner has passed a test taken
within 30 days before the filing of the petition showing
the absence within his or her body of all illegal
substances as defined by the Illinois Controlled
Substances Act, the Methamphetamine Control and Community
Protection Act, and the Cannabis Control Act if he or she
is petitioning to:
(A) seal felony records under clause (c)(2)(E);
(B) seal felony records for a violation of the
Illinois Controlled Substances Act, the
Methamphetamine Control and Community Protection Act,
or the Cannabis Control Act under clause (c)(2)(F);
(C) seal felony records under subsection (e-5); or
(D) expunge felony records of a qualified
probation under clause (b)(1)(iv).
(4) Service of petition. The circuit court clerk shall
promptly serve a copy of the petition and documentation to
support the petition under subsection (e-5) or (e-6) on the
State's Attorney or prosecutor charged with the duty of
prosecuting the offense, the Department of State Police,
the arresting agency and the chief legal officer of the
unit of local government effecting the arrest.

HB0902 - 50 - LRB101 08006 RLC 53065 b
(5) Objections.
(A) Any party entitled to notice of the petition
may file an objection to the petition. All objections
shall be in writing, shall be filed with the circuit
court clerk, and shall state with specificity the basis
of the objection. Whenever a person who has been
convicted of an offense is granted a pardon by the
Governor which specifically authorizes expungement, an
objection to the petition may not be filed.
(B) Objections to a petition to expunge or seal
must be filed within 60 days of the date of service of
the petition.
(6) Entry of order.
(A) The Chief Judge of the circuit wherein the
charge was brought, any judge of that circuit
designated by the Chief Judge, or in counties of less
than 3,000,000 inhabitants, the presiding trial judge
at the petitioner's trial, if any, shall rule on the
petition to expunge or seal as set forth in this
subsection (d)(6).
(B) Unless the State's Attorney or prosecutor, the
Department of State Police, the arresting agency, or
the chief legal officer files an objection to the
petition to expunge or seal within 60 days from the
date of service of the petition, the court shall enter
an order granting or denying the petition.

HB0902 - 51 - LRB101 08006 RLC 53065 b
(C) Notwithstanding any other provision of law,
the court shall not deny a petition for sealing under
this Section because the petitioner has not satisfied
an outstanding legal financial obligation established,
imposed, or originated by a court, law enforcement
agency, or a municipal, State, county, or other unit of
local government, including, but not limited to, any
cost, assessment, fine, or fee. An outstanding legal
financial obligation does not include any court
ordered restitution to a victim under Section 5-5-6 of
the Unified Code of Corrections, unless the
restitution has been converted to a civil judgment.
Nothing in this subparagraph (C) waives, rescinds, or
abrogates a legal financial obligation or otherwise
eliminates or affects the right of the holder of any
financial obligation to pursue collection under
applicable federal, State, or local law.
(7) Hearings. If an objection is filed, the court shall
set a date for a hearing and notify the petitioner and all
parties entitled to notice of the petition of the hearing
date at least 30 days prior to the hearing. Prior to the
hearing, the State's Attorney shall consult with the
Department as to the appropriateness of the relief sought
in the petition to expunge or seal. At the hearing, the
court shall hear evidence on whether the petition should or
should not be granted, and shall grant or deny the petition

HB0902 - 52 - LRB101 08006 RLC 53065 b
to expunge or seal the records based on the evidence
presented at the hearing. The court may consider the
following:
(A) the strength of the evidence supporting the
defendant's conviction;
(B) the reasons for retention of the conviction
records by the State;
(C) the petitioner's age, criminal record history,
and employment history;
(D) the period of time between the petitioner's
arrest on the charge resulting in the conviction and
the filing of the petition under this Section; and
(E) the specific adverse consequences the
petitioner may be subject to if the petition is denied.
(8) Service of order. After entering an order to
expunge or seal records, the court must provide copies of
the order to the Department, in a form and manner
prescribed by the Department, to the petitioner, to the
State's Attorney or prosecutor charged with the duty of
prosecuting the offense, to the arresting agency, to the
chief legal officer of the unit of local government
effecting the arrest, and to such other criminal justice
agencies as may be ordered by the court.
(9) Implementation of order.
(A) Upon entry of an order to expunge records
pursuant to (b)(2)(A) or (b)(2)(B)(ii), or both:

HB0902 - 53 - LRB101 08006 RLC 53065 b
(i) the records shall be expunged (as defined
in subsection (a)(1)(E)) by the arresting agency,
the Department, and any other agency as ordered by
the court, within 60 days of the date of service of
the order, unless a motion to vacate, modify, or
reconsider the order is filed pursuant to
paragraph (12) of subsection (d) of this Section;
(ii) the records of the circuit court clerk
shall be impounded until further order of the court
upon good cause shown and the name of the
petitioner obliterated on the official index
required to be kept by the circuit court clerk
under Section 16 of the Clerks of Courts Act, but
the order shall not affect any index issued by the
circuit court clerk before the entry of the order;
and
(iii) in response to an inquiry for expunged
records, the court, the Department, or the agency
receiving such inquiry, shall reply as it does in
response to inquiries when no records ever
existed.
(B) Upon entry of an order to expunge records
pursuant to (b)(2)(B)(i) or (b)(2)(C), or both:
(i) the records shall be expunged (as defined
in subsection (a)(1)(E)) by the arresting agency
and any other agency as ordered by the court,

HB0902 - 54 - LRB101 08006 RLC 53065 b
within 60 days of the date of service of the order,
unless a motion to vacate, modify, or reconsider
the order is filed pursuant to paragraph (12) of
subsection (d) of this Section;
(ii) the records of the circuit court clerk
shall be impounded until further order of the court
upon good cause shown and the name of the
petitioner obliterated on the official index
required to be kept by the circuit court clerk
under Section 16 of the Clerks of Courts Act, but
the order shall not affect any index issued by the
circuit court clerk before the entry of the order;
(iii) the records shall be impounded by the
Department within 60 days of the date of service of
the order as ordered by the court, unless a motion
to vacate, modify, or reconsider the order is filed
pursuant to paragraph (12) of subsection (d) of
this Section;
(iv) records impounded by the Department may
be disseminated by the Department only as required
by law or to the arresting authority, the State's
Attorney, and the court upon a later arrest for the
same or a similar offense or for the purpose of
sentencing for any subsequent felony, and to the
Department of Corrections upon conviction for any
offense; and

HB0902 - 55 - LRB101 08006 RLC 53065 b
(v) in response to an inquiry for such records
from anyone not authorized by law to access such
records, the court, the Department, or the agency
receiving such inquiry shall reply as it does in
response to inquiries when no records ever
existed.
(B-5) Upon entry of an order to expunge records
under subsection (e-6):
(i) the records shall be expunged (as defined
in subsection (a)(1)(E)) by the arresting agency
and any other agency as ordered by the court,
within 60 days of the date of service of the order,
unless a motion to vacate, modify, or reconsider
the order is filed under paragraph (12) of
subsection (d) of this Section;
(ii) the records of the circuit court clerk
shall be impounded until further order of the court
upon good cause shown and the name of the
petitioner obliterated on the official index
required to be kept by the circuit court clerk
under Section 16 of the Clerks of Courts Act, but
the order shall not affect any index issued by the
circuit court clerk before the entry of the order;
(iii) the records shall be impounded by the
Department within 60 days of the date of service of
the order as ordered by the court, unless a motion

HB0902 - 56 - LRB101 08006 RLC 53065 b
to vacate, modify, or reconsider the order is filed
under paragraph (12) of subsection (d) of this
Section;
(iv) records impounded by the Department may
be disseminated by the Department only as required
by law or to the arresting authority, the State's
Attorney, and the court upon a later arrest for the
same or a similar offense or for the purpose of
sentencing for any subsequent felony, and to the
Department of Corrections upon conviction for any
offense; and
(v) in response to an inquiry for these records
from anyone not authorized by law to access the
records, the court, the Department, or the agency
receiving the inquiry shall reply as it does in
response to inquiries when no records ever
existed.
(C) Upon entry of an order to seal records under
subsection (c), the arresting agency, any other agency
as ordered by the court, the Department, and the court
shall seal the records (as defined in subsection
(a)(1)(K)). In response to an inquiry for such records,
from anyone not authorized by law to access such
records, the court, the Department, or the agency
receiving such inquiry shall reply as it does in
response to inquiries when no records ever existed.

HB0902 - 57 - LRB101 08006 RLC 53065 b
(D) The Department shall send written notice to the
petitioner of its compliance with each order to expunge
or seal records within 60 days of the date of service
of that order or, if a motion to vacate, modify, or
reconsider is filed, within 60 days of service of the
order resolving the motion, if that order requires the
Department to expunge or seal records. In the event of
an appeal from the circuit court order, the Department
shall send written notice to the petitioner of its
compliance with an Appellate Court or Supreme Court
judgment to expunge or seal records within 60 days of
the issuance of the court's mandate. The notice is not
required while any motion to vacate, modify, or
reconsider, or any appeal or petition for
discretionary appellate review, is pending.
(E) Upon motion, the court may order that a sealed
judgment or other court record necessary to
demonstrate the amount of any legal financial
obligation due and owing be made available for the
limited purpose of collecting any legal financial
obligations owed by the petitioner that were
established, imposed, or originated in the criminal
proceeding for which those records have been sealed.
The records made available under this subparagraph (E)
shall not be entered into the official index required
to be kept by the circuit court clerk under Section 16

HB0902 - 58 - LRB101 08006 RLC 53065 b
of the Clerks of Courts Act and shall be immediately
re-impounded upon the collection of the outstanding
financial obligations.
(F) Notwithstanding any other provision of this
Section, a circuit court clerk may access a sealed
record for the limited purpose of collecting payment
for any legal financial obligations that were
established, imposed, or originated in the criminal
proceedings for which those records have been sealed.
(10) Fees. The Department may charge the petitioner a
fee equivalent to the cost of processing any order to
expunge or seal records. Notwithstanding any provision of
the Clerks of Courts Act to the contrary, the circuit court
clerk may charge a fee equivalent to the cost associated
with the sealing or expungement of records by the circuit
court clerk. From the total filing fee collected for the
petition to seal or expunge, the circuit court clerk shall
deposit $10 into the Circuit Court Clerk Operation and
Administrative Fund, to be used to offset the costs
incurred by the circuit court clerk in performing the
additional duties required to serve the petition to seal or
expunge on all parties. The circuit court clerk shall
collect and forward the Department of State Police portion
of the fee to the Department and it shall be deposited in
the State Police Services Fund. If the record brought under
an expungement petition was previously sealed under this

HB0902 - 59 - LRB101 08006 RLC 53065 b
Section, the fee for the expungement petition for that same
record shall be waived.
(11) Final Order. No court order issued under the
expungement or sealing provisions of this Section shall
become final for purposes of appeal until 30 days after
service of the order on the petitioner and all parties
entitled to notice of the petition.
(12) Motion to Vacate, Modify, or Reconsider. Under
Section 2-1203 of the Code of Civil Procedure, the
petitioner or any party entitled to notice may file a
motion to vacate, modify, or reconsider the order granting
or denying the petition to expunge or seal within 60 days
of service of the order. If filed more than 60 days after
service of the order, a petition to vacate, modify, or
reconsider shall comply with subsection (c) of Section
2-1401 of the Code of Civil Procedure. Upon filing of a
motion to vacate, modify, or reconsider, notice of the
motion shall be served upon the petitioner and all parties
entitled to notice of the petition.
(13) Effect of Order. An order granting a petition
under the expungement or sealing provisions of this Section
shall not be considered void because it fails to comply
with the provisions of this Section or because of any error
asserted in a motion to vacate, modify, or reconsider. The
circuit court retains jurisdiction to determine whether
the order is voidable and to vacate, modify, or reconsider

HB0902 - 60 - LRB101 08006 RLC 53065 b
its terms based on a motion filed under paragraph (12) of
this subsection (d).
(14) Compliance with Order Granting Petition to Seal
Records. Unless a court has entered a stay of an order
granting a petition to seal, all parties entitled to notice
of the petition must fully comply with the terms of the
order within 60 days of service of the order even if a
party is seeking relief from the order through a motion
filed under paragraph (12) of this subsection (d) or is
appealing the order.
(15) Compliance with Order Granting Petition to
Expunge Records. While a party is seeking relief from the
order granting the petition to expunge through a motion
filed under paragraph (12) of this subsection (d) or is
appealing the order, and unless a court has entered a stay
of that order, the parties entitled to notice of the
petition must seal, but need not expunge, the records until
there is a final order on the motion for relief or, in the
case of an appeal, the issuance of that court's mandate.
(16) The changes to this subsection (d) made by Public
Act 98-163 apply to all petitions pending on August 5, 2013
(the effective date of Public Act 98-163) and to all orders
ruling on a petition to expunge or seal on or after August
5, 2013 (the effective date of Public Act 98-163).
(e) Whenever a person who has been convicted of an offense
is granted a pardon by the Governor which specifically

HB0902 - 61 - LRB101 08006 RLC 53065 b
authorizes expungement, he or she may, upon verified petition
to the Chief Judge of the circuit where the person had been
convicted, any judge of the circuit designated by the Chief
Judge, or in counties of less than 3,000,000 inhabitants, the
presiding trial judge at the defendant's trial, have a court
order entered expunging the record of arrest from the official
records of the arresting authority and order that the records
of the circuit court clerk and the Department be sealed until
further order of the court upon good cause shown or as
otherwise provided herein, and the name of the defendant
obliterated from the official index requested to be kept by the
circuit court clerk under Section 16 of the Clerks of Courts
Act in connection with the arrest and conviction for the
offense for which he or she had been pardoned but the order
shall not affect any index issued by the circuit court clerk
before the entry of the order. All records sealed by the
Department may be disseminated by the Department only to the
arresting authority, the State's Attorney, and the court upon a
later arrest for the same or similar offense or for the purpose
of sentencing for any subsequent felony. Upon conviction for
any subsequent offense, the Department of Corrections shall
have access to all sealed records of the Department pertaining
to that individual. Upon entry of the order of expungement, the
circuit court clerk shall promptly mail a copy of the order to
the person who was pardoned.
(e-5) Whenever a person who has been convicted of an

HB0902 - 62 - LRB101 08006 RLC 53065 b
offense is granted a certificate of eligibility for sealing by
the Prisoner Review Board which specifically authorizes
sealing, he or she may, upon verified petition to the Chief
Judge of the circuit where the person had been convicted, any
judge of the circuit designated by the Chief Judge, or in
counties of less than 3,000,000 inhabitants, the presiding
trial judge at the petitioner's trial, have a court order
entered sealing the record of arrest from the official records
of the arresting authority and order that the records of the
circuit court clerk and the Department be sealed until further
order of the court upon good cause shown or as otherwise
provided herein, and the name of the petitioner obliterated
from the official index requested to be kept by the circuit
court clerk under Section 16 of the Clerks of Courts Act in
connection with the arrest and conviction for the offense for
which he or she had been granted the certificate but the order
shall not affect any index issued by the circuit court clerk
before the entry of the order. All records sealed by the
Department may be disseminated by the Department only as
required by this Act or to the arresting authority, a law
enforcement agency, the State's Attorney, and the court upon a
later arrest for the same or similar offense or for the purpose
of sentencing for any subsequent felony. Upon conviction for
any subsequent offense, the Department of Corrections shall
have access to all sealed records of the Department pertaining
to that individual. Upon entry of the order of sealing, the

HB0902 - 63 - LRB101 08006 RLC 53065 b
circuit court clerk shall promptly mail a copy of the order to
the person who was granted the certificate of eligibility for
sealing.
(e-6) Whenever a person who has been convicted of an
offense is granted a certificate of eligibility for expungement
by the Prisoner Review Board which specifically authorizes
expungement, he or she may, upon verified petition to the Chief
Judge of the circuit where the person had been convicted, any
judge of the circuit designated by the Chief Judge, or in
counties of less than 3,000,000 inhabitants, the presiding
trial judge at the petitioner's trial, have a court order
entered expunging the record of arrest from the official
records of the arresting authority and order that the records
of the circuit court clerk and the Department be sealed until
further order of the court upon good cause shown or as
otherwise provided herein, and the name of the petitioner
obliterated from the official index requested to be kept by the
circuit court clerk under Section 16 of the Clerks of Courts
Act in connection with the arrest and conviction for the
offense for which he or she had been granted the certificate
but the order shall not affect any index issued by the circuit
court clerk before the entry of the order. All records sealed
by the Department may be disseminated by the Department only as
required by this Act or to the arresting authority, a law
enforcement agency, the State's Attorney, and the court upon a
later arrest for the same or similar offense or for the purpose

HB0902 - 64 - LRB101 08006 RLC 53065 b
of sentencing for any subsequent felony. Upon conviction for
any subsequent offense, the Department of Corrections shall
have access to all expunged records of the Department
pertaining to that individual. Upon entry of the order of
expungement, the circuit court clerk shall promptly mail a copy
of the order to the person who was granted the certificate of
eligibility for expungement.
(f) Subject to available funding, the Illinois Department
of Corrections shall conduct a study of the impact of sealing,
especially on employment and recidivism rates, utilizing a
random sample of those who apply for the sealing of their
criminal records under Public Act 93-211. At the request of the
Illinois Department of Corrections, records of the Illinois
Department of Employment Security shall be utilized as
appropriate to assist in the study. The study shall not
disclose any data in a manner that would allow the
identification of any particular individual or employing unit.
The study shall be made available to the General Assembly no
later than September 1, 2010.
(g) Immediate Sealing.
(1) Applicability. Notwithstanding any other provision
of this Act to the contrary, and cumulative with any rights
to expungement or sealing of criminal records, this
subsection authorizes the immediate sealing of criminal
records of adults and of minors prosecuted as adults.
(2) Eligible Records. Arrests or charges not initiated

HB0902 - 65 - LRB101 08006 RLC 53065 b
by arrest resulting in acquittal or dismissal with
prejudice, except as excluded by subsection (a)(3)(B),
that occur on or after January 1, 2018 (the effective date
of Public Act 100-282), may be sealed immediately if the
petition is filed with the circuit court clerk on the same
day and during the same hearing in which the case is
disposed.
(3) When Records are Eligible to be Immediately Sealed.
Eligible records under paragraph (2) of this subsection (g)
may be sealed immediately after entry of the final
disposition of a case, notwithstanding the disposition of
other charges in the same case.
(4) Notice of Eligibility for Immediate Sealing. Upon
entry of a disposition for an eligible record under this
subsection (g), the defendant shall be informed by the
court of his or her right to have eligible records
immediately sealed and the procedure for the immediate
sealing of these records.
(5) Procedure. The following procedures apply to
immediate sealing under this subsection (g).
(A) Filing the Petition. Upon entry of the final
disposition of the case, the defendant's attorney may
immediately petition the court, on behalf of the
defendant, for immediate sealing of eligible records
under paragraph (2) of this subsection (g) that are
entered on or after January 1, 2018 (the effective date

HB0902 - 66 - LRB101 08006 RLC 53065 b
of Public Act 100-282). The immediate sealing petition
may be filed with the circuit court clerk during the
hearing in which the final disposition of the case is
entered. If the defendant's attorney does not file the
petition for immediate sealing during the hearing, the
defendant may file a petition for sealing at any time
as authorized under subsection (c)(3)(A).
(B) Contents of Petition. The immediate sealing
petition shall be verified and shall contain the
petitioner's name, date of birth, current address, and
for each eligible record, the case number, the date of
arrest if applicable, the identity of the arresting
authority if applicable, and other information as the
court may require.
(C) Drug Test. The petitioner shall not be required
to attach proof that he or she has passed a drug test.
(D) Service of Petition. A copy of the petition
shall be served on the State's Attorney in open court.
The petitioner shall not be required to serve a copy of
the petition on any other agency.
(E) Entry of Order. The presiding trial judge shall
enter an order granting or denying the petition for
immediate sealing during the hearing in which it is
filed. Petitions for immediate sealing shall be ruled
on in the same hearing in which the final disposition
of the case is entered.

HB0902 - 67 - LRB101 08006 RLC 53065 b
(F) Hearings. The court shall hear the petition for
immediate sealing on the same day and during the same
hearing in which the disposition is rendered.
(G) Service of Order. An order to immediately seal
eligible records shall be served in conformance with
subsection (d)(8).
(H) Implementation of Order. An order to
immediately seal records shall be implemented in
conformance with subsections (d)(9)(C) and (d)(9)(D).
(I) Fees. The fee imposed by the circuit court
clerk and the Department of State Police shall comply
with paragraph (1) of subsection (d) of this Section.
(J) Final Order. No court order issued under this
subsection (g) shall become final for purposes of
appeal until 30 days after service of the order on the
petitioner and all parties entitled to service of the
order in conformance with subsection (d)(8).
(K) Motion to Vacate, Modify, or Reconsider. Under
Section 2-1203 of the Code of Civil Procedure, the
petitioner, State's Attorney, or the Department of
State Police may file a motion to vacate, modify, or
reconsider the order denying the petition to
immediately seal within 60 days of service of the
order. If filed more than 60 days after service of the
order, a petition to vacate, modify, or reconsider
shall comply with subsection (c) of Section 2-1401 of

HB0902 - 68 - LRB101 08006 RLC 53065 b
the Code of Civil Procedure.
(L) Effect of Order. An order granting an immediate
sealing petition shall not be considered void because
it fails to comply with the provisions of this Section
or because of an error asserted in a motion to vacate,
modify, or reconsider. The circuit court retains
jurisdiction to determine whether the order is
voidable, and to vacate, modify, or reconsider its
terms based on a motion filed under subparagraph (L) of
this subsection (g).
(M) Compliance with Order Granting Petition to
Seal Records. Unless a court has entered a stay of an
order granting a petition to immediately seal, all
parties entitled to service of the order must fully
comply with the terms of the order within 60 days of
service of the order.
(h) Sealing; trafficking victims.
(1) A trafficking victim as defined by paragraph (10)
of subsection (a) of Section 10-9 of the Criminal Code of
2012 shall be eligible to petition for immediate sealing of
his or her criminal record upon the completion of his or
her last sentence if his or her participation in the
underlying offense was a direct result of human trafficking
under Section 10-9 of the Criminal Code of 2012 or a severe
form of trafficking under the federal Trafficking Victims
Protection Act.

