Bill Text: IL HB4078 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: If and only if Senate Bill 9 of the 100th General Assembly becomes law in the form in which it was amended by House Amendment No. 3, repeals the State Tax Lien Registration Act and the Revised Uniform Unclaimed Property Act created by that bill. Repeals provisions of Senate Bill 9 of the 100th General Assembly that would have repealed the Uniform Disposition of Unclaimed Property Act on January 1, 2018. Changes various Acts by restoring language deleted by Senate Bill 9 of the 100th General Assembly and deleting language added by Senate Bill 9 of the 100th General Assembly. Effective immediately.

Spectrum: Partisan Bill (Republican 21-0)

Status: (Introduced) 2017-07-18 - Added Co-Sponsor Rep. Allen Skillicorn [HB4078 Detail]

Download: Illinois-2017-HB4078-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4078

Introduced , by Rep. David McSweeney - Jeanne M Ives - David A. Welter - Peter Breen - Nick Sauer

SYNOPSIS AS INTRODUCED:
See Index

If and only if Senate Bill 9 of the 100th General Assembly becomes law in the form in which it was amended by House Amendment No. 3, repeals the State Tax Lien Registration Act and the Revised Uniform Unclaimed Property Act created by that bill. Repeals provisions of Senate Bill 9 of the 100th General Assembly that would have repealed the Uniform Disposition of Unclaimed Property Act on January 1, 2018. Changes various Acts by restoring language deleted by Senate Bill 9 of the 100th General Assembly and deleting language added by Senate Bill 9 of the 100th General Assembly. Effective immediately.
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FISCAL NOTE ACT MAY APPLY

A BILL FOR

HB4078LRB100 13340 AXK 27924 b
1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 (10000SB0009ham003, Sections 1-1 through 1-40 rep.)
5 Section 1-1. If and only if Senate Bill 9 of the 100th
6General Assembly becomes law in the form in which it was
7amended by House Amendment No. 3, then the State Tax Lien
8Registration Act (Sections 1-1 through 1-40 of Article 1 of
9Senate Bill 9 of the 100th General Assembly) is repealed.
10 (10000SB0009ham003, Sections 15-101 through 15-1504 rep.)
11 Section 1-2. If and only if Senate Bill 9 of the 100th
12General Assembly becomes law in the form in which it was
13amended by House Amendment No. 3, then the Revised Uniform
14Unclaimed Property Act (Sections 15-101 through 15-1504 of
15Article 15 of Senate Bill 9 of the 100th General Assembly) is
16repealed.
17 (10000SB0009ham003, Section 17-5 rep.)
18 Section 1-3. If and only if Senate Bill 9 of the 100th
19General Assembly becomes law in the form in which it was
20amended by House Amendment No. 3, then Section 17-5 of Senate
21Bill 9 of the 100th General Assembly is repealed.

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1 (35 ILCS 5/225 rep.)
2 Section 1-4. If and only if Senate Bill 9 of the 100th
3General Assembly becomes law in the form in which it was
4amended by House Amendment No. 3, then the Illinois Income Tax
5Act is amended by repealing Section 225.
6 Section 17-10. If and only if Senate Bill 9 of the 100th
7General Assembly becomes law in the form in which it was
8amended by House Amendment No. 3, then the Illinois
9Administrative Procedure Act is amended by changing Section 1-5
10as follows:
11 (5 ILCS 100/1-5) (from Ch. 127, par. 1001-5)
12 Sec. 1-5. Applicability.
13 (a) This Act applies to every agency as defined in this
14Act. Beginning January 1, 1978, in case of conflict between the
15provisions of this Act and the Act creating or conferring power
16on an agency, this Act shall control. If, however, an agency
17(or its predecessor in the case of an agency that has been
18consolidated or reorganized) has existing procedures on July 1,
191977, specifically for contested cases or licensing, those
20existing provisions control, except that this exception
21respecting contested cases and licensing does not apply if the
22Act creating or conferring power on the agency adopts by
23express reference the provisions of this Act. Where the Act
24creating or conferring power on an agency establishes

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1administrative procedures not covered by this Act, those
2procedures shall remain in effect.
3 (b) The provisions of this Act do not apply to (i)
4preliminary hearings, investigations, or practices where no
5final determinations affecting State funding are made by the
6State Board of Education, (ii) legal opinions issued under
7Section 2-3.7 of the School Code, (iii) as to State colleges
8and universities, their disciplinary and grievance
9proceedings, academic irregularity and capricious grading
10proceedings, and admission standards and procedures, and (iv)
11the class specifications for positions and individual position
12descriptions prepared and maintained under the Personnel Code.
13Those class specifications shall, however, be made reasonably
14available to the public for inspection and copying. The
15provisions of this Act do not apply to hearings under Section
1620 of the Uniform Disposition of Unclaimed Property Act.
17 (c) Section 5-35 of this Act relating to procedures for
18rulemaking does not apply to the following:
19 (1) Rules adopted by the Pollution Control Board that,
20 in accordance with Section 7.2 of the Environmental
21 Protection Act, are identical in substance to federal
22 regulations or amendments to those regulations
23 implementing the following: Sections 3001, 3002, 3003,
24 3004, 3005, and 9003 of the Solid Waste Disposal Act;
25 Section 105 of the Comprehensive Environmental Response,
26 Compensation, and Liability Act of 1980; Sections 307(b),

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1 307(c), 307(d), 402(b)(8), and 402(b)(9) of the Federal
2 Water Pollution Control Act; Sections 1412(b), 1414(c),
3 1417(a), 1421, and 1445(a) of the Safe Drinking Water Act;
4 and Section 109 of the Clean Air Act.
5 (2) Rules adopted by the Pollution Control Board that
6 establish or amend standards for the emission of
7 hydrocarbons and carbon monoxide from gasoline powered
8 motor vehicles subject to inspection under the Vehicle
9 Emissions Inspection Law of 2005 or its predecessor laws.
10 (3) Procedural rules adopted by the Pollution Control
11 Board governing requests for exceptions under Section 14.2
12 of the Environmental Protection Act.
13 (4) The Pollution Control Board's grant, pursuant to an
14 adjudicatory determination, of an adjusted standard for
15 persons who can justify an adjustment consistent with
16 subsection (a) of Section 27 of the Environmental
17 Protection Act.
18 (4.5) The Pollution Control Board's adoption of
19 time-limited water quality standards under Section 38.5 of
20 the Environmental Protection Act.
21 (5) Rules adopted by the Pollution Control Board that
22 are identical in substance to the regulations adopted by
23 the Office of the State Fire Marshal under clause (ii) of
24 paragraph (b) of subsection (3) of Section 2 of the
25 Gasoline Storage Act.
26 (d) Pay rates established under Section 8a of the Personnel

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1Code shall be amended or repealed pursuant to the process set
2forth in Section 5-50 within 30 days after it becomes necessary
3to do so due to a conflict between the rates and the terms of a
4collective bargaining agreement covering the compensation of
5an employee subject to that Code.
6 (e) Section 10-45 of this Act shall not apply to any
7hearing, proceeding, or investigation conducted under Section
813-515 of the Public Utilities Act.
9 (f) Article 10 of this Act does not apply to any hearing,
10proceeding, or investigation conducted by the State Council for
11the State of Illinois created under Section 3-3-11.05 of the
12Unified Code of Corrections or by the Interstate Commission for
13Adult Offender Supervision created under the Interstate
14Compact for Adult Offender Supervision or by the Interstate
15Commission for Juveniles created under the Interstate Compact
16for Juveniles.
17 (g) This Act is subject to the provisions of Article XXI of
18the Public Utilities Act. To the extent that any provision of
19this Act conflicts with the provisions of that Article XXI, the
20provisions of that Article XXI control.
21(Source: P.A. 98-463, eff. 8-16-13; 99-937, eff. 2-24-17;
2210000SB0009ham003.)
23 Section 17-15. If and only if Senate Bill 9 of the 100th
24General Assembly becomes law in the form in which it was
25amended by House Amendment No. 3, then the Freedom of

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1Information Act is amended by changing Section 7.5 as follows:
2 (5 ILCS 140/7.5)
3 Sec. 7.5. Statutory exemptions. To the extent provided for
4by the statutes referenced below, the following shall be exempt
5from inspection and copying:
6 (a) All information determined to be confidential
7 under Section 4002 of the Technology Advancement and
8 Development Act.
9 (b) Library circulation and order records identifying
10 library users with specific materials under the Library
11 Records Confidentiality Act.
12 (c) Applications, related documents, and medical
13 records received by the Experimental Organ Transplantation
14 Procedures Board and any and all documents or other records
15 prepared by the Experimental Organ Transplantation
16 Procedures Board or its staff relating to applications it
17 has received.
18 (d) Information and records held by the Department of
19 Public Health and its authorized representatives relating
20 to known or suspected cases of sexually transmissible
21 disease or any information the disclosure of which is
22 restricted under the Illinois Sexually Transmissible
23 Disease Control Act.
24 (e) Information the disclosure of which is exempted
25 under Section 30 of the Radon Industry Licensing Act.

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1 (f) Firm performance evaluations under Section 55 of
2 the Architectural, Engineering, and Land Surveying
3 Qualifications Based Selection Act.
4 (g) Information the disclosure of which is restricted
5 and exempted under Section 50 of the Illinois Prepaid
6 Tuition Act.
7 (h) Information the disclosure of which is exempted
8 under the State Officials and Employees Ethics Act, and
9 records of any lawfully created State or local inspector
10 general's office that would be exempt if created or
11 obtained by an Executive Inspector General's office under
12 that Act.
13 (i) Information contained in a local emergency energy
14 plan submitted to a municipality in accordance with a local
15 emergency energy plan ordinance that is adopted under
16 Section 11-21.5-5 of the Illinois Municipal Code.
17 (j) Information and data concerning the distribution
18 of surcharge moneys collected and remitted by wireless
19 carriers under the Wireless Emergency Telephone Safety
20 Act.
21 (k) Law enforcement officer identification information
22 or driver identification information compiled by a law
23 enforcement agency or the Department of Transportation
24 under Section 11-212 of the Illinois Vehicle Code.
25 (l) Records and information provided to a residential
26 health care facility resident sexual assault and death

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1 review team or the Executive Council under the Abuse
2 Prevention Review Team Act.
3 (m) Information provided to the predatory lending
4 database created pursuant to Article 3 of the Residential
5 Real Property Disclosure Act, except to the extent
6 authorized under that Article.
7 (n) Defense budgets and petitions for certification of
8 compensation and expenses for court appointed trial
9 counsel as provided under Sections 10 and 15 of the Capital
10 Crimes Litigation Act. This subsection (n) shall apply
11 until the conclusion of the trial of the case, even if the
12 prosecution chooses not to pursue the death penalty prior
13 to trial or sentencing.
14 (o) Information that is prohibited from being
15 disclosed under Section 4 of the Illinois Health and
16 Hazardous Substances Registry Act.
17 (p) Security portions of system safety program plans,
18 investigation reports, surveys, schedules, lists, data, or
19 information compiled, collected, or prepared by or for the
20 Regional Transportation Authority under Section 2.11 of
21 the Regional Transportation Authority Act or the St. Clair
22 County Transit District under the Bi-State Transit Safety
23 Act.
24 (q) Information prohibited from being disclosed by the
25 Personnel Records Review Act.
26 (r) Information prohibited from being disclosed by the

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1 Illinois School Student Records Act.
2 (s) Information the disclosure of which is restricted
3 under Section 5-108 of the Public Utilities Act.
4 (t) All identified or deidentified health information
5 in the form of health data or medical records contained in,
6 stored in, submitted to, transferred by, or released from
7 the Illinois Health Information Exchange, and identified
8 or deidentified health information in the form of health
9 data and medical records of the Illinois Health Information
10 Exchange in the possession of the Illinois Health
11 Information Exchange Authority due to its administration
12 of the Illinois Health Information Exchange. The terms
13 "identified" and "deidentified" shall be given the same
14 meaning as in the Health Insurance Portability and
15 Accountability Act of 1996, Public Law 104-191, or any
16 subsequent amendments thereto, and any regulations
17 promulgated thereunder.
18 (u) Records and information provided to an independent
19 team of experts under Brian's Law.
20 (v) Names and information of people who have applied
21 for or received Firearm Owner's Identification Cards under
22 the Firearm Owners Identification Card Act or applied for
23 or received a concealed carry license under the Firearm
24 Concealed Carry Act, unless otherwise authorized by the
25 Firearm Concealed Carry Act; and databases under the
26 Firearm Concealed Carry Act, records of the Concealed Carry

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1 Licensing Review Board under the Firearm Concealed Carry
2 Act, and law enforcement agency objections under the
3 Firearm Concealed Carry Act.
4 (w) Personally identifiable information which is
5 exempted from disclosure under subsection (g) of Section
6 19.1 of the Toll Highway Act.
7 (x) Information which is exempted from disclosure
8 under Section 5-1014.3 of the Counties Code or Section
9 8-11-21 of the Illinois Municipal Code.
10 (y) Confidential information under the Adult
11 Protective Services Act and its predecessor enabling
12 statute, the Elder Abuse and Neglect Act, including
13 information about the identity and administrative finding
14 against any caregiver of a verified and substantiated
15 decision of abuse, neglect, or financial exploitation of an
16 eligible adult maintained in the Registry established
17 under Section 7.5 of the Adult Protective Services Act.
18 (z) Records and information provided to a fatality
19 review team or the Illinois Fatality Review Team Advisory
20 Council under Section 15 of the Adult Protective Services
21 Act.
22 (aa) Information which is exempted from disclosure
23 under Section 2.37 of the Wildlife Code.
24 (bb) Information which is or was prohibited from
25 disclosure by the Juvenile Court Act of 1987.
26 (cc) Recordings made under the Law Enforcement

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1 Officer-Worn Body Camera Act, except to the extent
2 authorized under that Act.
3 (dd) Information that is prohibited from being
4 disclosed under Section 45 of the Condominium and Common
5 Interest Community Ombudsperson Act.
6 (ee) Information that is exempted from disclosure
7 under Section 30.1 of the Pharmacy Practice Act.
8 (ff) Information that is exempted from disclosure
9 under the Revised Uniform Unclaimed Property Act.
10(Source: P.A. 98-49, eff. 7-1-13; 98-63, eff. 7-9-13; 98-756,
11eff. 7-16-14; 98-1039, eff. 8-25-14; 98-1045, eff. 8-25-14;
1299-78, eff. 7-20-15; 99-298, eff. 8-6-15; 99-352, eff. 1-1-16;
1399-642, eff. 7-28-16; 99-776, eff. 8-12-16; 99-863, eff.
148-19-16; revised 9-1-16; 10000SB0009ham003.)
15 Section 17-20. If and only if Senate Bill 9 of the 100th
16General Assembly becomes law in the form in which it was
17amended by House Amendment No. 3, then the State Comptroller
18Act is amended by changing Section 9 as follows:
19 (15 ILCS 405/9) (from Ch. 15, par. 209)
20 Sec. 9. Warrants; vouchers; preaudit.
21 (a) No payment may be made from public funds held by the
22State Treasurer in or outside of the State treasury, except by
23warrant drawn by the Comptroller and presented by him to the
24treasurer to be countersigned except for payments made pursuant

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1to Section 9.03 or 9.05 of this Act.
2 (b) No warrant for the payment of money by the State
3Treasurer may be drawn by the Comptroller without the
4presentation of itemized vouchers indicating that the
5obligation or expenditure is pursuant to law and authorized,
6and authorizing the Comptroller to order payment.
7 (b-1) An itemized voucher for under $5 that is presented to
8the Comptroller for payment shall not be paid except through
9electronic funds transfer. This subsection (b-1) does not apply
10to (i) vouchers presented by the legislative branch of State
11government, (ii) vouchers presented by the State Treasurer's
12Office for the payment of unclaimed property claims authorized
13under the Revised Uniform Disposition of Unclaimed Property
14Act, or (iii) vouchers presented by the Department of Revenue
15for the payment of refunds of taxes administered by the
16Department.
17 (c) The Comptroller shall examine each voucher required by
18law to be filed with him and determine whether unencumbered
19appropriations or unencumbered obligational or expenditure
20authority other than by appropriation are legally available to
21incur the obligation or to make the expenditure of public
22funds. If he determines that unencumbered appropriations or
23other obligational or expenditure authority are not available
24from which to incur the obligation or make the expenditure, the
25Comptroller shall refuse to draw a warrant.
26 (d) The Comptroller shall examine each voucher and all

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1other documentation required to accompany the voucher, and
2shall ascertain whether the voucher and documentation meet all
3requirements established by or pursuant to law. If the
4Comptroller determines that the voucher and documentation do
5not meet applicable requirements established by or pursuant to
6law, he shall refuse to draw a warrant. As used in this
7Section, "requirements established by or pursuant to law"
8includes statutory enactments and requirements established by
9rules and regulations adopted pursuant to this Act.
10 (e) Prior to drawing a warrant, the Comptroller may review
11the voucher, any documentation accompanying the voucher, and
12any other documentation related to the transaction on file with
13him, and determine if the transaction is in accordance with the
14law. If based on his review the Comptroller has reason to
15believe that such transaction is not in accordance with the
16law, he shall refuse to draw a warrant.
17 (f) Where the Comptroller refuses to draw a warrant
18pursuant to this Section, he shall maintain separate records of
19such transactions.
20 (g) State agencies shall have the principal responsibility
21for the preaudit of their encumbrances, expenditures, and other
22transactions as otherwise required by law.
23(Source: P.A. 97-969, eff. 8-16-12; 97-1142, eff. 12-28-12;
2498-421, eff. 8-16-13; 10000SB0009ham003.)
25 Section 17-25. If and only if Senate Bill 9 of the 100th

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1General Assembly becomes law in the form in which it was
2amended by House Amendment No. 3, then the State Treasurer Act
3is amended by changing Sections 0.02, 0.03, 0.04, 0.05, and
40.06 as follows:
5 (15 ILCS 505/0.02)
6 Sec. 0.02. Transfer of powers. The rights, powers, duties,
7and functions vested in the Department of Financial
8Institutions to administer the Uniform Disposition of
9Unclaimed Property Act (superseded by the Revised Uniform
10Unclaimed Property Act) are transferred to the State Treasurer
11on July 1, 1999; provided, however, that the rights, powers,
12duties, and functions involving the examination of the records
13of any person that the State Treasurer has reason to believe
14has failed to report properly under this Act shall be
15transferred to the Office of Banks and Real Estate if the
16person is regulated by the Office of Banks and Real Estate
17under the Illinois Banking Act, the Corporate Fiduciary Act,
18the Foreign Banking Office Act, the Illinois Savings and Loan
19Act of 1985, or the Savings Bank Act and shall be retained by
20the Department of Financial Institutions if the person is doing
21business in the State under the supervision of the Department
22of Financial Institutions, the National Credit Union
23Administration, the Office of Thrift Supervision, or the
24Comptroller of the Currency.
25(Source: P.A. 91-16, eff. 6-4-99; 10000SB0009ham003.)

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1 (15 ILCS 505/0.03)
2 Sec. 0.03. Transfer of personnel.
3 (a) Except as provided in subsection (b), personnel
4employed by the Department of Financial Institutions on June
530, 1999 to perform duties pertaining to the administration of
6the Uniform Disposition of Unclaimed Property Act (superseded
7by the Revised Uniform Unclaimed Property Act) are transferred
8to the State Treasurer on July 1, 1999.
9 (b) In the case of a person employed by the Department of
10Financial Institutions to perform both duties pertaining to the
11administration of the Uniform Disposition of Unclaimed
12Property Act (superseded by the Revised Uniform Unclaimed
13Property Act) and duties pertaining to a function retained by
14the Department of Financial Institutions, the State Treasurer,
15in consultation with the Director of Financial Institutions,
16shall determine whether to transfer the employee to the Office
17of the State Treasurer; until this determination has been made,
18the transfer shall not take effect.
19 (c) The rights of State employees, the State, and its
20agencies under the Personnel Code and applicable collective
21bargaining agreements and retirement plans are not affected by
22this amendatory Act of 1999, except that all positions
23transferred to the State Treasurer shall be subject to the
24State Treasurer Employment Code effective July 1, 2000.
25 All transferred employees who are members of collective

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1bargaining units shall retain their seniority, continuous
2service, salary, and accrued benefits. During the pendency of
3the existing collective bargaining agreement, the rights
4provided for under that agreement and memoranda and supplements
5to that agreement, including but not limited to, the rights of
6employees performing duties pertaining to the administration
7of the Uniform Disposition of Unclaimed Property Act
8(superseded by the Revised Uniform Unclaimed Property Act) to
9positions in other State agencies and the right of employees in
10other State agencies covered by the agreement to positions
11performing duties pertaining to the administration of the
12Uniform Disposition of Unclaimed Property Act (superseded by
13the Revised Uniform Unclaimed Property Act), shall not be
14abridged.
15 The State Treasurer shall continue to honor during their
16pendency all bargaining agreements in effect at the time of the
17transfer and to recognize all collective bargaining
18representatives for the employees who perform or will perform
19functions transferred by this amendatory Act of 1999. For all
20purposes with respect to the management of the existing
21agreement and the negotiation and management of any successor
22agreements, the State Treasurer shall be deemed to be the
23employer of employees who perform or will perform functions
24transferred to the Office of the State Treasurer by this
25amendatory Act of 1999; provided that the Illinois Department
26of Central Management Services shall be a party to any

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1grievance or arbitration proceeding held pursuant to the
2provisions of the collective bargaining agreement which
3involves the movement of employees from the Office of the State
4Treasurer to an agency under the jurisdiction of the Governor
5covered by the agreement.
6(Source: P.A. 91-16, eff. 6-4-99; 10000SB0009ham003.)
7 (15 ILCS 505/0.04)
8 Sec. 0.04. Transfer of property.
9 (a) Except as provided in subsection (b), all real and
10personal property, including but not limited to all books,
11records, and documents, and all unexpended appropriations and
12pending business pertaining to the administration of the
13Uniform Disposition of Unclaimed Property Act (superseded by
14the Revised Uniform Unclaimed Property Act) shall be
15transferred and delivered to the State Treasurer effective July
161, 1999.
17 (b) In the case of books, records, or documents that
18pertain both to the administration of the Uniform Disposition
19of Unclaimed Property Act (superseded by the Revised Uniform
20Unclaimed Property Act) and to a function retained by the
21Department of Financial Institutions, the State Treasurer, in
22consultation with the Director of Financial Institutions,
23shall determine whether the books, records, or documents shall
24be transferred, copied, or left with the Department of
25Financial Institutions; until this determination has been

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1made, the transfer shall not take effect.
2 In the case of property or an unexpended appropriation that
3pertains both to the administration of the Uniform Disposition
4of Unclaimed Property Act (superseded by the Revised Uniform
5Unclaimed Property Act) and to a function retained by the
6Department of Financial Institutions, the State Treasurer, in
7consultation with the Director of Financial Institutions,
8shall determine whether the property or unexpended
9appropriation shall be transferred, divided, or left with the
10Department of Financial Institutions; until this determination
11has been made (and, in the case of an unexpended appropriation,
12notice of the determination has been filed with the State
13Comptroller), the transfer shall not take effect.
14(Source: P.A. 91-16, eff. 6-4-99; 10000SB0009ham003.)
15 (15 ILCS 505/0.05)
16 Sec. 0.05. Rules and standards.
17 (a) The rules and standards of the Department of Financial
18Institutions that are in effect on June 30, 1999 and pertain to
19the administration of the Uniform Disposition of Unclaimed
20Property Act (superseded by the Revised Uniform Unclaimed
21Property Act) shall become the rules and standards of the State
22Treasurer on July 1, 1999 and shall continue in effect until
23amended or repealed by the State Treasurer.
24 (b) Any rules pertaining to the administration of the
25Uniform Disposition of Unclaimed Property Act (superseded by

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1the Revised Uniform Unclaimed Property Act) that have been
2proposed by the Department of Financial Institutions but have
3not taken effect or been finally adopted by June 30, 1999 shall
4become proposed rules of the State Treasurer on July 1, 1999,
5and any rulemaking procedures that have already been completed
6by the Department of Financial Institutions need not be
7repeated.
8 (c) As soon as practical after July 1, 1999, the State
9Treasurer shall revise and clarify the rules transferred to it
10under this amendatory Act of 1999 to reflect the reorganization
11of rights, powers, duties, and functions effected by this
12amendatory Act of 1999 using the procedures for recodification
13of rules available under the Illinois Administrative Procedure
14Act, except that existing title, part, and section numbering
15for the affected rules may be retained.
16 (d) As soon as practical after July 1, 1999, the Office of
17Banks and Real Estate and the Office of the State Treasurer
18shall jointly promulgate rules to reflect the transfer of
19examination functions to the Office of Banks and Real Estate
20under this amendatory Act of 1999 using the procedures
21available under the Illinois Administrative Procedure Act.
22 (e) As soon as practical after July 1, 1999, the Department
23of Financial Institutions and the Office of the State Treasurer
24shall jointly promulgate rules to reflect the retention of
25examination functions by the Department of Financial
26Institutions under this amendatory Act of 1999 using the

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1procedures available under the Illinois Administrative
2Procedure Act.
3(Source: P.A. 91-16, eff. 6-4-99; 10000SB0009ham003.)
4 (15 ILCS 505/0.06)
5 Sec. 0.06. Savings provisions.
6 (a) The rights, powers, duties, and functions transferred
7to the State Treasurer or the Commissioner of Banks and Real
8Estate by this amendatory Act of 1999 shall be vested in and
9exercised by the State Treasurer or the Commissioner of Banks
10and Real Estate subject to the provisions of this amendatory
11Act of 1999. An act done by the State Treasurer or the
12Commissioner of Banks and Real Estate or an officer, employee,
13or agent of the State Treasurer or the Commissioner of Banks
14and Real Estate in the exercise of the transferred rights,
15powers, duties, or functions shall have the same legal effect
16as if done by the Department of Financial Institutions or an
17officer, employee, or agent of the Department of Financial
18Institutions prior to the effective date of this amendatory Act
19of 1999.
20 (b) The transfer of rights, powers, duties, and functions
21to the State Treasurer or the Commissioner of Banks and Real
22Estate under this amendatory Act of 1999 does not invalidate
23any previous action taken by or in respect to the Department of
24Financial Institutions or its officers, employees, or agents.
25References to the Department of Financial Institutions or its

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1officers, employees or agents in any document, contract,
2agreement, or law shall, in appropriate contexts, be deemed to
3refer to the State Treasurer or the Commissioner of Banks and
4Real Estate or the officers, employees, or agents of the State
5Treasurer or the Commissioner of Banks and Real Estate.
6 (c) The transfer of rights, powers, duties, and functions
7from the Department of Financial Institutions to the State
8Treasurer or the Commissioner of Banks and Real Estate under
9this amendatory Act of 1999 does not affect the rights,
10obligations, or duties of any other person or entity, including
11any civil or criminal penalties applicable thereto, arising out
12of those transferred rights, powers, duties, and functions.
13 (d) With respect to matters that pertain to a right, power,
14duty, or function transferred to the State Treasurer under this
15amendatory Act of 1999:
16 (1) Beginning July 1, 1999, any report or notice that
17 was previously required to be made or given by any person
18 to the Department of Financial Institutions or any of its
19 officers, employees, or agents under the Uniform
20 Disposition of Unclaimed Property Act (superseded by the
21 Revised Uniform Unclaimed Property Act) or rules
22 promulgated pursuant to that Act shall be made or given in
23 the same manner to the State Treasurer or his or her
24 appropriate officer, employee, or agent.
25 (2) Beginning July 1, 1999, any document that was
26 previously required to be furnished or served by any person