HB0902 - 69 - LRB101 08006 RLC 53065 b
(2) A petitioner under this subsection (h), in addition
to the requirements provided under paragraph (4) of
subsection (d) of this Section, shall include in his or her
petition a clear and concise statement that: (A) he or she
was a victim of human trafficking at the time of the
offense; and (B) that his or her participation in the
offense was a direct result of human trafficking under
Section 10-9 of the Criminal Code of 2012 or a severe form
of trafficking under the federal Trafficking Victims
Protection Act.
(3) If an objection is filed alleging that the
petitioner is not entitled to immediate sealing under this
subsection (h), the court shall conduct a hearing under
paragraph (7) of subsection (d) of this Section and the
court shall determine whether the petitioner is entitled to
immediate sealing under this subsection (h). A petitioner
is eligible for immediate relief under this subsection (h)
if he or she shows, by a preponderance of the evidence,
that: (A) he or she was a victim of human trafficking at
the time of the offense; and (B) that his or her
participation in the offense was a direct result of human
trafficking under Section 10-9 of the Criminal Code of 2012
or a severe form of trafficking under the federal
Trafficking Victims Protection Act.
(Source: P.A. 99-78, eff. 7-20-15; 99-378, eff. 1-1-16; 99-385,
eff. 1-1-16; 99-642, eff. 7-28-16; 99-697, eff. 7-29-16;

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99-881, eff. 1-1-17; 100-201, eff. 8-18-17; 100-282, eff.
1-1-18; 100-284, eff. 8-24-17; 100-287, eff. 8-24-17; 100-692,
eff. 8-3-18; 100-759, eff. 1-1-19; 100-776, eff. 8-10-18;
100-863, eff. 8-14-18; revised 8-30-18.)
Section 910. The State Finance Act is amended by adding
Sections 5.891 and 5.892 as follows:
(30 ILCS 105/5.891 new)
Sec. 5.891. The Cannabis Excise Tax Fund.
(30 ILCS 105/5.892 new)
Sec. 5.892. The Cannabis Regulation Fund.
Section 915. The Illinois Income Tax Act is amended by
changing Section 203 as follows:
(35 ILCS 5/203) (from Ch. 120, par. 2-203)
Sec. 203. Base income defined.
(a) Individuals.
(1) In general. In the case of an individual, base
income means an amount equal to the taxpayer's adjusted
gross income for the taxable year as modified by paragraph
(2).
(2) Modifications. The adjusted gross income referred
to in paragraph (1) shall be modified by adding thereto the

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sum of the following amounts:
(A) An amount equal to all amounts paid or accrued
to the taxpayer as interest or dividends during the
taxable year to the extent excluded from gross income
in the computation of adjusted gross income, except
stock dividends of qualified public utilities
described in Section 305(e) of the Internal Revenue
Code;
(B) An amount equal to the amount of tax imposed by
this Act to the extent deducted from gross income in
the computation of adjusted gross income for the
taxable year;
(C) An amount equal to the amount received during
the taxable year as a recovery or refund of real
property taxes paid with respect to the taxpayer's
principal residence under the Revenue Act of 1939 and
for which a deduction was previously taken under
subparagraph (L) of this paragraph (2) prior to July 1,
1991, the retrospective application date of Article 4
of Public Act 87-17. In the case of multi-unit or
multi-use structures and farm dwellings, the taxes on
the taxpayer's principal residence shall be that
portion of the total taxes for the entire property
which is attributable to such principal residence;
(D) An amount equal to the amount of the capital
gain deduction allowable under the Internal Revenue

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Code, to the extent deducted from gross income in the
computation of adjusted gross income;
(D-5) An amount, to the extent not included in
adjusted gross income, equal to the amount of money
withdrawn by the taxpayer in the taxable year from a
medical care savings account and the interest earned on
the account in the taxable year of a withdrawal
pursuant to subsection (b) of Section 20 of the Medical
Care Savings Account Act or subsection (b) of Section
20 of the Medical Care Savings Account Act of 2000;
(D-10) For taxable years ending after December 31,
1997, an amount equal to any eligible remediation costs
that the individual deducted in computing adjusted
gross income and for which the individual claims a
credit under subsection (l) of Section 201;
(D-15) For taxable years 2001 and thereafter, an
amount equal to the bonus depreciation deduction taken
on the taxpayer's federal income tax return for the
taxable year under subsection (k) of Section 168 of the
Internal Revenue Code;
(D-16) If the taxpayer sells, transfers, abandons,
or otherwise disposes of property for which the
taxpayer was required in any taxable year to make an
addition modification under subparagraph (D-15), then
an amount equal to the aggregate amount of the
deductions taken in all taxable years under

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subparagraph (Z) with respect to that property.
If the taxpayer continues to own property through
the last day of the last tax year for which the
taxpayer may claim a depreciation deduction for
federal income tax purposes and for which the taxpayer
was allowed in any taxable year to make a subtraction
modification under subparagraph (Z), then an amount
equal to that subtraction modification.
The taxpayer is required to make the addition
modification under this subparagraph only once with
respect to any one piece of property;
(D-17) An amount equal to the amount otherwise
allowed as a deduction in computing base income for
interest paid, accrued, or incurred, directly or
indirectly, (i) for taxable years ending on or after
December 31, 2004, to a foreign person who would be a
member of the same unitary business group but for the
fact that foreign person's business activity outside
the United States is 80% or more of the foreign
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different

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subsections of Section 304. The addition modification
required by this subparagraph shall be reduced to the
extent that dividends were included in base income of
the unitary group for the same taxable year and
received by the taxpayer or by a member of the
taxpayer's unitary business group (including amounts
included in gross income under Sections 951 through 964
of the Internal Revenue Code and amounts included in
gross income under Section 78 of the Internal Revenue
Code) with respect to the stock of the same person to
whom the interest was paid, accrued, or incurred.
This paragraph shall not apply to the following:
(i) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such interest; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:
(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and

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(b) the transaction giving rise to the
interest expense between the taxpayer and the
person did not have as a principal purpose the
avoidance of Illinois income tax, and is paid
pursuant to a contract or agreement that
reflects an arm's-length interest rate and
terms; or
(iii) the taxpayer can establish, based on
clear and convincing evidence, that the interest
paid, accrued, or incurred relates to a contract or
agreement entered into at arm's-length rates and
terms and the principal purpose for the payment is
not federal or Illinois tax avoidance; or
(iv) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer establishes by clear and convincing
evidence that the adjustments are unreasonable; or
if the taxpayer and the Director agree in writing
to the application or use of an alternative method
of apportionment under Section 304(f).
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act for
any tax year beginning after the effective date of
this amendment provided such adjustment is made
pursuant to regulation adopted by the Department

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and such regulations provide methods and standards
by which the Department will utilize its authority
under Section 404 of this Act;
(D-18) An amount equal to the amount of intangible
expenses and costs otherwise allowed as a deduction in
computing base income, and that were paid, accrued, or
incurred, directly or indirectly, (i) for taxable
years ending on or after December 31, 2004, to a
foreign person who would be a member of the same
unitary business group but for the fact that the
foreign person's business activity outside the United
States is 80% or more of that person's total business
activity and (ii) for taxable years ending on or after
December 31, 2008, to a person who would be a member of
the same unitary business group but for the fact that
the person is prohibited under Section 1501(a)(27)
from being included in the unitary business group
because he or she is ordinarily required to apportion
business income under different subsections of Section
304. The addition modification required by this
subparagraph shall be reduced to the extent that
dividends were included in base income of the unitary
group for the same taxable year and received by the
taxpayer or by a member of the taxpayer's unitary
business group (including amounts included in gross
income under Sections 951 through 964 of the Internal

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Revenue Code and amounts included in gross income under
Section 78 of the Internal Revenue Code) with respect
to the stock of the same person to whom the intangible
expenses and costs were directly or indirectly paid,
incurred, or accrued. The preceding sentence does not
apply to the extent that the same dividends caused a
reduction to the addition modification required under
Section 203(a)(2)(D-17) of this Act. As used in this
subparagraph, the term "intangible expenses and costs"
includes (1) expenses, losses, and costs for, or
related to, the direct or indirect acquisition, use,
maintenance or management, ownership, sale, exchange,
or any other disposition of intangible property; (2)
losses incurred, directly or indirectly, from
factoring transactions or discounting transactions;
(3) royalty, patent, technical, and copyright fees;
(4) licensing fees; and (5) other similar expenses and
costs. For purposes of this subparagraph, "intangible
property" includes patents, patent applications, trade
names, trademarks, service marks, copyrights, mask
works, trade secrets, and similar types of intangible
assets.
This paragraph shall not apply to the following:
(i) any item of intangible expenses or costs
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person who is

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subject in a foreign country or state, other than a
state which requires mandatory unitary reporting,
to a tax on or measured by net income with respect
to such item; or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the
intangible expense or cost to a person that is
not a related member, and
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(iii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if the
taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;
or if the taxpayer and the Director agree in

HB0902 - 79 - LRB101 08006 RLC 53065 b
writing to the application or use of an alternative
method of apportionment under Section 304(f);
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act for
any tax year beginning after the effective date of
this amendment provided such adjustment is made
pursuant to regulation adopted by the Department
and such regulations provide methods and standards
by which the Department will utilize its authority
under Section 404 of this Act;
(D-19) For taxable years ending on or after
December 31, 2008, an amount equal to the amount of
insurance premium expenses and costs otherwise allowed
as a deduction in computing base income, and that were
paid, accrued, or incurred, directly or indirectly, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304. The
addition modification required by this subparagraph
shall be reduced to the extent that dividends were
included in base income of the unitary group for the
same taxable year and received by the taxpayer or by a

HB0902 - 80 - LRB101 08006 RLC 53065 b
member of the taxpayer's unitary business group
(including amounts included in gross income under
Sections 951 through 964 of the Internal Revenue Code
and amounts included in gross income under Section 78
of the Internal Revenue Code) with respect to the stock
of the same person to whom the premiums and costs were
directly or indirectly paid, incurred, or accrued. The
preceding sentence does not apply to the extent that
the same dividends caused a reduction to the addition
modification required under Section 203(a)(2)(D-17) or
Section 203(a)(2)(D-18) of this Act.
(D-20) For taxable years beginning on or after
January 1, 2002 and ending on or before December 31,
2006, in the case of a distribution from a qualified
tuition program under Section 529 of the Internal
Revenue Code, other than (i) a distribution from a
College Savings Pool created under Section 16.5 of the
State Treasurer Act or (ii) a distribution from the
Illinois Prepaid Tuition Trust Fund, an amount equal to
the amount excluded from gross income under Section
529(c)(3)(B). For taxable years beginning on or after
January 1, 2007, in the case of a distribution from a
qualified tuition program under Section 529 of the
Internal Revenue Code, other than (i) a distribution
from a College Savings Pool created under Section 16.5
of the State Treasurer Act, (ii) a distribution from

HB0902 - 81 - LRB101 08006 RLC 53065 b
the Illinois Prepaid Tuition Trust Fund, or (iii) a
distribution from a qualified tuition program under
Section 529 of the Internal Revenue Code that (I)
adopts and determines that its offering materials
comply with the College Savings Plans Network's
disclosure principles and (II) has made reasonable
efforts to inform in-state residents of the existence
of in-state qualified tuition programs by informing
Illinois residents directly and, where applicable, to
inform financial intermediaries distributing the
program to inform in-state residents of the existence
of in-state qualified tuition programs at least
annually, an amount equal to the amount excluded from
gross income under Section 529(c)(3)(B).
For the purposes of this subparagraph (D-20), a
qualified tuition program has made reasonable efforts
if it makes disclosures (which may use the term
"in-state program" or "in-state plan" and need not
specifically refer to Illinois or its qualified
programs by name) (i) directly to prospective
participants in its offering materials or makes a
public disclosure, such as a website posting; and (ii)
where applicable, to intermediaries selling the
out-of-state program in the same manner that the
out-of-state program distributes its offering
materials;

HB0902 - 82 - LRB101 08006 RLC 53065 b
(D-20.5) For taxable years beginning on or after
January 1, 2018, in the case of a distribution from a
qualified ABLE program under Section 529A of the
Internal Revenue Code, other than a distribution from a
qualified ABLE program created under Section 16.6 of
the State Treasurer Act, an amount equal to the amount
excluded from gross income under Section 529A(c)(1)(B)
of the Internal Revenue Code;
(D-21) For taxable years beginning on or after
January 1, 2007, in the case of transfer of moneys from
a qualified tuition program under Section 529 of the
Internal Revenue Code that is administered by the State
to an out-of-state program, an amount equal to the
amount of moneys previously deducted from base income
under subsection (a)(2)(Y) of this Section;
(D-21.5) For taxable years beginning on or after
January 1, 2018, in the case of the transfer of moneys
from a qualified tuition program under Section 529 or a
qualified ABLE program under Section 529A of the
Internal Revenue Code that is administered by this
State to an ABLE account established under an
out-of-state ABLE account program, an amount equal to
the contribution component of the transferred amount
that was previously deducted from base income under
subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
Section;

HB0902 - 83 - LRB101 08006 RLC 53065 b
(D-22) For taxable years beginning on or after
January 1, 2009, and prior to January 1, 2018, in the
case of a nonqualified withdrawal or refund of moneys
from a qualified tuition program under Section 529 of
the Internal Revenue Code administered by the State
that is not used for qualified expenses at an eligible
education institution, an amount equal to the
contribution component of the nonqualified withdrawal
or refund that was previously deducted from base income
under subsection (a)(2)(y) of this Section, provided
that the withdrawal or refund did not result from the
beneficiary's death or disability. For taxable years
beginning on or after January 1, 2018: (1) in the case
of a nonqualified withdrawal or refund, as defined
under Section 16.5 of the State Treasurer Act, of
moneys from a qualified tuition program under Section
529 of the Internal Revenue Code administered by the
State, an amount equal to the contribution component of
the nonqualified withdrawal or refund that was
previously deducted from base income under subsection
(a)(2)(Y) of this Section, and (2) in the case of a
nonqualified withdrawal or refund from a qualified
ABLE program under Section 529A of the Internal Revenue
Code administered by the State that is not used for
qualified disability expenses, an amount equal to the
contribution component of the nonqualified withdrawal

HB0902 - 84 - LRB101 08006 RLC 53065 b
or refund that was previously deducted from base income
under subsection (a)(2)(HH) of this Section;
(D-23) An amount equal to the credit allowable to
the taxpayer under Section 218(a) of this Act,
determined without regard to Section 218(c) of this
Act;
(D-24) For taxable years ending on or after
December 31, 2017, an amount equal to the deduction
allowed under Section 199 of the Internal Revenue Code
for the taxable year;
and by deducting from the total so obtained the sum of the
following amounts:
(E) For taxable years ending before December 31,
2001, any amount included in such total in respect of
any compensation (including but not limited to any
compensation paid or accrued to a serviceman while a
prisoner of war or missing in action) paid to a
resident by reason of being on active duty in the Armed
Forces of the United States and in respect of any
compensation paid or accrued to a resident who as a
governmental employee was a prisoner of war or missing
in action, and in respect of any compensation paid to a
resident in 1971 or thereafter for annual training
performed pursuant to Sections 502 and 503, Title 32,
United States Code as a member of the Illinois National
Guard or, beginning with taxable years ending on or

HB0902 - 85 - LRB101 08006 RLC 53065 b
after December 31, 2007, the National Guard of any
other state. For taxable years ending on or after
December 31, 2001, any amount included in such total in
respect of any compensation (including but not limited
to any compensation paid or accrued to a serviceman
while a prisoner of war or missing in action) paid to a
resident by reason of being a member of any component
of the Armed Forces of the United States and in respect
of any compensation paid or accrued to a resident who
as a governmental employee was a prisoner of war or
missing in action, and in respect of any compensation
paid to a resident in 2001 or thereafter by reason of
being a member of the Illinois National Guard or,
beginning with taxable years ending on or after
December 31, 2007, the National Guard of any other
state. The provisions of this subparagraph (E) are
exempt from the provisions of Section 250;
(F) An amount equal to all amounts included in such
total pursuant to the provisions of Sections 402(a),
402(c), 403(a), 403(b), 406(a), 407(a), and 408 of the
Internal Revenue Code, or included in such total as
distributions under the provisions of any retirement
or disability plan for employees of any governmental
agency or unit, or retirement payments to retired
partners, which payments are excluded in computing net
earnings from self employment by Section 1402 of the

HB0902 - 86 - LRB101 08006 RLC 53065 b
Internal Revenue Code and regulations adopted pursuant
thereto;
(G) The valuation limitation amount;
(H) An amount equal to the amount of any tax
imposed by this Act which was refunded to the taxpayer
and included in such total for the taxable year;
(I) An amount equal to all amounts included in such
total pursuant to the provisions of Section 111 of the
Internal Revenue Code as a recovery of items previously
deducted from adjusted gross income in the computation
of taxable income;
(J) An amount equal to those dividends included in
such total which were paid by a corporation which
conducts business operations in a River Edge
Redevelopment Zone or zones created under the River
Edge Redevelopment Zone Act, and conducts
substantially all of its operations in a River Edge
Redevelopment Zone or zones. This subparagraph (J) is
exempt from the provisions of Section 250;
(K) An amount equal to those dividends included in
such total that were paid by a corporation that
conducts business operations in a federally designated
Foreign Trade Zone or Sub-Zone and that is designated a
High Impact Business located in Illinois; provided
that dividends eligible for the deduction provided in
subparagraph (J) of paragraph (2) of this subsection

HB0902 - 87 - LRB101 08006 RLC 53065 b
shall not be eligible for the deduction provided under
this subparagraph (K);
(L) For taxable years ending after December 31,
1983, an amount equal to all social security benefits
and railroad retirement benefits included in such
total pursuant to Sections 72(r) and 86 of the Internal
Revenue Code;
(M) With the exception of any amounts subtracted
under subparagraph (N), an amount equal to the sum of
all amounts disallowed as deductions by (i) Sections
171(a)(2), and 265(a)(2) 265(2) of the Internal
Revenue Code, and all amounts of expenses allocable to
interest and disallowed as deductions by Section
265(a)(1) 265(1) of the Internal Revenue Code; and (ii)
for taxable years ending on or after August 13, 1999,
Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of
the Internal Revenue Code, plus, for taxable years
ending on or after December 31, 2011, Section 45G(e)(3)
of the Internal Revenue Code and, for taxable years
ending on or after December 31, 2008, any amount
included in gross income under Section 87 of the
Internal Revenue Code; the provisions of this
subparagraph are exempt from the provisions of Section
250;
(N) An amount equal to all amounts included in such
total which are exempt from taxation by this State

HB0902 - 88 - LRB101 08006 RLC 53065 b
either by reason of its statutes or Constitution or by
reason of the Constitution, treaties or statutes of the
United States; provided that, in the case of any
statute of this State that exempts income derived from
bonds or other obligations from the tax imposed under
this Act, the amount exempted shall be the interest net
of bond premium amortization;
(O) An amount equal to any contribution made to a
job training project established pursuant to the Tax
Increment Allocation Redevelopment Act;
(P) An amount equal to the amount of the deduction
used to compute the federal income tax credit for
restoration of substantial amounts held under claim of
right for the taxable year pursuant to Section 1341 of
the Internal Revenue Code or of any itemized deduction
taken from adjusted gross income in the computation of
taxable income for restoration of substantial amounts
held under claim of right for the taxable year;
(Q) An amount equal to any amounts included in such
total, received by the taxpayer as an acceleration in
the payment of life, endowment or annuity benefits in
advance of the time they would otherwise be payable as
an indemnity for a terminal illness;
(R) An amount equal to the amount of any federal or
State bonus paid to veterans of the Persian Gulf War;
(S) An amount, to the extent included in adjusted

HB0902 - 89 - LRB101 08006 RLC 53065 b
gross income, equal to the amount of a contribution
made in the taxable year on behalf of the taxpayer to a
medical care savings account established under the
Medical Care Savings Account Act or the Medical Care
Savings Account Act of 2000 to the extent the
contribution is accepted by the account administrator
as provided in that Act;
(T) An amount, to the extent included in adjusted
gross income, equal to the amount of interest earned in
the taxable year on a medical care savings account
established under the Medical Care Savings Account Act
or the Medical Care Savings Account Act of 2000 on
behalf of the taxpayer, other than interest added
pursuant to item (D-5) of this paragraph (2);
(U) For one taxable year beginning on or after
January 1, 1994, an amount equal to the total amount of
tax imposed and paid under subsections (a) and (b) of
Section 201 of this Act on grant amounts received by
the taxpayer under the Nursing Home Grant Assistance
Act during the taxpayer's taxable years 1992 and 1993;
(V) Beginning with tax years ending on or after
December 31, 1995 and ending with tax years ending on
or before December 31, 2004, an amount equal to the
amount paid by a taxpayer who is a self-employed
taxpayer, a partner of a partnership, or a shareholder
in a Subchapter S corporation for health insurance or

HB0902 - 90 - LRB101 08006 RLC 53065 b
long-term care insurance for that taxpayer or that
taxpayer's spouse or dependents, to the extent that the
amount paid for that health insurance or long-term care
insurance may be deducted under Section 213 of the
Internal Revenue Code, has not been deducted on the
federal income tax return of the taxpayer, and does not
exceed the taxable income attributable to that
taxpayer's income, self-employment income, or
Subchapter S corporation income; except that no
deduction shall be allowed under this item (V) if the
taxpayer is eligible to participate in any health
insurance or long-term care insurance plan of an
employer of the taxpayer or the taxpayer's spouse. The
amount of the health insurance and long-term care
insurance subtracted under this item (V) shall be
determined by multiplying total health insurance and
long-term care insurance premiums paid by the taxpayer
times a number that represents the fractional
percentage of eligible medical expenses under Section
213 of the Internal Revenue Code of 1986 not actually
deducted on the taxpayer's federal income tax return;
(W) For taxable years beginning on or after January
1, 1998, all amounts included in the taxpayer's federal
gross income in the taxable year from amounts converted
from a regular IRA to a Roth IRA. This paragraph is
exempt from the provisions of Section 250;

HB0902 - 91 - LRB101 08006 RLC 53065 b
(X) For taxable year 1999 and thereafter, an amount
equal to the amount of any (i) distributions, to the
extent includible in gross income for federal income
tax purposes, made to the taxpayer because of his or
her status as a victim of persecution for racial or
religious reasons by Nazi Germany or any other Axis
regime or as an heir of the victim and (ii) items of
income, to the extent includible in gross income for
federal income tax purposes, attributable to, derived
from or in any way related to assets stolen from,
hidden from, or otherwise lost to a victim of
persecution for racial or religious reasons by Nazi
Germany or any other Axis regime immediately prior to,
during, and immediately after World War II, including,
but not limited to, interest on the proceeds receivable
as insurance under policies issued to a victim of
persecution for racial or religious reasons by Nazi
Germany or any other Axis regime by European insurance
companies immediately prior to and during World War II;
provided, however, this subtraction from federal
adjusted gross income does not apply to assets acquired
with such assets or with the proceeds from the sale of
such assets; provided, further, this paragraph shall
only apply to a taxpayer who was the first recipient of
such assets after their recovery and who is a victim of
persecution for racial or religious reasons by Nazi

HB0902 - 92 - LRB101 08006 RLC 53065 b
Germany or any other Axis regime or as an heir of the
victim. The amount of and the eligibility for any
public assistance, benefit, or similar entitlement is
not affected by the inclusion of items (i) and (ii) of
this paragraph in gross income for federal income tax
purposes. This paragraph is exempt from the provisions
of Section 250;
(Y) For taxable years beginning on or after January
1, 2002 and ending on or before December 31, 2004,
moneys contributed in the taxable year to a College
Savings Pool account under Section 16.5 of the State
Treasurer Act, except that amounts excluded from gross
income under Section 529(c)(3)(C)(i) of the Internal
Revenue Code shall not be considered moneys
contributed under this subparagraph (Y). For taxable
years beginning on or after January 1, 2005, a maximum
of $10,000 contributed in the taxable year to (i) a
College Savings Pool account under Section 16.5 of the
State Treasurer Act or (ii) the Illinois Prepaid
Tuition Trust Fund, except that amounts excluded from
gross income under Section 529(c)(3)(C)(i) of the
Internal Revenue Code shall not be considered moneys
contributed under this subparagraph (Y). For purposes
of this subparagraph, contributions made by an
employer on behalf of an employee, or matching
contributions made by an employee, shall be treated as

HB0902 - 93 - LRB101 08006 RLC 53065 b
made by the employee. This subparagraph (Y) is exempt
from the provisions of Section 250;
(Z) For taxable years 2001 and thereafter, for the
taxable year in which the bonus depreciation deduction
is taken on the taxpayer's federal income tax return
under subsection (k) of Section 168 of the Internal
Revenue Code and for each applicable taxable year
thereafter, an amount equal to "x", where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the
taxpayer's federal income tax return on property
for which the bonus depreciation deduction was
taken in any year under subsection (k) of Section
168 of the Internal Revenue Code, but not including
the bonus depreciation deduction;
(2) for taxable years ending on or before
December 31, 2005, "x" equals "y" multiplied by 30
and then divided by 70 (or "y" multiplied by
0.429); and
(3) for taxable years ending after December
31, 2005:
(i) for property on which a bonus
depreciation deduction of 30% of the adjusted
basis was taken, "x" equals "y" multiplied by
30 and then divided by 70 (or "y" multiplied by
0.429); and