HB4078- 22 -LRB100 13340 AXK 27924 b
1 to or upon the Department of Financial Institutions or any
2 of its officers, employees, or agents under the Uniform
3 Disposition of Unclaimed Property Act (superseded by the
4 Revised Uniform Unclaimed Property Act) or rules
5 promulgated pursuant to that Act shall be furnished or
6 served in the same manner to or upon the State Treasurer or
7 his or her appropriate officer, employee, or agent.
8 (e) This amendatory Act of 1999 does not affect any act
9done, ratified, or canceled, any right occurring or
10established, or any action or proceeding had or commenced in an
11administrative, civil, or criminal cause before July 1, 1999.
12Any such action or proceeding that pertains to the Uniform
13Disposition of Unclaimed Property Act (superseded by the
14Revised Uniform Unclaimed Property Act) or rules promulgated
15pursuant to that Act and that is pending on that date may be
16prosecuted, defended, or continued by the State Treasurer.
17(Source: P.A. 91-16, eff. 6-4-99; 10000SB0009ham003.)
18 Section 17-30. If and only if Senate Bill 9 of the 100th
19General Assembly becomes law in the form in which it was
20amended by House Amendment No. 3, then the Financial
21Institutions Code is amended by changing Sections 7 and 18.1 as
22follows:
23 (20 ILCS 1205/7) (from Ch. 17, par. 108)
24 Sec. 7. The provisions of "The Illinois Administrative

HB4078- 23 -LRB100 13340 AXK 27924 b
1Procedure Act", as now or hereafter amended, are hereby
2expressly adopted and incorporated herein as though a part of
3this Act, and shall apply to all administrative rules and
4procedures of the Director and the Department of Financial
5Institutions under this Act, except that the provisions of the
6Administrative Procedure Act regarding contested cases shall
7not apply to actions of the Director under Section 15.1 of "An
8Act in relation to the definition, licensing and regulation of
9community currency exchanges and ambulatory currency
10exchanges, and the operators and employees thereof, and to make
11an appropriation therefor, and to provide penalties and
12remedies for the violation thereof", approved June 30, 1943, as
13amended, or Sections 8 and 61 of "The Illinois Credit Union
14Act", or to hearings under Section 20 of the "Uniform
15Disposition of Unclaimed Property Act".
16(Source: P.A. 81-329; 10000SB0009ham003.)
17 (20 ILCS 1205/18.1)
18 Sec. 18.1. Transfer of administration of Uniform
19Disposition of Unclaimed Property Act to State Treasurer. The
20rights, powers, duties, and functions vested in the Department
21of Financial Institutions to administer the Uniform
22Disposition of Unclaimed Property Act (superseded by the
23Revised Uniform Unclaimed Property Act) are transferred to the
24State Treasurer on July 1, 1999 in accordance with Sections
250.02 through 0.06 of the State Treasurer Act; provided,

HB4078- 24 -LRB100 13340 AXK 27924 b
1however, that the rights, powers, duties, and functions
2involving the examination of the records of any person that the
3State Treasurer has reason to believe has failed to report
4properly under this Act shall be transferred to the Office of
5Banks and Real Estate if the person is regulated by the Office
6of Banks and Real Estate under the Illinois Banking Act, the
7Corporate Fiduciary Act, the Foreign Banking Office Act, the
8Illinois Savings and Loan Act of 1985, or the Savings Bank Act
9and shall be retained by the Department of Financial
10Institutions if the person is doing business in the State under
11the supervision of the Department of Financial Institutions,
12the National Credit Union Administration, the Office of Thrift
13Supervision, or the Comptroller of the Currency.
14(Source: P.A. 91-16, eff. 6-4-99; 10000SB0009ham003.)
15 Section 17-35. If and only if Senate Bill 9 of the 100th
16General Assembly becomes law in the form in which it was
17amended by House Amendment No. 3, then the State Finance Act is
18amended by changing Sections 6b-1 and 8.12 as follows:
19 (30 ILCS 105/6b-1) (from Ch. 127, par. 142b1)
20 Sec. 6b-1. There shall be paid into the State Pensions Fund
21the funds and proceeds from the sale of abandoned property as
22provided in Section 18 of the Revised Uniform "Uniform
23Disposition of Unclaimed Property Act", enacted by the
24Seventy-second General Assembly.

HB4078- 25 -LRB100 13340 AXK 27924 b
1(Source: Laws 1961, p. 3423; 10000SB0009ham003.)
2 (30 ILCS 105/8.12) (from Ch. 127, par. 144.12)
3 Sec. 8.12. State Pensions Fund.
4 (a) The moneys in the State Pensions Fund shall be used
5exclusively for the administration of the Revised Uniform
6Disposition of Unclaimed Property Act and for the expenses
7incurred by the Auditor General for administering the
8provisions of Section 2-8.1 of the Illinois State Auditing Act
9and for operational expenses of the Office of the State
10Treasurer and for the funding of the unfunded liabilities of
11the designated retirement systems. Beginning in State fiscal
12year 2018, payments to the designated retirement systems under
13this Section shall be in addition to, and not in lieu of, any
14State contributions required under the Illinois Pension Code.
15 "Designated retirement systems" means:
16 (1) the State Employees' Retirement System of
17 Illinois;
18 (2) the Teachers' Retirement System of the State of
19 Illinois;
20 (3) the State Universities Retirement System;
21 (4) the Judges Retirement System of Illinois; and
22 (5) the General Assembly Retirement System.
23 (b) Each year the General Assembly may make appropriations
24from the State Pensions Fund for the administration of the
25Revised Uniform Disposition of Unclaimed Property Act.

HB4078- 26 -LRB100 13340 AXK 27924 b
1 Each month, the Commissioner of the Office of Banks and
2Real Estate shall certify to the State Treasurer the actual
3expenditures that the Office of Banks and Real Estate incurred
4conducting unclaimed property examinations under the Uniform
5Disposition of Unclaimed Property Act during the immediately
6preceding month. Within a reasonable time following the
7acceptance of such certification by the State Treasurer, the
8State Treasurer shall pay from its appropriation from the State
9Pensions Fund to the Bank and Trust Company Fund, the Savings
10Bank Regulatory Fund, and the Residential Finance Regulatory
11Fund an amount equal to the expenditures incurred by each Fund
12for that month.
13 Each month, the Director of Financial Institutions shall
14certify to the State Treasurer the actual expenditures that the
15Department of Financial Institutions incurred conducting
16unclaimed property examinations under the Uniform Disposition
17of Unclaimed Property Act during the immediately preceding
18month. Within a reasonable time following the acceptance of
19such certification by the State Treasurer, the State Treasurer
20shall pay from its appropriation from the State Pensions Fund
21to the Financial Institution Fund and the Credit Union Fund an
22amount equal to the expenditures incurred by each Fund for that
23month.
24 (c) As soon as possible after the effective date of this
25amendatory Act of the 93rd General Assembly, the General
26Assembly shall appropriate from the State Pensions Fund (1) to

HB4078- 27 -LRB100 13340 AXK 27924 b
1the State Universities Retirement System the amount certified
2under Section 15-165 during the prior year, (2) to the Judges
3Retirement System of Illinois the amount certified under
4Section 18-140 during the prior year, and (3) to the General
5Assembly Retirement System the amount certified under Section
62-134 during the prior year as part of the required State
7contributions to each of those designated retirement systems;
8except that amounts appropriated under this subsection (c) in
9State fiscal year 2005 shall not reduce the amount in the State
10Pensions Fund below $5,000,000. If the amount in the State
11Pensions Fund does not exceed the sum of the amounts certified
12in Sections 15-165, 18-140, and 2-134 by at least $5,000,000,
13the amount paid to each designated retirement system under this
14subsection shall be reduced in proportion to the amount
15certified by each of those designated retirement systems.
16 (c-5) For fiscal years 2006 through 2017, the General
17Assembly shall appropriate from the State Pensions Fund to the
18State Universities Retirement System the amount estimated to be
19available during the fiscal year in the State Pensions Fund;
20provided, however, that the amounts appropriated under this
21subsection (c-5) shall not reduce the amount in the State
22Pensions Fund below $5,000,000.
23 (c-6) For fiscal year 2018 and each fiscal year thereafter,
24as soon as may be practical after any money is deposited into
25the State Pensions Fund from the Unclaimed Property Trust Fund,
26the State Treasurer shall apportion the deposited amount among

HB4078- 28 -LRB100 13340 AXK 27924 b
1the designated retirement systems as defined in subsection (a)
2to reduce their actuarial reserve deficiencies. The State
3Comptroller and State Treasurer shall pay the apportioned
4amounts to the designated retirement systems to fund the
5unfunded liabilities of the designated retirement systems. The
6amount apportioned to each designated retirement system shall
7constitute a portion of the amount estimated to be available
8for appropriation from the State Pensions Fund that is the same
9as that retirement system's portion of the total actual reserve
10deficiency of the systems, as determined annually by the
11Governor's Office of Management and Budget at the request of
12the State Treasurer. The amounts apportioned under this
13subsection shall not reduce the amount in the State Pensions
14Fund below $5,000,000.
15 (d) The Governor's Office of Management and Budget shall
16determine the individual and total reserve deficiencies of the
17designated retirement systems. For this purpose, the
18Governor's Office of Management and Budget shall utilize the
19latest available audit and actuarial reports of each of the
20retirement systems and the relevant reports and statistics of
21the Public Employee Pension Fund Division of the Department of
22Insurance.
23 (d-1) As soon as practicable after the effective date of
24this amendatory Act of the 93rd General Assembly, the
25Comptroller shall direct and the Treasurer shall transfer from
26the State Pensions Fund to the General Revenue Fund, as funds

HB4078- 29 -LRB100 13340 AXK 27924 b
1become available, a sum equal to the amounts that would have
2been paid from the State Pensions Fund to the Teachers'
3Retirement System of the State of Illinois, the State
4Universities Retirement System, the Judges Retirement System
5of Illinois, the General Assembly Retirement System, and the
6State Employees' Retirement System of Illinois after the
7effective date of this amendatory Act during the remainder of
8fiscal year 2004 to the designated retirement systems from the
9appropriations provided for in this Section if the transfers
10provided in Section 6z-61 had not occurred. The transfers
11described in this subsection (d-1) are to partially repay the
12General Revenue Fund for the costs associated with the bonds
13used to fund the moneys transferred to the designated
14retirement systems under Section 6z-61.
15 (e) The changes to this Section made by this amendatory Act
16of 1994 shall first apply to distributions from the Fund for
17State fiscal year 1996.
18(Source: P.A. 98-24, eff. 6-19-13; 98-463, eff. 8-16-13;
1998-674, eff. 6-30-14; 98-1081, eff. 1-1-15; 99-8, eff. 7-9-15;
2099-78, eff. 7-20-15; 99-523, eff. 6-30-16; 10000SB0009ham003.)
21 Section 17-40. If and only if Senate Bill 9 of the 100th
22General Assembly becomes law in the form in which it was
23amended by House Amendment No. 3, then the State Officers and
24Employees Money Disposition Act is amended by changing Section
252 as follows:

HB4078- 30 -LRB100 13340 AXK 27924 b
1 (30 ILCS 230/2) (from Ch. 127, par. 171)
2 Sec. 2. Accounts of money received; payment into State
3treasury.
4 (a) Every officer, board, commission, commissioner,
5department, institution, arm or agency brought within the
6provisions of this Act by Section 1 shall keep in proper books
7a detailed itemized account of all moneys received for or on
8behalf of the State of Illinois, showing the date of receipt,
9the payor, and purpose and amount, and the date and manner of
10disbursement as hereinafter provided, and, unless a different
11time of payment is expressly provided by law or by rules or
12regulations promulgated under subsection (b) of this Section,
13shall pay into the State treasury the gross amount of money so
14received on the day of actual physical receipt with respect to
15any single item of receipt exceeding $10,000, within 24 hours
16of actual physical receipt with respect to an accumulation of
17receipts of $10,000 or more, or within 48 hours of actual
18physical receipt with respect to an accumulation of receipts
19exceeding $500 but less than $10,000, disregarding holidays,
20Saturdays and Sundays, after the receipt of same, without any
21deduction on account of salaries, fees, costs, charges,
22expenses or claims of any description whatever; provided that:
23 (1) the provisions of (i) Section 2505-475 of the
24 Department of Revenue Law (20 ILCS 2505/2505-475), (ii) any
25 specific taxing statute authorizing a claim for credit

HB4078- 31 -LRB100 13340 AXK 27924 b
1 procedure instead of the actual making of refunds, (iii)
2 Section 505 of the Illinois Controlled Substances Act, (iv)
3 Section 85 of the Methamphetamine Control and Community
4 Protection Act, authorizing the Director of State Police to
5 dispose of forfeited property, which includes the sale and
6 disposition of the proceeds of the sale of forfeited
7 property, and the Department of Central Management
8 Services to be reimbursed for costs incurred with the sales
9 of forfeited vehicles, boats or aircraft and to pay to bona
10 fide or innocent purchasers, conditional sales vendors or
11 mortgagees of such vehicles, boats or aircraft their
12 interest in such vehicles, boats or aircraft, and (v)
13 Section 6b-2 of the State Finance Act, establishing
14 procedures for handling cash receipts from the sale of
15 pari-mutuel wagering tickets, shall not be deemed to be in
16 conflict with the requirements of this Section;
17 (2) any fees received by the State Registrar of Vital
18 Records pursuant to the Vital Records Act which are
19 insufficient in amount may be returned by the Registrar as
20 provided in that Act;
21 (3) any fees received by the Department of Public
22 Health under the Food Handling Regulation Enforcement Act
23 that are submitted for renewal of an expired food service
24 sanitation manager certificate may be returned by the
25 Director as provided in that Act;
26 (3.5) the State Treasurer may permit the deduction of

HB4078- 32 -LRB100 13340 AXK 27924 b
1 fees by third-party unclaimed property examiners from the
2 property recovered by the examiners for the State of
3 Illinois during examinations of holders located outside
4 the State under which the Office of the Treasurer has
5 agreed to pay for the examinations based upon a percentage,
6 set by rule by the State Treasurer in accordance with the
7 Revised Uniform Unclaimed Property Illinois Administrative
8 Procedure Act, of the property recovered during the
9 examination; and
10 (4) if the amount of money received does not exceed
11 $500, such money may be retained and need not be paid into
12 the State treasury until the total amount of money so
13 received exceeds $500, or until the next succeeding 1st or
14 15th day of each month (or until the next business day if
15 these days fall on Sunday or a holiday), whichever is
16 earlier, at which earlier time such money shall be paid
17 into the State treasury, except that if a local bank or
18 savings and loan association account has been authorized by
19 law, any balances shall be paid into the State treasury on
20 Monday of each week if more than $500 is to be deposited in
21 any fund.
22Single items of receipt exceeding $10,000 received after 2 p.m.
23on a working day may be deemed to have been received on the
24next working day for purposes of fulfilling the requirement
25that the item be deposited on the day of actual physical
26receipt.

HB4078- 33 -LRB100 13340 AXK 27924 b
1 No money belonging to or left for the use of the State
2shall be expended or applied except in consequence of an
3appropriation made by law and upon the warrant of the State
4Comptroller. However, payments made by the Comptroller to
5persons by direct deposit need not be made upon the warrant of
6the Comptroller, but if not made upon a warrant, shall be made
7in accordance with Section 9.02 of the State Comptroller Act.
8All moneys so paid into the State treasury shall, unless
9required by some statute to be held in the State treasury in a
10separate or special fund, be covered into the General Revenue
11Fund in the State treasury. Moneys received in the form of
12checks, drafts or similar instruments shall be properly
13endorsed, if necessary, and delivered to the State Treasurer
14for collection. The State Treasurer shall remit such collected
15funds to the depositing officer, board, commission,
16commissioner, department, institution, arm or agency by
17Treasurers Draft or through electronic funds transfer. The
18draft or notification of the electronic funds transfer shall be
19provided to the State Comptroller to allow deposit into the
20appropriate fund.
21 (b) Different time periods for the payment of public funds
22into the State treasury or to the State Treasurer, in excess of
23the periods established in subsection (a) of this Section, but
24not in excess of 30 days after receipt of such funds, may be
25established and revised from time to time by rules or
26regulations promulgated jointly by the State Treasurer and the

HB4078- 34 -LRB100 13340 AXK 27924 b
1State Comptroller in accordance with the Illinois
2Administrative Procedure Act. The different time periods
3established by rule or regulation under this subsection may
4vary according to the nature and amounts of the funds received,
5the locations at which the funds are received, whether
6compliance with the deposit requirements specified in
7subsection (a) of this Section would be cost effective, and
8such other circumstances and conditions as the promulgating
9authorities consider to be appropriate. The Treasurer and the
10Comptroller shall review all such different time periods
11established pursuant to this subsection every 2 years from the
12establishment thereof and upon such review, unless it is
13determined that it is economically unfeasible for the agency to
14comply with the provisions of subsection (a), shall repeal such
15different time period.
16(Source: P.A. 94-556, eff. 9-11-05; 10000SB0009ham003.)
17 Section 17-45. If and only if Senate Bill 9 of the 100th
18General Assembly becomes law in the form in which it was
19amended by House Amendment No. 3, then the Counties Code is
20amended by changing Section 3-3034 as follows:
21 (55 ILCS 5/3-3034) (from Ch. 34, par. 3-3034)
22 Sec. 3-3034. Disposition of body. After the inquest the
23coroner may deliver the body or human remains of the deceased
24to the family of the deceased or, if there are no family

HB4078- 35 -LRB100 13340 AXK 27924 b
1members to accept the body or the remains, then to friends of
2the deceased, if there be any, but if not, the coroner shall
3cause the body or the remains to be decently buried, cremated,
4or donated for medical science purposes, the expenses to be
5paid from the property of the deceased, if there is sufficient,
6if not, by the county. The coroner may not approve the
7cremation or donation of the body if it is necessary to
8preserve the body for law enforcement purposes. If the State
9Treasurer, pursuant to the Revised Uniform Disposition of
10Unclaimed Property Act, delivers human remains to the coroner,
11the coroner shall cause the human remains to be disposed of as
12provided in this Section. If the police department of any
13municipality or county investigates abandoned cremated
14remains, determines that they are human remains, and cannot
15locate the owner of the remains, then the police shall deliver
16the remains to the coroner, and the coroner shall cause the
17remains to be disposed of as provided in this Section.
18(Source: P.A. 96-1339, eff. 7-27-10; 97-679, eff. 2-6-12;
1910000SB0009ham003.)
20 Section 17-50. If and only if Senate Bill 9 of the 100th
21General Assembly becomes law in the form in which it was
22amended by House Amendment No. 3, then the Illinois Banking Act
23is amended by changing Sections 48, 48.1, 48.3, and 65 as
24follows:

HB4078- 36 -LRB100 13340 AXK 27924 b
1 (205 ILCS 5/48)
2 Sec. 48. Secretary's powers; duties. The Secretary shall
3have the powers and authority, and is charged with the duties
4and responsibilities designated in this Act, and a State bank
5shall not be subject to any other visitorial power other than
6as authorized by this Act, except those vested in the courts,
7or upon prior consultation with the Secretary, a foreign bank
8regulator with an appropriate supervisory interest in the
9parent or affiliate of a state bank. In the performance of the
10Secretary's duties:
11 (1) The Commissioner shall call for statements from all
12 State banks as provided in Section 47 at least one time
13 during each calendar quarter.
14 (2) (a) The Commissioner, as often as the Commissioner
15 shall deem necessary or proper, and no less frequently than
16 18 months following the preceding examination, shall
17 appoint a suitable person or persons to make an examination
18 of the affairs of every State bank, except that for every
19 eligible State bank, as defined by regulation, the
20 Commissioner in lieu of the examination may accept on an
21 alternating basis the examination made by the eligible
22 State bank's appropriate federal banking agency pursuant
23 to Section 111 of the Federal Deposit Insurance Corporation
24 Improvement Act of 1991, provided the appropriate federal
25 banking agency has made such an examination. A person so
26 appointed shall not be a stockholder or officer or employee

HB4078- 37 -LRB100 13340 AXK 27924 b
1 of any bank which that person may be directed to examine,
2 and shall have powers to make a thorough examination into
3 all the affairs of the bank and in so doing to examine any
4 of the officers or agents or employees thereof on oath and
5 shall make a full and detailed report of the condition of
6 the bank to the Commissioner. In making the examination the
7 examiners shall include an examination of the affairs of
8 all the affiliates of the bank, as defined in subsection
9 (b) of Section 35.2 of this Act, or subsidiaries of the
10 bank as shall be necessary to disclose fully the conditions
11 of the subsidiaries or affiliates, the relations between
12 the bank and the subsidiaries or affiliates and the effect
13 of those relations upon the affairs of the bank, and in
14 connection therewith shall have power to examine any of the
15 officers, directors, agents, or employees of the
16 subsidiaries or affiliates on oath. After May 31, 1997, the
17 Commissioner may enter into cooperative agreements with
18 state regulatory authorities of other states to provide for
19 examination of State bank branches in those states, and the
20 Commissioner may accept reports of examinations of State
21 bank branches from those state regulatory authorities.
22 These cooperative agreements may set forth the manner in
23 which the other state regulatory authorities may be
24 compensated for examinations prepared for and submitted to
25 the Commissioner.
26 (b) After May 31, 1997, the Commissioner is authorized

HB4078- 38 -LRB100 13340 AXK 27924 b
1 to examine, as often as the Commissioner shall deem
2 necessary or proper, branches of out-of-state banks. The
3 Commissioner may establish and may assess fees to be paid
4 to the Commissioner for examinations under this subsection
5 (b). The fees shall be borne by the out-of-state bank,
6 unless the fees are borne by the state regulatory authority
7 that chartered the out-of-state bank, as determined by a
8 cooperative agreement between the Commissioner and the
9 state regulatory authority that chartered the out-of-state
10 bank.
11 (2.1) Pursuant to paragraph (a) of subsection (6) of
12 this Section, the Secretary shall adopt rules that ensure
13 consistency and due process in the examination process. The
14 Secretary may also establish guidelines that (i) define the
15 scope of the examination process and (ii) clarify
16 examination items to be resolved. The rules, formal
17 guidance, interpretive letters, or opinions furnished to
18 State banks by the Secretary may be relied upon by the
19 State banks.
20 (2.5) Whenever any State bank, any subsidiary or
21 affiliate of a State bank, or after May 31, 1997, any
22 branch of an out-of-state bank causes to be performed, by
23 contract or otherwise, any bank services for itself,
24 whether on or off its premises:
25 (a) that performance shall be subject to
26 examination by the Commissioner to the same extent as

HB4078- 39 -LRB100 13340 AXK 27924 b
1 if services were being performed by the bank or, after
2 May 31, 1997, branch of the out-of-state bank itself on
3 its own premises; and
4 (b) the bank or, after May 31, 1997, branch of the
5 out-of-state bank shall notify the Commissioner of the
6 existence of a service relationship. The notification
7 shall be submitted with the first statement of
8 condition (as required by Section 47 of this Act) due
9 after the making of the service contract or the
10 performance of the service, whichever occurs first.
11 The Commissioner shall be notified of each subsequent
12 contract in the same manner.
13 For purposes of this subsection (2.5), the term "bank
14 services" means services such as sorting and posting of
15 checks and deposits, computation and posting of interest
16 and other credits and charges, preparation and mailing of
17 checks, statements, notices, and similar items, or any
18 other clerical, bookkeeping, accounting, statistical, or
19 similar functions performed for a State bank, including but
20 not limited to electronic data processing related to those
21 bank services.
22 (3) The expense of administering this Act, including
23 the expense of the examinations of State banks as provided
24 in this Act, shall to the extent of the amounts resulting
25 from the fees provided for in paragraphs (a), (a-2), and
26 (b) of this subsection (3) be assessed against and borne by

HB4078- 40 -LRB100 13340 AXK 27924 b
1 the State banks:
2 (a) Each bank shall pay to the Secretary a Call
3 Report Fee which shall be paid in quarterly
4 installments equal to one-fourth of the sum of the
5 annual fixed fee of $800, plus a variable fee based on
6 the assets shown on the quarterly statement of
7 condition delivered to the Secretary in accordance
8 with Section 47 for the preceding quarter according to
9 the following schedule: 16 per $1,000 of the first
10 $5,000,000 of total assets, 15 per $1,000 of the next
11 $20,000,000 of total assets, 13 per $1,000 of the next
12 $75,000,000 of total assets, 9 per $1,000 of the next
13 $400,000,000 of total assets, 7 per $1,000 of the next
14 $500,000,000 of total assets, and 5 per $1,000 of all
15 assets in excess of $1,000,000,000, of the State bank.
16 The Call Report Fee shall be calculated by the
17 Secretary and billed to the banks for remittance at the
18 time of the quarterly statements of condition provided
19 for in Section 47. The Secretary may require payment of
20 the fees provided in this Section by an electronic
21 transfer of funds or an automatic debit of an account
22 of each of the State banks. In case more than one
23 examination of any bank is deemed by the Secretary to
24 be necessary in any examination frequency cycle
25 specified in subsection 2(a) of this Section, and is
26 performed at his direction, the Secretary may assess a

HB4078- 41 -LRB100 13340 AXK 27924 b
1 reasonable additional fee to recover the cost of the
2 additional examination; provided, however, that an
3 examination conducted at the request of the State
4 Treasurer pursuant to the Uniform Disposition of
5 Unclaimed Property Act shall not be deemed to be an
6 additional examination under this Section. In lieu of
7 the method and amounts set forth in this paragraph (a)
8 for the calculation of the Call Report Fee, the
9 Secretary may specify by rule that the Call Report Fees
10 provided by this Section may be assessed semiannually
11 or some other period and may provide in the rule the
12 formula to be used for calculating and assessing the
13 periodic Call Report Fees to be paid by State banks.
14 (a-1) If in the opinion of the Commissioner an
15 emergency exists or appears likely, the Commissioner
16 may assign an examiner or examiners to monitor the
17 affairs of a State bank with whatever frequency he
18 deems appropriate, including but not limited to a daily
19 basis. The reasonable and necessary expenses of the
20 Commissioner during the period of the monitoring shall
21 be borne by the subject bank. The Commissioner shall
22 furnish the State bank a statement of time and expenses
23 if requested to do so within 30 days of the conclusion
24 of the monitoring period.
25 (a-2) On and after January 1, 1990, the reasonable
26 and necessary expenses of the Commissioner during