HB0902 - 94 - LRB101 08006 RLC 53065 b
(ii) for property on which a bonus
depreciation deduction of 50% of the adjusted
basis was taken, "x" equals "y" multiplied by
1.0.
The aggregate amount deducted under this
subparagraph in all taxable years for any one piece of
property may not exceed the amount of the bonus
depreciation deduction taken on that property on the
taxpayer's federal income tax return under subsection
(k) of Section 168 of the Internal Revenue Code. This
subparagraph (Z) is exempt from the provisions of
Section 250;
(AA) If the taxpayer sells, transfers, abandons,
or otherwise disposes of property for which the
taxpayer was required in any taxable year to make an
addition modification under subparagraph (D-15), then
an amount equal to that addition modification.
If the taxpayer continues to own property through
the last day of the last tax year for which the
taxpayer may claim a depreciation deduction for
federal income tax purposes and for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (D-15), then an amount
equal to that addition modification.
The taxpayer is allowed to take the deduction under
this subparagraph only once with respect to any one

HB0902 - 95 - LRB101 08006 RLC 53065 b
piece of property.
This subparagraph (AA) is exempt from the
provisions of Section 250;
(BB) Any amount included in adjusted gross income,
other than salary, received by a driver in a
ridesharing arrangement using a motor vehicle;
(CC) The amount of (i) any interest income (net of
the deductions allocable thereto) taken into account
for the taxable year with respect to a transaction with
a taxpayer that is required to make an addition
modification with respect to such transaction under
Section 203(a)(2)(D-17), 203(b)(2)(E-12),
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
the amount of that addition modification, and (ii) any
income from intangible property (net of the deductions
allocable thereto) taken into account for the taxable
year with respect to a transaction with a taxpayer that
is required to make an addition modification with
respect to such transaction under Section
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
203(d)(2)(D-8), but not to exceed the amount of that
addition modification. This subparagraph (CC) is
exempt from the provisions of Section 250;
(DD) An amount equal to the interest income taken
into account for the taxable year (net of the
deductions allocable thereto) with respect to

HB0902 - 96 - LRB101 08006 RLC 53065 b
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but for
the fact that the foreign person's business activity
outside the United States is 80% or more of that
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304, but not to exceed the
addition modification required to be made for the same
taxable year under Section 203(a)(2)(D-17) for
interest paid, accrued, or incurred, directly or
indirectly, to the same person. This subparagraph (DD)
is exempt from the provisions of Section 250;
(EE) An amount equal to the income from intangible
property taken into account for the taxable year (net
of the deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but for
the fact that the foreign person's business activity
outside the United States is 80% or more of that
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person

HB0902 - 97 - LRB101 08006 RLC 53065 b
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304, but not to exceed the
addition modification required to be made for the same
taxable year under Section 203(a)(2)(D-18) for
intangible expenses and costs paid, accrued, or
incurred, directly or indirectly, to the same foreign
person. This subparagraph (EE) is exempt from the
provisions of Section 250;
(FF) An amount equal to any amount awarded to the
taxpayer during the taxable year by the Court of Claims
under subsection (c) of Section 8 of the Court of
Claims Act for time unjustly served in a State prison.
This subparagraph (FF) is exempt from the provisions of
Section 250;
(GG) For taxable years ending on or after December
31, 2011, in the case of a taxpayer who was required to
add back any insurance premiums under Section
203(a)(2)(D-19), such taxpayer may elect to subtract
that part of a reimbursement received from the
insurance company equal to the amount of the expense or
loss (including expenses incurred by the insurance
company) that would have been taken into account as a

HB0902 - 98 - LRB101 08006 RLC 53065 b
deduction for federal income tax purposes if the
expense or loss had been uninsured. If a taxpayer makes
the election provided for by this subparagraph (GG),
the insurer to which the premiums were paid must add
back to income the amount subtracted by the taxpayer
pursuant to this subparagraph (GG). This subparagraph
(GG) is exempt from the provisions of Section 250; and
(HH) For taxable years beginning on or after
January 1, 2018 and prior to January 1, 2023, a maximum
of $10,000 contributed in the taxable year to a
qualified ABLE account under Section 16.6 of the State
Treasurer Act, except that amounts excluded from gross
income under Section 529(c)(3)(C)(i) or Section
529A(c)(1)(C) of the Internal Revenue Code shall not be
considered moneys contributed under this subparagraph
(HH). For purposes of this subparagraph (HH),
contributions made by an employer on behalf of an
employee, or matching contributions made by an
employee, shall be treated as made by the employee;
and .
(II) An amount equal to all the ordinary and
necessary expenses paid or incurred during the taxable
year in carrying on the business of a cannabis
establishment as defined in Section 10 of the Cannabis
Legalization Equity Act if the cannabis establishment
is in compliance with that Act, including:

HB0902 - 99 - LRB101 08006 RLC 53065 b
(i) a reasonable allowance for salaries or
other compensation for personal services actually
rendered;
(ii) traveling expenses (including amounts
expended for meals and lodging other than amounts
which are lavish or extravagant under the
circumstances) while away from home in the pursuit
of the business of the cannabis establishment; and
(iii) rentals or other payments required to be
made as a condition to the continued use or
possession, for purposes of the business of a
cannabis establishment, of property to which the
taxpayer has not taken or is not taking title or in
which he or she has no equity.
(b) Corporations.
(1) In general. In the case of a corporation, base
income means an amount equal to the taxpayer's taxable
income for the taxable year as modified by paragraph (2).
(2) Modifications. The taxable income referred to in
paragraph (1) shall be modified by adding thereto the sum
of the following amounts:
(A) An amount equal to all amounts paid or accrued
to the taxpayer as interest and all distributions
received from regulated investment companies during
the taxable year to the extent excluded from gross

HB0902 - 100 - LRB101 08006 RLC 53065 b
income in the computation of taxable income;
(B) An amount equal to the amount of tax imposed by
this Act to the extent deducted from gross income in
the computation of taxable income for the taxable year;
(C) In the case of a regulated investment company,
an amount equal to the excess of (i) the net long-term
capital gain for the taxable year, over (ii) the amount
of the capital gain dividends designated as such in
accordance with Section 852(b)(3)(C) of the Internal
Revenue Code and any amount designated under Section
852(b)(3)(D) of the Internal Revenue Code,
attributable to the taxable year (this amendatory Act
of 1995 (Public Act 89-89) is declarative of existing
law and is not a new enactment);
(D) The amount of any net operating loss deduction
taken in arriving at taxable income, other than a net
operating loss carried forward from a taxable year
ending prior to December 31, 1986;
(E) For taxable years in which a net operating loss
carryback or carryforward from a taxable year ending
prior to December 31, 1986 is an element of taxable
income under paragraph (1) of subsection (e) or
subparagraph (E) of paragraph (2) of subsection (e),
the amount by which addition modifications other than
those provided by this subparagraph (E) exceeded
subtraction modifications in such earlier taxable

HB0902 - 101 - LRB101 08006 RLC 53065 b
year, with the following limitations applied in the
order that they are listed:
(i) the addition modification relating to the
net operating loss carried back or forward to the
taxable year from any taxable year ending prior to
December 31, 1986 shall be reduced by the amount of
addition modification under this subparagraph (E)
which related to that net operating loss and which
was taken into account in calculating the base
income of an earlier taxable year, and
(ii) the addition modification relating to the
net operating loss carried back or forward to the
taxable year from any taxable year ending prior to
December 31, 1986 shall not exceed the amount of
such carryback or carryforward;
For taxable years in which there is a net operating
loss carryback or carryforward from more than one other
taxable year ending prior to December 31, 1986, the
addition modification provided in this subparagraph
(E) shall be the sum of the amounts computed
independently under the preceding provisions of this
subparagraph (E) for each such taxable year;
(E-5) For taxable years ending after December 31,
1997, an amount equal to any eligible remediation costs
that the corporation deducted in computing adjusted
gross income and for which the corporation claims a

HB0902 - 102 - LRB101 08006 RLC 53065 b
credit under subsection (l) of Section 201;
(E-10) For taxable years 2001 and thereafter, an
amount equal to the bonus depreciation deduction taken
on the taxpayer's federal income tax return for the
taxable year under subsection (k) of Section 168 of the
Internal Revenue Code;
(E-11) If the taxpayer sells, transfers, abandons,
or otherwise disposes of property for which the
taxpayer was required in any taxable year to make an
addition modification under subparagraph (E-10), then
an amount equal to the aggregate amount of the
deductions taken in all taxable years under
subparagraph (T) with respect to that property.
If the taxpayer continues to own property through
the last day of the last tax year for which the
taxpayer may claim a depreciation deduction for
federal income tax purposes and for which the taxpayer
was allowed in any taxable year to make a subtraction
modification under subparagraph (T), then an amount
equal to that subtraction modification.
The taxpayer is required to make the addition
modification under this subparagraph only once with
respect to any one piece of property;
(E-12) An amount equal to the amount otherwise
allowed as a deduction in computing base income for
interest paid, accrued, or incurred, directly or

HB0902 - 103 - LRB101 08006 RLC 53065 b
indirectly, (i) for taxable years ending on or after
December 31, 2004, to a foreign person who would be a
member of the same unitary business group but for the
fact the foreign person's business activity outside
the United States is 80% or more of the foreign
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304. The addition modification
required by this subparagraph shall be reduced to the
extent that dividends were included in base income of
the unitary group for the same taxable year and
received by the taxpayer or by a member of the
taxpayer's unitary business group (including amounts
included in gross income pursuant to Sections 951
through 964 of the Internal Revenue Code and amounts
included in gross income under Section 78 of the
Internal Revenue Code) with respect to the stock of the
same person to whom the interest was paid, accrued, or
incurred.
This paragraph shall not apply to the following:
(i) an item of interest paid, accrued, or

HB0902 - 104 - LRB101 08006 RLC 53065 b
incurred, directly or indirectly, to a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such interest; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:
(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and
(b) the transaction giving rise to the
interest expense between the taxpayer and the
person did not have as a principal purpose the
avoidance of Illinois income tax, and is paid
pursuant to a contract or agreement that
reflects an arm's-length interest rate and
terms; or
(iii) the taxpayer can establish, based on
clear and convincing evidence, that the interest
paid, accrued, or incurred relates to a contract or
agreement entered into at arm's-length rates and
terms and the principal purpose for the payment is
not federal or Illinois tax avoidance; or

HB0902 - 105 - LRB101 08006 RLC 53065 b
(iv) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer establishes by clear and convincing
evidence that the adjustments are unreasonable; or
if the taxpayer and the Director agree in writing
to the application or use of an alternative method
of apportionment under Section 304(f).
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act for
any tax year beginning after the effective date of
this amendment provided such adjustment is made
pursuant to regulation adopted by the Department
and such regulations provide methods and standards
by which the Department will utilize its authority
under Section 404 of this Act;
(E-13) An amount equal to the amount of intangible
expenses and costs otherwise allowed as a deduction in
computing base income, and that were paid, accrued, or
incurred, directly or indirectly, (i) for taxable
years ending on or after December 31, 2004, to a
foreign person who would be a member of the same
unitary business group but for the fact that the
foreign person's business activity outside the United
States is 80% or more of that person's total business
activity and (ii) for taxable years ending on or after

HB0902 - 106 - LRB101 08006 RLC 53065 b
December 31, 2008, to a person who would be a member of
the same unitary business group but for the fact that
the person is prohibited under Section 1501(a)(27)
from being included in the unitary business group
because he or she is ordinarily required to apportion
business income under different subsections of Section
304. The addition modification required by this
subparagraph shall be reduced to the extent that
dividends were included in base income of the unitary
group for the same taxable year and received by the
taxpayer or by a member of the taxpayer's unitary
business group (including amounts included in gross
income pursuant to Sections 951 through 964 of the
Internal Revenue Code and amounts included in gross
income under Section 78 of the Internal Revenue Code)
with respect to the stock of the same person to whom
the intangible expenses and costs were directly or
indirectly paid, incurred, or accrued. The preceding
sentence shall not apply to the extent that the same
dividends caused a reduction to the addition
modification required under Section 203(b)(2)(E-12) of
this Act. As used in this subparagraph, the term
"intangible expenses and costs" includes (1) expenses,
losses, and costs for, or related to, the direct or
indirect acquisition, use, maintenance or management,
ownership, sale, exchange, or any other disposition of

HB0902 - 107 - LRB101 08006 RLC 53065 b
intangible property; (2) losses incurred, directly or
indirectly, from factoring transactions or discounting
transactions; (3) royalty, patent, technical, and
copyright fees; (4) licensing fees; and (5) other
similar expenses and costs. For purposes of this
subparagraph, "intangible property" includes patents,
patent applications, trade names, trademarks, service
marks, copyrights, mask works, trade secrets, and
similar types of intangible assets.
This paragraph shall not apply to the following:
(i) any item of intangible expenses or costs
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person who is
subject in a foreign country or state, other than a
state which requires mandatory unitary reporting,
to a tax on or measured by net income with respect
to such item; or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the
intangible expense or cost to a person that is
not a related member, and

HB0902 - 108 - LRB101 08006 RLC 53065 b
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(iii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if the
taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;
or if the taxpayer and the Director agree in
writing to the application or use of an alternative
method of apportionment under Section 304(f);
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act for
any tax year beginning after the effective date of
this amendment provided such adjustment is made
pursuant to regulation adopted by the Department
and such regulations provide methods and standards
by which the Department will utilize its authority
under Section 404 of this Act;
(E-14) For taxable years ending on or after
December 31, 2008, an amount equal to the amount of

HB0902 - 109 - LRB101 08006 RLC 53065 b
insurance premium expenses and costs otherwise allowed
as a deduction in computing base income, and that were
paid, accrued, or incurred, directly or indirectly, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304. The
addition modification required by this subparagraph
shall be reduced to the extent that dividends were
included in base income of the unitary group for the
same taxable year and received by the taxpayer or by a
member of the taxpayer's unitary business group
(including amounts included in gross income under
Sections 951 through 964 of the Internal Revenue Code
and amounts included in gross income under Section 78
of the Internal Revenue Code) with respect to the stock
of the same person to whom the premiums and costs were
directly or indirectly paid, incurred, or accrued. The
preceding sentence does not apply to the extent that
the same dividends caused a reduction to the addition
modification required under Section 203(b)(2)(E-12) or
Section 203(b)(2)(E-13) of this Act;
(E-15) For taxable years beginning after December
31, 2008, any deduction for dividends paid by a captive

HB0902 - 110 - LRB101 08006 RLC 53065 b
real estate investment trust that is allowed to a real
estate investment trust under Section 857(b)(2)(B) of
the Internal Revenue Code for dividends paid;
(E-16) An amount equal to the credit allowable to
the taxpayer under Section 218(a) of this Act,
determined without regard to Section 218(c) of this
Act;
(E-17) For taxable years ending on or after
December 31, 2017, an amount equal to the deduction
allowed under Section 199 of the Internal Revenue Code
for the taxable year;
and by deducting from the total so obtained the sum of the
following amounts:
(F) An amount equal to the amount of any tax
imposed by this Act which was refunded to the taxpayer
and included in such total for the taxable year;
(G) An amount equal to any amount included in such
total under Section 78 of the Internal Revenue Code;
(H) In the case of a regulated investment company,
an amount equal to the amount of exempt interest
dividends as defined in subsection (b)(5) of Section
852 of the Internal Revenue Code, paid to shareholders
for the taxable year;
(I) With the exception of any amounts subtracted
under subparagraph (J), an amount equal to the sum of
all amounts disallowed as deductions by (i) Sections

HB0902 - 111 - LRB101 08006 RLC 53065 b
171(a)(2), and 265(a)(2) and amounts disallowed as
interest expense by Section 291(a)(3) of the Internal
Revenue Code, and all amounts of expenses allocable to
interest and disallowed as deductions by Section
265(a)(1) of the Internal Revenue Code; and (ii) for
taxable years ending on or after August 13, 1999,
Sections 171(a)(2), 265, 280C, 291(a)(3), and
832(b)(5)(B)(i) of the Internal Revenue Code, plus,
for tax years ending on or after December 31, 2011,
amounts disallowed as deductions by Section 45G(e)(3)
of the Internal Revenue Code and, for taxable years
ending on or after December 31, 2008, any amount
included in gross income under Section 87 of the
Internal Revenue Code and the policyholders' share of
tax-exempt interest of a life insurance company under
Section 807(a)(2)(B) of the Internal Revenue Code (in
the case of a life insurance company with gross income
from a decrease in reserves for the tax year) or
Section 807(b)(1)(B) of the Internal Revenue Code (in
the case of a life insurance company allowed a
deduction for an increase in reserves for the tax
year); the provisions of this subparagraph are exempt
from the provisions of Section 250;
(J) An amount equal to all amounts included in such
total which are exempt from taxation by this State
either by reason of its statutes or Constitution or by

HB0902 - 112 - LRB101 08006 RLC 53065 b
reason of the Constitution, treaties or statutes of the
United States; provided that, in the case of any
statute of this State that exempts income derived from
bonds or other obligations from the tax imposed under
this Act, the amount exempted shall be the interest net
of bond premium amortization;
(K) An amount equal to those dividends included in
such total which were paid by a corporation which
conducts business operations in a River Edge
Redevelopment Zone or zones created under the River
Edge Redevelopment Zone Act and conducts substantially
all of its operations in a River Edge Redevelopment
Zone or zones. This subparagraph (K) is exempt from the
provisions of Section 250;
(L) An amount equal to those dividends included in
such total that were paid by a corporation that
conducts business operations in a federally designated
Foreign Trade Zone or Sub-Zone and that is designated a
High Impact Business located in Illinois; provided
that dividends eligible for the deduction provided in
subparagraph (K) of paragraph 2 of this subsection
shall not be eligible for the deduction provided under
this subparagraph (L);
(M) For any taxpayer that is a financial
organization within the meaning of Section 304(c) of
this Act, an amount included in such total as interest

HB0902 - 113 - LRB101 08006 RLC 53065 b
income from a loan or loans made by such taxpayer to a
borrower, to the extent that such a loan is secured by
property which is eligible for the River Edge
Redevelopment Zone Investment Credit. To determine the
portion of a loan or loans that is secured by property
eligible for a Section 201(f) investment credit to the
borrower, the entire principal amount of the loan or
loans between the taxpayer and the borrower should be
divided into the basis of the Section 201(f) investment
credit property which secures the loan or loans, using
for this purpose the original basis of such property on
the date that it was placed in service in the River
Edge Redevelopment Zone. The subtraction modification
available to the taxpayer in any year under this
subsection shall be that portion of the total interest
paid by the borrower with respect to such loan
attributable to the eligible property as calculated
under the previous sentence. This subparagraph (M) is
exempt from the provisions of Section 250;
(M-1) For any taxpayer that is a financial
organization within the meaning of Section 304(c) of
this Act, an amount included in such total as interest
income from a loan or loans made by such taxpayer to a
borrower, to the extent that such a loan is secured by
property which is eligible for the High Impact Business
Investment Credit. To determine the portion of a loan

HB0902 - 114 - LRB101 08006 RLC 53065 b
or loans that is secured by property eligible for a
Section 201(h) investment credit to the borrower, the
entire principal amount of the loan or loans between
the taxpayer and the borrower should be divided into
the basis of the Section 201(h) investment credit
property which secures the loan or loans, using for
this purpose the original basis of such property on the
date that it was placed in service in a federally
designated Foreign Trade Zone or Sub-Zone located in
Illinois. No taxpayer that is eligible for the
deduction provided in subparagraph (M) of paragraph
(2) of this subsection shall be eligible for the
deduction provided under this subparagraph (M-1). The
subtraction modification available to taxpayers in any
year under this subsection shall be that portion of the
total interest paid by the borrower with respect to
such loan attributable to the eligible property as
calculated under the previous sentence;
(N) Two times any contribution made during the
taxable year to a designated zone organization to the
extent that the contribution (i) qualifies as a
charitable contribution under subsection (c) of
Section 170 of the Internal Revenue Code and (ii) must,
by its terms, be used for a project approved by the
Department of Commerce and Economic Opportunity under
Section 11 of the Illinois Enterprise Zone Act or under

HB0902 - 115 - LRB101 08006 RLC 53065 b
Section 10-10 of the River Edge Redevelopment Zone Act.
This subparagraph (N) is exempt from the provisions of
Section 250;
(O) An amount equal to: (i) 85% for taxable years
ending on or before December 31, 1992, or, a percentage
equal to the percentage allowable under Section
243(a)(1) of the Internal Revenue Code of 1986 for
taxable years ending after December 31, 1992, of the
amount by which dividends included in taxable income
and received from a corporation that is not created or
organized under the laws of the United States or any
state or political subdivision thereof, including, for
taxable years ending on or after December 31, 1988,
dividends received or deemed received or paid or deemed
paid under Sections 951 through 965 of the Internal
Revenue Code, exceed the amount of the modification
provided under subparagraph (G) of paragraph (2) of
this subsection (b) which is related to such dividends,
and including, for taxable years ending on or after
December 31, 2008, dividends received from a captive
real estate investment trust; plus (ii) 100% of the
amount by which dividends, included in taxable income
and received, including, for taxable years ending on or
after December 31, 1988, dividends received or deemed
received or paid or deemed paid under Sections 951
through 964 of the Internal Revenue Code and including,

HB0902 - 116 - LRB101 08006 RLC 53065 b
for taxable years ending on or after December 31, 2008,
dividends received from a captive real estate
investment trust, from any such corporation specified
in clause (i) that would but for the provisions of
Section 1504(b)(3) of the Internal Revenue Code be
treated as a member of the affiliated group which
includes the dividend recipient, exceed the amount of
the modification provided under subparagraph (G) of
paragraph (2) of this subsection (b) which is related
to such dividends. This subparagraph (O) is exempt from
the provisions of Section 250 of this Act;
(P) An amount equal to any contribution made to a
job training project established pursuant to the Tax
Increment Allocation Redevelopment Act;
(Q) An amount equal to the amount of the deduction
used to compute the federal income tax credit for
restoration of substantial amounts held under claim of
right for the taxable year pursuant to Section 1341 of
the Internal Revenue Code;
(R) On and after July 20, 1999, in the case of an
attorney-in-fact with respect to whom an interinsurer
or a reciprocal insurer has made the election under
Section 835 of the Internal Revenue Code, 26 U.S.C.
835, an amount equal to the excess, if any, of the
amounts paid or incurred by that interinsurer or
reciprocal insurer in the taxable year to the

HB0902 - 117 - LRB101 08006 RLC 53065 b
attorney-in-fact over the deduction allowed to that
interinsurer or reciprocal insurer with respect to the
attorney-in-fact under Section 835(b) of the Internal
Revenue Code for the taxable year; the provisions of
this subparagraph are exempt from the provisions of
Section 250;
(S) For taxable years ending on or after December
31, 1997, in the case of a Subchapter S corporation, an
amount equal to all amounts of income allocable to a
shareholder subject to the Personal Property Tax
Replacement Income Tax imposed by subsections (c) and
(d) of Section 201 of this Act, including amounts
allocable to organizations exempt from federal income
tax by reason of Section 501(a) of the Internal Revenue
Code. This subparagraph (S) is exempt from the
provisions of Section 250;
(T) For taxable years 2001 and thereafter, for the
taxable year in which the bonus depreciation deduction
is taken on the taxpayer's federal income tax return
under subsection (k) of Section 168 of the Internal
Revenue Code and for each applicable taxable year
thereafter, an amount equal to "x", where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the
taxpayer's federal income tax return on property
for which the bonus depreciation deduction was

HB0902 - 118 - LRB101 08006 RLC 53065 b
taken in any year under subsection (k) of Section
168 of the Internal Revenue Code, but not including
the bonus depreciation deduction;
(2) for taxable years ending on or before
December 31, 2005, "x" equals "y" multiplied by 30
and then divided by 70 (or "y" multiplied by
0.429); and
(3) for taxable years ending after December
31, 2005:
(i) for property on which a bonus
depreciation deduction of 30% of the adjusted
basis was taken, "x" equals "y" multiplied by
30 and then divided by 70 (or "y" multiplied by
0.429); and
(ii) for property on which a bonus
depreciation deduction of 50% of the adjusted
basis was taken, "x" equals "y" multiplied by
1.0.
The aggregate amount deducted under this
subparagraph in all taxable years for any one piece of
property may not exceed the amount of the bonus
depreciation deduction taken on that property on the
taxpayer's federal income tax return under subsection
(k) of Section 168 of the Internal Revenue Code. This
subparagraph (T) is exempt from the provisions of
Section 250;

HB0902 - 119 - LRB101 08006 RLC 53065 b
(U) If the taxpayer sells, transfers, abandons, or
otherwise disposes of property for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (E-10), then an amount
equal to that addition modification.
If the taxpayer continues to own property through
the last day of the last tax year for which the
taxpayer may claim a depreciation deduction for
federal income tax purposes and for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (E-10), then an amount
equal to that addition modification.
The taxpayer is allowed to take the deduction under
this subparagraph only once with respect to any one
piece of property.
This subparagraph (U) is exempt from the
provisions of Section 250;
(V) The amount of: (i) any interest income (net of
the deductions allocable thereto) taken into account
for the taxable year with respect to a transaction with
a taxpayer that is required to make an addition
modification with respect to such transaction under
Section 203(a)(2)(D-17), 203(b)(2)(E-12),
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
the amount of such addition modification, (ii) any
income from intangible property (net of the deductions

HB0902 - 120 - LRB101 08006 RLC 53065 b
allocable thereto) taken into account for the taxable
year with respect to a transaction with a taxpayer that
is required to make an addition modification with
respect to such transaction under Section
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
203(d)(2)(D-8), but not to exceed the amount of such
addition modification, and (iii) any insurance premium
income (net of deductions allocable thereto) taken
into account for the taxable year with respect to a
transaction with a taxpayer that is required to make an
addition modification with respect to such transaction
under Section 203(a)(2)(D-19), Section
203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
203(d)(2)(D-9), but not to exceed the amount of that
addition modification. This subparagraph (V) is exempt
from the provisions of Section 250;
(W) An amount equal to the interest income taken
into account for the taxable year (net of the
deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but for
the fact that the foreign person's business activity
outside the United States is 80% or more of that
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business

HB0902 - 121 - LRB101 08006 RLC 53065 b
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304, but not to exceed the
addition modification required to be made for the same
taxable year under Section 203(b)(2)(E-12) for
interest paid, accrued, or incurred, directly or
indirectly, to the same person. This subparagraph (W)
is exempt from the provisions of Section 250;
(X) An amount equal to the income from intangible
property taken into account for the taxable year (net
of the deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but for
the fact that the foreign person's business activity
outside the United States is 80% or more of that
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304, but not to exceed the
addition modification required to be made for the same

HB0902 - 122 - LRB101 08006 RLC 53065 b
taxable year under Section 203(b)(2)(E-13) for
intangible expenses and costs paid, accrued, or
incurred, directly or indirectly, to the same foreign
person. This subparagraph (X) is exempt from the
provisions of Section 250;
(Y) For taxable years ending on or after December
31, 2011, in the case of a taxpayer who was required to
add back any insurance premiums under Section
203(b)(2)(E-14), such taxpayer may elect to subtract
that part of a reimbursement received from the
insurance company equal to the amount of the expense or
loss (including expenses incurred by the insurance
company) that would have been taken into account as a
deduction for federal income tax purposes if the
expense or loss had been uninsured. If a taxpayer makes
the election provided for by this subparagraph (Y), the
insurer to which the premiums were paid must add back
to income the amount subtracted by the taxpayer
pursuant to this subparagraph (Y). This subparagraph
(Y) is exempt from the provisions of Section 250; and
(Z) The difference between the nondeductible
controlled foreign corporation dividends under Section
965(e)(3) of the Internal Revenue Code over the taxable
income of the taxpayer, computed without regard to
Section 965(e)(2)(A) of the Internal Revenue Code, and
without regard to any net operating loss deduction.