HB4078- 42 -LRB100 13340 AXK 27924 b
1 examination of the performance of electronic data
2 processing services under subsection (2.5) shall be
3 borne by the banks for which the services are provided.
4 An amount, based upon a fee structure prescribed by the
5 Commissioner, shall be paid by the banks or, after May
6 31, 1997, branches of out-of-state banks receiving the
7 electronic data processing services along with the
8 Call Report Fee assessed under paragraph (a) of this
9 subsection (3).
10 (a-3) After May 31, 1997, the reasonable and
11 necessary expenses of the Commissioner during
12 examination of the performance of electronic data
13 processing services under subsection (2.5) at or on
14 behalf of branches of out-of-state banks shall be borne
15 by the out-of-state banks, unless those expenses are
16 borne by the state regulatory authorities that
17 chartered the out-of-state banks, as determined by
18 cooperative agreements between the Commissioner and
19 the state regulatory authorities that chartered the
20 out-of-state banks.
21 (b) "Fiscal year" for purposes of this Section 48
22 is defined as a period beginning July 1 of any year and
23 ending June 30 of the next year. The Commissioner shall
24 receive for each fiscal year, commencing with the
25 fiscal year ending June 30, 1987, a contingent fee
26 equal to the lesser of the aggregate of the fees paid

HB4078- 43 -LRB100 13340 AXK 27924 b
1 by all State banks under paragraph (a) of subsection
2 (3) for that year, or the amount, if any, whereby the
3 aggregate of the administration expenses, as defined
4 in paragraph (c), for that fiscal year exceeds the sum
5 of the aggregate of the fees payable by all State banks
6 for that year under paragraph (a) of subsection (3),
7 plus any amounts transferred into the Bank and Trust
8 Company Fund from the State Pensions Fund for that
9 year, plus all other amounts collected by the
10 Commissioner for that year under any other provision of
11 this Act, plus the aggregate of all fees collected for
12 that year by the Commissioner under the Corporate
13 Fiduciary Act, excluding the receivership fees
14 provided for in Section 5-10 of the Corporate Fiduciary
15 Act, and the Foreign Banking Office Act. The aggregate
16 amount of the contingent fee thus arrived at for any
17 fiscal year shall be apportioned amongst, assessed
18 upon, and paid by the State banks and foreign banking
19 corporations, respectively, in the same proportion
20 that the fee of each under paragraph (a) of subsection
21 (3), respectively, for that year bears to the aggregate
22 for that year of the fees collected under paragraph (a)
23 of subsection (3). The aggregate amount of the
24 contingent fee, and the portion thereof to be assessed
25 upon each State bank and foreign banking corporation,
26 respectively, shall be determined by the Commissioner

HB4078- 44 -LRB100 13340 AXK 27924 b
1 and shall be paid by each, respectively, within 120
2 days of the close of the period for which the
3 contingent fee is computed and is payable, and the
4 Commissioner shall give 20 days' days advance notice of
5 the amount of the contingent fee payable by the State
6 bank and of the date fixed by the Commissioner for
7 payment of the fee.
8 (c) The "administration expenses" for any fiscal
9 year shall mean the ordinary and contingent expenses
10 for that year incident to making the examinations
11 provided for by, and for otherwise administering, this
12 Act, the Corporate Fiduciary Act, excluding the
13 expenses paid from the Corporate Fiduciary
14 Receivership account in the Bank and Trust Company
15 Fund, the Foreign Banking Office Act, the Electronic
16 Fund Transfer Act, and the Illinois Bank Examiners'
17 Education Foundation Act, including all salaries and
18 other compensation paid for personal services rendered
19 for the State by officers or employees of the State,
20 including the Commissioner and the Deputy
21 Commissioners, communication equipment and services,
22 office furnishings, surety bond premiums, and travel
23 expenses of those officers and employees, employees,
24 expenditures or charges for the acquisition,
25 enlargement or improvement of, or for the use of, any
26 office space, building, or structure, or expenditures

HB4078- 45 -LRB100 13340 AXK 27924 b
1 for the maintenance thereof or for furnishing heat,
2 light, or power with respect thereto, all to the extent
3 that those expenditures are directly incidental to
4 such examinations or administration. The Commissioner
5 shall not be required by paragraphs (c) or (d-1) of
6 this subsection (3) to maintain in any fiscal year's
7 budget appropriated reserves for accrued vacation and
8 accrued sick leave that is required to be paid to
9 employees of the Commissioner upon termination of
10 their service with the Commissioner in an amount that
11 is more than is reasonably anticipated to be necessary
12 for any anticipated turnover in employees, whether due
13 to normal attrition or due to layoffs, terminations, or
14 resignations.
15 (d) The aggregate of all fees collected by the
16 Secretary under this Act, the Corporate Fiduciary Act,
17 or the Foreign Banking Office Act on and after July 1,
18 1979, shall be paid promptly after receipt of the same,
19 accompanied by a detailed statement thereof, into the
20 State treasury and shall be set apart in a special fund
21 to be known as the "Bank and Trust Company Fund",
22 except as provided in paragraph (c) of subsection (11)
23 of this Section. All earnings received from
24 investments of funds in the Bank and Trust Company Fund
25 shall be deposited in the Bank and Trust Company Fund
26 and may be used for the same purposes as fees deposited

HB4078- 46 -LRB100 13340 AXK 27924 b
1 in that Fund. The amount from time to time deposited
2 into the Bank and Trust Company Fund shall be used: (i)
3 to offset the ordinary administrative expenses of the
4 Secretary as defined in this Section or (ii) as a
5 credit against fees under paragraph (d-1) of this
6 subsection (3). Nothing in this amendatory Act of 1979
7 shall prevent continuing the practice of paying
8 expenses involving salaries, retirement, social
9 security, and State-paid insurance premiums of State
10 officers by appropriations from the General Revenue
11 Fund. However, the General Revenue Fund shall be
12 reimbursed for those payments made on and after July 1,
13 1979, by an annual transfer of funds from the Bank and
14 Trust Company Fund. Moneys in the Bank and Trust
15 Company Fund may be transferred to the Professions
16 Indirect Cost Fund, as authorized under Section
17 2105-300 of the Department of Professional Regulation
18 Law of the Civil Administrative Code of Illinois.
19 Notwithstanding provisions in the State Finance
20 Act, as now or hereafter amended, or any other law to
21 the contrary, the sum of $18,788,847 shall be
22 transferred from the Bank and Trust Company Fund to the
23 Financial Institutions Settlement of 2008 Fund on the
24 effective date of this amendatory Act of the 95th
25 General Assembly, or as soon thereafter as practical.
26 Notwithstanding provisions in the State Finance

HB4078- 47 -LRB100 13340 AXK 27924 b
1 Act, as now or hereafter amended, or any other law to
2 the contrary, the Governor may, during any fiscal year
3 through January 10, 2011, from time to time direct the
4 State Treasurer and Comptroller to transfer a
5 specified sum not exceeding 10% of the revenues to be
6 deposited into the Bank and Trust Company Fund during
7 that fiscal year from that Fund to the General Revenue
8 Fund in order to help defray the State's operating
9 costs for the fiscal year. Notwithstanding provisions
10 in the State Finance Act, as now or hereafter amended,
11 or any other law to the contrary, the total sum
12 transferred during any fiscal year through January 10,
13 2011, from the Bank and Trust Company Fund to the
14 General Revenue Fund pursuant to this provision shall
15 not exceed during any fiscal year 10% of the revenues
16 to be deposited into the Bank and Trust Company Fund
17 during that fiscal year. The State Treasurer and
18 Comptroller shall transfer the amounts designated
19 under this Section as soon as may be practicable after
20 receiving the direction to transfer from the Governor.
21 (d-1) Adequate funds shall be available in the Bank
22 and Trust Company Fund to permit the timely payment of
23 administration expenses. In each fiscal year the total
24 administration expenses shall be deducted from the
25 total fees collected by the Commissioner and the
26 remainder transferred into the Cash Flow Reserve

HB4078- 48 -LRB100 13340 AXK 27924 b
1 Account, unless the balance of the Cash Flow Reserve
2 Account prior to the transfer equals or exceeds
3 one-fourth of the total initial appropriations from
4 the Bank and Trust Company Fund for the subsequent
5 year, in which case the remainder shall be credited to
6 State banks and foreign banking corporations and
7 applied against their fees for the subsequent year. The
8 amount credited to each State bank and foreign banking
9 corporation shall be in the same proportion as the Call
10 Report Fees paid by each for the year bear to the total
11 Call Report Fees collected for the year. If, after a
12 transfer to the Cash Flow Reserve Account is made or if
13 no remainder is available for transfer, the balance of
14 the Cash Flow Reserve Account is less than one-fourth
15 of the total initial appropriations for the subsequent
16 year and the amount transferred is less than 5% of the
17 total Call Report Fees for the year, additional amounts
18 needed to make the transfer equal to 5% of the total
19 Call Report Fees for the year shall be apportioned
20 amongst, assessed upon, and paid by the State banks and
21 foreign banking corporations in the same proportion
22 that the Call Report Fees of each, respectively, for
23 the year bear to the total Call Report Fees collected
24 for the year. The additional amounts assessed shall be
25 transferred into the Cash Flow Reserve Account. For
26 purposes of this paragraph (d-1), the calculation of

HB4078- 49 -LRB100 13340 AXK 27924 b
1 the fees collected by the Commissioner shall exclude
2 the receivership fees provided for in Section 5-10 of
3 the Corporate Fiduciary Act.
4 (e) The Commissioner may upon request certify to
5 any public record in his keeping and shall have
6 authority to levy a reasonable charge for issuing
7 certifications of any public record in his keeping.
8 (f) In addition to fees authorized elsewhere in
9 this Act, the Commissioner may, in connection with a
10 review, approval, or provision of a service, levy a
11 reasonable charge to recover the cost of the review,
12 approval, or service.
13 (4) Nothing contained in this Act shall be construed to
14 limit the obligation relative to examinations and reports
15 of any State bank, deposits in which are to any extent
16 insured by the United States or any agency thereof, nor to
17 limit in any way the powers of the Commissioner with
18 reference to examinations and reports of that bank.
19 (5) The nature and condition of the assets in or
20 investment of any bonus, pension, or profit sharing plan
21 for officers or employees of every State bank or, after May
22 31, 1997, branch of an out-of-state bank shall be deemed to
23 be included in the affairs of that State bank or branch of
24 an out-of-state bank subject to examination by the
25 Commissioner under the provisions of subsection (2) of this
26 Section, and if the Commissioner shall find from an

HB4078- 50 -LRB100 13340 AXK 27924 b
1 examination that the condition of or operation of the
2 investments or assets of the plan is unlawful, fraudulent,
3 or unsafe, or that any trustee has abused his trust, the
4 Commissioner shall, if the situation so found by the
5 Commissioner shall not be corrected to his satisfaction
6 within 60 days after the Commissioner has given notice to
7 the board of directors of the State bank or out-of-state
8 bank of his findings, report the facts to the Attorney
9 General who shall thereupon institute proceedings against
10 the State bank or out-of-state bank, the board of directors
11 thereof, or the trustees under such plan as the nature of
12 the case may require.
13 (6) The Commissioner shall have the power:
14 (a) To promulgate reasonable rules for the purpose
15 of administering the provisions of this Act.
16 (a-5) To impose conditions on any approval issued
17 by the Commissioner if he determines that the
18 conditions are necessary or appropriate. These
19 conditions shall be imposed in writing and shall
20 continue in effect for the period prescribed by the
21 Commissioner.
22 (b) To issue orders against any person, if the
23 Commissioner has reasonable cause to believe that an
24 unsafe or unsound banking practice has occurred, is
25 occurring, or is about to occur, if any person has
26 violated, is violating, or is about to violate any law,

HB4078- 51 -LRB100 13340 AXK 27924 b
1 rule, or written agreement with the Commissioner, or
2 for the purpose of administering the provisions of this
3 Act and any rule promulgated in accordance with this
4 Act.
5 (b-1) To enter into agreements with a bank
6 establishing a program to correct the condition of the
7 bank or its practices.
8 (c) To appoint hearing officers to execute any of
9 the powers granted to the Commissioner under this
10 Section for the purpose of administering this Act and
11 any rule promulgated in accordance with this Act and
12 otherwise to authorize, in writing, an officer or
13 employee of the Office of Banks and Real Estate to
14 exercise his powers under this Act.
15 (d) To subpoena witnesses, to compel their
16 attendance, to administer an oath, to examine any
17 person under oath, and to require the production of any
18 relevant books, papers, accounts, and documents in the
19 course of and pursuant to any investigation being
20 conducted, or any action being taken, by the
21 Commissioner in respect of any matter relating to the
22 duties imposed upon, or the powers vested in, the
23 Commissioner under the provisions of this Act or any
24 rule promulgated in accordance with this Act.
25 (e) To conduct hearings.
26 (7) Whenever, in the opinion of the Secretary, any

HB4078- 52 -LRB100 13340 AXK 27924 b
1 director, officer, employee, or agent of a State bank or
2 any subsidiary or bank holding company of the bank or,
3 after May 31, 1997, of any branch of an out-of-state bank
4 or any subsidiary or bank holding company of the bank shall
5 have violated any law, rule, or order relating to that bank
6 or any subsidiary or bank holding company of the bank,
7 shall have obstructed or impeded any examination or
8 investigation by the Secretary, shall have engaged in an
9 unsafe or unsound practice in conducting the business of
10 that bank or any subsidiary or bank holding company of the
11 bank, or shall have violated any law or engaged or
12 participated in any unsafe or unsound practice in
13 connection with any financial institution or other
14 business entity such that the character and fitness of the
15 director, officer, employee, or agent does not assure
16 reasonable promise of safe and sound operation of the State
17 bank, the Secretary may issue an order of removal. If, in
18 the opinion of the Secretary, any former director, officer,
19 employee, or agent of a State bank or any subsidiary or
20 bank holding company of the bank, prior to the termination
21 of his or her service with that bank or any subsidiary or
22 bank holding company of the bank, violated any law, rule,
23 or order relating to that State bank or any subsidiary or
24 bank holding company of the bank, obstructed or impeded any
25 examination or investigation by the Secretary, engaged in
26 an unsafe or unsound practice in conducting the business of

HB4078- 53 -LRB100 13340 AXK 27924 b
1 that bank or any subsidiary or bank holding company of the
2 bank, or violated any law or engaged or participated in any
3 unsafe or unsound practice in connection with any financial
4 institution or other business entity such that the
5 character and fitness of the director, officer, employee,
6 or agent would not have assured reasonable promise of safe
7 and sound operation of the State bank, the Secretary may
8 issue an order prohibiting that person from further service
9 with a bank or any subsidiary or bank holding company of
10 the bank as a director, officer, employee, or agent. An
11 order issued pursuant to this subsection shall be served
12 upon the director, officer, employee, or agent. A copy of
13 the order shall be sent to each director of the bank
14 affected by registered mail. A copy of the order shall also
15 be served upon the bank of which he is a director, officer,
16 employee, or agent, whereupon he shall cease to be a
17 director, officer, employee, or agent of that bank. The
18 Secretary may institute a civil action against the
19 director, officer, or agent of the State bank or, after May
20 31, 1997, of the branch of the out-of-state bank against
21 whom any order provided for by this subsection (7) of this
22 Section 48 has been issued, and against the State bank or,
23 after May 31, 1997, out-of-state bank, to enforce
24 compliance with or to enjoin any violation of the terms of
25 the order. Any person who has been the subject of an order
26 of removal or an order of prohibition issued by the

HB4078- 54 -LRB100 13340 AXK 27924 b
1 Secretary under this subsection or Section 5-6 of the
2 Corporate Fiduciary Act may not thereafter serve as
3 director, officer, employee, or agent of any State bank or
4 of any branch of any out-of-state bank, or of any corporate
5 fiduciary, as defined in Section 1-5.05 of the Corporate
6 Fiduciary Act, or of any other entity that is subject to
7 licensure or regulation by the Division of Banking unless
8 the Secretary has granted prior approval in writing.
9 For purposes of this paragraph (7), "bank holding
10 company" has the meaning prescribed in Section 2 of the
11 Illinois Bank Holding Company Act of 1957.
12 (8) The Commissioner may impose civil penalties of up
13 to $100,000 against any person for each violation of any
14 provision of this Act, any rule promulgated in accordance
15 with this Act, any order of the Commissioner, or any other
16 action which in the Commissioner's discretion is an unsafe
17 or unsound banking practice.
18 (9) The Commissioner may impose civil penalties of up
19 to $100 against any person for the first failure to comply
20 with reporting requirements set forth in the report of
21 examination of the bank and up to $200 for the second and
22 subsequent failures to comply with those reporting
23 requirements.
24 (10) All final administrative decisions of the
25 Commissioner hereunder shall be subject to judicial review
26 pursuant to the provisions of the Administrative Review

HB4078- 55 -LRB100 13340 AXK 27924 b
1 Law. For matters involving administrative review, venue
2 shall be in either Sangamon County or Cook County.
3 (11) The endowment fund for the Illinois Bank
4 Examiners' Education Foundation shall be administered as
5 follows:
6 (a) (Blank).
7 (b) The Foundation is empowered to receive
8 voluntary contributions, gifts, grants, bequests, and
9 donations on behalf of the Illinois Bank Examiners'
10 Education Foundation from national banks and other
11 persons for the purpose of funding the endowment of the
12 Illinois Bank Examiners' Education Foundation.
13 (c) The aggregate of all special educational fees
14 collected by the Secretary and property received by the
15 Secretary on behalf of the Illinois Bank Examiners'
16 Education Foundation under this subsection (11) on or
17 after June 30, 1986, shall be either (i) promptly paid
18 after receipt of the same, accompanied by a detailed
19 statement thereof, into the State Treasury and shall be
20 set apart in a special fund to be known as "The
21 Illinois Bank Examiners' Education Fund" to be
22 invested by either the Treasurer of the State of
23 Illinois in the Public Treasurers' Investment Pool or
24 in any other investment he is authorized to make or by
25 the Illinois State Board of Investment as the State
26 Banking Board of Illinois may direct or (ii) deposited

HB4078- 56 -LRB100 13340 AXK 27924 b
1 into an account maintained in a commercial bank or
2 corporate fiduciary in the name of the Illinois Bank
3 Examiners' Education Foundation pursuant to the order
4 and direction of the Board of Trustees of the Illinois
5 Bank Examiners' Education Foundation.
6 (12) (Blank).
7 (13) The Secretary may borrow funds from the General
8 Revenue Fund on behalf of the Bank and Trust Company Fund
9 if the Director of Banking certifies to the Governor that
10 there is an economic emergency affecting banking that
11 requires a borrowing to provide additional funds to the
12 Bank and Trust Company Fund. The borrowed funds shall be
13 paid back within 3 years and shall not exceed the total
14 funding appropriated to the Agency in the previous year.
15 (14) In addition to the fees authorized in this Act,
16 the Secretary may assess reasonable receivership fees
17 against any State bank that does not maintain insurance
18 with the Federal Deposit Insurance Corporation. All fees
19 collected under this subsection (14) shall be paid into the
20 Non-insured Institutions Receivership account in the Bank
21 and Trust Company Fund, as established by the Secretary.
22 The fees assessed under this subsection (14) shall provide
23 for the expenses that arise from the administration of the
24 receivership of any such institution required to pay into
25 the Non-insured Institutions Receivership account, whether
26 pursuant to this Act, the Corporate Fiduciary Act, the

HB4078- 57 -LRB100 13340 AXK 27924 b
1 Foreign Banking Office Act, or any other Act that requires
2 payments into the Non-insured Institutions Receivership
3 account. The Secretary may establish by rule a reasonable
4 manner of assessing fees under this subsection (14).
5(Source: P.A. 98-784, eff. 7-24-14; 99-39, eff. 1-1-16;
610000SB0009ham003.)
7 (205 ILCS 5/48.1) (from Ch. 17, par. 360)
8 Sec. 48.1. Customer financial records; confidentiality.
9 (a) For the purpose of this Section, the term "financial
10records" means any original, any copy, or any summary of:
11 (1) a document granting signature authority over a
12 deposit or account;
13 (2) a statement, ledger card or other record on any
14 deposit or account, which shows each transaction in or with
15 respect to that account;
16 (3) a check, draft or money order drawn on a bank or
17 issued and payable by a bank; or
18 (4) any other item containing information pertaining
19 to any relationship established in the ordinary course of a
20 bank's business between a bank and its customer, including
21 financial statements or other financial information
22 provided by the customer.
23 (b) This Section does not prohibit:
24 (1) The preparation, examination, handling or
25 maintenance of any financial records by any officer,

HB4078- 58 -LRB100 13340 AXK 27924 b
1 employee or agent of a bank having custody of the records,
2 or the examination of the records by a certified public
3 accountant engaged by the bank to perform an independent
4 audit.
5 (2) The examination of any financial records by, or the
6 furnishing of financial records by a bank to, any officer,
7 employee or agent of (i) the Commissioner of Banks and Real
8 Estate, (ii) after May 31, 1997, a state regulatory
9 authority authorized to examine a branch of a State bank
10 located in another state, (iii) the Comptroller of the
11 Currency, (iv) the Federal Reserve Board, or (v) the
12 Federal Deposit Insurance Corporation for use solely in the
13 exercise of his duties as an officer, employee, or agent.
14 (3) The publication of data furnished from financial
15 records relating to customers where the data cannot be
16 identified to any particular customer or account.
17 (4) The making of reports or returns required under
18 Chapter 61 of the Internal Revenue Code of 1986.
19 (5) Furnishing information concerning the dishonor of
20 any negotiable instrument permitted to be disclosed under
21 the Uniform Commercial Code.
22 (6) The exchange in the regular course of business of
23 (i) credit information between a bank and other banks or
24 financial institutions or commercial enterprises, directly
25 or through a consumer reporting agency or (ii) financial
26 records or information derived from financial records

HB4078- 59 -LRB100 13340 AXK 27924 b
1 between a bank and other banks or financial institutions or
2 commercial enterprises for the purpose of conducting due
3 diligence pursuant to a purchase or sale involving the bank
4 or assets or liabilities of the bank.
5 (7) The furnishing of information to the appropriate
6 law enforcement authorities where the bank reasonably
7 believes it has been the victim of a crime.
8 (8) The furnishing of information under the Revised
9 Uniform Disposition of Unclaimed Property Act.
10 (9) The furnishing of information under the Illinois
11 Income Tax Act and the Illinois Estate and
12 Generation-Skipping Transfer Tax Act.
13 (10) The furnishing of information under the federal
14 Currency and Foreign Transactions Reporting Act Title 31,
15 United States Code, Section 1051 et seq.
16 (11) The furnishing of information under any other
17 statute that by its terms or by regulations promulgated
18 thereunder requires the disclosure of financial records
19 other than by subpoena, summons, warrant, or court order.
20 (12) The furnishing of information about the existence
21 of an account of a person to a judgment creditor of that
22 person who has made a written request for that information.
23 (13) The exchange in the regular course of business of
24 information between commonly owned banks in connection
25 with a transaction authorized under paragraph (23) of
26 Section 5 and conducted at an affiliate facility.

HB4078- 60 -LRB100 13340 AXK 27924 b
1 (14) The furnishing of information in accordance with
2 the federal Personal Responsibility and Work Opportunity
3 Reconciliation Act of 1996. Any bank governed by this Act
4 shall enter into an agreement for data exchanges with a
5 State agency provided the State agency pays to the bank a
6 reasonable fee not to exceed its actual cost incurred. A
7 bank providing information in accordance with this item
8 shall not be liable to any account holder or other person
9 for any disclosure of information to a State agency, for
10 encumbering or surrendering any assets held by the bank in
11 response to a lien or order to withhold and deliver issued
12 by a State agency, or for any other action taken pursuant
13 to this item, including individual or mechanical errors,
14 provided the action does not constitute gross negligence or
15 willful misconduct. A bank shall have no obligation to
16 hold, encumber, or surrender assets until it has been
17 served with a subpoena, summons, warrant, court or
18 administrative order, lien, or levy.
19 (15) The exchange in the regular course of business of
20 information between a bank and any commonly owned affiliate
21 of the bank, subject to the provisions of the Financial
22 Institutions Insurance Sales Law.
23 (16) The furnishing of information to law enforcement
24 authorities, the Illinois Department on Aging and its
25 regional administrative and provider agencies, the
26 Department of Human Services Office of Inspector General,

HB4078- 61 -LRB100 13340 AXK 27924 b
1 or public guardians: (i) upon subpoena by the investigatory
2 entity or the guardian, or (ii) if there is suspicion by
3 the bank that a customer who is an elderly person or person
4 with a disability has been or may become the victim of
5 financial exploitation. For the purposes of this item (16),
6 the term: (i) "elderly person" means a person who is 60 or
7 more years of age, (ii) "disabled person" means a person
8 who has or reasonably appears to the bank to have a
9 physical or mental disability that impairs his or her
10 ability to seek or obtain protection from or prevent
11 financial exploitation, and (iii) "financial exploitation"
12 means tortious or illegal use of the assets or resources of
13 an elderly or disabled person, and includes, without
14 limitation, misappropriation of the elderly or disabled
15 person's assets or resources by undue influence, breach of
16 fiduciary relationship, intimidation, fraud, deception,
17 extortion, or the use of assets or resources in any manner
18 contrary to law. A bank or person furnishing information
19 pursuant to this item (16) shall be entitled to the same
20 rights and protections as a person furnishing information
21 under the Adult Protective Services Act and the Illinois
22 Domestic Violence Act of 1986.
23 (17) The disclosure of financial records or
24 information as necessary to effect, administer, or enforce
25 a transaction requested or authorized by the customer, or
26 in connection with:

HB4078- 62 -LRB100 13340 AXK 27924 b
1 (A) servicing or processing a financial product or
2 service requested or authorized by the customer;
3 (B) maintaining or servicing a customer's account
4 with the bank; or
5 (C) a proposed or actual securitization or
6 secondary market sale (including sales of servicing
7 rights) related to a transaction of a customer.
8 Nothing in this item (17), however, authorizes the sale
9 of the financial records or information of a customer
10 without the consent of the customer.
11 (18) The disclosure of financial records or
12 information as necessary to protect against actual or
13 potential fraud, unauthorized transactions, claims, or
14 other liability.
15 (19)(a) The disclosure of financial records or
16 information related to a private label credit program
17 between a financial institution and a private label party
18 in connection with that private label credit program. Such
19 information is limited to outstanding balance, available
20 credit, payment and performance and account history,
21 product references, purchase information, and information
22 related to the identity of the customer.
23 (b)(1) For purposes of this paragraph (19) of
24 subsection (b) of Section 48.1, a "private label credit
25 program" means a credit program involving a financial
26 institution and a private label party that is used by a

HB4078- 63 -LRB100 13340 AXK 27924 b
1 customer of the financial institution and the private label
2 party primarily for payment for goods or services sold,
3 manufactured, or distributed by a private label party.
4 (2) For purposes of this paragraph (19) of subsection
5 (b) of Section 48.1, a "private label party" means, with
6 respect to a private label credit program, any of the
7 following: a retailer, a merchant, a manufacturer, a trade
8 group, or any such person's affiliate, subsidiary, member,
9 agent, or service provider.
10 (c) Except as otherwise provided by this Act, a bank may
11not disclose to any person, except to the customer or his duly
12authorized agent, any financial records or financial
13information obtained from financial records relating to that
14customer of that bank unless:
15 (1) the customer has authorized disclosure to the
16 person;
17 (2) the financial records are disclosed in response to
18 a lawful subpoena, summons, warrant, citation to discover
19 assets, or court order which meets the requirements of
20 subsection (d) of this Section; or
21 (3) the bank is attempting to collect an obligation
22 owed to the bank and the bank complies with the provisions
23 of Section 2I of the Consumer Fraud and Deceptive Business
24 Practices Act.
25 (d) A bank shall disclose financial records under paragraph
26(2) of subsection (c) of this Section under a lawful subpoena,

HB4078- 64 -LRB100 13340 AXK 27924 b
1summons, warrant, citation to discover assets, or court order
2only after the bank mails a copy of the subpoena, summons,
3warrant, citation to discover assets, or court order to the
4person establishing the relationship with the bank, if living,
5and, otherwise his personal representative, if known, at his
6last known address by first class mail, postage prepaid, unless
7the bank is specifically prohibited from notifying the person
8by order of court or by applicable State or federal law. A bank
9shall not mail a copy of a subpoena to any person pursuant to
10this subsection if the subpoena was issued by a grand jury
11under the Statewide Grand Jury Act.
12 (e) Any officer or employee of a bank who knowingly and
13willfully furnishes financial records in violation of this
14Section is guilty of a business offense and, upon conviction,
15shall be fined not more than $1,000.
16 (f) Any person who knowingly and willfully induces or
17attempts to induce any officer or employee of a bank to
18disclose financial records in violation of this Section is
19guilty of a business offense and, upon conviction, shall be
20fined not more than $1,000.
21 (g) A bank shall be reimbursed for costs that are
22reasonably necessary and that have been directly incurred in
23searching for, reproducing, or transporting books, papers,
24records, or other data of a customer required or requested to
25be produced pursuant to a lawful subpoena, summons, warrant,
26citation to discover assets, or court order. The Commissioner

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1shall determine the rates and conditions under which payment
2may be made.
3(Source: P.A. 98-49, eff. 7-1-13; 99-143, eff. 7-27-15;
410000SB0009ham003.)
5 (205 ILCS 5/48.3) (from Ch. 17, par. 360.2)
6 Sec. 48.3. Disclosure of reports of examinations and
7confidential supervisory information; limitations.
8 (a) Any report of examination, visitation, or
9investigation prepared by the Commissioner under this Act, the
10Electronic Fund Transfer Act, the Corporate Fiduciary Act, the
11Illinois Bank Holding Company Act of 1957, and the Foreign
12Banking Office Act, any report of examination, visitation, or
13investigation prepared by the state regulatory authority of
14another state that examines a branch of an Illinois State bank
15in that state, any document or record prepared or obtained in
16connection with or relating to any examination, visitation, or
17investigation, and any record prepared or obtained by the
18Commissioner to the extent that the record summarizes or
19contains information derived from any report, document, or
20record described in this subsection shall be deemed
21"confidential supervisory information". Confidential
22supervisory information shall not include any information or
23record routinely prepared by a bank or other financial
24institution and maintained in the ordinary course of business
25or any information or record that is required to be made

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1publicly available pursuant to State or federal law or rule.
2Confidential supervisory information shall be the property of
3the Commissioner and shall only be disclosed under the
4circumstances and for the purposes set forth in this Section.
5 The Commissioner may disclose confidential supervisory
6information only under the following circumstances:
7 (1) The Commissioner may furnish confidential
8 supervisory information to the Board of Governors of the
9 Federal Reserve System, the federal reserve bank of the
10 federal reserve district in which the State bank is located
11 or in which the parent or other affiliate of the State bank
12 is located, any official or examiner thereof duly
13 accredited for the purpose, or any other state regulator,
14 federal regulator, or in the case of a foreign bank
15 possessing a certificate of authority pursuant to the
16 Foreign Banking Office Act or a license pursuant to the
17 Foreign Bank Representative Office Act, the bank regulator
18 in the country where the foreign bank is chartered, that
19 the Commissioner determines to have an appropriate
20 regulatory interest. Nothing contained in this Act shall be
21 construed to limit the obligation of any member State bank
22 to comply with the requirements relative to examinations
23 and reports of the Federal Reserve Act and of the Board of
24 Governors of the Federal Reserve System or the federal
25 reserve bank of the federal reserve district in which the
26 bank is located, nor to limit in any way the powers of the

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1 Commissioner with reference to examinations and reports.
2 (2) The Commissioner may furnish confidential
3 supervisory information to the United States, any agency
4 thereof that has insured a bank's deposits in whole or in
5 part, or any official or examiner thereof duly accredited
6 for the purpose. Nothing contained in this Act shall be
7 construed to limit the obligation relative to examinations
8 and reports of any State bank, deposits in which are to any
9 extent insured by the United States, any agency thereof,
10 nor to limit in any way the powers of the Commissioner with
11 reference to examination and reports of such bank.
12 (3) The Commissioner may furnish confidential
13 supervisory information to the appropriate law enforcement
14 authorities when the Commissioner reasonably believes a
15 bank, which the Commissioner has caused to be examined, has
16 been a victim of a crime.
17 (4) The Commissioner may furnish confidential
18 supervisory information relating to a bank or other
19 financial institution, which the Commissioner has caused
20 to be examined, to be sent to the administrator of the
21 Revised Uniform Disposition of Unclaimed Property Act.
22 (5) The Commissioner may furnish confidential
23 supervisory information relating to a bank or other
24 financial institution, which the Commissioner has caused
25 to be examined, relating to its performance of obligations
26 under the Illinois Income Tax Act and the Illinois Estate

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1 and Generation-Skipping Transfer Tax Act to the Illinois
2 Department of Revenue.
3 (6) The Commissioner may furnish confidential
4 supervisory information relating to a bank or other
5 financial institution, which the Commissioner has caused
6 to be examined, under the federal Currency and Foreign
7 Transactions Reporting Act, Title 31, United States Code,
8 Section 1051 et seq.
9 (6.5) The Commissioner may furnish confidential
10 supervisory information to any other agency or entity that
11 the Commissioner determines to have a legitimate
12 regulatory interest.
13 (7) The Commissioner may furnish confidential
14 supervisory information under any other statute that by its
15 terms or by regulations promulgated thereunder requires
16 the disclosure of financial records other than by subpoena,
17 summons, warrant, or court order.
18 (8) At the request of the affected bank or other
19 financial institution, the Commissioner may furnish
20 confidential supervisory information relating to a bank or
21 other financial institution, which the Commissioner has
22 caused to be examined, in connection with the obtaining of
23 insurance coverage or the pursuit of an insurance claim for
24 or on behalf of the bank or other financial institution;
25 provided that, when possible, the Commissioner shall
26 disclose only relevant information while maintaining the

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1 confidentiality of financial records not relevant to such
2 insurance coverage or claim and, when appropriate, may
3 delete identifying data relating to any person or
4 individual.
5 (9) The Commissioner may furnish a copy of a report of
6 any examination performed by the Commissioner of the
7 condition and affairs of any electronic data processing
8 entity to the banks serviced by the electronic data
9 processing entity.
10 (10) In addition to the foregoing circumstances, the
11 Commissioner may, but is not required to, furnish
12 confidential supervisory information under the same
13 circumstances authorized for the bank or financial
14 institution pursuant to subsection (b) of this Section,
15 except that the Commissioner shall provide confidential
16 supervisory information under circumstances described in
17 paragraph (3) of subsection (b) of this Section only upon
18 the request of the bank or other financial institution.
19 (b) A bank or other financial institution or its officers,
20agents, and employees may disclose confidential supervisory
21information only under the following circumstances:
22 (1) to the board of directors of the bank or other
23 financial institution, as well as the president,
24 vice-president, cashier, and other officers of the bank or
25 other financial institution to whom the board of directors
26 may delegate duties with respect to compliance with

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1 recommendations for action, and to the board of directors
2 of a bank holding company that owns at least 80% of the
3 outstanding stock of the bank or other financial
4 institution;
5 (2) to attorneys for the bank or other financial
6 institution and to a certified public accountant engaged by
7 the State bank or financial institution to perform an
8 independent audit provided that the attorney or certified
9 public accountant shall not permit the confidential
10 supervisory information to be further disseminated;
11 (3) to any person who seeks to acquire a controlling
12 interest in, or who seeks to merge with, the bank or
13 financial institution, provided that all attorneys,
14 certified public accountants, officers, agents, or
15 employees of that person shall agree to be bound to respect
16 the confidentiality of the confidential supervisory
17 information and to not further disseminate the information
18 therein contained;
19 (4) (blank); or
20 (5) to the bank's insurance company in relation to an
21 insurance claim or the effort by the bank to procure
22 insurance coverage, provided that, when possible, the bank
23 shall disclose only information that is relevant to the
24 insurance claim or that is necessary to procure the
25 insurance coverage, while maintaining the confidentiality
26 of financial information pertaining to customers. When

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1 appropriate, the bank may delete identifying data relating
2 to any person.
3 The disclosure of confidential supervisory information by
4a bank or other financial institution pursuant to this
5subsection (b) and the disclosure of information to the
6Commissioner or other regulatory agency in connection with any
7examination, visitation, or investigation shall not constitute
8a waiver of any legal privilege otherwise available to the bank
9or other financial institution with respect to the information.
10 (c) (1) Notwithstanding any other provision of this Act or
11any other law, confidential supervisory information shall be
12the property of the Commissioner and shall be privileged from
13disclosure to any person except as provided in this Section. No
14person in possession of confidential supervisory information
15may disclose that information for any reason or under any
16circumstances not specified in this Section without the prior
17authorization of the Commissioner. Any person upon whom a
18demand for production of confidential supervisory information
19is made, whether by subpoena, order, or other judicial or
20administrative process, must withhold production of the
21confidential supervisory information and must notify the
22Commissioner of the demand, at which time the Commissioner is
23authorized to intervene for the purpose of enforcing the
24limitations of this Section or seeking the withdrawal or
25termination of the attempt to compel production of the
26confidential supervisory information.

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1 (2) Any request for discovery or disclosure of confidential
2supervisory information, whether by subpoena, order, or other
3judicial or administrative process, shall be made to the
4Commissioner, and the Commissioner shall determine within 15
5days whether to disclose the information pursuant to procedures
6and standards that the Commissioner shall establish by rule. If
7the Commissioner determines that such information will not be
8disclosed, the Commissioner's decision shall be subject to
9judicial review under the provisions of the Administrative
10Review Law, and venue shall be in either Sangamon County or
11Cook County.
12 (3) Any court order that compels disclosure of confidential
13supervisory information may be immediately appealed by the
14Commissioner, and the order shall be automatically stayed
15pending the outcome of the appeal.
16 (d) If any officer, agent, attorney, or employee of a bank
17or financial institution knowingly and willfully furnishes
18confidential supervisory information in violation of this
19Section, the Commissioner may impose a civil monetary penalty
20up to $1,000 for the violation against the officer, agent,
21attorney, or employee.
22(Source: P.A. 90-301, eff. 8-1-97; 91-201, eff. 1-1-00;
2310000SB0009ham003.)
24 (205 ILCS 5/65) (from Ch. 17, par. 377)
25 Sec. 65. Dividends; dissolution. From time to time during a

HB4078- 73 -LRB100 13340 AXK 27924 b
1receivership other than a receivership conducted by the Federal
2Deposit Insurance Corporation, the Commissioner shall make and
3pay from monies of the bank a ratable dividend on all claims as
4may be proved to his or her satisfaction or adjudicated by the
5court. Claims so proven or adjudicated shall bear interest at
6the rate of 3% per annum from the date of the appointment of
7the receiver to the date of payment, but all dividends on a
8claim shall be applied first to principal. In computing the
9amount of any dividend to be paid, if the Commissioner deems it
10desirable in the interests of economy of administration and to
11the interest of the bank and its creditors, he or she may pay
12up to the amount of $10 of each claim or unpaid portion thereof
13in full. As the proceeds of the assets of the bank are
14collected in the course of liquidation, the Commissioner shall
15make and pay further dividends on all claims previously proven
16or adjudicated. After one year from the entry of a judgment of
17dissolution, all unclaimed dividends shall be remitted to the
18State Treasurer in accordance with the Revised Uniform
19Unclaimed Property Act "Uniform Disposition of Unclaimed
20Property Act", as now or hereafter amended, together with a
21list of all unpaid claimants, their last known addresses and
22the amounts unpaid.
23(Source: P.A. 91-16, eff. 7-1-99; 10000SB0009ham003.)
24 Section 17-55. If and only if Senate Bill 9 of the 100th
25General Assembly becomes law in the form in which it was

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1amended by House Amendment No. 3, then the Savings Bank Act is
2amended by changing Sections 4013, 9012, and 10090 as follows:
3 (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
4 Sec. 4013. Access to books and records; communication with
5members and shareholders.
6 (a) Every member or shareholder shall have the right to
7inspect books and records of the savings bank that pertain to
8his accounts. Otherwise, the right of inspection and
9examination of the books and records shall be limited as
10provided in this Act, and no other person shall have access to
11the books and records nor shall be entitled to a list of the
12members or shareholders.
13 (b) For the purpose of this Section, the term "financial
14records" means any original, any copy, or any summary of (1) a
15document granting signature authority over a deposit or
16account; (2) a statement, ledger card, or other record on any
17deposit or account that shows each transaction in or with
18respect to that account; (3) a check, draft, or money order
19drawn on a savings bank or issued and payable by a savings
20bank; or (4) any other item containing information pertaining
21to any relationship established in the ordinary course of a
22savings bank's business between a savings bank and its
23customer, including financial statements or other financial
24information provided by the member or shareholder.
25 (c) This Section does not prohibit:

HB4078- 75 -LRB100 13340 AXK 27924 b
1 (1) The preparation, examination, handling, or
2 maintenance of any financial records by any officer,
3 employee, or agent of a savings bank having custody of
4 records or examination of records by a certified public
5 accountant engaged by the savings bank to perform an
6 independent audit.
7 (2) The examination of any financial records by, or the
8 furnishing of financial records by a savings bank to, any
9 officer, employee, or agent of the Commissioner of Banks
10 and Real Estate or the federal depository institution
11 regulator for use solely in the exercise of his duties as
12 an officer, employee, or agent.
13 (3) The publication of data furnished from financial
14 records relating to members or holders of capital where the
15 data cannot be identified to any particular member,
16 shareholder, or account.
17 (4) The making of reports or returns required under
18 Chapter 61 of the Internal Revenue Code of 1986.
19 (5) Furnishing information concerning the dishonor of
20 any negotiable instrument permitted to be disclosed under
21 the Uniform Commercial Code.
22 (6) The exchange in the regular course of business of
23 (i) credit information between a savings bank and other
24 savings banks or financial institutions or commercial
25 enterprises, directly or through a consumer reporting
26 agency or (ii) financial records or information derived

HB4078- 76 -LRB100 13340 AXK 27924 b
1 from financial records between a savings bank and other
2 savings banks or financial institutions or commercial
3 enterprises for the purpose of conducting due diligence
4 pursuant to a purchase or sale involving the savings bank
5 or assets or liabilities of the savings bank.
6 (7) The furnishing of information to the appropriate
7 law enforcement authorities where the savings bank
8 reasonably believes it has been the victim of a crime.
9 (8) The furnishing of information pursuant to the
10 Revised Uniform Disposition of Unclaimed Property Act.
11 (9) The furnishing of information pursuant to the
12 Illinois Income Tax Act and the Illinois Estate and
13 Generation-Skipping Transfer Tax Act.
14 (10) The furnishing of information pursuant to the
15 federal "Currency and Foreign Transactions Reporting Act",
16 (Title 31, United States Code, Section 1051 et seq.).
17 (11) The furnishing of information pursuant to any
18 other statute which by its terms or by regulations
19 promulgated thereunder requires the disclosure of
20 financial records other than by subpoena, summons,
21 warrant, or court order.
22 (12) The furnishing of information in accordance with
23 the federal Personal Responsibility and Work Opportunity
24 Reconciliation Act of 1996. Any savings bank governed by
25 this Act shall enter into an agreement for data exchanges
26 with a State agency provided the State agency pays to the

HB4078- 77 -LRB100 13340 AXK 27924 b
1 savings bank a reasonable fee not to exceed its actual cost
2 incurred. A savings bank providing information in
3 accordance with this item shall not be liable to any
4 account holder or other person for any disclosure of
5 information to a State agency, for encumbering or
6 surrendering any assets held by the savings bank in
7 response to a lien or order to withhold and deliver issued
8 by a State agency, or for any other action taken pursuant
9 to this item, including individual or mechanical errors,
10 provided the action does not constitute gross negligence or
11 willful misconduct. A savings bank shall have no obligation
12 to hold, encumber, or surrender assets until it has been
13 served with a subpoena, summons, warrant, court or
14 administrative order, lien, or levy.
15 (13) The furnishing of information to law enforcement
16 authorities, the Illinois Department on Aging and its
17 regional administrative and provider agencies, the
18 Department of Human Services Office of Inspector General,
19 or public guardians: (i) upon subpoena by the investigatory
20 entity or the guardian, or (ii) if there is suspicion by
21 the savings bank that a customer who is an elderly person
22 or person with a disability has been or may become the
23 victim of financial exploitation. For the purposes of this
24 item (13), the term: (i) "elderly person" means a person
25 who is 60 or more years of age, (ii) "person with a
26 disability" means a person who has or reasonably appears to

HB4078- 78 -LRB100 13340 AXK 27924 b
1 the savings bank to have a physical or mental disability
2 that impairs his or her ability to seek or obtain
3 protection from or prevent financial exploitation, and
4 (iii) "financial exploitation" means tortious or illegal
5 use of the assets or resources of an elderly person or
6 person with a disability, and includes, without
7 limitation, misappropriation of the assets or resources of
8 the elderly person or person with a disability by undue
9 influence, breach of fiduciary relationship, intimidation,
10 fraud, deception, extortion, or the use of assets or
11 resources in any manner contrary to law. A savings bank or
12 person furnishing information pursuant to this item (13)
13 shall be entitled to the same rights and protections as a
14 person furnishing information under the Adult Protective
15 Services Act and the Illinois Domestic Violence Act of
16 1986.
17 (14) The disclosure of financial records or
18 information as necessary to effect, administer, or enforce
19 a transaction requested or authorized by the member or
20 holder of capital, or in connection with:
21 (A) servicing or processing a financial product or
22 service requested or authorized by the member or holder
23 of capital;
24 (B) maintaining or servicing an account of a member
25 or holder of capital with the savings bank; or
26 (C) a proposed or actual securitization or

HB4078- 79 -LRB100 13340 AXK 27924 b
1 secondary market sale (including sales of servicing
2 rights) related to a transaction of a member or holder
3 of capital.
4 Nothing in this item (14), however, authorizes the sale
5 of the financial records or information of a member or
6 holder of capital without the consent of the member or
7 holder of capital.
8 (15) The exchange in the regular course of business of
9 information between a savings bank and any commonly owned
10 affiliate of the savings bank, subject to the provisions of
11 the Financial Institutions Insurance Sales Law.
12 (16) The disclosure of financial records or
13 information as necessary to protect against or prevent
14 actual or potential fraud, unauthorized transactions,
15 claims, or other liability.
16 (17)(a) The disclosure of financial records or
17 information related to a private label credit program
18 between a financial institution and a private label party
19 in connection with that private label credit program. Such
20 information is limited to outstanding balance, available
21 credit, payment and performance and account history,
22 product references, purchase information, and information
23 related to the identity of the customer.
24 (b)(1) For purposes of this paragraph (17) of
25 subsection (c) of Section 4013, a "private label credit
26 program" means a credit program involving a financial

HB4078- 80 -LRB100 13340 AXK 27924 b
1 institution and a private label party that is used by a
2 customer of the financial institution and the private label
3 party primarily for payment for goods or services sold,
4 manufactured, or distributed by a private label party.
5 (2) For purposes of this paragraph (17) of subsection
6 (c) of Section 4013, a "private label party" means, with
7 respect to a private label credit program, any of the
8 following: a retailer, a merchant, a manufacturer, a trade
9 group, or any such person's affiliate, subsidiary, member,
10 agent, or service provider.
11 (d) A savings bank may not disclose to any person, except
12to the member or holder of capital or his duly authorized
13agent, any financial records relating to that member or
14shareholder of the savings bank unless:
15 (1) the member or shareholder has authorized
16 disclosure to the person; or
17 (2) the financial records are disclosed in response to
18 a lawful subpoena, summons, warrant, citation to discover
19 assets, or court order that meets the requirements of
20 subsection (e) of this Section.
21 (e) A savings bank shall disclose financial records under
22subsection (d) of this Section pursuant to a lawful subpoena,
23summons, warrant, citation to discover assets, or court order
24only after the savings bank mails a copy of the subpoena,
25summons, warrant, citation to discover assets, or court order
26to the person establishing the relationship with the savings

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1bank, if living, and otherwise, his personal representative, if
2known, at his last known address by first class mail, postage
3prepaid, unless the savings bank is specifically prohibited
4from notifying the person by order of court.
5 (f) Any officer or employee of a savings bank who knowingly
6and willfully furnishes financial records in violation of this
7Section is guilty of a business offense and, upon conviction,
8shall be fined not more than $1,000.
9 (g) Any person who knowingly and willfully induces or
10attempts to induce any officer or employee of a savings bank to
11disclose financial records in violation of this Section is
12guilty of a business offense and, upon conviction, shall be
13fined not more than $1,000.
14 (h) If any member or shareholder desires to communicate
15with the other members or shareholders of the savings bank with
16reference to any question pending or to be presented at an
17annual or special meeting, the savings bank shall give that
18person, upon request, a statement of the approximate number of
19members or shareholders entitled to vote at the meeting and an
20estimate of the cost of preparing and mailing the
21communication. The requesting member shall submit the
22communication to the Commissioner who, upon finding it to be
23appropriate and truthful, shall direct that it be prepared and
24mailed to the members upon the requesting member's or
25shareholder's payment or adequate provision for payment of the
26expenses of preparation and mailing.

HB4078- 82 -LRB100 13340 AXK 27924 b
1 (i) A savings bank shall be reimbursed for costs that are
2necessary and that have been directly incurred in searching
3for, reproducing, or transporting books, papers, records, or
4other data of a customer required to be reproduced pursuant to
5a lawful subpoena, warrant, citation to discover assets, or
6court order.
7 (j) Notwithstanding the provisions of this Section, a
8savings bank may sell or otherwise make use of lists of
9customers' names and addresses. All other information
10regarding a customer's account is are subject to the disclosure
11provisions of this Section. At the request of any customer,
12that customer's name and address shall be deleted from any list
13that is to be sold or used in any other manner beyond
14identification of the customer's accounts.
15(Source: P.A. 98-49, eff. 7-1-13; 99-143, eff. 7-27-15; revised
169-14-16; 10000SB0009ham003.)
17 (205 ILCS 205/9012) (from Ch. 17, par. 7309-12)
18 Sec. 9012. Disclosure of reports of examinations and
19confidential supervisory information; limitations.
20 (a) Any report of examination, visitation, or
21investigation prepared by the Commissioner under this Act, any
22report of examination, visitation, or investigation prepared
23by the state regulatory authority of another state that
24examines a branch of an Illinois State savings bank in that
25state, any document or record prepared or obtained in

HB4078- 83 -LRB100 13340 AXK 27924 b
1connection with or relating to any examination, visitation, or
2investigation, and any record prepared or obtained by the
3Commissioner to the extent that the record summarizes or
4contains information derived from any report, document, or
5record described in this subsection shall be deemed
6confidential supervisory information. "Confidential
7supervisory information" shall not include any information or
8record routinely prepared by a savings bank and maintained in
9the ordinary course of business or any information or record
10that is required to be made publicly available pursuant to
11State or federal law or rule. Confidential supervisory
12information shall be the property of the Commissioner and shall
13only be disclosed under the circumstances and for the purposes
14set forth in this Section.
15 The Commissioner may disclose confidential supervisory
16information only under the following circumstances:
17 (1) The Commissioner may furnish confidential
18 supervisory information to federal and state depository
19 institution regulators, or any official or examiner
20 thereof duly accredited for the purpose. Nothing contained
21 in this Act shall be construed to limit the obligation of
22 any savings bank to comply with the requirements relative
23 to examinations and reports nor to limit in any way the
24 powers of the Commissioner relative to examinations and
25 reports.
26 (2) The Commissioner may furnish confidential

HB4078- 84 -LRB100 13340 AXK 27924 b
1 supervisory information to the United States or any agency
2 thereof that to any extent has insured a savings bank's
3 deposits, or any official or examiner thereof duly
4 accredited for the purpose. Nothing contained in this Act
5 shall be construed to limit the obligation relative to
6 examinations and reports of any savings bank in which
7 deposits are to any extent insured by the United States or
8 any agency thereof nor to limit in any way the powers of
9 the Commissioner with reference to examination and reports
10 of the savings bank.
11 (3) The Commissioner may furnish confidential
12 supervisory information to the appropriate law enforcement
13 authorities when the Commissioner reasonably believes a
14 savings bank, which the Commissioner has caused to be
15 examined, has been a victim of a crime.
16 (4) The Commissioner may furnish confidential
17 supervisory information related to a savings bank, which
18 the Commissioner has caused to be examined, to the
19 administrator of the Revised Uniform Disposition of
20 Unclaimed Property Act.
21 (5) The Commissioner may furnish confidential
22 supervisory information relating to a savings bank, which
23 the Commissioner has caused to be examined, relating to its
24 performance of obligations under the Illinois Income Tax
25 Act and the Illinois Estate and Generation-Skipping
26 Transfer Tax Act to the Illinois Department of Revenue.

HB4078- 85 -LRB100 13340 AXK 27924 b
1 (6) The Commissioner may furnish confidential
2 supervisory information relating to a savings bank, which
3 the Commissioner has caused to be examined, under the
4 federal Currency and Foreign Transactions Reporting Act,
5 31 United States Code, Section 1051 et seq.
6 (7) The Commissioner may furnish confidential
7 supervisory information to any other agency or entity that
8 the Commissioner determines to have a legitimate
9 regulatory interest.
10 (8) The Commissioner may furnish confidential
11 supervisory information as otherwise permitted or required
12 by this Act and may furnish confidential supervisory
13 information under any other statute that by its terms or by
14 regulations promulgated thereunder requires the disclosure
15 of financial records other than by subpoena, summons,
16 warrant, or court order.
17 (9) At the request of the affected savings bank, the
18 Commissioner may furnish confidential supervisory
19 information relating to the savings bank, which the
20 Commissioner has caused to be examined, in connection with
21 the obtaining of insurance coverage or the pursuit of an
22 insurance claim for or on behalf of the savings bank;
23 provided that, when possible, the Commissioner shall
24 disclose only relevant information while maintaining the
25 confidentiality of financial records not relevant to such
26 insurance coverage or claim and, when appropriate, may

HB4078- 86 -LRB100 13340 AXK 27924 b
1 delete identifying data relating to any person.
2 (10) The Commissioner may furnish a copy of a report of
3 any examination performed by the Commissioner of the
4 condition and affairs of any electronic data processing
5 entity to the savings banks serviced by the electronic data
6 processing entity.
7 (11) In addition to the foregoing circumstances, the
8 Commissioner may, but is not required to, furnish
9 confidential supervisory information under the same
10 circumstances authorized for the savings bank pursuant to
11 subsection (b) of this Section, except that the
12 Commissioner shall provide confidential supervisory
13 information under circumstances described in paragraph (3)
14 of subsection (b) of this Section only upon the request of
15 the savings bank.
16 (b) A savings bank or its officers, agents, and employees
17may disclose confidential supervisory information only under
18the following circumstances:
19 (1) to the board of directors of the savings bank, as
20 well as the president, vice-president, cashier, and other
21 officers of the savings bank to whom the board of directors
22 may delegate duties with respect to compliance with
23 recommendations for action, and to the board of directors
24 of a savings bank holding company that owns at least 80% of
25 the outstanding stock of the savings bank or other
26 financial institution.