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This subparagraph (Z) is exempt from the provisions of
Section 250; and .
(AA) An amount equal to all the ordinary and
necessary expenses paid or incurred during the taxable
year in carrying on the business of a cannabis
establishment as defined in Section 10 of the Cannabis
Legalization Equity Act if the cannabis establishment
is in compliance with that Act, including:
(i) a reasonable allowance for salaries or
other compensation for personal services actually
rendered;
(ii) traveling expenses (including amounts
expended for meals and lodging other than amounts
which are lavish or extravagant under the
circumstances) while away from home in the pursuit
of the business of the cannabis establishment; and
(iii) rentals or other payments required to be
made as a condition to the continued use or
possession, for purposes of the business of a
cannabis establishment, of property to which the
taxpayer has not taken or is not taking title or in
which he or she has no equity.
(3) Special rule. For purposes of paragraph (2)(A),
"gross income" in the case of a life insurance company, for
tax years ending on and after December 31, 1994, and prior
to December 31, 2011, shall mean the gross investment

HB0902 - 124 - LRB101 08006 RLC 53065 b
income for the taxable year and, for tax years ending on or
after December 31, 2011, shall mean all amounts included in
life insurance gross income under Section 803(a)(3) of the
Internal Revenue Code.
(c) Trusts and estates.
(1) In general. In the case of a trust or estate, base
income means an amount equal to the taxpayer's taxable
income for the taxable year as modified by paragraph (2).
(2) Modifications. Subject to the provisions of
paragraph (3), the taxable income referred to in paragraph
(1) shall be modified by adding thereto the sum of the
following amounts:
(A) An amount equal to all amounts paid or accrued
to the taxpayer as interest or dividends during the
taxable year to the extent excluded from gross income
in the computation of taxable income;
(B) In the case of (i) an estate, $600; (ii) a
trust which, under its governing instrument, is
required to distribute all of its income currently,
$300; and (iii) any other trust, $100, but in each such
case, only to the extent such amount was deducted in
the computation of taxable income;
(C) An amount equal to the amount of tax imposed by
this Act to the extent deducted from gross income in
the computation of taxable income for the taxable year;

HB0902 - 125 - LRB101 08006 RLC 53065 b
(D) The amount of any net operating loss deduction
taken in arriving at taxable income, other than a net
operating loss carried forward from a taxable year
ending prior to December 31, 1986;
(E) For taxable years in which a net operating loss
carryback or carryforward from a taxable year ending
prior to December 31, 1986 is an element of taxable
income under paragraph (1) of subsection (e) or
subparagraph (E) of paragraph (2) of subsection (e),
the amount by which addition modifications other than
those provided by this subparagraph (E) exceeded
subtraction modifications in such taxable year, with
the following limitations applied in the order that
they are listed:
(i) the addition modification relating to the
net operating loss carried back or forward to the
taxable year from any taxable year ending prior to
December 31, 1986 shall be reduced by the amount of
addition modification under this subparagraph (E)
which related to that net operating loss and which
was taken into account in calculating the base
income of an earlier taxable year, and
(ii) the addition modification relating to the
net operating loss carried back or forward to the
taxable year from any taxable year ending prior to
December 31, 1986 shall not exceed the amount of

HB0902 - 126 - LRB101 08006 RLC 53065 b
such carryback or carryforward;
For taxable years in which there is a net operating
loss carryback or carryforward from more than one other
taxable year ending prior to December 31, 1986, the
addition modification provided in this subparagraph
(E) shall be the sum of the amounts computed
independently under the preceding provisions of this
subparagraph (E) for each such taxable year;
(F) For taxable years ending on or after January 1,
1989, an amount equal to the tax deducted pursuant to
Section 164 of the Internal Revenue Code if the trust
or estate is claiming the same tax for purposes of the
Illinois foreign tax credit under Section 601 of this
Act;
(G) An amount equal to the amount of the capital
gain deduction allowable under the Internal Revenue
Code, to the extent deducted from gross income in the
computation of taxable income;
(G-5) For taxable years ending after December 31,
1997, an amount equal to any eligible remediation costs
that the trust or estate deducted in computing adjusted
gross income and for which the trust or estate claims a
credit under subsection (l) of Section 201;
(G-10) For taxable years 2001 and thereafter, an
amount equal to the bonus depreciation deduction taken
on the taxpayer's federal income tax return for the

HB0902 - 127 - LRB101 08006 RLC 53065 b
taxable year under subsection (k) of Section 168 of the
Internal Revenue Code; and
(G-11) If the taxpayer sells, transfers, abandons,
or otherwise disposes of property for which the
taxpayer was required in any taxable year to make an
addition modification under subparagraph (G-10), then
an amount equal to the aggregate amount of the
deductions taken in all taxable years under
subparagraph (R) with respect to that property.
If the taxpayer continues to own property through
the last day of the last tax year for which the
taxpayer may claim a depreciation deduction for
federal income tax purposes and for which the taxpayer
was allowed in any taxable year to make a subtraction
modification under subparagraph (R), then an amount
equal to that subtraction modification.
The taxpayer is required to make the addition
modification under this subparagraph only once with
respect to any one piece of property;
(G-12) An amount equal to the amount otherwise
allowed as a deduction in computing base income for
interest paid, accrued, or incurred, directly or
indirectly, (i) for taxable years ending on or after
December 31, 2004, to a foreign person who would be a
member of the same unitary business group but for the
fact that the foreign person's business activity

HB0902 - 128 - LRB101 08006 RLC 53065 b
outside the United States is 80% or more of the foreign
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304. The addition modification
required by this subparagraph shall be reduced to the
extent that dividends were included in base income of
the unitary group for the same taxable year and
received by the taxpayer or by a member of the
taxpayer's unitary business group (including amounts
included in gross income pursuant to Sections 951
through 964 of the Internal Revenue Code and amounts
included in gross income under Section 78 of the
Internal Revenue Code) with respect to the stock of the
same person to whom the interest was paid, accrued, or
incurred.
This paragraph shall not apply to the following:
(i) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income

HB0902 - 129 - LRB101 08006 RLC 53065 b
with respect to such interest; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:
(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and
(b) the transaction giving rise to the
interest expense between the taxpayer and the
person did not have as a principal purpose the
avoidance of Illinois income tax, and is paid
pursuant to a contract or agreement that
reflects an arm's-length interest rate and
terms; or
(iii) the taxpayer can establish, based on
clear and convincing evidence, that the interest
paid, accrued, or incurred relates to a contract or
agreement entered into at arm's-length rates and
terms and the principal purpose for the payment is
not federal or Illinois tax avoidance; or
(iv) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer establishes by clear and convincing
evidence that the adjustments are unreasonable; or

HB0902 - 130 - LRB101 08006 RLC 53065 b
if the taxpayer and the Director agree in writing
to the application or use of an alternative method
of apportionment under Section 304(f).
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act for
any tax year beginning after the effective date of
this amendment provided such adjustment is made
pursuant to regulation adopted by the Department
and such regulations provide methods and standards
by which the Department will utilize its authority
under Section 404 of this Act;
(G-13) An amount equal to the amount of intangible
expenses and costs otherwise allowed as a deduction in
computing base income, and that were paid, accrued, or
incurred, directly or indirectly, (i) for taxable
years ending on or after December 31, 2004, to a
foreign person who would be a member of the same
unitary business group but for the fact that the
foreign person's business activity outside the United
States is 80% or more of that person's total business
activity and (ii) for taxable years ending on or after
December 31, 2008, to a person who would be a member of
the same unitary business group but for the fact that
the person is prohibited under Section 1501(a)(27)
from being included in the unitary business group

HB0902 - 131 - LRB101 08006 RLC 53065 b
because he or she is ordinarily required to apportion
business income under different subsections of Section
304. The addition modification required by this
subparagraph shall be reduced to the extent that
dividends were included in base income of the unitary
group for the same taxable year and received by the
taxpayer or by a member of the taxpayer's unitary
business group (including amounts included in gross
income pursuant to Sections 951 through 964 of the
Internal Revenue Code and amounts included in gross
income under Section 78 of the Internal Revenue Code)
with respect to the stock of the same person to whom
the intangible expenses and costs were directly or
indirectly paid, incurred, or accrued. The preceding
sentence shall not apply to the extent that the same
dividends caused a reduction to the addition
modification required under Section 203(c)(2)(G-12) of
this Act. As used in this subparagraph, the term
"intangible expenses and costs" includes: (1)
expenses, losses, and costs for or related to the
direct or indirect acquisition, use, maintenance or
management, ownership, sale, exchange, or any other
disposition of intangible property; (2) losses
incurred, directly or indirectly, from factoring
transactions or discounting transactions; (3) royalty,
patent, technical, and copyright fees; (4) licensing

HB0902 - 132 - LRB101 08006 RLC 53065 b
fees; and (5) other similar expenses and costs. For
purposes of this subparagraph, "intangible property"
includes patents, patent applications, trade names,
trademarks, service marks, copyrights, mask works,
trade secrets, and similar types of intangible assets.
This paragraph shall not apply to the following:
(i) any item of intangible expenses or costs
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person who is
subject in a foreign country or state, other than a
state which requires mandatory unitary reporting,
to a tax on or measured by net income with respect
to such item; or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the
intangible expense or cost to a person that is
not a related member, and
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois

HB0902 - 133 - LRB101 08006 RLC 53065 b
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(iii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if the
taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;
or if the taxpayer and the Director agree in
writing to the application or use of an alternative
method of apportionment under Section 304(f);
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act for
any tax year beginning after the effective date of
this amendment provided such adjustment is made
pursuant to regulation adopted by the Department
and such regulations provide methods and standards
by which the Department will utilize its authority
under Section 404 of this Act;
(G-14) For taxable years ending on or after
December 31, 2008, an amount equal to the amount of
insurance premium expenses and costs otherwise allowed
as a deduction in computing base income, and that were
paid, accrued, or incurred, directly or indirectly, to
a person who would be a member of the same unitary

HB0902 - 134 - LRB101 08006 RLC 53065 b
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304. The
addition modification required by this subparagraph
shall be reduced to the extent that dividends were
included in base income of the unitary group for the
same taxable year and received by the taxpayer or by a
member of the taxpayer's unitary business group
(including amounts included in gross income under
Sections 951 through 964 of the Internal Revenue Code
and amounts included in gross income under Section 78
of the Internal Revenue Code) with respect to the stock
of the same person to whom the premiums and costs were
directly or indirectly paid, incurred, or accrued. The
preceding sentence does not apply to the extent that
the same dividends caused a reduction to the addition
modification required under Section 203(c)(2)(G-12) or
Section 203(c)(2)(G-13) of this Act;
(G-15) An amount equal to the credit allowable to
the taxpayer under Section 218(a) of this Act,
determined without regard to Section 218(c) of this
Act;
(G-16) For taxable years ending on or after
December 31, 2017, an amount equal to the deduction

HB0902 - 135 - LRB101 08006 RLC 53065 b
allowed under Section 199 of the Internal Revenue Code
for the taxable year;
and by deducting from the total so obtained the sum of the
following amounts:
(H) An amount equal to all amounts included in such
total pursuant to the provisions of Sections 402(a),
402(c), 403(a), 403(b), 406(a), 407(a) and 408 of the
Internal Revenue Code or included in such total as
distributions under the provisions of any retirement
or disability plan for employees of any governmental
agency or unit, or retirement payments to retired
partners, which payments are excluded in computing net
earnings from self employment by Section 1402 of the
Internal Revenue Code and regulations adopted pursuant
thereto;
(I) The valuation limitation amount;
(J) An amount equal to the amount of any tax
imposed by this Act which was refunded to the taxpayer
and included in such total for the taxable year;
(K) An amount equal to all amounts included in
taxable income as modified by subparagraphs (A), (B),
(C), (D), (E), (F) and (G) which are exempt from
taxation by this State either by reason of its statutes
or Constitution or by reason of the Constitution,
treaties or statutes of the United States; provided
that, in the case of any statute of this State that

HB0902 - 136 - LRB101 08006 RLC 53065 b
exempts income derived from bonds or other obligations
from the tax imposed under this Act, the amount
exempted shall be the interest net of bond premium
amortization;
(L) With the exception of any amounts subtracted
under subparagraph (K), an amount equal to the sum of
all amounts disallowed as deductions by (i) Sections
171(a)(2) and 265(a)(2) of the Internal Revenue Code,
and all amounts of expenses allocable to interest and
disallowed as deductions by Section 265(a)(1) 265(1)
of the Internal Revenue Code; and (ii) for taxable
years ending on or after August 13, 1999, Sections
171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
Internal Revenue Code, plus, (iii) for taxable years
ending on or after December 31, 2011, Section 45G(e)(3)
of the Internal Revenue Code and, for taxable years
ending on or after December 31, 2008, any amount
included in gross income under Section 87 of the
Internal Revenue Code; the provisions of this
subparagraph are exempt from the provisions of Section
250;
(M) An amount equal to those dividends included in
such total which were paid by a corporation which
conducts business operations in a River Edge
Redevelopment Zone or zones created under the River
Edge Redevelopment Zone Act and conducts substantially

HB0902 - 137 - LRB101 08006 RLC 53065 b
all of its operations in a River Edge Redevelopment
Zone or zones. This subparagraph (M) is exempt from the
provisions of Section 250;
(N) An amount equal to any contribution made to a
job training project established pursuant to the Tax
Increment Allocation Redevelopment Act;
(O) An amount equal to those dividends included in
such total that were paid by a corporation that
conducts business operations in a federally designated
Foreign Trade Zone or Sub-Zone and that is designated a
High Impact Business located in Illinois; provided
that dividends eligible for the deduction provided in
subparagraph (M) of paragraph (2) of this subsection
shall not be eligible for the deduction provided under
this subparagraph (O);
(P) An amount equal to the amount of the deduction
used to compute the federal income tax credit for
restoration of substantial amounts held under claim of
right for the taxable year pursuant to Section 1341 of
the Internal Revenue Code;
(Q) For taxable year 1999 and thereafter, an amount
equal to the amount of any (i) distributions, to the
extent includible in gross income for federal income
tax purposes, made to the taxpayer because of his or
her status as a victim of persecution for racial or
religious reasons by Nazi Germany or any other Axis

HB0902 - 138 - LRB101 08006 RLC 53065 b
regime or as an heir of the victim and (ii) items of
income, to the extent includible in gross income for
federal income tax purposes, attributable to, derived
from or in any way related to assets stolen from,
hidden from, or otherwise lost to a victim of
persecution for racial or religious reasons by Nazi
Germany or any other Axis regime immediately prior to,
during, and immediately after World War II, including,
but not limited to, interest on the proceeds receivable
as insurance under policies issued to a victim of
persecution for racial or religious reasons by Nazi
Germany or any other Axis regime by European insurance
companies immediately prior to and during World War II;
provided, however, this subtraction from federal
adjusted gross income does not apply to assets acquired
with such assets or with the proceeds from the sale of
such assets; provided, further, this paragraph shall
only apply to a taxpayer who was the first recipient of
such assets after their recovery and who is a victim of
persecution for racial or religious reasons by Nazi
Germany or any other Axis regime or as an heir of the
victim. The amount of and the eligibility for any
public assistance, benefit, or similar entitlement is
not affected by the inclusion of items (i) and (ii) of
this paragraph in gross income for federal income tax
purposes. This paragraph is exempt from the provisions

HB0902 - 139 - LRB101 08006 RLC 53065 b
of Section 250;
(R) For taxable years 2001 and thereafter, for the
taxable year in which the bonus depreciation deduction
is taken on the taxpayer's federal income tax return
under subsection (k) of Section 168 of the Internal
Revenue Code and for each applicable taxable year
thereafter, an amount equal to "x", where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the
taxpayer's federal income tax return on property
for which the bonus depreciation deduction was
taken in any year under subsection (k) of Section
168 of the Internal Revenue Code, but not including
the bonus depreciation deduction;
(2) for taxable years ending on or before
December 31, 2005, "x" equals "y" multiplied by 30
and then divided by 70 (or "y" multiplied by
0.429); and
(3) for taxable years ending after December
31, 2005:
(i) for property on which a bonus
depreciation deduction of 30% of the adjusted
basis was taken, "x" equals "y" multiplied by
30 and then divided by 70 (or "y" multiplied by
0.429); and
(ii) for property on which a bonus

HB0902 - 140 - LRB101 08006 RLC 53065 b
depreciation deduction of 50% of the adjusted
basis was taken, "x" equals "y" multiplied by
1.0.
The aggregate amount deducted under this
subparagraph in all taxable years for any one piece of
property may not exceed the amount of the bonus
depreciation deduction taken on that property on the
taxpayer's federal income tax return under subsection
(k) of Section 168 of the Internal Revenue Code. This
subparagraph (R) is exempt from the provisions of
Section 250;
(S) If the taxpayer sells, transfers, abandons, or
otherwise disposes of property for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (G-10), then an amount
equal to that addition modification.
If the taxpayer continues to own property through
the last day of the last tax year for which the
taxpayer may claim a depreciation deduction for
federal income tax purposes and for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (G-10), then an amount
equal to that addition modification.
The taxpayer is allowed to take the deduction under
this subparagraph only once with respect to any one
piece of property.