HB4078- 87 -LRB100 13340 AXK 27924 b
1 (2) to attorneys for the savings bank and to a
2 certified public accountant engaged by the savings bank to
3 perform an independent audit; provided that the attorney or
4 certified public accountant shall not permit the
5 confidential supervisory information to be further
6 disseminated.
7 (3) to any person who seeks to acquire a controlling
8 interest in, or who seeks to merge with, the savings bank;
9 provided that the person shall agree to be bound to respect
10 the confidentiality of the confidential supervisory
11 information and to not further disseminate the information
12 other than to attorneys, certified public accountants,
13 officers, agents, or employees of that person who likewise
14 shall agree to be bound to respect the confidentiality of
15 the confidential supervisory information and to not
16 further disseminate the information.
17 (4) to the savings bank's insurance company, if the
18 supervisory information contains information that is
19 otherwise unavailable and is strictly necessary to
20 obtaining insurance coverage or pursuing an insurance
21 claim for or on behalf of the savings bank; provided that,
22 when possible, the savings bank shall disclose only
23 information that is relevant to obtaining insurance
24 coverage or pursuing an insurance claim, while maintaining
25 the confidentiality of financial information pertaining to
26 customers; and provided further that, when appropriate,

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1 the savings bank may delete identifying data relating to
2 any person.
3 The disclosure of confidential supervisory information by
4a savings bank pursuant to this subsection (b) and the
5disclosure of information to the Commissioner or other
6regulatory agency in connection with any examination,
7visitation, or investigation shall not constitute a waiver of
8any legal privilege otherwise available to the savings bank
9with respect to the information.
10 (c) (1) Notwithstanding any other provision of this Act or
11any other law, confidential supervisory information shall be
12the property of the Commissioner and shall be privileged from
13disclosure to any person except as provided in this Section. No
14person in possession of confidential supervisory information
15may disclose that information for any reason or under any
16circumstances not specified in this Section without the prior
17authorization of the Commissioner. Any person upon whom a
18demand for production of confidential supervisory information
19is made, whether by subpoena, order, or other judicial or
20administrative process, must withhold production of the
21confidential supervisory information and must notify the
22Commissioner of the demand, at which time the Commissioner is
23authorized to intervene for the purpose of enforcing the
24limitations of this Section or seeking the withdrawal or
25termination of the attempt to compel production of the
26confidential supervisory information.

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1 (2) Any request for discovery or disclosure of confidential
2supervisory information, whether by subpoena, order, or other
3judicial or administrative process, shall be made to the
4Commissioner, and the Commissioner shall determine within 15
5days whether to disclose the information pursuant to procedures
6and standards that the Commissioner shall establish by rule. If
7the Commissioner determines that such information will not be
8disclosed, the Commissioner's decision shall be subject to
9judicial review under the provisions of the Administrative
10Review Law, and venue shall be in either Sangamon County or
11Cook County.
12 (3) Any court order that compels disclosure of confidential
13supervisory information may be immediately appealed by the
14Commissioner, and the order shall be automatically stayed
15pending the outcome of the appeal.
16 (d) If any officer, agent, attorney, or employee of a
17savings bank knowingly and willfully furnishes confidential
18supervisory information in violation of this Section, the
19Commissioner may impose a civil monetary penalty up to $1,000
20for the violation against the officer, agent, attorney, or
21employee.
22 (e) Subject to the limits of this Section, the
23Commissioner also may promulgate regulations to set procedures
24and standards for disclosure of the following items:
25 (1) All fixed orders and opinions made in cases of
26 appeals of the Commissioner's actions.

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1 (2) Statements of policy and interpretations adopted
2 by the Commissioner's office, but not otherwise made
3 public.
4 (3) Nonconfidential portions of application files,
5 including applications for new charters. The Commissioner
6 shall specify by rule as to what part of the files are
7 confidential.
8 (4) Quarterly reports of income, deposits, and
9 financial condition.
10(Source: P.A. 93-271, eff. 7-22-03; 10000SB0009ham003.)
11 (205 ILCS 205/10090)
12 Sec. 10090. Dividends; dissolution. From time to time
13during a receivership other than a receivership conducted by
14the Federal Deposit Insurance Corporation, the Secretary shall
15make and pay from moneys of the savings bank a ratable dividend
16on all claims as may be proved to his or her satisfaction or
17adjudicated by the court. Claims so proven or adjudicated shall
18bear interest at the rate of 3% per annum from the date of the
19appointment of the receiver to the date of payment, but all
20dividends on a claim shall be applied first to principal. In
21computing the amount of any dividend to be paid, if the
22Secretary deems it desirable in the interests of economy of
23administration and to the interest of the savings bank and its
24creditors, he or she may pay up to the amount of $10 of each
25claim or unpaid portion thereof in full. As the proceeds of the

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1assets of the savings bank are collected in the course of
2liquidation, the Secretary shall make and pay further dividends
3on all claims previously proven or adjudicated. After one year
4from the entry of a judgment of dissolution, all unclaimed
5dividends shall be remitted to the State Treasurer in
6accordance with the Revised Uniform Disposition of Unclaimed
7Property Act, as now or hereafter amended, together with a list
8of all unpaid claimants, their last known addresses and the
9amounts unpaid.
10(Source: P.A. 96-1365, eff. 7-28-10; 10000SB0009ham003.)
11 Section 17-60. If and only if Senate Bill 9 of the 100th
12General Assembly becomes law in the form in which it was
13amended by House Amendment No. 3, then the Illinois Credit
14Union Act is amended by changing Sections 10 and 62 as follows:
15 (205 ILCS 305/10) (from Ch. 17, par. 4411)
16 Sec. 10. Credit union records; member financial records.
17 (1) A credit union shall establish and maintain books,
18records, accounting systems and procedures which accurately
19reflect its operations and which enable the Department to
20readily ascertain the true financial condition of the credit
21union and whether it is complying with this Act.
22 (2) A photostatic or photographic reproduction of any
23credit union records shall be admissible as evidence of
24transactions with the credit union.

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1 (3)(a) For the purpose of this Section, the term "financial
2records" means any original, any copy, or any summary of (1) a
3document granting signature authority over an account, (2) a
4statement, ledger card or other record on any account which
5shows each transaction in or with respect to that account, (3)
6a check, draft or money order drawn on a financial institution
7or other entity or issued and payable by or through a financial
8institution or other entity, or (4) any other item containing
9information pertaining to any relationship established in the
10ordinary course of business between a credit union and its
11member, including financial statements or other financial
12information provided by the member.
13 (b) This Section does not prohibit:
14 (1) The preparation, examination, handling or
15 maintenance of any financial records by any officer,
16 employee or agent of a credit union having custody of such
17 records, or the examination of such records by a certified
18 public accountant engaged by the credit union to perform an
19 independent audit.
20 (2) The examination of any financial records by or the
21 furnishing of financial records by a credit union to any
22 officer, employee or agent of the Department, the National
23 Credit Union Administration, Federal Reserve board or any
24 insurer of share accounts for use solely in the exercise of
25 his duties as an officer, employee or agent.
26 (3) The publication of data furnished from financial

HB4078- 93 -LRB100 13340 AXK 27924 b
1 records relating to members where the data cannot be
2 identified to any particular customer of account.
3 (4) The making of reports or returns required under
4 Chapter 61 of the Internal Revenue Code of 1954.
5 (5) Furnishing information concerning the dishonor of
6 any negotiable instrument permitted to be disclosed under
7 the Uniform Commercial Code.
8 (6) The exchange in the regular course of business of
9 (i) credit information between a credit union and other
10 credit unions or financial institutions or commercial
11 enterprises, directly or through a consumer reporting
12 agency or (ii) financial records or information derived
13 from financial records between a credit union and other
14 credit unions or financial institutions or commercial
15 enterprises for the purpose of conducting due diligence
16 pursuant to a merger or a purchase or sale of assets or
17 liabilities of the credit union.
18 (7) The furnishing of information to the appropriate
19 law enforcement authorities where the credit union
20 reasonably believes it has been the victim of a crime.
21 (8) The furnishing of information pursuant to the
22 Revised Uniform Disposition of Unclaimed Property Act.
23 (9) The furnishing of information pursuant to the
24 Illinois Income Tax Act and the Illinois Estate and
25 Generation-Skipping Transfer Tax Act.
26 (10) The furnishing of information pursuant to the

HB4078- 94 -LRB100 13340 AXK 27924 b
1 federal "Currency and Foreign Transactions Reporting Act",
2 Title 31, United States Code, Section 1051 et sequentia.
3 (11) The furnishing of information pursuant to any
4 other statute which by its terms or by regulations
5 promulgated thereunder requires the disclosure of
6 financial records other than by subpoena, summons, warrant
7 or court order.
8 (12) The furnishing of information in accordance with
9 the federal Personal Responsibility and Work Opportunity
10 Reconciliation Act of 1996. Any credit union governed by
11 this Act shall enter into an agreement for data exchanges
12 with a State agency provided the State agency pays to the
13 credit union a reasonable fee not to exceed its actual cost
14 incurred. A credit union providing information in
15 accordance with this item shall not be liable to any
16 account holder or other person for any disclosure of
17 information to a State agency, for encumbering or
18 surrendering any assets held by the credit union in
19 response to a lien or order to withhold and deliver issued
20 by a State agency, or for any other action taken pursuant
21 to this item, including individual or mechanical errors,
22 provided the action does not constitute gross negligence or
23 willful misconduct. A credit union shall have no obligation
24 to hold, encumber, or surrender assets until it has been
25 served with a subpoena, summons, warrant, court or
26 administrative order, lien, or levy.

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1 (13) The furnishing of information to law enforcement
2 authorities, the Illinois Department on Aging and its
3 regional administrative and provider agencies, the
4 Department of Human Services Office of Inspector General,
5 or public guardians: (i) upon subpoena by the investigatory
6 entity or the guardian, or (ii) if there is suspicion by
7 the credit union that a member who is an elderly person or
8 person with a disability has been or may become the victim
9 of financial exploitation. For the purposes of this item
10 (13), the term: (i) "elderly person" means a person who is
11 60 or more years of age, (ii) "person with a disability"
12 means a person who has or reasonably appears to the credit
13 union to have a physical or mental disability that impairs
14 his or her ability to seek or obtain protection from or
15 prevent financial exploitation, and (iii) "financial
16 exploitation" means tortious or illegal use of the assets
17 or resources of an elderly person or person with a
18 disability, and includes, without limitation,
19 misappropriation of the elderly or disabled person's
20 assets or resources by undue influence, breach of fiduciary
21 relationship, intimidation, fraud, deception, extortion,
22 or the use of assets or resources in any manner contrary to
23 law. A credit union or person furnishing information
24 pursuant to this item (13) shall be entitled to the same
25 rights and protections as a person furnishing information
26 under the Adult Protective Services Act and the Illinois

HB4078- 96 -LRB100 13340 AXK 27924 b
1 Domestic Violence Act of 1986.
2 (14) The disclosure of financial records or
3 information as necessary to effect, administer, or enforce
4 a transaction requested or authorized by the member, or in
5 connection with:
6 (A) servicing or processing a financial product or
7 service requested or authorized by the member;
8 (B) maintaining or servicing a member's account
9 with the credit union; or
10 (C) a proposed or actual securitization or
11 secondary market sale (including sales of servicing
12 rights) related to a transaction of a member.
13 Nothing in this item (14), however, authorizes the sale
14 of the financial records or information of a member without
15 the consent of the member.
16 (15) The disclosure of financial records or
17 information as necessary to protect against or prevent
18 actual or potential fraud, unauthorized transactions,
19 claims, or other liability.
20 (16)(a) The disclosure of financial records or
21 information related to a private label credit program
22 between a financial institution and a private label party
23 in connection with that private label credit program. Such
24 information is limited to outstanding balance, available
25 credit, payment and performance and account history,
26 product references, purchase information, and information

HB4078- 97 -LRB100 13340 AXK 27924 b
1 related to the identity of the customer.
2 (b)(1) For purposes of this paragraph (16) of
3 subsection (b) of Section 10, a "private label credit
4 program" means a credit program involving a financial
5 institution and a private label party that is used by a
6 customer of the financial institution and the private label
7 party primarily for payment for goods or services sold,
8 manufactured, or distributed by a private label party.
9 (2) For purposes of this paragraph (16) of subsection
10 (b) of Section 10, a "private label party" means, with
11 respect to a private label credit program, any of the
12 following: a retailer, a merchant, a manufacturer, a trade
13 group, or any such person's affiliate, subsidiary, member,
14 agent, or service provider.
15 (c) Except as otherwise provided by this Act, a credit
16union may not disclose to any person, except to the member or
17his duly authorized agent, any financial records relating to
18that member of the credit union unless:
19 (1) the member has authorized disclosure to the person;
20 (2) the financial records are disclosed in response to
21 a lawful subpoena, summons, warrant, citation to discover
22 assets, or court order that meets the requirements of
23 subparagraph (d) of this Section; or
24 (3) the credit union is attempting to collect an
25 obligation owed to the credit union and the credit union
26 complies with the provisions of Section 2I of the Consumer

HB4078- 98 -LRB100 13340 AXK 27924 b
1 Fraud and Deceptive Business Practices Act.
2 (d) A credit union shall disclose financial records under
3subparagraph (c)(2) of this Section pursuant to a lawful
4subpoena, summons, warrant, citation to discover assets, or
5court order only after the credit union mails a copy of the
6subpoena, summons, warrant, citation to discover assets, or
7court order to the person establishing the relationship with
8the credit union, if living, and otherwise his personal
9representative, if known, at his last known address by first
10class mail, postage prepaid unless the credit union is
11specifically prohibited from notifying the person by order of
12court or by applicable State or federal law. In the case of a
13grand jury subpoena, a credit union shall not mail a copy of a
14subpoena to any person pursuant to this subsection if the
15subpoena was issued by a grand jury under the Statewide Grand
16Jury Act or notifying the person would constitute a violation
17of the federal Right to Financial Privacy Act of 1978.
18 (e)(1) Any officer or employee of a credit union who
19knowingly and wilfully furnishes financial records in
20violation of this Section is guilty of a business offense and
21upon conviction thereof shall be fined not more than $1,000.
22 (2) Any person who knowingly and wilfully induces or
23attempts to induce any officer or employee of a credit union to
24disclose financial records in violation of this Section is
25guilty of a business offense and upon conviction thereof shall
26be fined not more than $1,000.

HB4078- 99 -LRB100 13340 AXK 27924 b
1 (f) A credit union shall be reimbursed for costs which are
2reasonably necessary and which have been directly incurred in
3searching for, reproducing or transporting books, papers,
4records or other data of a member required or requested to be
5produced pursuant to a lawful subpoena, summons, warrant,
6citation to discover assets, or court order. The Secretary and
7the Director may determine, by rule, the rates and conditions
8under which payment shall be made. Delivery of requested
9documents may be delayed until final reimbursement of all costs
10is received.
11(Source: P.A. 98-49, eff. 7-1-13; 99-143, eff. 7-27-15;
1210000SB0009ham003.)
13 (205 ILCS 305/62) (from Ch. 17, par. 4463)
14 Sec. 62. Liquidation.
15 (1) A credit union may elect to dissolve voluntarily and
16liquidate its affairs in the manner prescribed in this Section.
17 (2) The board of directors shall adopt a resolution
18recommending the credit union be dissolved voluntarily, and
19directing that the question of liquidating be submitted to the
20members.
21 (3) Within 10 days after the board of directors decides to
22submit the question of liquidation to the members, the chairman
23or president shall notify the Secretary thereof, in writing,
24setting forth the reasons for the proposed action. Within 10
25days after the members act on the question of liquidation, the

HB4078- 100 -LRB100 13340 AXK 27924 b
1chairman or president shall notify the Secretary, in writing,
2as to whether or not the members approved the proposed
3liquidation. The Secretary then must determine whether this
4Section has been complied with and if his decision is
5favorable, he shall prepare a certificate to the effect that
6this Section has been complied with, a copy of which will be
7retained by the Department and the other copy forwarded to the
8credit union. The certificate must be filed with the recorder
9or if there is no recorder, in the office of the county clerk
10of the county or counties in which the credit union is
11operating, whereupon the credit union must cease operations
12except for the purpose of its liquidation.
13 (4) As soon as the board of directors passes a resolution
14to submit the question of liquidation to the members, payment
15on shares, withdrawal of shares, making any transfer of shares
16to loans and interest, making investments of any kind and
17granting loans shall be suspended pending action by members. On
18approval by the members of such proposal, all such operations
19shall be permanently discontinued. The necessary expenses of
20operating shall, however, continue to be paid on authorization
21of the board of directors or the liquidating agent during the
22period of liquidation.
23 (5) For a credit union to enter voluntary liquidation, it
24must be approved by affirmative vote of the members owning a
25majority of the shares entitled to vote, in person or by proxy,
26at a regular or special meeting of the members. Notice, in

HB4078- 101 -LRB100 13340 AXK 27924 b
1writing, shall be given to each member, by first class mail, at
2least 10 days prior to such meeting. If liquidation is
3approved, the board of directors shall appoint a liquidating
4agent for the purpose of conserving and collecting the assets,
5closing the affairs of the credit union and distributing the
6assets as required by this Act.
7 (6) A liquidating credit union shall continue in existence
8for the purpose of discharging its debts, collecting and
9distributing its assets, and doing all acts required in order
10to terminate its operations and may sue and be sued for the
11purpose of enforcing such debts and obligations until its
12affairs are fully adjusted.
13 (7) Subject to such rules and regulations as the Secretary
14may promulgate, the liquidating agent shall use the assets of
15the credit union to pay; first, expenses incidental to
16liquidating including any surety bond that may be required;
17then, liabilities of the credit union; then special classes of
18shares. The remaining assets shall then be distributed to the
19members proportionately to the dollar value of the shares held
20by each member in relation to the total dollar value of all
21shares outstanding as of the date the dissolution was voted.
22 (8) As soon as the liquidating agent determines that all
23assets as to which there is a reasonable expectancy of sale or
24transfer have been liquidated and distributed as set forth in
25this Section, he shall execute a certificate of dissolution on
26a form prescribed by the Department and file the same, together

HB4078- 102 -LRB100 13340 AXK 27924 b
1with all pertinent books and records of the liquidating credit
2union with the Department, whereupon such credit union shall be
3dissolved. The liquidating agent must, within 3 years after
4issuance of a certificate by the Secretary referred to in
5Subsection (3) of this Section, discharge the debts of the
6credit union, collect and distribute its assets and do all
7other acts required to wind up its business.
8 (9) If the Secretary determines that the liquidating agent
9has failed to make reasonable progress in the liquidating of
10the credit union's affairs and distribution of its assets or
11has violated this Act, the Secretary may take possession and
12control of the credit union and remove the liquidating agent
13and appoint a liquidating agent to complete the liquidation
14under his direction and control. The Secretary shall fill any
15vacancy caused by the resignation, death, illness, removal,
16desertion or incapacity to function of the liquidating agent.
17 (10) Any funds representing unclaimed dividends and shares
18in liquidation and remaining in the hands of the board of
19directors or the liquidating agent at the end of the
20liquidation must be deposited by them, together with all books
21and papers of the credit union, with the State Treasurer in
22compliance with the Revised Uniform Disposition of Unclaimed
23Property Act, approved August 17, 1961, as amended.
24(Source: P.A. 97-133, eff. 1-1-12; 10000SB0009ham003.)
25 Section 17-65. If and only if Senate Bill 9 of the 100th

HB4078- 103 -LRB100 13340 AXK 27924 b
1General Assembly becomes law in the form in which it was
2amended by House Amendment No. 3, then the Currency Exchange
3Act is amended by changing Sections 15.1b and 19.3 as follows:
4 (205 ILCS 405/15.1b) (from Ch. 17, par. 4827)
5 Sec. 15.1b. Liquidation; distribution; priority. The
6General Assembly finds and declares that community currency
7exchanges provide important and vital services to Illinois
8citizens. The General Assembly also finds that in providing
9such services, community currency exchanges transact extensive
10business involving check cashing and the writing of money
11orders in communities in which banking services are generally
12unavailable. It is therefore declared to be the policy of this
13State that customers who receive these services must be
14protected from insolvencies of currency exchanges and
15interruptions of services. To carry out this policy and to
16insure that customers of community currency exchanges are
17protected in the event it is determined that a community
18currency exchange in receivership should be liquidated in
19accordance with Section 15.1a of this Act, the Secretary shall
20make a distribution of moneys collected by the receiver in the
21following order of priority: First, allowed claims for the
22actual necessary expenses of the receivership of the community
23currency exchange being liquidated, including (a) reasonable
24receiver fees and receiver's attorney's fees approved by the
25Secretary, (b) all expenses of any preliminary or other

HB4078- 104 -LRB100 13340 AXK 27924 b
1examinations into the condition of the community currency
2exchange or receivership, (c) all expenses incurred by the
3Secretary which are incident to possession and control of any
4property or records of the community currency exchange, and (d)
5reasonable expenses incurred by the Secretary as the result of
6business agreements or contractual arrangements necessary to
7insure that the services of the community currency exchanges
8are delivered to the community without interruption. Said
9business agreements or contractual arrangements may include,
10but are not limited to, agreements made by the Secretary, or by
11the Receiver with the approval of the Secretary, with banks,
12money order companies, bonding companies and other types of
13financial institutions; Second, allowed claims by a purchaser
14of money orders issued on demand of the community currency
15exchange being liquidated; Third, allowed claims arising by
16virtue of and to the extent of the amount a utility customer
17deposits with the community currency exchange being liquidated
18which are not remitted to the utility company; Fourth, allowed
19claims arising by virtue of and to the extent of the amount
20paid by a purchaser of Illinois license plates, vehicle
21stickers sold for State and municipal governments in Illinois,
22and temporary Illinois registration permits purchased at the
23currency exchange being liquidated; Fifth, allowed unsecured
24claims for wages or salaries, excluding vacation, severance and
25sick leave pay earned by employee earned within 90 days prior
26to the appointment of a Receiver; Sixth, secured claims;

HB4078- 105 -LRB100 13340 AXK 27924 b
1Seventh, allowed unsecured claims of any tax, and interest and
2penalty on the tax; Eighth, allowed unsecured claims other than
3a kind specified in paragraph one, two and three of this
4Section, filed with the Secretary within the time the Secretary
5fixes for filing claims; Ninth, allowed unsecured claims, other
6than a kind specified in paragraphs one, two and three of this
7Section filed with the Secretary after the time fixed for
8filing claims by the Secretary; Tenth, allowed creditor claims
9asserted by an owner, member, or stockholder of the community
10currency exchange in liquidation; Eleventh, after one year from
11the final dissolution of the currency exchange, all assets not
12used to satisfy allowed claims shall be distributed pro rata to
13the owner, owners, members, or stockholders of the currency
14exchange.
15 The Secretary shall pay all claims of equal priority
16according to the schedule set out above, and shall not pay
17claims of lower priority until all higher priority claims are
18satisfied. If insufficient assets are available to meet all
19claims of equal priority, those assets shall be distributed pro
20rata among those claims. All unclaimed assets of a currency
21exchange shall be deposited with the Secretary to be paid out
22by him when proper claims therefor are presented to the
23Secretary. If there are funds remaining after the conclusion of
24a receivership of an abandoned currency exchange, the remaining
25funds shall be considered unclaimed property and remitted to
26the State Treasurer under the Revised Uniform Disposition of

HB4078- 106 -LRB100 13340 AXK 27924 b
1Unclaimed Property Act.
2(Source: P.A. 97-315, eff. 1-1-12; 10000SB0009ham003.)
3 (205 ILCS 405/19.3) (from Ch. 17, par. 4838)
4 Sec. 19.3. (A) The General Assembly hereby finds and
5declares: community currency exchanges and ambulatory currency
6exchanges provide important and vital services to Illinois
7citizens. In so doing, they transact extensive business
8involving check cashing and the writing of money orders in
9communities in which banking services are generally
10unavailable. Customers of currency exchanges who receive these
11services must be protected from being charged unreasonable and
12unconscionable rates for cashing checks and purchasing money
13orders. The Illinois Department of Financial and Professional
14Regulation has the responsibility for regulating the
15operations of currency exchanges and has the expertise to
16determine reasonable maximum rates to be charged for check
17cashing and money order purchases. Therefore, it is in the
18public interest, convenience, welfare and good to have the
19Department establish reasonable maximum rate schedules for
20check cashing and the issuance of money orders and to require
21community and ambulatory currency exchanges to prominently
22display to the public the fees charged for all services. The
23Secretary shall review, each year, the cost of operation of the
24Currency Exchange Section and the revenue generated from
25currency exchange examinations and report to the General

HB4078- 107 -LRB100 13340 AXK 27924 b
1Assembly if the need exists for an increase in the fees
2mandated by this Act to maintain the Currency Exchange Section
3at a fiscally self-sufficient level. The Secretary shall
4include in such report the total amount of funds remitted to
5the State and delivered to the State Treasurer by currency
6exchanges pursuant to the Revised Uniform Disposition of
7Unclaimed Property Act.
8 (B) The Secretary shall, by rules adopted in accordance
9with the Illinois Administrative Procedure Act, expeditiously
10formulate and issue schedules of reasonable maximum rates which
11can be charged for check cashing and writing of money orders by
12community currency exchanges and ambulatory currency
13exchanges.
14 (1) In determining the maximum rate schedules for the
15 purposes of this Section the Secretary shall take into
16 account:
17 (a) Rates charged in the past for the cashing of
18 checks and the issuance of money orders by community
19 and ambulatory currency exchanges.
20 (b) Rates charged by banks or other business
21 entities for rendering the same or similar services and
22 the factors upon which those rates are based.
23 (c) The income, cost and expense of the operation
24 of currency exchanges.
25 (d) Rates charged by currency exchanges or other
26 similar entities located in other states for the same

HB4078- 108 -LRB100 13340 AXK 27924 b
1 or similar services and the factors upon which those
2 rates are based.
3 (e) Rates charged by the United States Postal
4 Service for the issuing of money orders and the factors
5 upon which those rates are based.
6 (f) A reasonable profit for a currency exchange
7 operation.
8 (2)(a) The schedule of reasonable maximum rates
9 established pursuant to this Section may be modified by the
10 Secretary from time to time pursuant to rules adopted in
11 accordance with the Illinois Administrative Procedure Act.
12 (b) Upon the filing of a verified petition setting
13 forth allegations demonstrating reasonable cause to
14 believe that the schedule of maximum rates previously
15 issued and promulgated should be adjusted, the Secretary
16 shall expeditiously:
17 (i) reject the petition if it fails to demonstrate
18 reasonable cause to believe that an adjustment is
19 necessary; or
20 (ii) conduct such hearings, in accordance with
21 this Section, as may be necessary to determine whether
22 the petition should be granted in whole or in part.
23 (c) No petition may be filed pursuant to subparagraph
24 (a) of paragraph (2) of subsection (B) unless:
25 (i) at least nine months have expired since the
26 last promulgation of schedules of maximum rates; and

HB4078- 109 -LRB100 13340 AXK 27924 b
1 (ii) at least one-fourth of all community currency
2 exchange licensees join in a petition or, in the case
3 of ambulatory currency exchanges, a licensee or
4 licensees authorized to serve at least 100 locations
5 join in a petition.
6 (3) Any currency exchange may charge lower fees than
7 those of the applicable maximum fee schedule after filing
8 with the Secretary a schedule of fees it proposes to use.
9(Source: P.A. 97-315, eff. 1-1-12; 10000SB0009ham003.)
10 Section 17-70. If and only if Senate Bill 9 of the 100th
11General Assembly becomes law in the form in which it was
12amended by House Amendment No. 3, then the Corporate Fiduciary
13Act is amended by changing Section 6-14 as follows:
14 (205 ILCS 620/6-14) (from Ch. 17, par. 1556-14)
15 Sec. 6-14. From time to time during receivership the
16Commissioner shall make and pay from monies of the corporate
17fiduciary a ratable dividend on all claims as may be proved to
18his or her satisfaction or adjudicated by the court. After one
19year from the entry of a judgment of dissolution, all unclaimed
20dividends shall be remitted to the State Treasurer in
21accordance with the Revised Uniform Disposition of Unclaimed
22Property Act, as now or hereafter amended, together with a list
23of all unpaid claimants, their last known addresses and the
24amounts unpaid.

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1(Source: P.A. 91-16, eff. 7-1-99; 10000SB0009ham003.)
2 Section 17-75. If and only if Senate Bill 9 of the 100th
3General Assembly becomes law in the form in which it was
4amended by House Amendment No. 3, then the Transmitters of
5Money Act is amended by changing Section 30 as follows:
6 (205 ILCS 657/30)
7 Sec. 30. Surety bond.
8 (a) An applicant for a license shall post and a licensee
9must maintain with the Director a bond or bonds issued by
10corporations qualified to do business as surety companies in
11this State.
12 (b) The applicant or licensee shall post a bond in the
13amount of the greater of $100,000 or an amount equal to the
14daily average of outstanding payment instruments for the
15preceding 12 months or operational history, whichever is
16shorter, up to a maximum amount of $2,000,000. When the amount
17of the required bond exceeds $1,000,000, the applicant or
18licensee may, in the alternative, post a bond in the amount of
19$1,000,000 plus a dollar for dollar increase in the net worth
20of the applicant or licensee over and above the amount required
21in Section 20, up to a total amount of $2,000,000.
22 (c) The bond must be in a form satisfactory to the Director
23and shall run to the State of Illinois for the benefit of any
24claimant against the applicant or licensee with respect to the

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1receipt, handling, transmission, and payment of money by the
2licensee or authorized seller in connection with the licensed
3operations. A claimant damaged by a breach of the conditions of
4a bond shall have a right to action upon the bond for damages
5suffered thereby and may bring suit directly on the bond, or
6the Director may bring suit on behalf of the claimant.
7 (d) (Blank).
8 (e) (Blank).
9 (f) After receiving a license, the licensee must maintain
10the required bond plus net worth (if applicable) until 5 years
11after it ceases to do business in this State unless all
12outstanding payment instruments are eliminated or the
13provisions under the Revised Uniform Disposition of Unclaimed
14Property Act have become operative and are adhered to by the
15licensee. Notwithstanding this provision, however, the amount
16required to be maintained may be reduced to the extent that the
17amount of the licensee's payment instruments outstanding in
18this State are reduced.
19 (g) If the Director at any time reasonably determines that
20the required bond is insecure, deficient in amount, or
21exhausted in whole or in part, he may in writing require the
22filing of a new or supplemental bond in order to secure
23compliance with this Act and may demand compliance with the
24requirement within 30 days following service on the licensee.
25(Source: P.A. 92-400, eff. 1-1-02; 10000SB0009ham003.)

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1 Section 17-80. If and only if Senate Bill 9 of the 100th
2General Assembly becomes law in the form in which it was
3amended by House Amendment No. 3, then the Adverse Claims to
4Deposit Accounts Act is amended by changing Section 10 as
5follows:
6 (205 ILCS 700/10)
7 Sec. 10. Application of Act. This Act shall not preempt:
8 (1) the Revised Uniform Disposition of Unclaimed Property
9Act, nor shall any provision of this Act be construed to
10relieve any holder, including a financial institution, from
11reporting and remitting all unclaimed property, including
12deposit accounts, under the Revised Uniform Disposition of
13Unclaimed Property Act;
14 (2) the Uniform Commercial Code, nor shall any provision of
15this Act be construed as affecting the rights of a person with
16respect to a deposit account under the Uniform Commercial Code;
17 (3) the provisions of Section 2-1402 of the Code of Civil
18Procedure, nor shall any provision of this Act be construed as
19affecting the rights of a person with respect to a deposit
20account under Section 2-1402 of the Code of Civil Procedure;
21 (4) the provisions of Part 7 of Article II of the Code of
22Civil Procedure, nor shall any provision of this Act be
23construed as affecting the rights of a person with respect to a
24deposit account under the provisions of Part 7 of Article II of
25the Code of Civil Procedure;

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1 (5) the provisions of Article XXV of the Probate Act of
21975, nor shall any provision of this Act be construed as
3affecting the rights of a person with respect to a deposit
4account under the provisions of Article XXV of the Probate Act
5of 1975; or
6 (6) the Safety Deposit Box Opening Act, nor shall any
7provision of this Act be construed as affecting the rights of a
8person with respect to a deposit account under the Safety
9Deposit Box Opening Act.
10(Source: P.A. 89-601, eff. 8-2-96; 10000SB0009ham003.)
11 Section 17-85. If and only if Senate Bill 9 of the 100th
12General Assembly becomes law in the form in which it was
13amended by House Amendment No. 3, then the Illinois Insurance
14Code is amended by changing Section 210 as follows:
15 (215 ILCS 5/210) (from Ch. 73, par. 822)
16 Sec. 210. Distribution of assets; priorities; unpaid
17dividends.
18 (1) Any time after the last day fixed for the filing of
19proofs of claims in the liquidation of a company, the court
20may, upon the application of the Director authorize him to
21declare out of the funds remaining in his hands, one or more
22dividends upon all claims allowed in accordance with the
23priorities established in Section 205.
24 (2) Where there has been no adjudication of insolvency, the

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1Director shall pay all allowed claims in full in accordance
2with the priorities set forth in Section 205. The director
3shall not be chargeable for any assets so distributed to any
4claimant who has failed to file a proper proof of claim before
5such distribution has been made.
6 (3) When subsequent to an adjudication of insolvency,
7pursuant to Section 208, a surplus is found to exist after the
8payment in full of all allowed claims falling within the
9priorities set forth in paragraphs (a), (b), (c), (d), (e), (f)
10and (g) of subsection (1) of Section 205 and which have been
11duly filed prior to the last date fixed for the filing thereof,
12and after the setting aside of a reserve for all additional
13costs and expenses of the proceeding, the court shall set a new
14date for the filing of claims. After the expiration of the new
15date, all allowed claims filed on or before said new date
16together with all previously allowed claims falling within the
17priorities set forth in paragraphs (h) and (i) of subsection
18(1) of Section 205 shall be paid in accordance with the
19priorities set forth in Section 205.
20 (4) Dividends remaining unclaimed or unpaid in the hands of
21the Director for 6 months after the final order of distribution
22may be by him deposited in one or more savings and loan
23associations, State or national banks, trust companies or
24savings banks to the credit of the Director, whomsoever he may
25be, in trust for the person entitled thereto, but no such
26person shall be entitled to any interest upon such deposit. All

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1such deposits shall be entitled to priority of payment in case
2of the insolvency or voluntary or involuntary liquidation of
3the depositary on an equality with any other priority given by
4the banking law. Any such funds together with interest, if any,
5paid or credited thereon, remaining and unclaimed in the hands
6of the Director in Trust after 2 years shall be presumed
7abandoned and reported and delivered to the State Treasurer and
8become subject to the provisions of the Revised Uniform
9Disposition of Unclaimed Property Act.
10(Source: P.A. 91-16, eff. 7-1-99; 10000SB0009ham003.)
11 Section 17-90. If and only if Senate Bill 9 of the 100th
12General Assembly becomes law in the form in which it was
13amended by House Amendment No. 3, then the Unclaimed Life
14Insurance Benefits Act is amended by changing Sections 5, 15,
15and 20 as follows:
16 (215 ILCS 185/5)
17 Sec. 5. Purpose. This Act shall require recognition of the
18Revised Uniform Disposition of Unclaimed Property Act and
19require the complete and proper disclosure, transparency, and
20accountability relating to any method of payment for life
21insurance, annuity, or retained asset agreement death
22benefits.
23(Source: P.A. 99-893, eff. 1-1-17; 10000SB0009ham003.)

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1 (215 ILCS 185/15)
2 Sec. 15. Insurer conduct.
3 (a) An insurer shall initially perform a comparison of its
4insureds', annuitants', and retained asset account holders'
5in-force policies, annuity contracts, and retained asset
6accounts by using the full Death Master File. The initial
7comparison shall be completed on or before December 31, 2017,
8unless extended by the Department pursuant to administrative
9rule. Thereafter, an insurer shall perform a comparison on at
10least a semi-annual basis using the Death Master File update
11files for comparisons to identify potential matches of its
12insureds, annuitants, and retained asset account holders. In
13the event that one of the insurer's lines of business conducts
14a search for matches of its insureds, annuitants, and retained
15asset account holders against the Death Master File at
16intervals more frequently than semi-annually, then all lines of
17the insurer's business shall conduct searches for matches
18against the Death Master File with the same frequency.
19 An insured, an annuitant, or a retained asset account
20holder is presumed dead if the date of his or her death is
21indicated by the comparison required in this subsection (a),
22unless the insurer has competent and substantial evidence that
23the person is living, including, but not limited to, a contact
24made by the insurer with the person or his or her legal
25representative.
26 For those potential matches identified as a result of a

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1Death Master File match, the insurer shall within 120 days
2after the date of death notice, if the insurer has not been
3contacted by a beneficiary, determine whether benefits are due
4in accordance with the applicable policy or contract and, if
5benefits are due in accordance with the applicable policy or
6contract:
7 (1) use good faith efforts, which shall be documented
8 by the insurer, to locate the beneficiary or beneficiaries;
9 the Department shall establish by administrative rule
10 minimum standards for what constitutes good faith efforts
11 to locate a beneficiary, which shall include: (A) searching
12 insurer records; (B) the appropriate use of First Class
13 United States mail, e-mail addresses, and telephone calls;
14 and (C) reasonable efforts by insurers to obtain updated
15 contact information for the beneficiary or beneficiaries;
16 good faith efforts shall not include additional attempts to
17 contact the beneficiary at an address already confirmed not
18 to be current; and
19 (2) provide the appropriate claims forms or
20 instructions to the beneficiary or beneficiaries to make a
21 claim, including the need to provide an official death
22 certificate if applicable under the policy or annuity
23 contract.
24 (b) Insurers shall implement procedures to account for the
25following when conducting searches of the Death Master File:
26 (1) common nicknames, initials used in lieu of a first

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1 or middle name, use of a middle name, compound first and
2 middle names, and interchanged first and middle names;
3 (2) compound last names, maiden or married names, and
4 hyphens, blank spaces, or apostrophes in last names;
5 (3) transposition of the "month" and "date" portions of
6 the date of birth; and
7 (4) incomplete social security numbers.
8 (c) To the extent permitted by law, an insurer may disclose
9the minimum necessary personal information about the insured,
10annuity owner, retained asset account holder, or beneficiary to
11a person whom the insurer reasonably believes may be able to
12assist the insurer with locating the beneficiary or a person
13otherwise entitled to payment of the claims proceeds.
14 (d) An insurer or its service provider shall not charge any
15beneficiary or other authorized representative for any fees or
16costs associated with a Death Master File search or
17verification of a Death Master File match conducted pursuant to
18this Act.
19 (e) The benefits from a policy, annuity contract, or a
20retained asset account, plus any applicable accrued interest,
21shall first be payable to the designated beneficiaries or
22owners and, in the event the beneficiaries or owners cannot be
23found, shall be reported and delivered to the State Treasurer
24pursuant to the Revised Uniform Disposition of Unclaimed
25Property Act. Nothing in this subsection (e) is intended to
26alter the amounts reportable under the existing provisions of

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1the Revised Uniform Disposition of Unclaimed Property Act or to
2allow the imposition of additional statutory interest under
3Article XIV of the Illinois Insurance Code.
4 (f) Failure to meet any requirement of this Section with
5such frequency as to constitute a general business practice is
6a violation of Section 424 of the Illinois Insurance Code.
7Nothing in this Section shall be construed to create or imply a
8private cause of action for a violation of this Section.
9(Source: P.A. 99-893, eff. 1-1-17; 10000SB0009ham003.)
10 (215 ILCS 185/20)
11 Sec. 20. Revised Uniform Disposition of Unclaimed Property
12Act. Nothing in this Act shall be construed to amend, modify,
13or supersede the Revised Uniform Disposition of Unclaimed
14Property Act, including the authority of the State Treasurer to
15examine the records of any person if the State Treasurer has
16reason to believe that such person has failed to report
17property that should have been reported pursuant to the Revised
18Uniform Disposition of Unclaimed Property Act.
19(Source: P.A. 99-893, eff. 1-1-17; 10000SB0009ham003.)
20 Section 17-95. If and only if Senate Bill 9 of the 100th
21General Assembly becomes law in the form in which it was
22amended by House Amendment No. 3, then the Real Estate License
23Act of 2000 is amended by changing Section 20-20 as follows:

HB4078- 120 -LRB100 13340 AXK 27924 b
1 (225 ILCS 454/20-20)
2 (Section scheduled to be repealed on January 1, 2020)
3 Sec. 20-20. Grounds for discipline.
4 (a) The Department may refuse to issue or renew a license,
5may place on probation, suspend, or revoke any license,
6reprimand, or take any other disciplinary or non-disciplinary
7action as the Department may deem proper and impose a fine not
8to exceed $25,000 upon any licensee or applicant under this Act
9or any person who holds himself or herself out as an applicant
10or licensee or against a licensee in handling his or her own
11property, whether held by deed, option, or otherwise, for any
12one or any combination of the following causes:
13 (1) Fraud or misrepresentation in applying for, or
14 procuring, a license under this Act or in connection with
15 applying for renewal of a license under this Act.
16 (2) The conviction of or plea of guilty or plea of nolo
17 contendere to a felony or misdemeanor in this State or any
18 other jurisdiction; or the entry of an administrative
19 sanction by a government agency in this State or any other
20 jurisdiction. Action taken under this paragraph (2) for a
21 misdemeanor or an administrative sanction is limited to a
22 misdemeanor or administrative sanction that has as an
23 essential element dishonesty or fraud or involves larceny,
24 embezzlement, or obtaining money, property, or credit by
25 false pretenses or by means of a confidence game.
26 (3) Inability to practice the profession with

HB4078- 121 -LRB100 13340 AXK 27924 b
1 reasonable judgment, skill, or safety as a result of a
2 physical illness, including, but not limited to,
3 deterioration through the aging process or loss of motor
4 skill, or a mental illness or disability.
5 (4) Practice under this Act as a licensee in a retail
6 sales establishment from an office, desk, or space that is
7 not separated from the main retail business by a separate
8 and distinct area within the establishment.
9 (5) Having been disciplined by another state, the
10 District of Columbia, a territory, a foreign nation, or a
11 governmental agency authorized to impose discipline if at
12 least one of the grounds for that discipline is the same as
13 or the equivalent of one of the grounds for which a
14 licensee may be disciplined under this Act. A certified
15 copy of the record of the action by the other state or
16 jurisdiction shall be prima facie evidence thereof.
17 (6) Engaging in the practice of real estate brokerage
18 without a license or after the licensee's license was
19 expired or while the license was inoperative.
20 (7) Cheating on or attempting to subvert the Real
21 Estate License Exam or continuing education exam.
22 (8) Aiding or abetting an applicant to subvert or cheat
23 on the Real Estate License Exam or continuing education
24 exam administered pursuant to this Act.
25 (9) Advertising that is inaccurate, misleading, or
26 contrary to the provisions of the Act.

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1 (10) Making any substantial misrepresentation or
2 untruthful advertising.
3 (11) Making any false promises of a character likely to
4 influence, persuade, or induce.
5 (12) Pursuing a continued and flagrant course of
6 misrepresentation or the making of false promises through
7 licensees, employees, agents, advertising, or otherwise.
8 (13) Any misleading or untruthful advertising, or
9 using any trade name or insignia of membership in any real
10 estate organization of which the licensee is not a member.
11 (14) Acting for more than one party in a transaction
12 without providing written notice to all parties for whom
13 the licensee acts.
14 (15) Representing or attempting to represent a broker
15 other than the sponsoring broker.
16 (16) Failure to account for or to remit any moneys or
17 documents coming into his or her possession that belong to
18 others.
19 (17) Failure to maintain and deposit in a special
20 account, separate and apart from personal and other
21 business accounts, all escrow moneys belonging to others
22 entrusted to a licensee while acting as a broker, escrow
23 agent, or temporary custodian of the funds of others or
24 failure to maintain all escrow moneys on deposit in the
25 account until the transactions are consummated or
26 terminated, except to the extent that the moneys, or any

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1 part thereof, shall be:
2 (A) disbursed prior to the consummation or
3 termination (i) in accordance with the written
4 direction of the principals to the transaction or their
5 duly authorized agents, (ii) in accordance with
6 directions providing for the release, payment, or
7 distribution of escrow moneys contained in any written
8 contract signed by the principals to the transaction or
9 their duly authorized agents, or (iii) pursuant to an
10 order of a court of competent jurisdiction; or
11 (B) deemed abandoned and transferred to the Office
12 of the State Treasurer to be handled as unclaimed
13 property pursuant to the Revised Uniform Disposition
14 of Unclaimed Property Act. Escrow moneys may be deemed
15 abandoned under this subparagraph (B) only: (i) in the
16 absence of disbursement under subparagraph (A); (ii)
17 in the absence of notice of the filing of any claim in
18 a court of competent jurisdiction; and (iii) if 6
19 months have elapsed after the receipt of a written
20 demand for the escrow moneys from one of the principals
21 to the transaction or the principal's duly authorized
22 agent.
23 The account shall be noninterest bearing, unless the
24 character of the deposit is such that payment of interest
25 thereon is otherwise required by law or unless the
26 principals to the transaction specifically require, in

HB4078- 124 -LRB100 13340 AXK 27924 b
1 writing, that the deposit be placed in an interest bearing
2 account.
3 (18) Failure to make available to the Department all
4 escrow records and related documents maintained in
5 connection with the practice of real estate within 24 hours
6 of a request for those documents by Department personnel.
7 (19) Failing to furnish copies upon request of
8 documents relating to a real estate transaction to a party
9 who has executed that document.
10 (20) Failure of a sponsoring broker to timely provide
11 information, sponsor cards, or termination of licenses to
12 the Department.
13 (21) Engaging in dishonorable, unethical, or
14 unprofessional conduct of a character likely to deceive,
15 defraud, or harm the public.
16 (22) Commingling the money or property of others with
17 his or her own money or property.
18 (23) Employing any person on a purely temporary or
19 single deal basis as a means of evading the law regarding
20 payment of commission to nonlicensees on some contemplated
21 transactions.
22 (24) Permitting the use of his or her license as a
23 broker to enable a leasing agent or unlicensed person to
24 operate a real estate business without actual
25 participation therein and control thereof by the broker.
26 (25) Any other conduct, whether of the same or a

HB4078- 125 -LRB100 13340 AXK 27924 b
1 different character from that specified in this Section,
2 that constitutes dishonest dealing.
3 (26) Displaying a "for rent" or "for sale" sign on any
4 property without the written consent of an owner or his or
5 her duly authorized agent or advertising by any means that
6 any property is for sale or for rent without the written
7 consent of the owner or his or her authorized agent.
8 (27) Failing to provide information requested by the
9 Department, or otherwise respond to that request, within 30
10 days of the request.
11 (28) Advertising by means of a blind advertisement,
12 except as otherwise permitted in Section 10-30 of this Act.
13 (29) Offering guaranteed sales plans, as defined in
14 clause (A) of this subdivision (29), except to the extent
15 hereinafter set forth:
16 (A) A "guaranteed sales plan" is any real estate
17 purchase or sales plan whereby a licensee enters into a
18 conditional or unconditional written contract with a
19 seller, prior to entering into a brokerage agreement
20 with the seller, by the terms of which a licensee
21 agrees to purchase a property of the seller within a
22 specified period of time at a specific price in the
23 event the property is not sold in accordance with the
24 terms of a brokerage agreement to be entered into
25 between the sponsoring broker and the seller.
26 (B) A licensee offering a guaranteed sales plan

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1 shall provide the details and conditions of the plan in
2 writing to the party to whom the plan is offered.
3 (C) A licensee offering a guaranteed sales plan
4 shall provide to the party to whom the plan is offered
5 evidence of sufficient financial resources to satisfy
6 the commitment to purchase undertaken by the broker in
7 the plan.
8 (D) Any licensee offering a guaranteed sales plan
9 shall undertake to market the property of the seller
10 subject to the plan in the same manner in which the
11 broker would market any other property, unless the
12 agreement with the seller provides otherwise.
13 (E) The licensee cannot purchase seller's property
14 until the brokerage agreement has ended according to
15 its terms or is otherwise terminated.
16 (F) Any licensee who fails to perform on a
17 guaranteed sales plan in strict accordance with its
18 terms shall be subject to all the penalties provided in
19 this Act for violations thereof and, in addition, shall
20 be subject to a civil fine payable to the party injured
21 by the default in an amount of up to $25,000.
22 (30) Influencing or attempting to influence, by any
23 words or acts, a prospective seller, purchaser, occupant,
24 landlord, or tenant of real estate, in connection with
25 viewing, buying, or leasing real estate, so as to promote
26 or tend to promote the continuance or maintenance of

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1 racially and religiously segregated housing or so as to
2 retard, obstruct, or discourage racially integrated
3 housing on or in any street, block, neighborhood, or
4 community.
5 (31) Engaging in any act that constitutes a violation
6 of any provision of Article 3 of the Illinois Human Rights
7 Act, whether or not a complaint has been filed with or
8 adjudicated by the Human Rights Commission.
9 (32) Inducing any party to a contract of sale or lease
10 or brokerage agreement to break the contract of sale or
11 lease or brokerage agreement for the purpose of
12 substituting, in lieu thereof, a new contract for sale or
13 lease or brokerage agreement with a third party.
14 (33) Negotiating a sale, exchange, or lease of real
15 estate directly with any person if the licensee knows that
16 the person has an exclusive brokerage agreement with
17 another broker, unless specifically authorized by that
18 broker.
19 (34) When a licensee is also an attorney, acting as the
20 attorney for either the buyer or the seller in the same
21 transaction in which the licensee is acting or has acted as
22 a managing broker or broker.
23 (35) Advertising or offering merchandise or services
24 as free if any conditions or obligations necessary for
25 receiving the merchandise or services are not disclosed in
26 the same advertisement or offer. These conditions or

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1 obligations include without limitation the requirement
2 that the recipient attend a promotional activity or visit a
3 real estate site. As used in this subdivision (35), "free"
4 includes terms such as "award", "prize", "no charge", "free
5 of charge", "without charge", and similar words or phrases
6 that reasonably lead a person to believe that he or she may
7 receive or has been selected to receive something of value,
8 without any conditions or obligations on the part of the
9 recipient.
10 (36) Disregarding or violating any provision of the
11 Land Sales Registration Act of 1989, the Illinois Real
12 Estate Time-Share Act, or the published rules promulgated
13 by the Department to enforce those Acts.
14 (37) Violating the terms of a disciplinary order issued
15 by the Department.
16 (38) Paying or failing to disclose compensation in
17 violation of Article 10 of this Act.
18 (39) Requiring a party to a transaction who is not a
19 client of the licensee to allow the licensee to retain a
20 portion of the escrow moneys for payment of the licensee's
21 commission or expenses as a condition for release of the
22 escrow moneys to that party.
23 (40) Disregarding or violating any provision of this
24 Act or the published rules promulgated by the Department to
25 enforce this Act or aiding or abetting any individual,
26 partnership, registered limited liability partnership,

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1 limited liability company, or corporation in disregarding
2 any provision of this Act or the published rules
3 promulgated by the Department to enforce this Act.
4 (41) Failing to provide the minimum services required
5 by Section 15-75 of this Act when acting under an exclusive
6 brokerage agreement.
7 (42) Habitual or excessive use or addiction to alcohol,
8 narcotics, stimulants, or any other chemical agent or drug
9 that results in a managing broker, broker, or leasing
10 agent's inability to practice with reasonable skill or
11 safety.
12 (43) Enabling, aiding, or abetting an auctioneer, as
13 defined in the Auction License Act, to conduct a real
14 estate auction in a manner that is in violation of this
15 Act.
16 (b) The Department may refuse to issue or renew or may
17suspend the license of any person who fails to file a return,
18pay the tax, penalty or interest shown in a filed return, or
19pay any final assessment of tax, penalty, or interest, as
20required by any tax Act administered by the Department of
21Revenue, until such time as the requirements of that tax Act
22are satisfied in accordance with subsection (g) of Section
232105-15 of the Civil Administrative Code of Illinois.
24 (c) The Department shall deny a license or renewal
25authorized by this Act to a person who has defaulted on an
26educational loan or scholarship provided or guaranteed by the

HB4078- 130 -LRB100 13340 AXK 27924 b
1Illinois Student Assistance Commission or any governmental
2agency of this State in accordance with item (5) of subsection
3(a) of Section 2105-15 of the Civil Administrative Code of
4Illinois.
5 (d) In cases where the Department of Healthcare and Family
6Services (formerly Department of Public Aid) has previously
7determined that a licensee or a potential licensee is more than
830 days delinquent in the payment of child support and has
9subsequently certified the delinquency to the Department may
10refuse to issue or renew or may revoke or suspend that person's
11license or may take other disciplinary action against that
12person based solely upon the certification of delinquency made
13by the Department of Healthcare and Family Services in
14accordance with item (5) of subsection (a) of Section 2105-15
15of the Civil Administrative Code of Illinois.
16 (e) In enforcing this Section, the Department or Board upon
17a showing of a possible violation may compel an individual
18licensed to practice under this Act, or who has applied for
19licensure under this Act, to submit to a mental or physical
20examination, or both, as required by and at the expense of the
21Department. The Department or Board may order the examining
22physician to present testimony concerning the mental or
23physical examination of the licensee or applicant. No
24information shall be excluded by reason of any common law or
25statutory privilege relating to communications between the
26licensee or applicant and the examining physician. The

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1examining physicians shall be specifically designated by the
2Board or Department. The individual to be examined may have, at
3his or her own expense, another physician of his or her choice
4present during all aspects of this examination. Failure of an
5individual to submit to a mental or physical examination, when
6directed, shall be grounds for suspension of his or her license
7until the individual submits to the examination if the
8Department finds, after notice and hearing, that the refusal to
9submit to the examination was without reasonable cause.
10 If the Department or Board finds an individual unable to
11practice because of the reasons set forth in this Section, the
12Department or Board may require that individual to submit to
13care, counseling, or treatment by physicians approved or
14designated by the Department or Board, as a condition, term, or
15restriction for continued, reinstated, or renewed licensure to
16practice; or, in lieu of care, counseling, or treatment, the
17Department may file, or the Board may recommend to the
18Department to file, a complaint to immediately suspend, revoke,
19or otherwise discipline the license of the individual. An
20individual whose license was granted, continued, reinstated,
21renewed, disciplined or supervised subject to such terms,
22conditions, or restrictions, and who fails to comply with such
23terms, conditions, or restrictions, shall be referred to the
24Secretary for a determination as to whether the individual
25shall have his or her license suspended immediately, pending a
26hearing by the Department.