HB0902 - 141 - LRB101 08006 RLC 53065 b
This subparagraph (S) is exempt from the
provisions of Section 250;
(T) The amount of (i) any interest income (net of
the deductions allocable thereto) taken into account
for the taxable year with respect to a transaction with
a taxpayer that is required to make an addition
modification with respect to such transaction under
Section 203(a)(2)(D-17), 203(b)(2)(E-12),
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
the amount of such addition modification and (ii) any
income from intangible property (net of the deductions
allocable thereto) taken into account for the taxable
year with respect to a transaction with a taxpayer that
is required to make an addition modification with
respect to such transaction under Section
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
203(d)(2)(D-8), but not to exceed the amount of such
addition modification. This subparagraph (T) is exempt
from the provisions of Section 250;
(U) An amount equal to the interest income taken
into account for the taxable year (net of the
deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but for
the fact the foreign person's business activity
outside the United States is 80% or more of that

HB0902 - 142 - LRB101 08006 RLC 53065 b
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304, but not to exceed the
addition modification required to be made for the same
taxable year under Section 203(c)(2)(G-12) for
interest paid, accrued, or incurred, directly or
indirectly, to the same person. This subparagraph (U)
is exempt from the provisions of Section 250;
(V) An amount equal to the income from intangible
property taken into account for the taxable year (net
of the deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but for
the fact that the foreign person's business activity
outside the United States is 80% or more of that
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily

HB0902 - 143 - LRB101 08006 RLC 53065 b
required to apportion business income under different
subsections of Section 304, but not to exceed the
addition modification required to be made for the same
taxable year under Section 203(c)(2)(G-13) for
intangible expenses and costs paid, accrued, or
incurred, directly or indirectly, to the same foreign
person. This subparagraph (V) is exempt from the
provisions of Section 250;
(W) in the case of an estate, an amount equal to
all amounts included in such total pursuant to the
provisions of Section 111 of the Internal Revenue Code
as a recovery of items previously deducted by the
decedent from adjusted gross income in the computation
of taxable income. This subparagraph (W) is exempt from
Section 250;
(X) an amount equal to the refund included in such
total of any tax deducted for federal income tax
purposes, to the extent that deduction was added back
under subparagraph (F). This subparagraph (X) is
exempt from the provisions of Section 250; and
(Y) For taxable years ending on or after December
31, 2011, in the case of a taxpayer who was required to
add back any insurance premiums under Section
203(c)(2)(G-14), such taxpayer may elect to subtract
that part of a reimbursement received from the
insurance company equal to the amount of the expense or

HB0902 - 144 - LRB101 08006 RLC 53065 b
loss (including expenses incurred by the insurance
company) that would have been taken into account as a
deduction for federal income tax purposes if the
expense or loss had been uninsured. If a taxpayer makes
the election provided for by this subparagraph (Y), the
insurer to which the premiums were paid must add back
to income the amount subtracted by the taxpayer
pursuant to this subparagraph (Y). This subparagraph
(Y) is exempt from the provisions of Section 250; and .
(Z) An amount equal to all the ordinary and
necessary expenses paid or incurred during the taxable
year in carrying on the business of a cannabis
establishment as defined in Section 10 of the Cannabis
Legalization Equity Act if the cannabis establishment
is in compliance with that Act, including:
(i) a reasonable allowance for salaries or
other compensation for personal services actually
rendered;
(ii) traveling expenses (including amounts
expended for meals and lodging other than amounts
which are lavish or extravagant under the
circumstances) while away from home in the pursuit
of the business of the cannabis establishment; and
(iii) rentals or other payments required to be
made as a condition to the continued use or
possession, for purposes of the business of a

HB0902 - 145 - LRB101 08006 RLC 53065 b
cannabis establishment, of property to which the
taxpayer has not taken or is not taking title or in
which he or she has no equity.
(3) Limitation. The amount of any modification
otherwise required under this subsection shall, under
regulations prescribed by the Department, be adjusted by
any amounts included therein which were properly paid,
credited, or required to be distributed, or permanently set
aside for charitable purposes pursuant to Internal Revenue
Code Section 642(c) during the taxable year.
(d) Partnerships.
(1) In general. In the case of a partnership, base
income means an amount equal to the taxpayer's taxable
income for the taxable year as modified by paragraph (2).
(2) Modifications. The taxable income referred to in
paragraph (1) shall be modified by adding thereto the sum
of the following amounts:
(A) An amount equal to all amounts paid or accrued
to the taxpayer as interest or dividends during the
taxable year to the extent excluded from gross income
in the computation of taxable income;
(B) An amount equal to the amount of tax imposed by
this Act to the extent deducted from gross income for
the taxable year;
(C) The amount of deductions allowed to the

HB0902 - 146 - LRB101 08006 RLC 53065 b
partnership pursuant to Section 707 (c) of the Internal
Revenue Code in calculating its taxable income;
(D) An amount equal to the amount of the capital
gain deduction allowable under the Internal Revenue
Code, to the extent deducted from gross income in the
computation of taxable income;
(D-5) For taxable years 2001 and thereafter, an
amount equal to the bonus depreciation deduction taken
on the taxpayer's federal income tax return for the
taxable year under subsection (k) of Section 168 of the
Internal Revenue Code;
(D-6) If the taxpayer sells, transfers, abandons,
or otherwise disposes of property for which the
taxpayer was required in any taxable year to make an
addition modification under subparagraph (D-5), then
an amount equal to the aggregate amount of the
deductions taken in all taxable years under
subparagraph (O) with respect to that property.
If the taxpayer continues to own property through
the last day of the last tax year for which the
taxpayer may claim a depreciation deduction for
federal income tax purposes and for which the taxpayer
was allowed in any taxable year to make a subtraction
modification under subparagraph (O), then an amount
equal to that subtraction modification.
The taxpayer is required to make the addition

HB0902 - 147 - LRB101 08006 RLC 53065 b
modification under this subparagraph only once with
respect to any one piece of property;
(D-7) An amount equal to the amount otherwise
allowed as a deduction in computing base income for
interest paid, accrued, or incurred, directly or
indirectly, (i) for taxable years ending on or after
December 31, 2004, to a foreign person who would be a
member of the same unitary business group but for the
fact the foreign person's business activity outside
the United States is 80% or more of the foreign
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304. The addition modification
required by this subparagraph shall be reduced to the
extent that dividends were included in base income of
the unitary group for the same taxable year and
received by the taxpayer or by a member of the
taxpayer's unitary business group (including amounts
included in gross income pursuant to Sections 951
through 964 of the Internal Revenue Code and amounts
included in gross income under Section 78 of the

HB0902 - 148 - LRB101 08006 RLC 53065 b
Internal Revenue Code) with respect to the stock of the
same person to whom the interest was paid, accrued, or
incurred.
This paragraph shall not apply to the following:
(i) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such interest; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:
(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and
(b) the transaction giving rise to the
interest expense between the taxpayer and the
person did not have as a principal purpose the
avoidance of Illinois income tax, and is paid
pursuant to a contract or agreement that
reflects an arm's-length interest rate and
terms; or
(iii) the taxpayer can establish, based on

HB0902 - 149 - LRB101 08006 RLC 53065 b
clear and convincing evidence, that the interest
paid, accrued, or incurred relates to a contract or
agreement entered into at arm's-length rates and
terms and the principal purpose for the payment is
not federal or Illinois tax avoidance; or
(iv) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer establishes by clear and convincing
evidence that the adjustments are unreasonable; or
if the taxpayer and the Director agree in writing
to the application or use of an alternative method
of apportionment under Section 304(f).
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act for
any tax year beginning after the effective date of
this amendment provided such adjustment is made
pursuant to regulation adopted by the Department
and such regulations provide methods and standards
by which the Department will utilize its authority
under Section 404 of this Act; and
(D-8) An amount equal to the amount of intangible
expenses and costs otherwise allowed as a deduction in
computing base income, and that were paid, accrued, or
incurred, directly or indirectly, (i) for taxable
years ending on or after December 31, 2004, to a

HB0902 - 150 - LRB101 08006 RLC 53065 b
foreign person who would be a member of the same
unitary business group but for the fact that the
foreign person's business activity outside the United
States is 80% or more of that person's total business
activity and (ii) for taxable years ending on or after
December 31, 2008, to a person who would be a member of
the same unitary business group but for the fact that
the person is prohibited under Section 1501(a)(27)
from being included in the unitary business group
because he or she is ordinarily required to apportion
business income under different subsections of Section
304. The addition modification required by this
subparagraph shall be reduced to the extent that
dividends were included in base income of the unitary
group for the same taxable year and received by the
taxpayer or by a member of the taxpayer's unitary
business group (including amounts included in gross
income pursuant to Sections 951 through 964 of the
Internal Revenue Code and amounts included in gross
income under Section 78 of the Internal Revenue Code)
with respect to the stock of the same person to whom
the intangible expenses and costs were directly or
indirectly paid, incurred or accrued. The preceding
sentence shall not apply to the extent that the same
dividends caused a reduction to the addition
modification required under Section 203(d)(2)(D-7) of

HB0902 - 151 - LRB101 08006 RLC 53065 b
this Act. As used in this subparagraph, the term
"intangible expenses and costs" includes (1) expenses,
losses, and costs for, or related to, the direct or
indirect acquisition, use, maintenance or management,
ownership, sale, exchange, or any other disposition of
intangible property; (2) losses incurred, directly or
indirectly, from factoring transactions or discounting
transactions; (3) royalty, patent, technical, and
copyright fees; (4) licensing fees; and (5) other
similar expenses and costs. For purposes of this
subparagraph, "intangible property" includes patents,
patent applications, trade names, trademarks, service
marks, copyrights, mask works, trade secrets, and
similar types of intangible assets;
This paragraph shall not apply to the following:
(i) any item of intangible expenses or costs
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person who is
subject in a foreign country or state, other than a
state which requires mandatory unitary reporting,
to a tax on or measured by net income with respect
to such item; or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the

HB0902 - 152 - LRB101 08006 RLC 53065 b
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the
intangible expense or cost to a person that is
not a related member, and
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(iii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if the
taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;
or if the taxpayer and the Director agree in
writing to the application or use of an alternative
method of apportionment under Section 304(f);
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act for
any tax year beginning after the effective date of
this amendment provided such adjustment is made
pursuant to regulation adopted by the Department

HB0902 - 153 - LRB101 08006 RLC 53065 b
and such regulations provide methods and standards
by which the Department will utilize its authority
under Section 404 of this Act;
(D-9) For taxable years ending on or after December
31, 2008, an amount equal to the amount of insurance
premium expenses and costs otherwise allowed as a
deduction in computing base income, and that were paid,
accrued, or incurred, directly or indirectly, to a
person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304. The
addition modification required by this subparagraph
shall be reduced to the extent that dividends were
included in base income of the unitary group for the
same taxable year and received by the taxpayer or by a
member of the taxpayer's unitary business group
(including amounts included in gross income under
Sections 951 through 964 of the Internal Revenue Code
and amounts included in gross income under Section 78
of the Internal Revenue Code) with respect to the stock
of the same person to whom the premiums and costs were
directly or indirectly paid, incurred, or accrued. The
preceding sentence does not apply to the extent that

HB0902 - 154 - LRB101 08006 RLC 53065 b
the same dividends caused a reduction to the addition
modification required under Section 203(d)(2)(D-7) or
Section 203(d)(2)(D-8) of this Act;
(D-10) An amount equal to the credit allowable to
the taxpayer under Section 218(a) of this Act,
determined without regard to Section 218(c) of this
Act;
(D-11) For taxable years ending on or after
December 31, 2017, an amount equal to the deduction
allowed under Section 199 of the Internal Revenue Code
for the taxable year;
and by deducting from the total so obtained the following
amounts:
(E) The valuation limitation amount;
(F) An amount equal to the amount of any tax
imposed by this Act which was refunded to the taxpayer
and included in such total for the taxable year;
(G) An amount equal to all amounts included in
taxable income as modified by subparagraphs (A), (B),
(C) and (D) which are exempt from taxation by this
State either by reason of its statutes or Constitution
or by reason of the Constitution, treaties or statutes
of the United States; provided that, in the case of any
statute of this State that exempts income derived from
bonds or other obligations from the tax imposed under
this Act, the amount exempted shall be the interest net

HB0902 - 155 - LRB101 08006 RLC 53065 b
of bond premium amortization;
(H) Any income of the partnership which
constitutes personal service income as defined in
Section 1348(b)(1) of the Internal Revenue Code (as in
effect December 31, 1981) or a reasonable allowance for
compensation paid or accrued for services rendered by
partners to the partnership, whichever is greater;
this subparagraph (H) is exempt from the provisions of
Section 250;
(I) An amount equal to all amounts of income
distributable to an entity subject to the Personal
Property Tax Replacement Income Tax imposed by
subsections (c) and (d) of Section 201 of this Act
including amounts distributable to organizations
exempt from federal income tax by reason of Section
501(a) of the Internal Revenue Code; this subparagraph
(I) is exempt from the provisions of Section 250;
(J) With the exception of any amounts subtracted
under subparagraph (G), an amount equal to the sum of
all amounts disallowed as deductions by (i) Sections
171(a)(2), and 265(a)(2) 265(2) of the Internal
Revenue Code, and all amounts of expenses allocable to
interest and disallowed as deductions by Section
265(a)(1) 265(1) of the Internal Revenue Code; and (ii)
for taxable years ending on or after August 13, 1999,
Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of

HB0902 - 156 - LRB101 08006 RLC 53065 b
the Internal Revenue Code, plus, (iii) for taxable
years ending on or after December 31, 2011, Section
45G(e)(3) of the Internal Revenue Code and, for taxable
years ending on or after December 31, 2008, any amount
included in gross income under Section 87 of the
Internal Revenue Code; the provisions of this
subparagraph are exempt from the provisions of Section
250;
(K) An amount equal to those dividends included in
such total which were paid by a corporation which
conducts business operations in a River Edge
Redevelopment Zone or zones created under the River
Edge Redevelopment Zone Act and conducts substantially
all of its operations from a River Edge Redevelopment
Zone or zones. This subparagraph (K) is exempt from the
provisions of Section 250;
(L) An amount equal to any contribution made to a
job training project established pursuant to the Real
Property Tax Increment Allocation Redevelopment Act;
(M) An amount equal to those dividends included in
such total that were paid by a corporation that
conducts business operations in a federally designated
Foreign Trade Zone or Sub-Zone and that is designated a
High Impact Business located in Illinois; provided
that dividends eligible for the deduction provided in
subparagraph (K) of paragraph (2) of this subsection

HB0902 - 157 - LRB101 08006 RLC 53065 b
shall not be eligible for the deduction provided under
this subparagraph (M);
(N) An amount equal to the amount of the deduction
used to compute the federal income tax credit for
restoration of substantial amounts held under claim of
right for the taxable year pursuant to Section 1341 of
the Internal Revenue Code;
(O) For taxable years 2001 and thereafter, for the
taxable year in which the bonus depreciation deduction
is taken on the taxpayer's federal income tax return
under subsection (k) of Section 168 of the Internal
Revenue Code and for each applicable taxable year
thereafter, an amount equal to "x", where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the
taxpayer's federal income tax return on property
for which the bonus depreciation deduction was
taken in any year under subsection (k) of Section
168 of the Internal Revenue Code, but not including
the bonus depreciation deduction;
(2) for taxable years ending on or before
December 31, 2005, "x" equals "y" multiplied by 30
and then divided by 70 (or "y" multiplied by
0.429); and
(3) for taxable years ending after December
31, 2005:

HB0902 - 158 - LRB101 08006 RLC 53065 b
(i) for property on which a bonus
depreciation deduction of 30% of the adjusted
basis was taken, "x" equals "y" multiplied by
30 and then divided by 70 (or "y" multiplied by
0.429); and
(ii) for property on which a bonus
depreciation deduction of 50% of the adjusted
basis was taken, "x" equals "y" multiplied by
1.0.
The aggregate amount deducted under this
subparagraph in all taxable years for any one piece of
property may not exceed the amount of the bonus
depreciation deduction taken on that property on the
taxpayer's federal income tax return under subsection
(k) of Section 168 of the Internal Revenue Code. This
subparagraph (O) is exempt from the provisions of
Section 250;
(P) If the taxpayer sells, transfers, abandons, or
otherwise disposes of property for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (D-5), then an amount
equal to that addition modification.
If the taxpayer continues to own property through
the last day of the last tax year for which the
taxpayer may claim a depreciation deduction for
federal income tax purposes and for which the taxpayer

HB0902 - 159 - LRB101 08006 RLC 53065 b
was required in any taxable year to make an addition
modification under subparagraph (D-5), then an amount
equal to that addition modification.
The taxpayer is allowed to take the deduction under
this subparagraph only once with respect to any one
piece of property.
This subparagraph (P) is exempt from the
provisions of Section 250;
(Q) The amount of (i) any interest income (net of
the deductions allocable thereto) taken into account
for the taxable year with respect to a transaction with
a taxpayer that is required to make an addition
modification with respect to such transaction under
Section 203(a)(2)(D-17), 203(b)(2)(E-12),
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
the amount of such addition modification and (ii) any
income from intangible property (net of the deductions
allocable thereto) taken into account for the taxable
year with respect to a transaction with a taxpayer that
is required to make an addition modification with
respect to such transaction under Section
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
203(d)(2)(D-8), but not to exceed the amount of such
addition modification. This subparagraph (Q) is exempt
from Section 250;
(R) An amount equal to the interest income taken

HB0902 - 160 - LRB101 08006 RLC 53065 b
into account for the taxable year (net of the
deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but for
the fact that the foreign person's business activity
outside the United States is 80% or more of that
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304, but not to exceed the
addition modification required to be made for the same
taxable year under Section 203(d)(2)(D-7) for interest
paid, accrued, or incurred, directly or indirectly, to
the same person. This subparagraph (R) is exempt from
Section 250;
(S) An amount equal to the income from intangible
property taken into account for the taxable year (net
of the deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but for
the fact that the foreign person's business activity
outside the United States is 80% or more of that

HB0902 - 161 - LRB101 08006 RLC 53065 b
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304, but not to exceed the
addition modification required to be made for the same
taxable year under Section 203(d)(2)(D-8) for
intangible expenses and costs paid, accrued, or
incurred, directly or indirectly, to the same person.
This subparagraph (S) is exempt from Section 250; and
(T) For taxable years ending on or after December
31, 2011, in the case of a taxpayer who was required to
add back any insurance premiums under Section
203(d)(2)(D-9), such taxpayer may elect to subtract
that part of a reimbursement received from the
insurance company equal to the amount of the expense or
loss (including expenses incurred by the insurance
company) that would have been taken into account as a
deduction for federal income tax purposes if the
expense or loss had been uninsured. If a taxpayer makes
the election provided for by this subparagraph (T), the
insurer to which the premiums were paid must add back
to income the amount subtracted by the taxpayer

HB0902 - 162 - LRB101 08006 RLC 53065 b
pursuant to this subparagraph (T). This subparagraph
(T) is exempt from the provisions of Section 250; and .
(U) An amount equal to all the ordinary and
necessary expenses paid or incurred during the taxable
year in carrying on the business of a cannabis
establishment as defined in Section 10 of the Cannabis
Legalization Equity Act if the cannabis establishment
is in compliance with that Act, including:
(i) a reasonable allowance for salaries or
other compensation for personal services actually
rendered;
(ii) traveling expenses (including amounts
expended for meals and lodging other than amounts
which are lavish or extravagant under the
circumstances) while away from home in the pursuit
of the business of the cannabis establishment; and
(iii) rentals or other payments required to be
made as a condition to the continued use or
possession, for purposes of the business of a
cannabis establishment, of property to which the
taxpayer has not taken or is not taking title or in
which he or she has no equity.
(e) Gross income; adjusted gross income; taxable income.
(1) In general. Subject to the provisions of paragraph
(2) and subsection (b)(3), for purposes of this Section and

HB0902 - 163 - LRB101 08006 RLC 53065 b
Section 803(e), a taxpayer's gross income, adjusted gross
income, or taxable income for the taxable year shall mean
the amount of gross income, adjusted gross income or
taxable income properly reportable for federal income tax
purposes for the taxable year under the provisions of the
Internal Revenue Code. Taxable income may be less than
zero. However, for taxable years ending on or after
December 31, 1986, net operating loss carryforwards from
taxable years ending prior to December 31, 1986, may not
exceed the sum of federal taxable income for the taxable
year before net operating loss deduction, plus the excess
of addition modifications over subtraction modifications
for the taxable year. For taxable years ending prior to
December 31, 1986, taxable income may never be an amount in
excess of the net operating loss for the taxable year as
defined in subsections (c) and (d) of Section 172 of the
Internal Revenue Code, provided that when taxable income of
a corporation (other than a Subchapter S corporation),
trust, or estate is less than zero and addition
modifications, other than those provided by subparagraph
(E) of paragraph (2) of subsection (b) for corporations or
subparagraph (E) of paragraph (2) of subsection (c) for
trusts and estates, exceed subtraction modifications, an
addition modification must be made under those
subparagraphs for any other taxable year to which the
taxable income less than zero (net operating loss) is

HB0902 - 164 - LRB101 08006 RLC 53065 b
applied under Section 172 of the Internal Revenue Code or
under subparagraph (E) of paragraph (2) of this subsection
(e) applied in conjunction with Section 172 of the Internal
Revenue Code.
(2) Special rule. For purposes of paragraph (1) of this
subsection, the taxable income properly reportable for
federal income tax purposes shall mean:
(A) Certain life insurance companies. In the case
of a life insurance company subject to the tax imposed
by Section 801 of the Internal Revenue Code, life
insurance company taxable income, plus the amount of
distribution from pre-1984 policyholder surplus
accounts as calculated under Section 815a of the
Internal Revenue Code;
(B) Certain other insurance companies. In the case
of mutual insurance companies subject to the tax
imposed by Section 831 of the Internal Revenue Code,
insurance company taxable income;
(C) Regulated investment companies. In the case of
a regulated investment company subject to the tax
imposed by Section 852 of the Internal Revenue Code,
investment company taxable income;
(D) Real estate investment trusts. In the case of a
real estate investment trust subject to the tax imposed
by Section 857 of the Internal Revenue Code, real
estate investment trust taxable income;

HB0902 - 165 - LRB101 08006 RLC 53065 b
(E) Consolidated corporations. In the case of a
corporation which is a member of an affiliated group of
corporations filing a consolidated income tax return
for the taxable year for federal income tax purposes,
taxable income determined as if such corporation had
filed a separate return for federal income tax purposes
for the taxable year and each preceding taxable year
for which it was a member of an affiliated group. For
purposes of this subparagraph, the taxpayer's separate
taxable income shall be determined as if the election
provided by Section 243(b)(2) of the Internal Revenue
Code had been in effect for all such years;
(F) Cooperatives. In the case of a cooperative
corporation or association, the taxable income of such
organization determined in accordance with the
provisions of Section 1381 through 1388 of the Internal
Revenue Code, but without regard to the prohibition
against offsetting losses from patronage activities
against income from nonpatronage activities; except
that a cooperative corporation or association may make
an election to follow its federal income tax treatment
of patronage losses and nonpatronage losses. In the
event such election is made, such losses shall be
computed and carried over in a manner consistent with
subsection (a) of Section 207 of this Act and
apportioned by the apportionment factor reported by

HB0902 - 166 - LRB101 08006 RLC 53065 b
the cooperative on its Illinois income tax return filed
for the taxable year in which the losses are incurred.
The election shall be effective for all taxable years
with original returns due on or after the date of the
election. In addition, the cooperative may file an
amended return or returns, as allowed under this Act,
to provide that the election shall be effective for
losses incurred or carried forward for taxable years
occurring prior to the date of the election. Once made,
the election may only be revoked upon approval of the
Director. The Department shall adopt rules setting
forth requirements for documenting the elections and
any resulting Illinois net loss and the standards to be
used by the Director in evaluating requests to revoke
elections. Public Act 96-932 is declaratory of
existing law;
(G) Subchapter S corporations. In the case of: (i)
a Subchapter S corporation for which there is in effect
an election for the taxable year under Section 1362 of
the Internal Revenue Code, the taxable income of such
corporation determined in accordance with Section
1363(b) of the Internal Revenue Code, except that
taxable income shall take into account those items
which are required by Section 1363(b)(1) of the
Internal Revenue Code to be separately stated; and (ii)
a Subchapter S corporation for which there is in effect

HB0902 - 167 - LRB101 08006 RLC 53065 b
a federal election to opt out of the provisions of the
Subchapter S Revision Act of 1982 and have applied
instead the prior federal Subchapter S rules as in
effect on July 1, 1982, the taxable income of such
corporation determined in accordance with the federal
Subchapter S rules as in effect on July 1, 1982; and
(H) Partnerships. In the case of a partnership,
taxable income determined in accordance with Section
703 of the Internal Revenue Code, except that taxable
income shall take into account those items which are
required by Section 703(a)(1) to be separately stated
but which would be taken into account by an individual
in calculating his taxable income.
(3) Recapture of business expenses on disposition of
asset or business. Notwithstanding any other law to the
contrary, if in prior years income from an asset or
business has been classified as business income and in a
later year is demonstrated to be non-business income, then
all expenses, without limitation, deducted in such later
year and in the 2 immediately preceding taxable years
related to that asset or business that generated the
non-business income shall be added back and recaptured as
business income in the year of the disposition of the asset
or business. Such amount shall be apportioned to Illinois
using the greater of the apportionment fraction computed
for the business under Section 304 of this Act for the

HB0902 - 168 - LRB101 08006 RLC 53065 b
taxable year or the average of the apportionment fractions
computed for the business under Section 304 of this Act for
the taxable year and for the 2 immediately preceding
taxable years.
(f) Valuation limitation amount.
(1) In general. The valuation limitation amount
referred to in subsections (a)(2)(G), (c)(2)(I) and
(d)(2)(E) is an amount equal to:
(A) The sum of the pre-August 1, 1969 appreciation
amounts (to the extent consisting of gain reportable
under the provisions of Section 1245 or 1250 of the
Internal Revenue Code) for all property in respect of
which such gain was reported for the taxable year; plus
(B) The lesser of (i) the sum of the pre-August 1,
1969 appreciation amounts (to the extent consisting of
capital gain) for all property in respect of which such
gain was reported for federal income tax purposes for
the taxable year, or (ii) the net capital gain for the
taxable year, reduced in either case by any amount of
such gain included in the amount determined under
subsection (a)(2)(F) or (c)(2)(H).
(2) Pre-August 1, 1969 appreciation amount.
(A) If the fair market value of property referred
to in paragraph (1) was readily ascertainable on August
1, 1969, the pre-August 1, 1969 appreciation amount for

HB0902 - 169 - LRB101 08006 RLC 53065 b
such property is the lesser of (i) the excess of such
fair market value over the taxpayer's basis (for
determining gain) for such property on that date
(determined under the Internal Revenue Code as in
effect on that date), or (ii) the total gain realized
and reportable for federal income tax purposes in
respect of the sale, exchange or other disposition of
such property.
(B) If the fair market value of property referred
to in paragraph (1) was not readily ascertainable on
August 1, 1969, the pre-August 1, 1969 appreciation
amount for such property is that amount which bears the
same ratio to the total gain reported in respect of the
property for federal income tax purposes for the
taxable year, as the number of full calendar months in
that part of the taxpayer's holding period for the
property ending July 31, 1969 bears to the number of
full calendar months in the taxpayer's entire holding
period for the property.
(C) The Department shall prescribe such
regulations as may be necessary to carry out the
purposes of this paragraph.
(g) Double deductions. Unless specifically provided
otherwise, nothing in this Section shall permit the same item
to be deducted more than once.