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1 In instances in which the Secretary immediately suspends a
2person's license under this Section, a hearing on that person's
3license must be convened by the Department within 30 days after
4the suspension and completed without appreciable delay. The
5Department and Board shall have the authority to review the
6subject individual's record of treatment and counseling
7regarding the impairment to the extent permitted by applicable
8federal statutes and regulations safeguarding the
9confidentiality of medical records.
10 An individual licensed under this Act and affected under
11this Section shall be afforded an opportunity to demonstrate to
12the Department or Board that he or she can resume practice in
13compliance with acceptable and prevailing standards under the
14provisions of his or her license.
15(Source: P.A. 98-553, eff. 1-1-14; 98-756, eff. 7-16-14;
1699-227, eff. 8-3-15; 10000SB0009ham003.)
17 Section 17-100. If and only if Senate Bill 9 of the 100th
18General Assembly becomes law in the form in which it was
19amended by House Amendment No. 3, then the Code of Criminal
20Procedure of 1963 is amended by changing Section 110-17 as
21follows:
22 (725 ILCS 5/110-17) (from Ch. 38, par. 110-17)
23 Sec. 110-17. Unclaimed Bail Deposits. Notwithstanding the
24provisions of the Revised Uniform Disposition of Unclaimed

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1Property Act, any sum of money deposited by any person to
2secure his release from custody which remains unclaimed by the
3person entitled to its return for 3 years after the conditions
4of the bail bond have been performed and the accused has been
5discharged from all obligations in the cause shall be presumed
6to be abandoned.
7 (a) The clerk of the circuit court, as soon thereafter as
8practicable, shall cause notice to be published once, in
9English, in a newspaper or newspapers of general circulation in
10the county wherein the deposit of bond was received.
11 (b) The published notice shall be entitled "Notice of
12Persons Appearing to be Owners of Abandoned Property" and shall
13contain:
14 (1) The names, in alphabetical order, of persons to
15 whom the notice is directed.
16 (2) A statement that information concerning the amount
17 of the property may be obtained by any persons possessing
18 an interest in the property by making an inquiry at the
19 office of the clerk of the circuit court at a location
20 designated by him.
21 (3) A statement that if proof of claim is not presented
22 by the owner to the clerk of the circuit court and if the
23 owner's right to receive the property is not established to
24 the satisfaction of the clerk of the court within 65 days
25 from the date of the published notice, the abandoned
26 property will be placed in the custody of the treasurer of

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1 the county, not later than 85 days after such publication,
2 to whom all further claims must thereafter be directed. If
3 the claim is established as aforesaid and after deducting
4 an amount not to exceed $20 to cover the cost of notice
5 publication and related clerical expenses, the clerk of the
6 court shall make payment to the person entitled thereto.
7 (4) The clerk of the circuit court is not required to
8 publish in such notice any items of less than $100 unless
9 he deems such publication in the public interest.
10 (c) Any clerk of the circuit court who has caused notice to
11be published as provided by this Section shall, within 20 days
12after the time specified in this Section for claiming the
13property from the clerk of the court, pay or deliver to the
14treasurer of the county having jurisdiction of the offense,
15whether the bond was taken there or any other county, all sums
16deposited as specified in this section less such amounts as may
17have been returned to the persons whose rights to receive the
18sums deposited have been established to the satisfaction of the
19clerk of the circuit court. Any clerk of the circuit court who
20transfers such sums to the county treasury including sums
21deposited by persons whose names are not required to be set
22forth in the published notice aforesaid, is relieved of all
23liability for such sums as have been transferred as unclaimed
24bail deposits or any claim which then exists or which
25thereafter may arise or be made in respect to such sums.
26 (d) The treasurer of the county shall keep just and true

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1accounts of all moneys paid into the treasury, and if any
2person appears within 5 years after the deposit of moneys by
3the clerk of the circuit court and claims any money paid into
4the treasury, he shall file a claim therefor on the form
5prescribed by the treasurer of the county who shall consider
6any claim filed under this Act and who may, in his discretion,
7hold a hearing and receive evidence concerning it. The
8treasurer of the county shall prepare a finding and the
9decision in writing on each hearing, stating the substance of
10any evidence heard by him, his findings of fact in respect
11thereto, and the reasons for his decision. The decision shall
12be a public record.
13 (e) All claims which are not filed within the 5 year period
14shall be forever barred.
15(Source: P.A. 85-768; 10000SB0009ham003.)
16 Section 17-105. If and only if Senate Bill 9 of the 100th
17General Assembly becomes law in the form in which it was
18amended by House Amendment No. 3, then the Probate Act of 1975
19is amended by changing Sections 2-1 and 2-2 as follows:
20 (755 ILCS 5/2-1) (from Ch. 110 1/2, par. 2-1)
21 Sec. 2-1. Rules of descent and distribution. The intestate
22real and personal estate of a resident decedent and the
23intestate real estate in this State of a nonresident decedent,
24after all just claims against his estate are fully paid,

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1descends and shall be distributed as follows:
2 (a) If there is a surviving spouse and also a descendant of
3the decedent: 1/2 of the entire estate to the surviving spouse
4and 1/2 to the decedent's descendants per stirpes.
5 (b) If there is no surviving spouse but a descendant of the
6decedent: the entire estate to the decedent's descendants per
7stirpes.
8 (c) If there is a surviving spouse but no descendant of the
9decedent: the entire estate to the surviving spouse.
10 (d) If there is no surviving spouse or descendant but a
11parent, brother, sister or descendant of a brother or sister of
12the decedent: the entire estate to the parents, brothers and
13sisters of the decedent in equal parts, allowing to the
14surviving parent if one is dead a double portion and to the
15descendants of a deceased brother or sister per stirpes the
16portion which the deceased brother or sister would have taken
17if living.
18 (e) If there is no surviving spouse, descendant, parent,
19brother, sister or descendant of a brother or sister of the
20decedent but a grandparent or descendant of a grandparent of
21the decedent: (1) 1/2 of the entire estate to the decedent's
22maternal grandparents in equal parts or to the survivor of
23them, or if there is none surviving, to their descendants per
24stirpes, and (2) 1/2 of the entire estate to the decedent's
25paternal grandparents in equal parts or to the survivor of
26them, or if there is none surviving, to their descendants per

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1stirpes. If there is no surviving paternal grandparent or
2descendant of a paternal grandparent, but a maternal
3grandparent or descendant of a maternal grandparent of the
4decedent: the entire estate to the decedent's maternal
5grandparents in equal parts or to the survivor of them, or if
6there is none surviving, to their descendants per stirpes. If
7there is no surviving maternal grandparent or descendant of a
8maternal grandparent, but a paternal grandparent or descendant
9of a paternal grandparent of the decedent: the entire estate to
10the decedent's paternal grandparents in equal parts or to the
11survivor of them, or if there is none surviving, to their
12descendants per stirpes.
13 (f) If there is no surviving spouse, descendant, parent,
14brother, sister, descendant of a brother or sister or
15grandparent or descendant of a grandparent of the decedent: (1)
161/2 of the entire estate to the decedent's maternal
17great-grandparents in equal parts or to the survivor of them,
18or if there is none surviving, to their descendants per
19stirpes, and (2) 1/2 of the entire estate to the decedent's
20paternal great-grandparents in equal parts or to the survivor
21of them, or if there is none surviving, to their descendants
22per stirpes. If there is no surviving paternal
23great-grandparent or descendant of a paternal
24great-grandparent, but a maternal great-grandparent or
25descendant of a maternal great-grandparent of the decedent: the
26entire estate to the decedent's maternal great-grandparents in

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1equal parts or to the survivor of them, or if there is none
2surviving, to their descendants per stirpes. If there is no
3surviving maternal great-grandparent or descendant of a
4maternal great-grandparent, but a paternal great-grandparent
5or descendant of a paternal great-grandparent of the decedent:
6the entire estate to the decedent's paternal
7great-grandparents in equal parts or to the survivor of them,
8or if there is none surviving, to their descendants per
9stirpes.
10 (g) If there is no surviving spouse, descendant, parent,
11brother, sister, descendant of a brother or sister,
12grandparent, descendant of a grandparent, great-grandparent or
13descendant of a great-grandparent of the decedent: the entire
14estate in equal parts to the nearest kindred of the decedent in
15equal degree (computing by the rules of the civil law) and
16without representation.
17 (h) If there is no surviving spouse and no known kindred of
18the decedent: the real estate escheats to the county in which
19it is located; the personal estate physically located within
20this State and the personal estate physically located or held
21outside this State which is the subject of ancillary
22administration of an estate being administered within this
23State escheats to the county of which the decedent was a
24resident, or, if the decedent was not a resident of this State,
25to the county in which it is located; all other personal
26property of the decedent of every class and character, wherever

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1situate, or the proceeds thereof, shall escheat to this State
2and be delivered to the State Treasurer pursuant to the Revised
3Uniform Disposition of Unclaimed Property Act.
4 In no case is there any distinction between the kindred of
5the whole and the half blood.
6(Source: P.A. 91-16, eff. 7-1-99; 10000SB0009ham003.)
7 (755 ILCS 5/2-2) (from Ch. 110 1/2, par. 2-2)
8 Sec. 2-2. Children born out of wedlock. The intestate real
9and personal estate of a resident decedent who was a child born
10out of wedlock at the time of death and the intestate real
11estate in this State of a nonresident decedent who was a child
12born out of wedlock at the time of death, after all just claims
13against his estate are fully paid, descends and shall be
14distributed as provided in Section 2-1, subject to Section
152-6.5 of this Act, if both parents are eligible parents. As
16used in this Section, "eligible parent" means a parent of the
17decedent who, during the decedent's lifetime, acknowledged the
18decedent as the parent's child, established a parental
19relationship with the decedent, and supported the decedent as
20the parent's child. "Eligible parents" who are in arrears of in
21excess of one year's child support obligations shall not
22receive any property benefit or other interest of the decedent
23unless and until a court of competent jurisdiction makes a
24determination as to the effect on the deceased of the arrearage
25and allows a reduced benefit. In no event shall the reduction

HB4078- 140 -LRB100 13340 AXK 27924 b
1of the benefit or other interest be less than the amount of
2child support owed for the support of the decedent at the time
3of death. The court's considerations shall include but are not
4limited to the considerations in subsections (1) through (3) of
5Section 2-6.5 of this Act.
6 If neither parent is an eligible parent, the intestate real
7and personal estate of a resident decedent who was a child born
8out of wedlock at the time of death and the intestate real
9estate in this State of a nonresident decedent who was a child
10born out of wedlock at the time of death, after all just claims
11against his or her estate are fully paid, descends and shall be
12distributed as provided in Section 2-1, but the parents of the
13decedent shall be treated as having predeceased the decedent.
14 If only one parent is an eligible parent, the intestate
15real and personal estate of a resident decedent who was a child
16born out of wedlock at the time of death and the intestate real
17estate in this State of a nonresident decedent who was a child
18born out of wedlock at the time of death, after all just claims
19against his or her estate are fully paid, subject to Section
202-6.5 of this Act, descends and shall be distributed as
21follows:
22 (a) If there is a surviving spouse and also a descendant of
23the decedent: 1/2 of the entire estate to the surviving spouse
24and 1/2 to the decedent's descendants per stirpes.
25 (b) If there is no surviving spouse but a descendant of the
26decedent: the entire estate to the decedent's descendants per

HB4078- 141 -LRB100 13340 AXK 27924 b
1stirpes.
2 (c) If there is a surviving spouse but no descendant of the
3decedent: the entire estate to the surviving spouse.
4 (d) If there is no surviving spouse or descendant but the
5eligible parent or a descendant of the eligible parent of the
6decedent: the entire estate to the eligible parent and the
7eligible parent's descendants, allowing 1/2 to the eligible
8parent and 1/2 to the eligible parent's descendants per
9stirpes.
10 (e) If there is no surviving spouse, descendant, eligible
11parent, or descendant of the eligible parent of the decedent,
12but a grandparent on the eligible parent's side of the family
13or descendant of such grandparent of the decedent: the entire
14estate to the decedent's grandparents on the eligible parent's
15side of the family in equal parts, or to the survivor of them,
16or if there is none surviving, to their descendants per
17stirpes.
18 (f) If there is no surviving spouse, descendant, eligible
19parent, descendant of the eligible parent, grandparent on the
20eligible parent's side of the family, or descendant of such
21grandparent of the decedent: the entire estate to the
22decedent's great-grandparents on the eligible parent's side of
23the family in equal parts or to the survivor of them, or if
24there is none surviving, to their descendants per stirpes.
25 (g) If there is no surviving spouse, descendant, eligible
26parent, descendant of the eligible parent, grandparent on the

HB4078- 142 -LRB100 13340 AXK 27924 b
1eligible parent's side of the family, descendant of such
2grandparent, great-grandparent on the eligible parent's side
3of the family, or descendant of such great-grandparent of the
4decedent: the entire estate in equal parts to the nearest
5kindred of the eligible parent of the decedent in equal degree
6(computing by the rules of the civil law) and without
7representation.
8 (h) If there is no surviving spouse, descendant, or
9eligible parent of the decedent and no known kindred of the
10eligible parent of the decedent: the real estate escheats to
11the county in which it is located; the personal estate
12physically located within this State and the personal estate
13physically located or held outside this State which is the
14subject of ancillary administration within this State escheats
15to the county of which the decedent was a resident or, if the
16decedent was not a resident of this State, to the county in
17which it is located; all other personal property of the
18decedent of every class and character, wherever situate, or the
19proceeds thereof, shall escheat to this State and be delivered
20to the State Treasurer of this State pursuant to the Revised
21Uniform Disposition of Unclaimed Property Act.
22 For purposes of inheritance, the changes made by this
23amendatory Act of 1998 apply to all decedents who die on or
24after the effective date of this amendatory Act of 1998. For
25the purpose of determining the property rights of any person
26under any instrument, the changes made by this amendatory Act

HB4078- 143 -LRB100 13340 AXK 27924 b
1of 1998 apply to all instruments executed on or after the
2effective date of this amendatory Act of 1998.
3 A child born out of wedlock is heir of his mother and of
4any maternal ancestor and of any person from whom his mother
5might have inherited, if living; and the descendants of a
6person who was a child born out of wedlock shall represent such
7person and take by descent any estate which the parent would
8have taken, if living. If a decedent has acknowledged paternity
9of a child born out of wedlock or if during his lifetime or
10after his death a decedent has been adjudged to be the father
11of a child born out of wedlock, that person is heir of his
12father and of any paternal ancestor and of any person from whom
13his father might have inherited, if living; and the descendants
14of a person who was a child born out of wedlock shall represent
15that person and take by descent any estate which the parent
16would have taken, if living. If during his lifetime the
17decedent was adjudged to be the father of a child born out of
18wedlock by a court of competent jurisdiction, an authenticated
19copy of the judgment is sufficient proof of the paternity; but
20in all other cases paternity must be proved by clear and
21convincing evidence. A person who was a child born out of
22wedlock whose parents intermarry and who is acknowledged by the
23father as the father's child is a lawful child of the father.
24After a child born out of wedlock is adopted, that person's
25relationship to his or her adopting and natural parents shall
26be governed by Section 2-4 of this Act. For purposes of

HB4078- 144 -LRB100 13340 AXK 27924 b
1inheritance, the changes made by this amendatory Act of 1997
2apply to all decedents who die on or after January 1, 1998. For
3the purpose of determining the property rights of any person
4under any instrument, the changes made by this amendatory Act
5of 1997 apply to all instruments executed on or after January
61, 1998.
7(Source: P.A. 94-229, eff. 1-1-06; 10000SB0009ham003.)
8 Section 17-110. If and only if Senate Bill 9 of the 100th
9General Assembly becomes law in the form in which it was
10amended by House Amendment No. 3, then the Sale of Unclaimed
11Property Act is amended by changing Section 3 as follows:
12 (770 ILCS 90/3) (from Ch. 141, par. 3)
13 Sec. 3. All persons other than common carriers having a
14lien on personal property, by virtue of the Innkeepers Lien Act
15or for more than $2,000 by virtue of the Labor and Storage Lien
16Act may enforce the lien by a sale of the property, on giving
17to the owner thereof, if he and his residence be known to the
18person having such lien, 30 days' notice by certified mail, in
19writing of the time and place of such sale, and if the owner or
20his place of residence be unknown to the person having such
21lien, then upon his filing his affidavit to that effect with
22the clerk of the circuit court in the county where such
23property is situated; notice of the sale may be given by
24publishing the same once in each week for 3 successive weeks in

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1some newspaper of general circulation published in the county,
2and out of the proceeds of the sale all costs and charges for
3advertising and making the same, and the amount of the lien
4shall be paid, and the surplus, if any, shall be paid to the
5owner of the property or, if not claimed by said owner, such
6surplus, if any, shall be disposed under the Revised Uniform
7Disposition of Unclaimed Property Act. All sales pursuant to
8this Section must be public and conducted in a commercially
9reasonable manner so as to maximize the net proceeds of the
10sale. Conformity to the requirements of this Act shall be a
11perpetual bar to any action against such lienor by any person
12for the recovery of such chattels or the value thereof or any
13damages growing out of the failure of such person to receive
14such chattels.
15(Source: P.A. 87-206; 10000SB0009ham003.)
16 Section 17-115. If and only if Senate Bill 9 of the 100th
17General Assembly becomes law in the form in which it was
18amended by House Amendment No. 3, then the Business Corporation
19Act of 1983 is amended by changing Section 12.70 as follows:
20 (805 ILCS 5/12.70) (from Ch. 32, par. 12.70)
21 Sec. 12.70. Deposit of amount due certain shareholders.
22Upon the distribution of the assets of a corporation among its
23shareholders, the distributive portion to which a shareholder
24would be entitled who is unknown or cannot can not be found, or

HB4078- 146 -LRB100 13340 AXK 27924 b
1who is under disability and there is no person legally
2competent to receive such distributive portion, shall be
3presumed abandoned and reported and delivered to the State
4Treasurer and become subject to the provision of the Revised
5Uniform Disposition of Unclaimed Property Act. In the event
6such distribution is be made other than in cash, such
7distributive portion of the assets shall be reduced to cash
8before being so reported and delivered.
9(Source: P.A. 91-16, eff. 7-1-99; 10000SB0009ham003.)
10 Section 17-120. If and only if Senate Bill 9 of the 100th
11General Assembly becomes law in the form in which it was
12amended by House Amendment No. 3, then the General Not For
13Profit Corporation Act of 1986 is amended by changing Section
14112.70 as follows:
15 (805 ILCS 105/112.70) (from Ch. 32, par. 112.70)
16 Sec. 112.70. Deposit of amount due. Upon the distribution
17of the assets of a corporation, the distributive portion to
18which a person would be entitled who is unknown or cannot be
19found, or who is under disability and there is no person
20legally competent to receive such distributive portion, shall
21be presumed abandoned and reported and delivered to the State
22Treasurer and become subject to the Revised provision of the
23Uniform Disposition of Unclaimed Property Act. In the event
24such distribution is be made other than in cash, such

HB4078- 147 -LRB100 13340 AXK 27924 b
1distributive portion of the assets shall be reduced to cash
2before being so reported and delivered.
3(Source: P.A. 91-16, eff. 7-1-99; 10000SB0009ham003.)
4 Section 20-5. If and only if Senate Bill 9 of the 100th
5General Assembly becomes law in the form in which it was
6amended by House Amendment No. 3, then the Illinois Income Tax
7Act is amended by changing Sections 201, 202.5, 203, 204, 208,
8212, 901, and 1501 as follows:
9 (35 ILCS 5/201) (from Ch. 120, par. 2-201)
10 Sec. 201. Tax Imposed.
11 (a) In general. A tax measured by net income is hereby
12imposed on every individual, corporation, trust and estate for
13each taxable year ending after July 31, 1969 on the privilege
14of earning or receiving income in or as a resident of this
15State. Such tax shall be in addition to all other occupation or
16privilege taxes imposed by this State or by any municipal
17corporation or political subdivision thereof.
18 (b) Rates. The tax imposed by subsection (a) of this
19Section shall be determined as follows, except as adjusted by
20subsection (d-1):
21 (1) In the case of an individual, trust or estate, for
22 taxable years ending prior to July 1, 1989, an amount equal
23 to 2 1/2% of the taxpayer's net income for the taxable
24 year.

HB4078- 148 -LRB100 13340 AXK 27924 b
1 (2) In the case of an individual, trust or estate, for
2 taxable years beginning prior to July 1, 1989 and ending
3 after June 30, 1989, an amount equal to the sum of (i) 2
4 1/2% of the taxpayer's net income for the period prior to
5 July 1, 1989, as calculated under Section 202.3, and (ii)
6 3% of the taxpayer's net income for the period after June
7 30, 1989, as calculated under Section 202.3.
8 (3) In the case of an individual, trust or estate, for
9 taxable years beginning after June 30, 1989, and ending
10 prior to January 1, 2011, an amount equal to 3% of the
11 taxpayer's net income for the taxable year.
12 (4) In the case of an individual, trust, or estate, for
13 taxable years beginning prior to January 1, 2011, and
14 ending after December 31, 2010, an amount equal to the sum
15 of (i) 3% of the taxpayer's net income for the period prior
16 to January 1, 2011, as calculated under Section 202.5, and
17 (ii) 5% of the taxpayer's net income for the period after
18 December 31, 2010, as calculated under Section 202.5.
19 (5) In the case of an individual, trust, or estate, for
20 taxable years beginning on or after January 1, 2011, and
21 ending prior to January 1, 2015, an amount equal to 5% of
22 the taxpayer's net income for the taxable year.
23 (5.1) In the case of an individual, trust, or estate,
24 for taxable years beginning prior to January 1, 2015, and
25 ending after December 31, 2014, an amount equal to the sum
26 of (i) 5% of the taxpayer's net income for the period prior

HB4078- 149 -LRB100 13340 AXK 27924 b
1 to January 1, 2015, as calculated under Section 202.5, and
2 (ii) 3.75% of the taxpayer's net income for the period
3 after December 31, 2014, as calculated under Section 202.5.
4 (5.2) In the case of an individual, trust, or estate,
5 for taxable years beginning on or after January 1, 2015,
6 and ending prior to July 1, 2017 January 1, 2025, an amount
7 equal to 3.75% of the taxpayer's net income for the taxable
8 year.
9 (5.3) In the case of an individual, trust, or estate,
10 for taxable years beginning prior to July 1, 2017 January
11 1, 2025, and ending after June 30, 2017 December 31, 2024,
12 an amount equal to the sum of (i) 3.75% of the taxpayer's
13 net income for the period prior to July 1, 2017 January 1,
14 2025, as calculated under Section 202.5, and (ii) 4.95%
15 3.25% of the taxpayer's net income for the period after
16 June 30, 2017 December 31, 2024, as calculated under
17 Section 202.5.
18 (5.4) In the case of an individual, trust, or estate,
19 for taxable years beginning on or after July 1, 2017
20 January 1, 2025, an amount equal to 4.95% 3.25% of the
21 taxpayer's net income for the taxable year.
22 (6) In the case of a corporation, for taxable years
23 ending prior to July 1, 1989, an amount equal to 4% of the
24 taxpayer's net income for the taxable year.
25 (7) In the case of a corporation, for taxable years
26 beginning prior to July 1, 1989 and ending after June 30,

HB4078- 150 -LRB100 13340 AXK 27924 b
1 1989, an amount equal to the sum of (i) 4% of the
2 taxpayer's net income for the period prior to July 1, 1989,
3 as calculated under Section 202.3, and (ii) 4.8% of the
4 taxpayer's net income for the period after June 30, 1989,
5 as calculated under Section 202.3.
6 (8) In the case of a corporation, for taxable years
7 beginning after June 30, 1989, and ending prior to January
8 1, 2011, an amount equal to 4.8% of the taxpayer's net
9 income for the taxable year.
10 (9) In the case of a corporation, for taxable years
11 beginning prior to January 1, 2011, and ending after
12 December 31, 2010, an amount equal to the sum of (i) 4.8%
13 of the taxpayer's net income for the period prior to
14 January 1, 2011, as calculated under Section 202.5, and
15 (ii) 7% of the taxpayer's net income for the period after
16 December 31, 2010, as calculated under Section 202.5.
17 (10) In the case of a corporation, for taxable years
18 beginning on or after January 1, 2011, and ending prior to
19 January 1, 2015, an amount equal to 7% of the taxpayer's
20 net income for the taxable year.
21 (11) In the case of a corporation, for taxable years
22 beginning prior to January 1, 2015, and ending after
23 December 31, 2014, an amount equal to the sum of (i) 7% of
24 the taxpayer's net income for the period prior to January
25 1, 2015, as calculated under Section 202.5, and (ii) 5.25%
26 of the taxpayer's net income for the period after December

HB4078- 151 -LRB100 13340 AXK 27924 b
1 31, 2014, as calculated under Section 202.5.
2 (12) In the case of a corporation, for taxable years
3 beginning on or after January 1, 2015, and ending prior to
4 July 1, 2017 January 1, 2025, an amount equal to 5.25% of
5 the taxpayer's net income for the taxable year.
6 (13) In the case of a corporation, for taxable years
7 beginning prior to July 1, 2017 January 1, 2025, and ending
8 after June 30, 2017 December 31, 2024, an amount equal to
9 the sum of (i) 5.25% of the taxpayer's net income for the
10 period prior to July 1, 2017 January 1, 2025, as calculated
11 under Section 202.5, and (ii) 7% 4.8% of the taxpayer's net
12 income for the period after June 30, 2017 December 31,
13 2024, as calculated under Section 202.5.
14 (14) In the case of a corporation, for taxable years
15 beginning on or after July 1, 2017 January 1, 2025, an
16 amount equal to 7% 4.8% of the taxpayer's net income for
17 the taxable year.
18 The rates under this subsection (b) are subject to the
19provisions of Section 201.5.
20 (c) Personal Property Tax Replacement Income Tax.
21Beginning on July 1, 1979 and thereafter, in addition to such
22income tax, there is also hereby imposed the Personal Property
23Tax Replacement Income Tax measured by net income on every
24corporation (including Subchapter S corporations), partnership
25and trust, for each taxable year ending after June 30, 1979.
26Such taxes are imposed on the privilege of earning or receiving