HB0902 - 170 - LRB101 08006 RLC 53065 b
(h) Legislative intention. Except as expressly provided by
this Section there shall be no modifications or limitations on
the amounts of income, gain, loss or deduction taken into
account in determining gross income, adjusted gross income or
taxable income for federal income tax purposes for the taxable
year, or in the amount of such items entering into the
computation of base income and net income under this Act for
such taxable year, whether in respect of property values as of
August 1, 1969 or otherwise.
(Source: P.A. 100-22, eff. 7-6-17; 100-905, eff. 8-17-18;
revised 10-29-18.)
Section 925. The Compassionate Use of Medical Cannabis
Pilot Program Act is amended by changing Section 10 as follows:
(410 ILCS 130/10)
(Section scheduled to be repealed on July 1, 2020)
Sec. 10. Definitions. The following terms, as used in this
Act, shall have the meanings set forth in this Section:
(a) "Adequate supply" means:
(1) 2.5 ounces of usable cannabis during a period of 14
days and that is derived solely from an intrastate source.
(2) Subject to the rules of the Department of Public
Health, a patient may apply for a waiver where a physician
provides a substantial medical basis in a signed, written

HB0902 - 171 - LRB101 08006 RLC 53065 b
statement asserting that, based on the patient's medical
history, in the physician's professional judgment, 2.5
ounces is an insufficient adequate supply for a 14-day
period to properly alleviate the patient's debilitating
medical condition or symptoms associated with the
debilitating medical condition.
(3) This subsection may not be construed to authorize
the possession of more than 2.5 ounces at any time without
authority from the Department of Public Health.
(4) The pre-mixed weight of medical cannabis used in
making a cannabis infused product shall apply toward the
limit on the total amount of medical cannabis a registered
qualifying patient may possess at any one time.
(b) "Cannabis" has the meaning given that term in Section 3
of the Cannabis Control Act.
(c) "Cannabis plant monitoring system" means a system that
includes, but is not limited to, testing and data collection
established and maintained by the registered cultivation
center and available to the Department for the purposes of
documenting each cannabis plant and for monitoring plant
development throughout the life cycle of a cannabis plant
cultivated for the intended use by a qualifying patient from
seed planting to final packaging.
(d) "Cardholder" means a qualifying patient or a designated
caregiver who has been issued and possesses a valid registry
identification card by the Department of Public Health.

HB0902 - 172 - LRB101 08006 RLC 53065 b
(e) "Cultivation center" means a facility operated by an
organization or business that is registered by the Department
of Agriculture to perform necessary activities to provide only
registered medical cannabis dispensing organizations with
usable medical cannabis.
(f) "Cultivation center agent" means a principal officer,
board member, employee, or agent of a registered cultivation
center who is 21 years of age or older and has not been
convicted of an excluded offense.
(g) "Cultivation center agent identification card" means a
document issued by the Department of Agriculture that
identifies a person as a cultivation center agent.
(h) (Blank). "Debilitating medical condition" means one or
more of the following:
(1) cancer, glaucoma, positive status for human
immunodeficiency virus, acquired immune deficiency
syndrome, hepatitis C, amyotrophic lateral sclerosis,
Crohn's disease, agitation of Alzheimer's disease,
cachexia/wasting syndrome, muscular dystrophy, severe
fibromyalgia, spinal cord disease, including but not
limited to arachnoiditis, Tarlov cysts, hydromyelia,
syringomyelia, Rheumatoid arthritis, fibrous dysplasia,
spinal cord injury, traumatic brain injury and
post-concussion syndrome, Multiple Sclerosis,
Arnold-Chiari malformation and Syringomyelia,
Spinocerebellar Ataxia (SCA), Parkinson's, Tourette's,

HB0902 - 173 - LRB101 08006 RLC 53065 b
Myoclonus, Dystonia, Reflex Sympathetic Dystrophy, RSD
(Complex Regional Pain Syndromes Type I), Causalgia, CRPS
(Complex Regional Pain Syndromes Type II),
Neurofibromatosis, Chronic Inflammatory Demyelinating
Polyneuropathy, Sjogren's syndrome, Lupus, Interstitial
Cystitis, Myasthenia Gravis, Hydrocephalus, nail-patella
syndrome, residual limb pain, seizures (including those
characteristic of epilepsy), post-traumatic stress
disorder (PTSD), or the treatment of these conditions;
(1.5) terminal illness with a diagnosis of 6 months or
less; if the terminal illness is not one of the qualifying
debilitating medical conditions, then the physician shall
on the certification form identify the cause of the
terminal illness; or
(2) any other debilitating medical condition or its
treatment that is added by the Department of Public Health
by rule as provided in Section 45.
(i) "Designated caregiver" means a person who: (1) is at
least 21 years of age; (2) has agreed to assist with a
patient's medical use of cannabis; (3) has not been convicted
of an excluded offense; and (4) assists no more than one
registered qualifying patient with his or her medical use of
cannabis.
(j) "Dispensing organization agent identification card"
means a document issued by the Department of Financial and
Professional Regulation that identifies a person as a medical

HB0902 - 174 - LRB101 08006 RLC 53065 b
cannabis dispensing organization agent.
(k) "Enclosed, locked facility" means a room, greenhouse,
building, or other enclosed area equipped with locks or other
security devices that permit access only by a cultivation
center's agents or a dispensing organization's agent working
for the registered cultivation center or the registered
dispensing organization to cultivate, store, and distribute
cannabis for registered qualifying patients.
(l) "Excluded offense" for cultivation center agents and
dispensing organizations means:
(1) a violent crime defined in Section 3 of the Rights
of Crime Victims and Witnesses Act or a substantially
similar offense that was classified as a felony in the
jurisdiction where the person was convicted; or
(2) a violation of a state or federal controlled
substance law, the Cannabis Control Act, or the
Methamphetamine Control and Community Protection Act that
was classified as a felony in the jurisdiction where the
person was convicted, except that the registering
Department may waive this restriction if the person
demonstrates to the registering Department's satisfaction
that his or her conviction was for the possession,
cultivation, transfer, or delivery of a reasonable amount
of cannabis intended for medical use. This exception does
not apply if the conviction was under state law and
involved a violation of an existing medical cannabis law.

HB0902 - 175 - LRB101 08006 RLC 53065 b
For purposes of this subsection, the Department of Public
Health shall determine by emergency rule within 30 days after
the effective date of this amendatory Act of the 99th General
Assembly what constitutes a "reasonable amount".
(l-5) (Blank).
(l-10) "Illinois Cannabis Tracking System" means a
web-based system established and maintained by the Department
of Public Health that is available to the Department of
Agriculture, the Department of Financial and Professional
Regulation, the Illinois State Police, and registered medical
cannabis dispensing organizations on a 24-hour basis to upload
written certifications for Opioid Alternative Pilot Program
participants, to verify Opioid Alternative Pilot Program
participants, to verify Opioid Alternative Pilot Program
participants' available cannabis allotment and assigned
dispensary, and the tracking of the date of sale, amount, and
price of medical cannabis purchased by an Opioid Alternative
Pilot Program participant.
(m) "Medical cannabis cultivation center registration"
means a registration issued by the Department of Agriculture.
(n) "Medical cannabis container" means a sealed,
traceable, food compliant, tamper resistant, tamper evident
container, or package used for the purpose of containment of
medical cannabis from a cultivation center to a dispensing
organization.
(o) "Medical cannabis dispensing organization", or

HB0902 - 176 - LRB101 08006 RLC 53065 b
"dispensing organization", or "dispensary organization" means
a facility operated by an organization or business that is
registered by the Department of Financial and Professional
Regulation to acquire medical cannabis from a registered
cultivation center for the purpose of dispensing cannabis,
paraphernalia, or related supplies and educational materials
to registered qualifying patients, individuals with a
provisional registration for qualifying patient cardholder
status, or an Opioid Alternative Pilot Program participant.
(p) "Medical cannabis dispensing organization agent" or
"dispensing organization agent" means a principal officer,
board member, employee, or agent of a registered medical
cannabis dispensing organization who is 21 years of age or
older and has not been convicted of an excluded offense.
(q) "Medical cannabis infused product" means food, oils,
ointments, or other products containing usable cannabis that
are not smoked.
(r) "Medical use" means the acquisition; administration;
delivery; possession; transfer; transportation; or use of
cannabis to treat or alleviate a registered qualifying
patient's debilitating medical condition or symptoms
associated with the patient's debilitating medical condition.
(r-5) "Opioid" means a narcotic drug or substance that is a
Schedule II controlled substance under paragraph (1), (2), (3),
or (5) of subsection (b) or under subsection (c) of Section 206
of the Illinois Controlled Substances Act.

HB0902 - 177 - LRB101 08006 RLC 53065 b
(r-10) "Opioid Alternative Pilot Program participant"
means an individual who has received a valid written
certification to participate in the Opioid Alternative Pilot
Program for a medical condition for which an opioid has been or
could be prescribed by a physician based on generally accepted
standards of care.
(s) "Physician" means a doctor of medicine or doctor of
osteopathy licensed under the Medical Practice Act of 1987 to
practice medicine and who has a controlled substances license
under Article III of the Illinois Controlled Substances Act. It
does not include a licensed practitioner under any other Act
including but not limited to the Illinois Dental Practice Act.
(s-5) "Provisional registration" means a document issued
by the Department of Public Health to a qualifying patient who
has submitted: (1) an online application and paid a fee to
participate in Compassionate Use of Medical Cannabis Pilot
Program pending approval or denial of the patient's
application; or (2) a completed application for terminal
illness.
(t) "Qualifying patient" means a person who has been
diagnosed by a physician with a condition that the physician
believes would benefit from the use of medical cannabis as
having a debilitating medical condition.
(u) "Registered" means licensed, permitted, or otherwise
certified by the Department of Agriculture, Department of
Public Health, or Department of Financial and Professional

HB0902 - 178 - LRB101 08006 RLC 53065 b
Regulation.
(v) "Registry identification card" means a document issued
by the Department of Public Health that identifies a person as
a registered qualifying patient or registered designated
caregiver.
(w) "Usable cannabis" means the seeds, leaves, buds, and
flowers of the cannabis plant and any mixture or preparation
thereof, but does not include the stalks, and roots of the
plant. It does not include the weight of any non-cannabis
ingredients combined with cannabis, such as ingredients added
to prepare a topical administration, food, or drink.
(x) "Verification system" means a Web-based system
established and maintained by the Department of Public Health
that is available to the Department of Agriculture, the
Department of Financial and Professional Regulation, law
enforcement personnel, and registered medical cannabis
dispensing organization agents on a 24-hour basis for the
verification of registry identification cards, the tracking of
delivery of medical cannabis to medical cannabis dispensing
organizations, and the tracking of the date of sale, amount,
and price of medical cannabis purchased by a registered
qualifying patient.
(y) "Written certification" means a document dated and
signed by a physician, stating (1) that the qualifying patient
has a debilitating medical condition and specifying the
debilitating medical condition the qualifying patient has; and

HB0902 - 179 - LRB101 08006 RLC 53065 b
(2) that (A) the physician is treating or managing treatment of
the patient's debilitating medical condition; or (B) an Opioid
Alternative Pilot Program participant has a medical condition
for which opioids have been or could be prescribed. A written
certification shall be made only in the course of a bona fide
physician-patient relationship, after the physician has
completed an assessment of either a qualifying patient's
medical history or Opioid Alternative Pilot Program
participant, reviewed relevant records related to the
patient's debilitating condition, and conducted a physical
examination.
(z) "Bona fide physician-patient relationship" means a
relationship established at a hospital, physician's office, or
other health care facility in which the physician has an
ongoing responsibility for the assessment, care, and treatment
of a patient's debilitating medical condition or a symptom of
the patient's debilitating medical condition.
A veteran who has received treatment at a VA hospital shall
be deemed to have a bona fide physician-patient relationship
with a VA physician if the patient has been seen for his or her
debilitating medical condition at the VA Hospital in accordance
with VA Hospital protocols.
A bona fide physician-patient relationship under this
subsection is a privileged communication within the meaning of
Section 8-802 of the Code of Civil Procedure.
(Source: P.A. 99-519, eff. 6-30-16; 100-1114, eff. 8-28-18.)

HB0902 - 180 - LRB101 08006 RLC 53065 b
(410 ILCS 130/220 rep.)
Section 930. The Compassionate Use of Medical Cannabis
Pilot Program Act is amended by repealing Section 220.
Section 935. The Cannabis Control Act is amended by
changing Sections 4, 5, 7, 8, 9, 10, 12, and 16.2 and adding
Sections 3.5 and 4.1 as follows:
(720 ILCS 550/3.5 new)
Sec. 3.5. Applicability of Act. The possession,
cultivation, harvest, display, distribution, packaging,
processing, purchase, transportation, transfer, delivery,
sale, storage, and consumption of cannabis as provided for in
the Cannabis Legalization Equity Act is not a violation of this
Act.
(720 ILCS 550/4) (from Ch. 56 1/2, par. 704)
Sec. 4. It is unlawful for any person knowingly to possess
225 or more grams of cannabis outside the premises where the
cannabis was cultivated or an amount that exceeds the amount
that can reasonably be harvested from 24 mature cannabis sativa
plants. Any person regardless of age who violates this Section
section with respect to:
(a) 225 not more than 10 grams or more of any substance
containing cannabis is guilty of a civil law violation

HB0902 - 181 - LRB101 08006 RLC 53065 b
punishable by a minimum fine of $100 and a maximum fine of
$200. The proceeds of the fine shall be payable to the
clerk of the circuit court. Within 30 days after the
deposit of the fine, the clerk shall distribute the
proceeds of the fine as follows:
(1) $10 of the fine to the circuit clerk and $10 of
the fine to the law enforcement agency that issued the
citation; the proceeds of each $10 fine distributed to
the circuit clerk and each $10 fine distributed to the
law enforcement agency that issued the citation for the
violation shall be used to defer the cost of automatic
expungements under paragraph (2.5) of subsection (a)
of Section 5.2 of the Criminal Identification Act;
(2) $15 to the county to fund drug addiction
services;
(3) $10 to the Office of the State's Attorneys
Appellate Prosecutor for use in training programs;
(4) $10 to the State's Attorney; and
(5) any remainder of the fine to the law
enforcement agency that issued the citation for the
violation.
With respect to funds designated for the Department of
State Police, the moneys shall be remitted by the circuit
court clerk to the Department of State Police within one
month after receipt for deposit into the State Police
Operations Assistance Fund. With respect to funds

HB0902 - 182 - LRB101 08006 RLC 53065 b
designated for the Department of Natural Resources, the
Department of Natural Resources shall deposit the moneys
into the Conservation Police Operations Assistance Fund;
(b) (blank); more than 10 grams but not more than 30
grams of any substance containing cannabis is guilty of a
Class B misdemeanor;
(c) (blank); more than 30 grams but not more than 100
grams of any substance containing cannabis is guilty of a
Class A misdemeanor; provided, that if any offense under
this subsection (c) is a subsequent offense, the offender
shall be guilty of a Class 4 felony;
(d) (blank); more than 100 grams but not more than 500
grams of any substance containing cannabis is guilty of a
Class 4 felony; provided that if any offense under this
subsection (d) is a subsequent offense, the offender shall
be guilty of a Class 3 felony;
(e) (blank); more than 500 grams but not more than
2,000 grams of any substance containing cannabis is guilty
of a Class 3 felony;
(f) (blank); more than 2,000 grams but not more than
5,000 grams of any substance containing cannabis is guilty
of a Class 2 felony;
(g) (blank). more than 5,000 grams of any substance
containing cannabis is guilty of a Class 1 felony.
(Source: P.A. 99-697, eff. 7-29-16.)

HB0902 - 183 - LRB101 08006 RLC 53065 b
(720 ILCS 550/4.1 new)
Sec. 4.1. Persons under 21 years of age. A person under 21
years of age in possession of 100 grams or less of cannabis is
guilty of a civil law violation charged by a Uniform Civil Law
Citation and punishable by forfeiture of the cannabis and
completion not to exceed 4 hours of instruction in a drug
awareness program. The parents or legal guardian of any
offender under the age of 18 shall be notified of the offense
and of available drug awareness programs, which shall be
established by the Department of Public Health. The Department
of Public Health shall set fees for the program sufficient to
cover all costs of administering the program, which shall not
exceed $300. If an offender fails within one year of the notice
of the offense and available programs to complete a drug
awareness program, the person is guilty of a civil law
violation and shall pay a fine not to exceed $300 or shall
complete up to 40 hours of community service, or both.
(720 ILCS 550/5) (from Ch. 56 1/2, par. 705)
Sec. 5. It is unlawful for any person knowingly to
manufacture, deliver, or possess with intent to deliver, or
manufacture, cannabis, except as authorized under the Cannabis
Legalization Equity Act. Any person who violates this Section
section with respect to:
(a) not more than 2.5 grams of any substance containing
cannabis is guilty of a Class B misdemeanor;

HB0902 - 184 - LRB101 08006 RLC 53065 b
(b) more than 2.5 grams but not more than 10 grams of any
substance containing cannabis is guilty of a Class A
misdemeanor;
(c) more than 10 grams but not more than 30 grams of any
substance containing cannabis is guilty of a Class 4 felony;
(d) more than 30 grams but not more than 500 grams of any
substance containing cannabis is guilty of a Class 3 felony for
which a fine not to exceed $50,000 may be imposed;
(e) more than 500 grams but not more than 2,000 grams of
any substance containing cannabis is guilty of a Class 2 felony
for which a fine not to exceed $100,000 may be imposed;
(f) more than 2,000 grams but not more than 5,000 grams of
any substance containing cannabis is guilty of a Class 1 felony
for which a fine not to exceed $150,000 may be imposed;
(g) more than 5,000 grams of any substance containing
cannabis is guilty of a Class X felony for which a fine not to
exceed $200,000 may be imposed.
(Source: P.A. 90-397, eff. 8-15-97.)
(720 ILCS 550/7) (from Ch. 56 1/2, par. 707)
Sec. 7. (a) Any person who is at least 18 years of age who
violates Section 5 of this Act by delivering cannabis to a
person under 18 years of age who is at least 3 years his junior
may be sentenced to imprisonment for a term up to twice the
maximum term otherwise authorized by Section 5.
(b) Any person under 18 years of age who violates Section

HB0902 - 185 - LRB101 08006 RLC 53065 b
4, 4.1, or 5 of this Act may be treated by the court in
accordance with the Juvenile Court Act of 1987.
(Source: P.A. 85-1209.)
(720 ILCS 550/8) (from Ch. 56 1/2, par. 708)
Sec. 8. It is unlawful for any person knowingly to produce
25 or more mature the cannabis sativa plants plant or to
possess 25 or more mature cannabis sativa such plants unless
production or possession has been authorized under pursuant to
the provisions of Section 11 or 15.2 of the Act or under the
Cannabis Legalization Equity Act. Any person who violates this
Section with respect to production or possession of:
(a) (Blank). Not more than 5 plants is guilty of a Class A
misdemeanor.
(b) (Blank). More than 5, but not more than 20 plants, is
guilty of a Class 4 felony.
(c) 25 or more More than 20, but not more than 50 plants,
is guilty of a civil law violation punishable by a maximum fine
of $1,000. The proceeds of the fine shall be payable to the
clerk of the circuit court. Within 30 days after the deposit of
the fine, the clerk shall distribute the proceeds of the fine
as follows: Class 3 felony
(1) $10 of the fine to the circuit clerk and $10 of the
fine to the law enforcement agency that issued the
citation; the proceeds of each $10 fine distributed to the
circuit clerk and each $10 fine distributed to the law

HB0902 - 186 - LRB101 08006 RLC 53065 b
enforcement agency that issued the citation for the
violation shall be used to defer the cost of automatic
expungements under paragraph (2.5) of subsection (a) of
Section 5.2 of the Criminal Identification Act;
(2) $15 to the county to fund drug addiction services;
(3) $10 to the Office of the State's Attorneys
Appellate Prosecutor for use in training programs;
(4) $10 to the State's Attorney; and
(5) any remainder of the fine to the law enforcement
agency that issued the citation for the violation.
With respect to funds designated for the Department of
State Police, the moneys shall be remitted by the circuit
court clerk to the Department of State Police within one
month after receipt for deposit into the State Police
Operations Assistance Fund. With respect to funds
designated for the Department of Natural Resources, the
Department of Natural Resources shall deposit the moneys
into the Conservation Police Operations Assistance Fund.
(d) More than 50, but not more than 200 plants, is guilty
of a Class A misdemeanor 2 felony for which a fine not to
exceed $100,000 may be imposed and for which liability for the
cost of conducting the investigation and eradicating such
plants may be assessed. Compensation for expenses incurred in
the enforcement of this provision shall be transmitted to and
deposited in the treasurer's office at the level of government
represented by the Illinois law enforcement agency whose

HB0902 - 187 - LRB101 08006 RLC 53065 b
officers or employees conducted the investigation or caused the
arrest or arrests leading to the prosecution, to be
subsequently made available to that law enforcement agency as
expendable receipts for use in the enforcement of laws
regulating controlled substances and cannabis. If such seizure
was made by a combination of law enforcement personnel
representing different levels of government, the court levying
the assessment shall determine the allocation of such
assessment. The proceeds of assessment awarded to the State
treasury shall be deposited in a special fund known as the Drug
Traffic Prevention Fund.
(e) More than 200 plants is guilty of a Class 4 1 felony
for which a fine not to exceed $100,000 may be imposed and for
which liability for the cost of conducting the investigation
and eradicating such plants may be assessed. Compensation for
expenses incurred in the enforcement of this provision shall be
transmitted to and deposited in the treasurer's office at the
level of government represented by the Illinois law enforcement
agency whose officers or employees conducted the investigation
or caused the arrest or arrests leading to the prosecution, to
be subsequently made available to that law enforcement agency
as expendable receipts for use in the enforcement of laws
regulating controlled substances and cannabis. If such seizure
was made by a combination of law enforcement personnel
representing different levels of government, the court levying
the assessment shall determine the allocation of such

HB0902 - 188 - LRB101 08006 RLC 53065 b
assessment. The proceeds of assessment awarded to the State
treasury shall be deposited in a special fund known as the Drug
Traffic Prevention Fund.
(Source: P.A. 98-1072, eff. 1-1-15.)
(720 ILCS 550/9) (from Ch. 56 1/2, par. 709)
Sec. 9. (a) Any person who engages in a calculated criminal
cannabis conspiracy, as defined in subsection (b), is guilty of
a Class 3 felony, and fined not more than $200,000 and shall be
subject to the forfeitures prescribed in subsection (c); except
that, if any person engages in such offense after one or more
prior convictions under this Section, Section 4 (d), Section 5
(d) or , Section 8 (d) or any law of the United States or of any
State relating to cannabis, or controlled substances as defined
in the Illinois Controlled Substances Act, in addition to the
fine and forfeiture authorized above, he shall be guilty of a
Class 1 felony for which an offender may not be sentenced to
death.
(b) For purposes of this section, a person engages in a
calculated criminal cannabis conspiracy when:
(1) he violates Section 4 (d), 4 (e), 5 (d), 5 (e), 8 (c) or
8 (d) of this Act; and
(2) such violation is a part of a conspiracy undertaken or
carried on with 2 or more other persons; and
(3) he obtains anything of value greater than $500 from, or
organizes, directs or finances such violation or conspiracy.

HB0902 - 189 - LRB101 08006 RLC 53065 b
(c) Any person who is convicted under this Section of
engaging in a calculated criminal cannabis conspiracy shall
forfeit to the State of Illinois:
(1) the receipts obtained by him in such conspiracy; and
(2) any of his interests in, claims against, receipts from,
or property or rights of any kind affording a source of
influence over, such conspiracy.
(d) The circuit court may enter such injunctions,
restraining orders, directions, or prohibitions, or take such
other actions, including the acceptance of satisfactory
performance bonds, in connection with any property, claim,
receipt, right or other interest subject to forfeiture under
this Section, as it deems proper.
(Source: P.A. 84-1233.)
(720 ILCS 550/10) (from Ch. 56 1/2, par. 710)
Sec. 10. (a) Whenever any person who has not previously
been convicted of any felony offense under this Act or any law
of the United States or of any State relating to cannabis, or
controlled substances as defined in the Illinois Controlled
Substances Act, pleads guilty to or is found guilty of
violating Sections 4(a), 4(b), 4(c), 5(a), 5(b), 5(c) or 8 of
this Act, the court may, without entering a judgment and with
the consent of such person, sentence him to probation.
(b) When a person is placed on probation, the court shall
enter an order specifying a period of probation of 24 months,

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and shall defer further proceedings in the case until the
conclusion of the period or until the filing of a petition
alleging violation of a term or condition of probation.
(c) The conditions of probation shall be that the person:
(1) not violate any criminal statute of any jurisdiction; (2)
refrain from possession of a firearm or other dangerous weapon;
(3) submit to periodic drug testing at a time and in a manner
as ordered by the court, but no less than 3 times during the
period of the probation, with the cost of the testing to be
paid by the probationer; and (4) perform no less than 30 hours
of community service, provided community service is available
in the jurisdiction and is funded and approved by the county
board. The court may give credit toward the fulfillment of
community service hours for participation in activities and
treatment as determined by court services.
(d) The court may, in addition to other conditions, require
that the person:
(1) make a report to and appear in person before or
participate with the court or such courts, person, or
social service agency as directed by the court in the order
of probation;
(2) pay a fine and costs;
(3) work or pursue a course of study or vocational
training;
(4) undergo medical or psychiatric treatment; or
treatment for drug addiction or alcoholism;

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(5) attend or reside in a facility established for the
instruction or residence of defendants on probation;
(6) support his dependents;
(7) refrain from possessing a firearm or other
dangerous weapon;
(7-5) refrain from having in his or her body the
presence of any illicit drug prohibited by the Cannabis
Control Act, the Illinois Controlled Substances Act, or the
Methamphetamine Control and Community Protection Act,
unless prescribed by a physician, and submit samples of his
or her blood or urine or both for tests to determine the
presence of any illicit drug;
(8) and in addition, if a minor:
(i) reside with his parents or in a foster home;
(ii) attend school;
(iii) attend a non-residential program for youth;
(iv) contribute to his own support at home or in a
foster home.
(e) Upon violation of a term or condition of probation, the
court may enter a judgment on its original finding of guilt and
proceed as otherwise provided.
(f) Upon fulfillment of the terms and conditions of
probation, the court shall discharge such person and dismiss
the proceedings against him.
(g) A disposition of probation is considered to be a
conviction for the purposes of imposing the conditions of

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probation and for appeal, however, discharge and dismissal
under this Section is not a conviction for purposes of
disqualification or disabilities imposed by law upon
conviction of a crime (including the additional penalty imposed
for subsequent offenses under Section 4(c), 4(d), 5(c) or 5(d)
of this Act).
(h) A person may not have more than one discharge and
dismissal under this Section within a 4-year period.
(i) If a person is convicted of an offense under this Act,
the Illinois Controlled Substances Act, or the Methamphetamine
Control and Community Protection Act within 5 years subsequent
to a discharge and dismissal under this Section, the discharge
and dismissal under this Section shall be admissible in the
sentencing proceeding for that conviction as a factor in
aggravation.
(j) Notwithstanding subsection (a), before a person is
sentenced to probation under this Section, the court may refer
the person to the drug court established in that judicial
circuit pursuant to Section 15 of the Drug Court Treatment Act.
The drug court team shall evaluate the person's likelihood of
successfully completing a sentence of probation under this
Section and shall report the results of its evaluation to the
court. If the drug court team finds that the person suffers
from a substance abuse problem that makes him or her
substantially unlikely to successfully complete a sentence of
probation under this Section, then the drug court shall set

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forth its findings in the form of a written order, and the
person shall not be sentenced to probation under this Section,
but shall be considered for the drug court program.
(Source: P.A. 99-480, eff. 9-9-15; 100-3, eff. 1-1-18; 100-575,
eff. 1-8-18.)
(720 ILCS 550/12) (from Ch. 56 1/2, par. 712)
Sec. 12. Forfeiture.
(a) The following are subject to forfeiture:
(1) (blank);
(2) all raw materials, products, and equipment of any
kind which are produced, delivered, or possessed in
connection with any substance containing cannabis in a
felony violation of this Act;
(3) all conveyances, including aircraft, vehicles, or
vessels, which are used, or intended for use, to transport,
or in any manner to facilitate the transportation, sale,
receipt, possession, or concealment of any substance
containing cannabis or property described in paragraph (2)
of this subsection (a) that constitutes a felony violation
of the Act, but:
(i) no conveyance used by any person as a common
carrier in the transaction of business as a common
carrier is subject to forfeiture under this Section
unless it appears that the owner or other person in
charge of the conveyance is a consenting party or privy

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to the violation;
(ii) no conveyance is subject to forfeiture under
this Section by reason of any act or omission which the
owner proves to have been committed or omitted without
his or her knowledge or consent;
(iii) a forfeiture of a conveyance encumbered by a
bona fide security interest is subject to the interest
of the secured party if he or she neither had knowledge
of nor consented to the act or omission;
(4) all money, things of value, books, records, and
research products and materials including formulas,
microfilm, tapes, and data which are used, or intended for
use, in a felony violation of this Act;
(5) everything of value furnished or intended to be
furnished by any person in exchange for a substance in
violation of this Act, all proceeds traceable to such an
exchange, and all moneys, negotiable instruments, and
securities used, or intended to be used, to commit or in
any manner to facilitate any felony violation of this Act;
(6) all real property, including any right, title, and
interest including, but not limited to, any leasehold
interest or the beneficial interest in a land trust, in the
whole of any lot or tract of land and any appurtenances or
improvements, that is used or intended to be used to
facilitate the manufacture, distribution, sale, receipt,
or concealment of a substance containing cannabis or

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property described in paragraph (2) of this subsection (a)
that constitutes a felony violation of this Act involving
more than 2,000 grams of a substance containing cannabis or
that is the proceeds of any felony violation of this Act.
(b) Property subject to forfeiture under this Act may be
seized under the Drug Asset Forfeiture Procedure Act. In the
event of seizure, forfeiture proceedings shall be instituted
under the Drug Asset Forfeiture Procedure Act.
(c) Forfeiture under this Act is subject to an 8th
Amendment to the United States Constitution disproportionate
penalties analysis as provided under Section 9.5 of the Drug
Asset Forfeiture Procedure Act.
(c-1) With regard to possession of cannabis offenses only,
a sum of currency with a value of less than $500 shall not be
subject to forfeiture under this Act. For all other offenses
under this Act, a sum of currency with a value of less than
$100 shall not be subject to forfeiture under this Act. In
seizures of currency in excess of these amounts, this Section
shall not create an exemption for these amounts.
(d) (Blank).
(e) (Blank).
(f) (Blank).
(g) (Blank).
(h) Contraband, including cannabis possessed without
authorization under State or federal law, is not subject to
forfeiture. No property right exists in contraband. Contraband

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is subject to seizure and shall be disposed of according to
State law.
(i) The changes made to this Section by Public Act 100-512
and Public Act 100-699 only apply to property seized on and
after July 1, 2018.
(j) The changes made to this Section by Public Act 100-699
are subject to Section 4 of the Statute on Statutes.
(k) Items described in paragraphs (1) through (6) of
subsection (a) of this Section used, possessed, or derived from
activities that are in compliance with the Cannabis
Legalization Equity Act are not subject to forfeiture.
(Source: P.A. 99-686, eff. 7-29-16; 100-512, eff. 7-1-18;
100-699, eff. 8-3-18; 100-1163, eff. 12-20-18.)
(720 ILCS 550/16.2)
Sec. 16.2. Preservation of cannabis or cannabis sativa
plants for laboratory testing.
(a) Before or after the trial in a prosecution for a
violation of Section 4, 5, 5.1, 5.2, 8, or 9 of this Act, a law
enforcement agency or an agent acting on behalf of the law
enforcement agency must preserve, subject to a continuous chain
of custody, not less than 6,001 grams of any substance
containing cannabis and not less than 51 cannabis sativa plants
with respect to the offenses enumerated in this subsection (a)
and must maintain sufficient documentation to locate that
evidence. Excess quantities with respect to the offenses

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enumerated in this subsection (a) cannot practicably be
retained by a law enforcement agency because of its size, bulk,
and physical character.
(b) The court may before trial transfer excess quantities
of any substance containing cannabis or cannabis sativa plants
with respect to a prosecution for any offense enumerated in
subsection (a) to the sheriff of the county, or may in its
discretion transfer such evidence to the Department of State
Police, for destruction after notice is given to the
defendant's attorney of record or to the defendant if the
defendant is proceeding pro se.
(c) After a judgment of conviction is entered and the
charged quantity is no longer needed for evidentiary purposes
with respect to a prosecution for any offense enumerated in
subsection (a), the court may transfer any substance containing
cannabis or cannabis sativa plants to the sheriff of the
county, or may in its discretion transfer such evidence to the
Department of State Police, for destruction after notice is
given to the defendant's attorney of record or to the defendant
if the defendant is proceeding pro se. No evidence shall be
disposed of until 30 days after the judgment is entered, and if
a notice of appeal is filed, no evidence shall be disposed of
until the mandate has been received by the circuit court from
the Appellate Court.
(Source: P.A. 94-180, eff. 7-12-05.)

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Section 940. The Drug Paraphernalia Control Act is amended
by changing Sections 2, 3.5, 4, and 6 as follows:
(720 ILCS 600/2) (from Ch. 56 1/2, par. 2102)
Sec. 2. As used in this Act, unless the context otherwise
requires:
(a) (Blank). The term "cannabis" shall have the meaning
ascribed to it in Section 3 of the Cannabis Control Act, as if
that definition were incorporated herein.
(b) The term "controlled substance" shall have the meaning
ascribed to it in Section 102 of the Illinois Controlled
Substances Act, as if that definition were incorporated herein.
(c) "Deliver" or "delivery" means the actual, constructive
or attempted transfer of possession, with or without
consideration, whether or not there is an agency relationship.
(d) "Drug paraphernalia" means all equipment, products and
materials of any kind, other than methamphetamine
manufacturing materials as defined in Section 10 of the
Methamphetamine Control and Community Protection Act, which
are intended to be used unlawfully in planting, propagating,
cultivating, growing, harvesting, manufacturing, compounding,
converting, producing, processing, preparing, testing,
analyzing, packaging, repackaging, storing, containing,
concealing, injecting, ingesting, inhaling or otherwise
introducing into the human body cannabis or a controlled
substance in violation of the Cannabis Control Act, the

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Illinois Controlled Substances Act, or the Methamphetamine
Control and Community Protection Act or a synthetic drug
product or misbranded drug in violation of the Illinois Food,
Drug and Cosmetic Act. It includes, but is not limited to:
(1) kits intended to be used unlawfully in
manufacturing, compounding, converting, producing,
processing or preparing cannabis or a controlled
substance;
(2) isomerization devices intended to be used
unlawfully in increasing the potency of any species of
plant which is cannabis or a controlled substance;
(3) testing equipment intended to be used unlawfully in
a private home for identifying or in analyzing the
strength, effectiveness or purity of cannabis or
controlled substances;
(4) diluents and adulterants intended to be used
unlawfully for cutting cannabis or a controlled substance
by private persons;
(5) objects intended to be used unlawfully in
ingesting, inhaling, or otherwise introducing cannabis,
cocaine, hashish, hashish oil, or a synthetic drug product
or misbranded drug in violation of the Illinois Food, Drug
and Cosmetic Act into the human body including, where
applicable, the following items:
(A) water pipes;
(B) carburetion tubes and devices;

HB0902 - 200 - LRB101 08006 RLC 53065 b
(C) smoking and carburetion masks;
(D) miniature cocaine spoons and cocaine vials;
(E) carburetor pipes;
(F) electric pipes;
(G) air-driven pipes;
(H) chillums;
(I) bongs;
(J) ice pipes or chillers;
(6) any item whose purpose, as announced or described
by the seller, is for use in violation of this Act.
(Source: P.A. 97-872, eff. 7-31-12.)
(720 ILCS 600/3.5)
Sec. 3.5. Possession of drug paraphernalia.
(a) A person who knowingly possesses an item of drug
paraphernalia with the intent to use it in ingesting, inhaling,
or otherwise introducing cannabis or a controlled substance
into the human body, or in preparing cannabis or a controlled
substance for that use, is guilty of a Class A misdemeanor for
which the court shall impose a minimum fine of $750 in addition
to any other penalty prescribed for a Class A misdemeanor. This
subsection (a) does not apply to a person who is legally
authorized to possess hypodermic syringes or needles under the
Hypodermic Syringes and Needles Act.
(b) In determining intent under subsection (a), the trier
of fact may take into consideration the proximity of the

HB0902 - 201 - LRB101 08006 RLC 53065 b
cannabis or controlled substances to drug paraphernalia or the
presence of cannabis or a controlled substance on the drug
paraphernalia.
(c) (Blank). If a person violates subsection (a) of Section
4 of the Cannabis Control Act, the penalty for possession of
any drug paraphernalia seized during the violation for that
offense shall be a civil law violation punishable by a minimum
fine of $100 and a maximum fine of $200. The proceeds of the
fine shall be payable to the clerk of the circuit court. Within
30 days after the deposit of the fine, the clerk shall
distribute the proceeds of the fine as follows:
(1) $10 of the fine to the circuit clerk and $10 of the
fine to the law enforcement agency that issued the
citation; the proceeds of each $10 fine distributed to the
circuit clerk and each $10 fine distributed to the law
enforcement agency that issued the citation for the
violation shall be used to defer the cost of automatic
expungements under paragraph (2.5) of subsection (a) of
Section 5.2 of the Criminal Identification Act;
(2) $15 to the county to fund drug addiction services;
(3) $10 to the Office of the State's Attorneys
Appellate Prosecutor for use in training programs;
(4) $10 to the State's Attorney; and
(5) any remainder of the fine to the law enforcement
agency that issued the citation for the violation.
With respect to funds designated for the Department of

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State Police, the moneys shall be remitted by the circuit court
clerk to the Department of State Police within one month after
receipt for deposit into the State Police Operations Assistance
Fund. With respect to funds designated for the Department of
Natural Resources, the Department of Natural Resources shall
deposit the moneys into the Conservation Police Operations
Assistance Fund.
(Source: P.A. 99-697, eff. 7-29-16.)
(720 ILCS 600/4) (from Ch. 56 1/2, par. 2104)
Sec. 4. Exemptions. This Act does not apply to:
(a) Items used in the preparation, compounding,
packaging, labeling, or other use of cannabis or a
controlled substance as an incident to lawful research,
teaching, or chemical analysis and not for sale.
(b) Items historically and customarily used in
connection with the planting, propagating, cultivating,
growing, harvesting, manufacturing, compounding,
converting, producing, processing, preparing, testing,
analyzing, packaging, repackaging, storing, containing,
concealing, injecting, ingesting, or inhaling of tobacco
or any other lawful substance.
Items exempt under this subsection include, but are not
limited to, garden hoes, rakes, sickles, baggies, tobacco
pipes, and cigarette-rolling papers.
(c) Items listed in Section 2 of this Act which are

HB0902 - 203 - LRB101 08006 RLC 53065 b
used for decorative purposes, when such items have been
rendered completely inoperable or incapable of being used
for any illicit purpose prohibited by this Act.
(d) A person who is legally authorized to possess
hypodermic syringes or needles under the Hypodermic
Syringes and Needles Act.
In determining whether or not a particular item is exempt under
this Section, the trier of fact should consider, in addition to
all other logically relevant factors, the following:
(1) the general, usual, customary, and historical use
to which the item involved has been put;
(2) expert evidence concerning the ordinary or
customary use of the item and the effect of any peculiarity
in the design or engineering of the device upon its
functioning;
(3) any written instructions accompanying the delivery
of the item concerning the purposes or uses to which the
item can or may be put;
(4) any oral instructions provided by the seller of the
item at the time and place of sale or commercial delivery;
(5) any national or local advertising concerning the
design, purpose or use of the item involved, and the entire
context in which such advertising occurs;
(6) the manner, place and circumstances in which the
item was displayed for sale, as well as any item or items
displayed for sale or otherwise exhibited upon the premises

HB0902 - 204 - LRB101 08006 RLC 53065 b
where the sale was made;
(7) whether the owner or anyone in control of the
object is a legitimate supplier of like or related items to
the community, such as a licensed distributor or dealer of
tobacco products;
(8) the existence and scope of legitimate uses for the
object in the community.
(Source: P.A. 95-331, eff. 8-21-07.)
(720 ILCS 600/6) (from Ch. 56 1/2, par. 2106)
Sec. 6. This Act is intended to be used solely for the
suppression of the commercial traffic in and possession of
items that, within the context of the sale or offering for
sale, or possession, are clearly and beyond a reasonable doubt
intended for the illegal and unlawful use of cannabis or
controlled substances. To this end all reasonable and
common-sense inferences shall be drawn in favor of the
legitimacy of any transaction or item.
(Source: P.A. 93-526, eff. 8-12-03.)
Section 945. The Narcotics Profit Forfeiture Act is amended
by changing Section 3 as follows:
(725 ILCS 175/3) (from Ch. 56 1/2, par. 1653)
Sec. 3. Definitions.
(a) "Narcotics activity" means:

HB0902 - 205 - LRB101 08006 RLC 53065 b
1. Any conduct punishable as a felony under the
Cannabis Control Act or the Illinois Controlled Substances
Act, or
2. Any conduct punishable, by imprisonment for more
than one year, as an offense against the law of the United
States or any State, concerning narcotics, controlled
substances, dangerous drugs, or any substance or things
scheduled or listed under the Cannabis Control Act, the
Illinois Controlled Substances Act, or the Methamphetamine
Control and Community Protection Act.
"Narcotics activity" does not include conduct that is
lawful under the Cannabis Legalization Equity Act.
(b) "Pattern of narcotics activity" means 2 or more acts of
narcotics activity of which at least 2 such acts were committed
within 5 years of each other. At least one of those acts of
narcotics activity must have been committed after the effective
date of this Act and at least one of such acts shall be or shall
have been punishable as a Class X, Class 1 or Class 2 felony.
(c) "Person" includes any individual or entity capable of
holding a legal or beneficial interest in property.
(d) "Enterprise" includes any individual, partnership,
corporation, association, or other entity, or group of
individuals associated in fact, although not a legal entity.
(Source: P.A. 94-556, eff. 9-11-05.)
Section 950. The Code of Criminal Procedure of 1963 is

HB0902 - 206 - LRB101 08006 RLC 53065 b
amended by adding Section 111-3.1 as follows:
(725 ILCS 5/111-3.1 new)
Sec. 111-3.1. Uniform Civil Law Citation.
(a) As used in this Section, "local authorities" means a
duly organized State, county, or municipal peace unit or police
force.
(b) For a violation of Section 20 or 30 of the Cannabis
Legalization Equity Act or subsection (a) of Section 4, Section
4.1, or subsection (c) of Section 8 of the Cannabis Control
Act, the local authorities having jurisdiction shall, except as
otherwise provided in this Section, charge the violation by a
Uniform Civil Law Citation. A copy of the Uniform Civil Law
Citation shall be sent to the circuit court clerk, within 30
days, but in no event later than 90 days after the violation.
The Uniform Civil Law Citation shall include:
(1) the name and address of the defendant;
(2) the violation charged;
(3) the municipality where the violation occurred or if
in an unincorporated area the county where the violation
occurred;
(4) the statutory fine for the offense;
(5) the date by which the fine must be paid or plea of
not guilty entered by the defendant;
(6) a warning that failure to pay the fine or enter a
plea of not guilty by the date set in the Citation, may

HB0902 - 207 - LRB101 08006 RLC 53065 b
result in an order of contempt by the court and shall
result in issuance of a warrant of arrest for the
defendant; and
(7) a notice that the person may plead guilty and pay
the fine to the circuit court clerk or enter a plea of not
guilty to the circuit court clerk and request a trial.
(c) The peace officer issuing the Citation or the clerk of
the circuit court shall give the accused a first appearance
date 30 to 45 days from the date of the violation whenever
practicable. The accused shall pay $120 per violation on or
before the appearance date set by the officer or the clerk of
the circuit court or to appear in court.
(d) When issuing a Uniform Civil Law Citation, the officer
shall also issue a written notice to the accused in
substantially the following form:
CONTEST THIS VIOLATION
If you intend to contest this violation or if you
intend to demand a trial, so notify the clerk of the
circuit court at least 10 work days before the date set for
your appearance. Note that appearing in court may result in
additional fines and fees. A new appearance date will be
set, and you will be notified of the time and place of your
appearance. When you are notified of your new appearance
date, you should come to court prepared for trial and bring
any witnesses you may have. You will also have the
opportunity to demand a trial by jury, which would occur at

HB0902 - 208 - LRB101 08006 RLC 53065 b
a later date. If you demand a trial by jury, additional
fees may apply.
Upon timely receipt of notice that the accused intends to
contest the violation, the clerk shall set a new appearance
date not less than 7 days nor more than 60 days after the
original appearance date set by the peace officer or the clerk
of the circuit court and shall notify all parties of the new
date and the time for appearance. If the accused demands a
trial by jury, the trial shall be scheduled within a reasonable
period. A jury fee may be applicable, as directed by the court.
(e) All civil law violations may be satisfied without a
court appearance by admitting to the violation, with the
exception of electronic admissions unless authorized by the
Supreme Court, and payment of $120, inclusive of all penalties,
fees, and costs.
(f) No other fines, fees, penalties, or costs shall be
assessed in any case that is disposed of on an admission to the
violation without a court appearance. The fine shall be
disbursed by the clerk under law. Uniform Civil Law
Citations—Processing Uniform Civil Law Citation forms shall be
in a form, which may from time to time be approved by the
Conference of Chief Circuit Judges and filed with this court.
The uniform form shall be adapted for use by municipalities.
The law enforcement officer shall complete the form or Citation
and, within 48 hours after the issuance, shall transmit the
portions entitled "Complaint" and "Disposition Report", either

HB0902 - 209 - LRB101 08006 RLC 53065 b
in person or by mail, to the clerk of the circuit court of the
county in which the violation occurred. Each Uniform Civil Law
Citation form shall, upon receipt by the clerk, be assigned a
separate case number, numbered chronologically, including
multiple citations issued to the same accused for more than one
violation arising out of the same occurrence. A final
disposition noted on the reverse side of the "Complaint" shall
be evidence of the judgment in the case. Upon final disposition
of each case, the clerk shall execute the "Disposition Report"
and promptly forward it to the law enforcement agency that
issued the Citation. This Section does not prohibit the use of
electronic or mechanical systems of record keeping,
transmitting, or reporting.
(g) In all civil law violation cases in which a defendant
is issued a Uniform Civil Law Citation as provided under this
Section and fails to appear on the date set for appearance, or
on any date to which the case may be continued, the court may
enter a default judgment and in so doing shall assess a fine,
inclusive of costs, as prescribed in Supreme Court Rule.
Payment received for the fine assessed following the entry of a
default judgment shall be disbursed by the clerk under Supreme
Court Rule.
(h) A person may not be arrested for an offense subject to
charging by a Uniform Civil Law Citation, except as provided in
this subsection. A person may be arrested if:
(1) he or she is in possession of an identification

HB0902 - 210 - LRB101 08006 RLC 53065 b
card, license, or other form of identification issued by
the federal government, this State or any other state,
municipality, or college or university, and fails to
produce the identification upon request of a peace officer
who informs the person that he or she has been found in
possession of what appears to the officer to be a violation
of Section 20 or 30 of the Cannabis Legalization Equity Act
or Section 4.1 of the Cannabis Control Act;
(2) he or she is without any form of identification and
fails or refuses to truthfully provide his or her name,
address, and date of birth to a peace officer who has
informed the person that the officer intends to issue the
person with a Uniform Civil Law Citation for a violation of
Section 20 or 30 of the Cannabis Legalization Equity Act or
Section 4.1 of the Cannabis Control Act; or
(3) he or she fails to pay the fine or enter a plea of
not guilty within the time period set in the Uniform Civil
Law Citation.
(i) The amount of bail for the offense charged by a Uniform
Civil Law Citation shall be the amount as the Supreme Court may
establish by rule.
(j) The copy of the Uniform Civil Law Citation filed with
the circuit court constitutes a complaint to which the
defendant may plead, unless he or she specifically requests
that a verified complaint be filed. A Uniform Civil Law
Citation may be satisfied without a court appearance by a

HB0902 - 211 - LRB101 08006 RLC 53065 b
written plea of guilty, and payment of fines and costs equal to
$100, and if a failure to appear to answer the charge has been
entered, in which case the fine and costs shall be equal to the
$100 fine plus $35. The balance remaining after deducting the
amount required by Section 27.1a or 27.2a of the Clerks of
Courts Act shall be distributed as follows:
(1) 44.5% shall be disbursed to the entity authorized
to receive the fine imposed in the case;
(2) 16.825% shall be disbursed to the State Treasurer;
and
(3) 38.675% shall be disbursed to the county's general
corporate fund.
(k) Except as otherwise provided in this Section, no other
fines, fees, penalties, or costs shall be assessed on a
conviction or plea of guilty to a Uniform Civil Law Citation.
(l) A defendant who fails to pay the fine or enter a plea
of not guilty within the time period set in the Uniform Civil
Law Citation is guilty of a civil law violation as provided in
the offense charged in the Citation.
(m) Nothing contained in this Section prohibits a unit of
local government from enacting an ordinance or bylaw regulating
or prohibiting the consumption of cannabis in public places and
providing a civil law violation for additional penalties for
the public use of cannabis, provided that the penalties are not
greater than those for the public consumption of alcohol.
(n) No issuance of a Uniform Civil Law Citation,

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conviction, or entry of a plea of guilty to a Uniform Civil Law
Citation shall be considered a criminal offense or a violation
of parole, mandatory supervised release, probation,
conditional discharge, or supervision.
(o) No Uniform Civil Law Citation for a violation of
Section 20 or 30 of the Cannabis Legalization Equity Act or
subsection (a) of Section 4, Section 4.1, or subsection (c) of
Section 8 of the Cannabis Control Act shall be maintained in
any criminal record or database.
Section 955. The Unified Code of Corrections is amended by
changing Sections 3-3-13, 5-1-15, 5-9-1.1 and 5-9-1.4 and by
adding Sections 5-1-18.1-1 and 5-4.5-83 as follows:
(730 ILCS 5/3-3-13) (from Ch. 38, par. 1003-3-13)
Sec. 3-3-13. Procedure for executive clemency; release
from the Department of Corrections for cannabis violations
Executive Clemency.
(a) Petitions seeking pardon, commutation, or reprieve
shall be addressed to the Governor and filed with the Prisoner
Review Board. The petition shall be in writing and signed by
the person under conviction or by a person on his behalf. It
shall contain a brief history of the case, the reasons for
seeking executive clemency, and other relevant information the
Board may require.
(a-5) After a petition has been denied by the Governor, the

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Board may not accept a repeat petition for executive clemency
for the same person until one full year has elapsed from the
date of the denial. The Chairman of the Board may waive the
one-year requirement if the petitioner offers in writing new
information that was unavailable to the petitioner at the time
of the filing of the prior petition and which the Chairman
determines to be significant. The Chairman also may waive the
one-year waiting period if the petitioner can show that a
change in circumstances of a compelling humanitarian nature has
arisen since the denial of the prior petition.
(b) Notice of the proposed application shall be given by
the Board to the committing court and the state's attorney of
the county where the conviction was had.
(c) The Board shall, if requested and upon due notice, give
a hearing to each application, allowing representation by
counsel, if desired, after which it shall confidentially advise
the Governor by a written report of its recommendations which
shall be determined by majority vote. The Board shall meet to
consider such petitions no less than 4 times each year.
Application for executive clemency under this Section may
not be commenced on behalf of a person who has been sentenced
to death without the written consent of the defendant, unless
the defendant, because of a mental or physical condition, is
incapable of asserting his or her own claim.
(d) The Governor shall decide each application and
communicate his decision to the Board which shall notify the

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petitioner.
In the event a petitioner who has been convicted of a Class
X felony is granted a release, after the Governor has
communicated such decision to the Board, the Board shall give
written notice to the Sheriff of the county from which the
offender was sentenced if such sheriff has requested that such
notice be given on a continuing basis. In cases where arrest of
the offender or the commission of the offense took place in any
municipality with a population of more than 10,000 persons, the
Board shall also give written notice to the proper law
enforcement agency for said municipality which has requested
notice on a continuing basis.
(d-5) If the petitioner seeks release from a Department of
Corrections institution or facility for a felony conviction of
the Cannabis Control Act, the petitioner may file an expedited
petition with the Prisoner Review Board. Notice of the proposed
application shall be given by the Board to the committing court
and the State's Attorney of the county where the conviction was
had. The Board shall decide the petition within 30 days from
the date of filing of the petition. If the Board, by a majority
vote of its members, decides that the cannabis violation did
not occur during the course of a crime of violence as defined
in Section 2 of the Crime Victims Compensation Act and that
public safety is not jeopardized by the release of the
petitioner, it shall present its recommendation to release the
petitioner to the Governor. If the Governor denies the

HB0902 - 215 - LRB101 08006 RLC 53065 b
recommendation of the Board to release the petitioner or fails
to grant the petition for executive clemency within 60 days
after the Governor is notified by the Board of its decision,
the petitioner may appeal that decision of the Governor to the
circuit court of the circuit where the petitioner was convicted
of the cannabis violation which shall hear the matter. If the
court determines that in the interest of justice the petitioner
should be released from a Department of Corrections institution
or facility, it shall order the release of the petitioner for
the cannabis violation unless the petitioner is serving
sentence for a non-cannabis violation.
(e) Nothing in this Section shall be construed to limit the
power of the Governor under the constitution to grant a
reprieve, commutation of sentence, or pardon.
(Source: P.A. 89-112, eff. 7-7-95; 89-684, eff. 6-1-97.)
(730 ILCS 5/5-1-15) (from Ch. 38, par. 1005-1-15)
Sec. 5-1-15. Offense.
"Offense" means conduct for which a sentence to a term of
imprisonment or to a fine is provided by any law of this State
or by any law, local law or ordinance of a political
subdivision of this State, or by any order, rule or regulation
of any governmental instrumentality authorized by law to adopt
the same."Offense" does not include a civil law violation of
the Cannabis Legalization Equity Act, the Cannabis Control Act,
or Section 111-3.1 of the Code of Criminal Procedure of 1963 or

HB0902 - 216 - LRB101 08006 RLC 53065 b
any criminal violation that would no longer be an offense under
this amendatory Act of the 101st General Assembly of the 101st
General Assembly and any criminal violation committed by a
person under 21 years of age who if he or she were 21 years of
age or older would not be in violation of law as result of this
amendatory Act of the 101st General Assembly of the 101st
General Assembly.
(Source: P.A. 77-2097.)
(730 ILCS 5/5-9-1.1) (from Ch. 38, par. 1005-9-1.1)
(Text of Section from P.A. 94-550, 96-132, 96-402, 96-1234,
97-545, 98-537, 99-480, and 100-987)
(Section scheduled to be repealed on July 1, 2019)
Sec. 5-9-1.1. Drug related offenses.
(a) Except for a conviction or plea of guilty to a Uniform
Civil Law Citation, when When a person has been adjudged guilty
of a drug related offense involving possession or delivery of
cannabis or possession or delivery of a controlled substance,
other than methamphetamine, as defined in the Cannabis Control
Act, as amended, or the Illinois Controlled Substances Act, as
amended, in addition to any other penalty imposed, a fine shall
be levied by the court at not less than the full street value
of the cannabis or controlled substances seized.
"Street value" shall be determined by the court on the
basis of testimony of law enforcement personnel and the
defendant as to the amount seized and such testimony as may be

HB0902 - 217 - LRB101 08006 RLC 53065 b
required by the court as to the current street value of the
cannabis or controlled substance seized.
(b) In addition to any penalty imposed under subsection (a)
of this Section, a fine of $100 shall be levied by the court,
the proceeds of which shall be collected by the Circuit Clerk
and remitted to the State Treasurer under Section 27.6 of the
Clerks of Courts Act for deposit into the Trauma Center Fund
for distribution as provided under Section 3.225 of the
Emergency Medical Services (EMS) Systems Act.
(c) In addition to any penalty imposed under subsection (a)
of this Section, a fee of $5 shall be assessed by the court,
the proceeds of which shall be collected by the Circuit Clerk
and remitted to the State Treasurer under Section 27.6 of the
Clerks of Courts Act for deposit into the Spinal Cord Injury
Paralysis Cure Research Trust Fund. This additional fee of $5
shall not be considered a part of the fine for purposes of any
reduction in the fine for time served either before or after
sentencing.
(d) Blank).
(e) In addition to any penalty imposed under subsection (a)
of this Section, a $25 assessment shall be assessed by the
court, the proceeds of which shall be collected by the Circuit
Clerk and remitted to the State Treasurer for deposit into the
Criminal Justice Information Projects Fund. The moneys
deposited into the Criminal Justice Information Projects Fund
under this Section shall be appropriated to and administered by

HB0902 - 218 - LRB101 08006 RLC 53065 b
the Illinois Criminal Justice Information Authority for
distribution to fund Department of State Police drug task
forces and Metropolitan Enforcement Groups by dividing the
funds equally by the total number of Department of State Police
drug task forces and Illinois Metropolitan Enforcement Groups.
(f) In addition to any penalty imposed under subsection (a)
of this Section, a $40 assessment shall be assessed by the
court, the proceeds of which shall be collected by the Circuit
Clerk. Of the collected proceeds, (i) 90% shall be remitted to
the State Treasurer for deposit into the Prescription Pill and
Drug Disposal Fund; (ii) 5% shall be remitted for deposit into
the Criminal Justice Information Projects Fund, for use by the
Illinois Criminal Justice Information Authority for the costs
associated with making grants from the Prescription Pill and
Drug Disposal Fund; and (iii) the Circuit Clerk shall retain 5%
for deposit into the Circuit Court Clerk Operation and
Administrative Fund for the costs associated with
administering this subsection.
(Source: P.A. 98-537, eff. 8-23-13; 99-480, eff. 9-9-15;
100-987, Article 900, Section 900-5, eff. 8-20-18. Repealed by
P.A. 100-987, Article 905, Section 905-93, eff. 7-1-19.)
(Text of Section from P.A. 94-556, 96-132, 96-402, 96-1234,
97-545, 98-537, 99-480, and 100-987)
(Section scheduled to be repealed on January 1, 2021)
Sec. 5-9-1.1. Drug related offenses.

HB0902 - 219 - LRB101 08006 RLC 53065 b
(a) Except for a conviction or plea of guilty to a Uniform
Civil Law Citation, when When a person has been adjudged guilty
of a drug related offense involving possession or delivery of
cannabis or possession or delivery of a controlled substance as
defined in the Cannabis Control Act, the Illinois Controlled
Substances Act, or the Methamphetamine Control and Community
Protection Act, in addition to any other penalty imposed, a
fine shall be levied by the court at not less than the full
street value of the cannabis or controlled substances seized.
"Street value" shall be determined by the court on the
basis of testimony of law enforcement personnel and the
defendant as to the amount seized and such testimony as may be
required by the court as to the current street value of the
cannabis or controlled substance seized.
(b) In addition to any penalty imposed under subsection (a)
of this Section, a fine of $100 shall be levied by the court,
the proceeds of which shall be collected by the Circuit Clerk
and remitted to the State Treasurer under Section 27.6 of the
Clerks of Courts Act for deposit into the Trauma Center Fund
for distribution as provided under Section 3.225 of the
Emergency Medical Services (EMS) Systems Act.
(c) In addition to any penalty imposed under subsection (a)
of this Section, a fee of $5 shall be assessed by the court,
the proceeds of which shall be collected by the Circuit Clerk
and remitted to the State Treasurer under Section 27.6 of the
Clerks of Courts Act for deposit into the Spinal Cord Injury

HB0902 - 220 - LRB101 08006 RLC 53065 b
Paralysis Cure Research Trust Fund. This additional fee of $5
shall not be considered a part of the fine for purposes of any
reduction in the fine for time served either before or after
sentencing.
(d) (Blank).
(e) In addition to any penalty imposed under subsection (a)
of this Section, a $25 assessment shall be assessed by the
court, the proceeds of which shall be collected by the Circuit
Clerk and remitted to the State Treasurer for deposit into the
Criminal Justice Information Projects Fund. The moneys
deposited into the Criminal Justice Information Projects Fund
under this Section shall be appropriated to and administered by
the Illinois Criminal Justice Information Authority for
distribution to fund Department of State Police drug task
forces and Metropolitan Enforcement Groups by dividing the
funds equally by the total number of Department of State Police
drug task forces and Illinois Metropolitan Enforcement Groups.
(f) In addition to any penalty imposed under subsection (a)
of this Section, a $40 assessment shall be assessed by the
court, the proceeds of which shall be collected by the Circuit
Clerk. Of the collected proceeds, (i) 90% shall be remitted to
the State Treasurer for deposit into the Prescription Pill and
Drug Disposal Fund; (ii) 5% shall be remitted for deposit into
the Criminal Justice Information Projects Fund, for use by the
Illinois Criminal Justice Information Authority for the costs
associated with making grants from the Prescription Pill and

HB0902 - 221 - LRB101 08006 RLC 53065 b
Drug Disposal Fund; and (iii) the Circuit Clerk shall retain 5%
for deposit into the Circuit Court Clerk Operation and
Administrative Fund for the costs associated with
administering this subsection.
(Source: 99-480, eff. 9-9-15; 100-987, Article 900, Section
900-5, eff. 8-20-18. Repealed by P.A. 100-987, Article 905,
Section 905-93, eff. 7-1-19.)
(730 ILCS 5/5-9-1.4) (from Ch. 38, par. 1005-9-1.4)
(Text of Section before amendment by P.A. 100-987)
Sec. 5-9-1.4. (a) "Crime laboratory" means any
not-for-profit laboratory registered with the Drug Enforcement
Administration of the United States Department of Justice,
substantially funded by a unit or combination of units of local
government or the State of Illinois, which regularly employs at
least one person engaged in the analysis of controlled
substances, cannabis, methamphetamine, or steroids for
criminal justice agencies in criminal matters and provides
testimony with respect to such examinations.
(b) Except for a conviction or plea of guilty to a Uniform
Civil Law Citation, when When a person has been adjudged guilty
of an offense in violation of the Cannabis Control Act, the
Illinois Controlled Substances Act, the Methamphetamine
Control and Community Protection Act, or the Steroid Control
Act, in addition to any other disposition, penalty or fine
imposed, a criminal laboratory analysis fee of $100 for each

HB0902 - 222 - LRB101 08006 RLC 53065 b
offense for which he was convicted shall be levied by the
court. Any person placed on probation pursuant to Section 10 of
the Cannabis Control Act, Section 410 of the Illinois
Controlled Substances Act, Section 70 of the Methamphetamine
Control and Community Protection Act, or Section 10 of the
Steroid Control Act or placed on supervision for a violation of
the Cannabis Control Act, the Illinois Controlled Substances
Act or the Steroid Control Act shall be assessed a criminal
laboratory analysis fee of $100 for each offense for which he
was charged. Upon verified petition of the person, the court
may suspend payment of all or part of the fee if it finds that
the person does not have the ability to pay the fee.
(c) In addition to any other disposition made pursuant to
the provisions of the Juvenile Court Act of 1987, any minor
adjudicated delinquent for an offense which if committed by an
adult would constitute a violation of the Cannabis Control Act,
the Illinois Controlled Substances Act, the Methamphetamine
Control and Community Protection Act, or the Steroid Control
Act shall be assessed a criminal laboratory analysis fee of
$100 for each adjudication. Upon verified petition of the
minor, the court may suspend payment of all or part of the fee
if it finds that the minor does not have the ability to pay the
fee. The parent, guardian or legal custodian of the minor may
pay some or all of such fee on the minor's behalf.
(d) All criminal laboratory analysis fees provided for by
this Section shall be collected by the clerk of the court and

HB0902 - 223 - LRB101 08006 RLC 53065 b
forwarded to the appropriate crime laboratory fund as provided
in subsection (f).
(e) Crime laboratory funds shall be established as follows:
(1) Any unit of local government which maintains a
crime laboratory may establish a crime laboratory fund
within the office of the county or municipal treasurer.
(2) Any combination of units of local government which
maintains a crime laboratory may establish a crime
laboratory fund within the office of the treasurer of the
county where the crime laboratory is situated.
(3) The State Crime Laboratory Fund is hereby created
as a special fund in the State Treasury.
(f) The analysis fee provided for in subsections (b) and
(c) of this Section shall be forwarded to the office of the
treasurer of the unit of local government that performed the
analysis if that unit of local government has established a
crime laboratory fund, or to the State Crime Laboratory Fund if
the analysis was performed by a laboratory operated by the
Illinois State Police. If the analysis was performed by a crime
laboratory funded by a combination of units of local
government, the analysis fee shall be forwarded to the
treasurer of the county where the crime laboratory is situated
if a crime laboratory fund has been established in that county.
If the unit of local government or combination of units of
local government has not established a crime laboratory fund,
then the analysis fee shall be forwarded to the State Crime

HB0902 - 224 - LRB101 08006 RLC 53065 b
Laboratory Fund. The clerk of the circuit court may retain the
amount of $10 from each collected analysis fee to offset
administrative costs incurred in carrying out the clerk's
responsibilities under this Section.
(g) Fees deposited into a crime laboratory fund created
pursuant to paragraphs (1) or (2) of subsection (e) of this
Section shall be in addition to any allocations made pursuant
to existing law and shall be designated for the exclusive use
of the crime laboratory. These uses may include, but are not
limited to, the following:
(1) costs incurred in providing analysis for
controlled substances in connection with criminal
investigations conducted within this State;
(2) purchase and maintenance of equipment for use in
performing analyses; and
(3) continuing education, training and professional
development of forensic scientists regularly employed by
these laboratories.
(h) Fees deposited in the State Crime Laboratory Fund
created pursuant to paragraph (3) of subsection (d) of this
Section shall be used by State crime laboratories as designated
by the Director of State Police. These funds shall be in
addition to any allocations made pursuant to existing law and
shall be designated for the exclusive use of State crime
laboratories. These uses may include those enumerated in
subsection (g) of this Section.

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(Source: P.A. 94-556, eff. 9-11-05.)
(Text of Section after amendment by P.A. 100-987)
Sec. 5-9-1.4. (a) "Crime laboratory" means any
not-for-profit laboratory registered with the Drug Enforcement
Administration of the United States Department of Justice,
substantially funded by a unit or combination of units of local
government or the State of Illinois, which regularly employs at
least one person engaged in the analysis of controlled
substances, cannabis, methamphetamine, or steroids for
criminal justice agencies in criminal matters and provides
testimony with respect to such examinations.
(b) (Blank).
(c) In addition to any other disposition made pursuant to
the provisions of the Juvenile Court Act of 1987, any minor
adjudicated delinquent for an offense which if committed by an
adult would constitute a violation of the Cannabis Control Act,
the Illinois Controlled Substances Act, the Methamphetamine
Control and Community Protection Act, or the Steroid Control
Act shall be required to pay a criminal laboratory analysis
assessment of $100 for each adjudication. Upon verified
petition of the minor, the court may suspend payment of all or
part of the assessment if it finds that the minor does not have
the ability to pay the assessment. The parent, guardian or
legal custodian of the minor may pay some or all of such
assessment on the minor's behalf.

HB0902 - 226 - LRB101 08006 RLC 53065 b
(d) All criminal laboratory analysis fees provided for by
this Section shall be collected by the clerk of the court and
forwarded to the appropriate crime laboratory fund as provided
in subsection (f).
(e) Crime laboratory funds shall be established as follows:
(1) Any unit of local government which maintains a
crime laboratory may establish a crime laboratory fund
within the office of the county or municipal treasurer.
(2) Any combination of units of local government which
maintains a crime laboratory may establish a crime
laboratory fund within the office of the treasurer of the
county where the crime laboratory is situated.
(3) The State Crime Laboratory Fund is hereby created
as a special fund in the State Treasury.
(f) The analysis assessment provided for in subsection (c)
of this Section shall be forwarded to the office of the
treasurer of the unit of local government that performed the
analysis if that unit of local government has established a
crime laboratory fund, or to the State Crime Laboratory Fund if
the analysis was performed by a laboratory operated by the
Illinois State Police. If the analysis was performed by a crime
laboratory funded by a combination of units of local
government, the analysis assessment shall be forwarded to the
treasurer of the county where the crime laboratory is situated
if a crime laboratory fund has been established in that county.
If the unit of local government or combination of units of

HB0902 - 227 - LRB101 08006 RLC 53065 b
local government has not established a crime laboratory fund,
then the analysis assessment shall be forwarded to the State
Crime Laboratory Fund.
(g) Moneys deposited into a crime laboratory fund created
pursuant to paragraphs (1) or (2) of subsection (e) of this
Section shall be in addition to any allocations made pursuant
to existing law and shall be designated for the exclusive use
of the crime laboratory. These uses may include, but are not
limited to, the following:
(1) costs incurred in providing analysis for
controlled substances in connection with criminal
investigations conducted within this State;
(2) purchase and maintenance of equipment for use in
performing analyses; and
(3) continuing education, training and professional
development of forensic scientists regularly employed by
these laboratories.
(h) Moneys deposited in the State Crime Laboratory Fund
created pursuant to paragraph (3) of subsection (d) of this
Section shall be used by State crime laboratories as designated
by the Director of State Police. These funds shall be in
addition to any allocations made pursuant to existing law and
shall be designated for the exclusive use of State crime
laboratories. These uses may include those enumerated in
subsection (g) of this Section.
(Source: P.A. 100-987, eff. 7-1-19.)

HB0902 - 228 - LRB101 08006 RLC 53065 b
Section 995. No acceleration or delay. Where this Act makes
changes in a statute that is represented in this Act by text
that is not yet or no longer in effect (for example, a Section
represented by multiple versions), the use of that text does
not accelerate or delay the taking effect of (i) the changes
made by this Act or (ii) provisions derived from any other
Public Act.
Section 997. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
Section 999. Effective date. This Act takes effect upon
becoming law.
HB0902 - 229 - LRB101 08006 RLC 53065 b
INDEX
Statutes amended in order of appearance
New Act
20 ILCS 301/40-5
20 ILCS 2630/5 from Ch. 38, par. 206-5
20 ILCS 2630/5.2
30 ILCS 105/5.891 new
30 ILCS 105/5.892 new
35 ILCS 5/203 from Ch. 120, par. 2-203
410 ILCS 130/10
410 ILCS 130/220 rep.
720 ILCS 550/3.5 new
720 ILCS 550/4 from Ch. 56 1/2, par. 704
720 ILCS 550/4.1 new
720 ILCS 550/5 from Ch. 56 1/2, par. 705
720 ILCS 550/7 from Ch. 56 1/2, par. 707
720 ILCS 550/8 from Ch. 56 1/2, par. 708
720 ILCS 550/9 from Ch. 56 1/2, par. 709
720 ILCS 550/10 from Ch. 56 1/2, par. 710
720 ILCS 550/12 from Ch. 56 1/2, par. 712
720 ILCS 550/16.2
720 ILCS 600/2 from Ch. 56 1/2, par. 2102
720 ILCS 600/3.5
720 ILCS 600/4 from Ch. 56 1/2, par. 2104
720 ILCS 600/6 from Ch. 56 1/2, par. 2106
HB0902 - 230 - LRB101 08006 RLC 53065 b