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1income in or as a resident of this State. The Personal Property
2Tax Replacement Income Tax shall be in addition to the income
3tax imposed by subsections (a) and (b) of this Section and in
4addition to all other occupation or privilege taxes imposed by
5this State or by any municipal corporation or political
6subdivision thereof.
7 (d) Additional Personal Property Tax Replacement Income
8Tax Rates. The personal property tax replacement income tax
9imposed by this subsection and subsection (c) of this Section
10in the case of a corporation, other than a Subchapter S
11corporation and except as adjusted by subsection (d-1), shall
12be an additional amount equal to 2.85% of such taxpayer's net
13income for the taxable year, except that beginning on January
141, 1981, and thereafter, the rate of 2.85% specified in this
15subsection shall be reduced to 2.5%, and in the case of a
16partnership, trust or a Subchapter S corporation shall be an
17additional amount equal to 1.5% of such taxpayer's net income
18for the taxable year.
19 (d-1) Rate reduction for certain foreign insurers. In the
20case of a foreign insurer, as defined by Section 35A-5 of the
21Illinois Insurance Code, whose state or country of domicile
22imposes on insurers domiciled in Illinois a retaliatory tax
23(excluding any insurer whose premiums from reinsurance assumed
24are 50% or more of its total insurance premiums as determined
25under paragraph (2) of subsection (b) of Section 304, except
26that for purposes of this determination premiums from

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1reinsurance do not include premiums from inter-affiliate
2reinsurance arrangements), beginning with taxable years ending
3on or after December 31, 1999, the sum of the rates of tax
4imposed by subsections (b) and (d) shall be reduced (but not
5increased) to the rate at which the total amount of tax imposed
6under this Act, net of all credits allowed under this Act,
7shall equal (i) the total amount of tax that would be imposed
8on the foreign insurer's net income allocable to Illinois for
9the taxable year by such foreign insurer's state or country of
10domicile if that net income were subject to all income taxes
11and taxes measured by net income imposed by such foreign
12insurer's state or country of domicile, net of all credits
13allowed or (ii) a rate of zero if no such tax is imposed on such
14income by the foreign insurer's state of domicile. For the
15purposes of this subsection (d-1), an inter-affiliate includes
16a mutual insurer under common management.
17 (1) For the purposes of subsection (d-1), in no event
18 shall the sum of the rates of tax imposed by subsections
19 (b) and (d) be reduced below the rate at which the sum of:
20 (A) the total amount of tax imposed on such foreign
21 insurer under this Act for a taxable year, net of all
22 credits allowed under this Act, plus
23 (B) the privilege tax imposed by Section 409 of the
24 Illinois Insurance Code, the fire insurance company
25 tax imposed by Section 12 of the Fire Investigation
26 Act, and the fire department taxes imposed under

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1 Section 11-10-1 of the Illinois Municipal Code,
2 equals 1.25% for taxable years ending prior to December 31,
3 2003, or 1.75% for taxable years ending on or after
4 December 31, 2003, of the net taxable premiums written for
5 the taxable year, as described by subsection (1) of Section
6 409 of the Illinois Insurance Code. This paragraph will in
7 no event increase the rates imposed under subsections (b)
8 and (d).
9 (2) Any reduction in the rates of tax imposed by this
10 subsection shall be applied first against the rates imposed
11 by subsection (b) and only after the tax imposed by
12 subsection (a) net of all credits allowed under this
13 Section other than the credit allowed under subsection (i)
14 has been reduced to zero, against the rates imposed by
15 subsection (d).
16 This subsection (d-1) is exempt from the provisions of
17Section 250.
18 (e) Investment credit. A taxpayer shall be allowed a credit
19against the Personal Property Tax Replacement Income Tax for
20investment in qualified property.
21 (1) A taxpayer shall be allowed a credit equal to .5%
22 of the basis of qualified property placed in service during
23 the taxable year, provided such property is placed in
24 service on or after July 1, 1984. There shall be allowed an
25 additional credit equal to .5% of the basis of qualified
26 property placed in service during the taxable year,

HB4078- 155 -LRB100 13340 AXK 27924 b
1 provided such property is placed in service on or after
2 July 1, 1986, and the taxpayer's base employment within
3 Illinois has increased by 1% or more over the preceding
4 year as determined by the taxpayer's employment records
5 filed with the Illinois Department of Employment Security.
6 Taxpayers who are new to Illinois shall be deemed to have
7 met the 1% growth in base employment for the first year in
8 which they file employment records with the Illinois
9 Department of Employment Security. The provisions added to
10 this Section by Public Act 85-1200 (and restored by Public
11 Act 87-895) shall be construed as declaratory of existing
12 law and not as a new enactment. If, in any year, the
13 increase in base employment within Illinois over the
14 preceding year is less than 1%, the additional credit shall
15 be limited to that percentage times a fraction, the
16 numerator of which is .5% and the denominator of which is
17 1%, but shall not exceed .5%. The investment credit shall
18 not be allowed to the extent that it would reduce a
19 taxpayer's liability in any tax year below zero, nor may
20 any credit for qualified property be allowed for any year
21 other than the year in which the property was placed in
22 service in Illinois. For tax years ending on or after
23 December 31, 1987, and on or before December 31, 1988, the
24 credit shall be allowed for the tax year in which the
25 property is placed in service, or, if the amount of the
26 credit exceeds the tax liability for that year, whether it

HB4078- 156 -LRB100 13340 AXK 27924 b
1 exceeds the original liability or the liability as later
2 amended, such excess may be carried forward and applied to
3 the tax liability of the 5 taxable years following the
4 excess credit years if the taxpayer (i) makes investments
5 which cause the creation of a minimum of 2,000 full-time
6 equivalent jobs in Illinois, (ii) is located in an
7 enterprise zone established pursuant to the Illinois
8 Enterprise Zone Act and (iii) is certified by the
9 Department of Commerce and Community Affairs (now
10 Department of Commerce and Economic Opportunity) as
11 complying with the requirements specified in clause (i) and
12 (ii) by July 1, 1986. The Department of Commerce and
13 Community Affairs (now Department of Commerce and Economic
14 Opportunity) shall notify the Department of Revenue of all
15 such certifications immediately. For tax years ending
16 after December 31, 1988, the credit shall be allowed for
17 the tax year in which the property is placed in service,
18 or, if the amount of the credit exceeds the tax liability
19 for that year, whether it exceeds the original liability or
20 the liability as later amended, such excess may be carried
21 forward and applied to the tax liability of the 5 taxable
22 years following the excess credit years. The credit shall
23 be applied to the earliest year for which there is a
24 liability. If there is credit from more than one tax year
25 that is available to offset a liability, earlier credit
26 shall be applied first.

HB4078- 157 -LRB100 13340 AXK 27924 b
1 (2) The term "qualified property" means property
2 which:
3 (A) is tangible, whether new or used, including
4 buildings and structural components of buildings and
5 signs that are real property, but not including land or
6 improvements to real property that are not a structural
7 component of a building such as landscaping, sewer
8 lines, local access roads, fencing, parking lots, and
9 other appurtenances;
10 (B) is depreciable pursuant to Section 167 of the
11 Internal Revenue Code, except that "3-year property"
12 as defined in Section 168(c)(2)(A) of that Code is not
13 eligible for the credit provided by this subsection
14 (e);
15 (C) is acquired by purchase as defined in Section
16 179(d) of the Internal Revenue Code;
17 (D) is used in Illinois by a taxpayer who is
18 primarily engaged in manufacturing, or in mining coal
19 or fluorite, or in retailing, or was placed in service
20 on or after July 1, 2006 in a River Edge Redevelopment
21 Zone established pursuant to the River Edge
22 Redevelopment Zone Act; and
23 (E) has not previously been used in Illinois in
24 such a manner and by such a person as would qualify for
25 the credit provided by this subsection (e) or
26 subsection (f).

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1 (3) For purposes of this subsection (e),
2 "manufacturing" means the material staging and production
3 of tangible personal property by procedures commonly
4 regarded as manufacturing, processing, fabrication, or
5 assembling which changes some existing material into new
6 shapes, new qualities, or new combinations. For purposes of
7 this subsection (e) the term "mining" shall have the same
8 meaning as the term "mining" in Section 613(c) of the
9 Internal Revenue Code. For purposes of this subsection (e),
10 the term "retailing" means the sale of tangible personal
11 property for use or consumption and not for resale, or
12 services rendered in conjunction with the sale of tangible
13 personal property for use or consumption and not for
14 resale. For purposes of this subsection (e), "tangible
15 personal property" has the same meaning as when that term
16 is used in the Retailers' Occupation Tax Act, and, for
17 taxable years ending after December 31, 2008, does not
18 include the generation, transmission, or distribution of
19 electricity.
20 (4) The basis of qualified property shall be the basis
21 used to compute the depreciation deduction for federal
22 income tax purposes.
23 (5) If the basis of the property for federal income tax
24 depreciation purposes is increased after it has been placed
25 in service in Illinois by the taxpayer, the amount of such
26 increase shall be deemed property placed in service on the

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1 date of such increase in basis.
2 (6) The term "placed in service" shall have the same
3 meaning as under Section 46 of the Internal Revenue Code.
4 (7) If during any taxable year, any property ceases to
5 be qualified property in the hands of the taxpayer within
6 48 months after being placed in service, or the situs of
7 any qualified property is moved outside Illinois within 48
8 months after being placed in service, the Personal Property
9 Tax Replacement Income Tax for such taxable year shall be
10 increased. Such increase shall be determined by (i)
11 recomputing the investment credit which would have been
12 allowed for the year in which credit for such property was
13 originally allowed by eliminating such property from such
14 computation and, (ii) subtracting such recomputed credit
15 from the amount of credit previously allowed. For the
16 purposes of this paragraph (7), a reduction of the basis of
17 qualified property resulting from a redetermination of the
18 purchase price shall be deemed a disposition of qualified
19 property to the extent of such reduction.
20 (8) Unless the investment credit is extended by law,
21 the basis of qualified property shall not include costs
22 incurred after December 31, 2018, except for costs incurred
23 pursuant to a binding contract entered into on or before
24 December 31, 2018.
25 (9) Each taxable year ending before December 31, 2000,
26 a partnership may elect to pass through to its partners the

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1 credits to which the partnership is entitled under this
2 subsection (e) for the taxable year. A partner may use the
3 credit allocated to him or her under this paragraph only
4 against the tax imposed in subsections (c) and (d) of this
5 Section. If the partnership makes that election, those
6 credits shall be allocated among the partners in the
7 partnership in accordance with the rules set forth in
8 Section 704(b) of the Internal Revenue Code, and the rules
9 promulgated under that Section, and the allocated amount of
10 the credits shall be allowed to the partners for that
11 taxable year. The partnership shall make this election on
12 its Personal Property Tax Replacement Income Tax return for
13 that taxable year. The election to pass through the credits
14 shall be irrevocable.
15 For taxable years ending on or after December 31, 2000,
16 a partner that qualifies its partnership for a subtraction
17 under subparagraph (I) of paragraph (2) of subsection (d)
18 of Section 203 or a shareholder that qualifies a Subchapter
19 S corporation for a subtraction under subparagraph (S) of
20 paragraph (2) of subsection (b) of Section 203 shall be
21 allowed a credit under this subsection (e) equal to its
22 share of the credit earned under this subsection (e) during
23 the taxable year by the partnership or Subchapter S
24 corporation, determined in accordance with the
25 determination of income and distributive share of income
26 under Sections 702 and 704 and Subchapter S of the Internal

HB4078- 161 -LRB100 13340 AXK 27924 b
1 Revenue Code. This paragraph is exempt from the provisions
2 of Section 250.
3 (f) Investment credit; Enterprise Zone; River Edge
4Redevelopment Zone.
5 (1) A taxpayer shall be allowed a credit against the
6 tax imposed by subsections (a) and (b) of this Section for
7 investment in qualified property which is placed in service
8 in an Enterprise Zone created pursuant to the Illinois
9 Enterprise Zone Act or, for property placed in service on
10 or after July 1, 2006, a River Edge Redevelopment Zone
11 established pursuant to the River Edge Redevelopment Zone
12 Act. For partners, shareholders of Subchapter S
13 corporations, and owners of limited liability companies,
14 if the liability company is treated as a partnership for
15 purposes of federal and State income taxation, there shall
16 be allowed a credit under this subsection (f) to be
17 determined in accordance with the determination of income
18 and distributive share of income under Sections 702 and 704
19 and Subchapter S of the Internal Revenue Code. The credit
20 shall be .5% of the basis for such property. The credit
21 shall be available only in the taxable year in which the
22 property is placed in service in the Enterprise Zone or
23 River Edge Redevelopment Zone and shall not be allowed to
24 the extent that it would reduce a taxpayer's liability for
25 the tax imposed by subsections (a) and (b) of this Section
26 to below zero. For tax years ending on or after December

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1 31, 1985, the credit shall be allowed for the tax year in
2 which the property is placed in service, or, if the amount
3 of the credit exceeds the tax liability for that year,
4 whether it exceeds the original liability or the liability
5 as later amended, such excess may be carried forward and
6 applied to the tax liability of the 5 taxable years
7 following the excess credit year. The credit shall be
8 applied to the earliest year for which there is a
9 liability. If there is credit from more than one tax year
10 that is available to offset a liability, the credit
11 accruing first in time shall be applied first.
12 (2) The term qualified property means property which:
13 (A) is tangible, whether new or used, including
14 buildings and structural components of buildings;
15 (B) is depreciable pursuant to Section 167 of the
16 Internal Revenue Code, except that "3-year property"
17 as defined in Section 168(c)(2)(A) of that Code is not
18 eligible for the credit provided by this subsection
19 (f);
20 (C) is acquired by purchase as defined in Section
21 179(d) of the Internal Revenue Code;
22 (D) is used in the Enterprise Zone or River Edge
23 Redevelopment Zone by the taxpayer; and
24 (E) has not been previously used in Illinois in
25 such a manner and by such a person as would qualify for
26 the credit provided by this subsection (f) or

HB4078- 163 -LRB100 13340 AXK 27924 b
1 subsection (e).
2 (3) The basis of qualified property shall be the basis
3 used to compute the depreciation deduction for federal
4 income tax purposes.
5 (4) If the basis of the property for federal income tax
6 depreciation purposes is increased after it has been placed
7 in service in the Enterprise Zone or River Edge
8 Redevelopment Zone by the taxpayer, the amount of such
9 increase shall be deemed property placed in service on the
10 date of such increase in basis.
11 (5) The term "placed in service" shall have the same
12 meaning as under Section 46 of the Internal Revenue Code.
13 (6) If during any taxable year, any property ceases to
14 be qualified property in the hands of the taxpayer within
15 48 months after being placed in service, or the situs of
16 any qualified property is moved outside the Enterprise Zone
17 or River Edge Redevelopment Zone within 48 months after
18 being placed in service, the tax imposed under subsections
19 (a) and (b) of this Section for such taxable year shall be
20 increased. Such increase shall be determined by (i)
21 recomputing the investment credit which would have been
22 allowed for the year in which credit for such property was
23 originally allowed by eliminating such property from such
24 computation, and (ii) subtracting such recomputed credit
25 from the amount of credit previously allowed. For the
26 purposes of this paragraph (6), a reduction of the basis of

HB4078- 164 -LRB100 13340 AXK 27924 b
1 qualified property resulting from a redetermination of the
2 purchase price shall be deemed a disposition of qualified
3 property to the extent of such reduction.
4 (7) There shall be allowed an additional credit equal
5 to 0.5% of the basis of qualified property placed in
6 service during the taxable year in a River Edge
7 Redevelopment Zone, provided such property is placed in
8 service on or after July 1, 2006, and the taxpayer's base
9 employment within Illinois has increased by 1% or more over
10 the preceding year as determined by the taxpayer's
11 employment records filed with the Illinois Department of
12 Employment Security. Taxpayers who are new to Illinois
13 shall be deemed to have met the 1% growth in base
14 employment for the first year in which they file employment
15 records with the Illinois Department of Employment
16 Security. If, in any year, the increase in base employment
17 within Illinois over the preceding year is less than 1%,
18 the additional credit shall be limited to that percentage
19 times a fraction, the numerator of which is 0.5% and the
20 denominator of which is 1%, but shall not exceed 0.5%.
21 (g) (Blank).
22 (h) Investment credit; High Impact Business.
23 (1) Subject to subsections (b) and (b-5) of Section 5.5
24 of the Illinois Enterprise Zone Act, a taxpayer shall be
25 allowed a credit against the tax imposed by subsections (a)
26 and (b) of this Section for investment in qualified

HB4078- 165 -LRB100 13340 AXK 27924 b
1 property which is placed in service by a Department of
2 Commerce and Economic Opportunity designated High Impact
3 Business. The credit shall be .5% of the basis for such
4 property. The credit shall not be available (i) until the
5 minimum investments in qualified property set forth in
6 subdivision (a)(3)(A) of Section 5.5 of the Illinois
7 Enterprise Zone Act have been satisfied or (ii) until the
8 time authorized in subsection (b-5) of the Illinois
9 Enterprise Zone Act for entities designated as High Impact
10 Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
11 (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
12 Act, and shall not be allowed to the extent that it would
13 reduce a taxpayer's liability for the tax imposed by
14 subsections (a) and (b) of this Section to below zero. The
15 credit applicable to such investments shall be taken in the
16 taxable year in which such investments have been completed.
17 The credit for additional investments beyond the minimum
18 investment by a designated high impact business authorized
19 under subdivision (a)(3)(A) of Section 5.5 of the Illinois
20 Enterprise Zone Act shall be available only in the taxable
21 year in which the property is placed in service and shall
22 not be allowed to the extent that it would reduce a
23 taxpayer's liability for the tax imposed by subsections (a)
24 and (b) of this Section to below zero. For tax years ending
25 on or after December 31, 1987, the credit shall be allowed
26 for the tax year in which the property is placed in

HB4078- 166 -LRB100 13340 AXK 27924 b
1 service, or, if the amount of the credit exceeds the tax
2 liability for that year, whether it exceeds the original
3 liability or the liability as later amended, such excess
4 may be carried forward and applied to the tax liability of
5 the 5 taxable years following the excess credit year. The
6 credit shall be applied to the earliest year for which
7 there is a liability. If there is credit from more than one
8 tax year that is available to offset a liability, the
9 credit accruing first in time shall be applied first.
10 Changes made in this subdivision (h)(1) by Public Act
11 88-670 restore changes made by Public Act 85-1182 and
12 reflect existing law.
13 (2) The term qualified property means property which:
14 (A) is tangible, whether new or used, including
15 buildings and structural components of buildings;
16 (B) is depreciable pursuant to Section 167 of the
17 Internal Revenue Code, except that "3-year property"
18 as defined in Section 168(c)(2)(A) of that Code is not
19 eligible for the credit provided by this subsection
20 (h);
21 (C) is acquired by purchase as defined in Section
22 179(d) of the Internal Revenue Code; and
23 (D) is not eligible for the Enterprise Zone
24 Investment Credit provided by subsection (f) of this
25 Section.
26 (3) The basis of qualified property shall be the basis

HB4078- 167 -LRB100 13340 AXK 27924 b
1 used to compute the depreciation deduction for federal
2 income tax purposes.
3 (4) If the basis of the property for federal income tax
4 depreciation purposes is increased after it has been placed
5 in service in a federally designated Foreign Trade Zone or
6 Sub-Zone located in Illinois by the taxpayer, the amount of
7 such increase shall be deemed property placed in service on
8 the date of such increase in basis.
9 (5) The term "placed in service" shall have the same
10 meaning as under Section 46 of the Internal Revenue Code.
11 (6) If during any taxable year ending on or before
12 December 31, 1996, any property ceases to be qualified
13 property in the hands of the taxpayer within 48 months
14 after being placed in service, or the situs of any
15 qualified property is moved outside Illinois within 48
16 months after being placed in service, the tax imposed under
17 subsections (a) and (b) of this Section for such taxable
18 year shall be increased. Such increase shall be determined
19 by (i) recomputing the investment credit which would have
20 been allowed for the year in which credit for such property
21 was originally allowed by eliminating such property from
22 such computation, and (ii) subtracting such recomputed
23 credit from the amount of credit previously allowed. For
24 the purposes of this paragraph (6), a reduction of the
25 basis of qualified property resulting from a
26 redetermination of the purchase price shall be deemed a

HB4078- 168 -LRB100 13340 AXK 27924 b
1 disposition of qualified property to the extent of such
2 reduction.
3 (7) Beginning with tax years ending after December 31,
4 1996, if a taxpayer qualifies for the credit under this
5 subsection (h) and thereby is granted a tax abatement and
6 the taxpayer relocates its entire facility in violation of
7 the explicit terms and length of the contract under Section
8 18-183 of the Property Tax Code, the tax imposed under
9 subsections (a) and (b) of this Section shall be increased
10 for the taxable year in which the taxpayer relocated its
11 facility by an amount equal to the amount of credit
12 received by the taxpayer under this subsection (h).
13 (i) Credit for Personal Property Tax Replacement Income
14Tax. For tax years ending prior to December 31, 2003, a credit
15shall be allowed against the tax imposed by subsections (a) and
16(b) of this Section for the tax imposed by subsections (c) and
17(d) of this Section. This credit shall be computed by
18multiplying the tax imposed by subsections (c) and (d) of this
19Section by a fraction, the numerator of which is base income
20allocable to Illinois and the denominator of which is Illinois
21base income, and further multiplying the product by the tax
22rate imposed by subsections (a) and (b) of this Section.
23 Any credit earned on or after December 31, 1986 under this
24subsection which is unused in the year the credit is computed
25because it exceeds the tax liability imposed by subsections (a)
26and (b) for that year (whether it exceeds the original

HB4078- 169 -LRB100 13340 AXK 27924 b
1liability or the liability as later amended) may be carried
2forward and applied to the tax liability imposed by subsections
3(a) and (b) of the 5 taxable years following the excess credit
4year, provided that no credit may be carried forward to any
5year ending on or after December 31, 2003. This credit shall be
6applied first to the earliest year for which there is a
7liability. If there is a credit under this subsection from more
8than one tax year that is available to offset a liability the
9earliest credit arising under this subsection shall be applied
10first.
11 If, during any taxable year ending on or after December 31,
121986, the tax imposed by subsections (c) and (d) of this
13Section for which a taxpayer has claimed a credit under this
14subsection (i) is reduced, the amount of credit for such tax
15shall also be reduced. Such reduction shall be determined by
16recomputing the credit to take into account the reduced tax
17imposed by subsections (c) and (d). If any portion of the
18reduced amount of credit has been carried to a different
19taxable year, an amended return shall be filed for such taxable
20year to reduce the amount of credit claimed.
21 (j) Training expense credit. Beginning with tax years
22ending on or after December 31, 1986 and prior to December 31,
232003, a taxpayer shall be allowed a credit against the tax
24imposed by subsections (a) and (b) under this Section for all
25amounts paid or accrued, on behalf of all persons employed by
26the taxpayer in Illinois or Illinois residents employed outside

HB4078- 170 -LRB100 13340 AXK 27924 b
1of Illinois by a taxpayer, for educational or vocational
2training in semi-technical or technical fields or semi-skilled
3or skilled fields, which were deducted from gross income in the
4computation of taxable income. The credit against the tax
5imposed by subsections (a) and (b) shall be 1.6% of such
6training expenses. For partners, shareholders of subchapter S
7corporations, and owners of limited liability companies, if the
8liability company is treated as a partnership for purposes of
9federal and State income taxation, there shall be allowed a
10credit under this subsection (j) to be determined in accordance
11with the determination of income and distributive share of
12income under Sections 702 and 704 and subchapter S of the
13Internal Revenue Code.
14 Any credit allowed under this subsection which is unused in
15the year the credit is earned may be carried forward to each of
16the 5 taxable years following the year for which the credit is
17first computed until it is used. This credit shall be applied
18first to the earliest year for which there is a liability. If
19there is a credit under this subsection from more than one tax
20year that is available to offset a liability the earliest
21credit arising under this subsection shall be applied first. No
22carryforward credit may be claimed in any tax year ending on or
23after December 31, 2003.
24 (k) Research and development credit. For tax years ending
25after July 1, 1990 and prior to December 31, 2003, and
26beginning again for tax years ending on or after December 31,

HB4078- 171 -LRB100 13340 AXK 27924 b
12004, and ending prior to January 1, 2022 January 1, 2016, a
2taxpayer shall be allowed a credit against the tax imposed by
3subsections (a) and (b) of this Section for increasing research
4activities in this State. The credit allowed against the tax
5imposed by subsections (a) and (b) shall be equal to 6 1/2% of
6the qualifying expenditures for increasing research activities
7in this State. For partners, shareholders of subchapter S
8corporations, and owners of limited liability companies, if the
9liability company is treated as a partnership for purposes of
10federal and State income taxation, there shall be allowed a
11credit under this subsection to be determined in accordance
12with the determination of income and distributive share of
13income under Sections 702 and 704 and subchapter S of the
14Internal Revenue Code.
15 For purposes of this subsection, "qualifying expenditures"
16means the qualifying expenditures as defined for the federal
17credit for increasing research activities which would be
18allowable under Section 41 of the Internal Revenue Code and
19which are conducted in this State, "qualifying expenditures for
20increasing research activities in this State" means the excess
21of qualifying expenditures for the taxable year in which
22incurred over qualifying expenditures for the base period,
23"qualifying expenditures for the base period" means the average
24of the qualifying expenditures for each year in the base
25period, and "base period" means the 3 taxable years immediately
26preceding the taxable year for which the determination is being

HB4078- 172 -LRB100 13340 AXK 27924 b
1made.
2 Any credit in excess of the tax liability for the taxable
3year may be carried forward. A taxpayer may elect to have the
4unused credit shown on its final completed return carried over
5as a credit against the tax liability for the following 5
6taxable years or until it has been fully used, whichever occurs
7first; provided that no credit earned in a tax year ending
8prior to December 31, 2003 may be carried forward to any year
9ending on or after December 31, 2003.
10 If an unused credit is carried forward to a given year from
112 or more earlier years, that credit arising in the earliest
12year will be applied first against the tax liability for the
13given year. If a tax liability for the given year still
14remains, the credit from the next earliest year will then be
15applied, and so on, until all credits have been used or no tax
16liability for the given year remains. Any remaining unused
17credit or credits then will be carried forward to the next
18following year in which a tax liability is incurred, except
19that no credit can be carried forward to a year which is more
20than 5 years after the year in which the expense for which the
21credit is given was incurred.
22 No inference shall be drawn from this amendatory Act of the
2391st General Assembly in construing this Section for taxable
24years beginning before January 1, 1999.
25 It is the intent of the General Assembly that the research
26and development credit under this subsection (k) shall apply

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1continuously for all tax years ending on or after December 31,
22004 and ending prior to January 1, 2022, including, but not
3limited to, the period beginning on January 1, 2016 and ending
4on the effective date of this amendatory Act of the 100th
5General Assembly. All actions taken in reliance on the
6continuation of the credit under this subsection (k) by any
7taxpayer are hereby validated.
8 (l) Environmental Remediation Tax Credit.
9 (i) For tax years ending after December 31, 1997 and on
10 or before December 31, 2001, a taxpayer shall be allowed a
11 credit against the tax imposed by subsections (a) and (b)
12 of this Section for certain amounts paid for unreimbursed
13 eligible remediation costs, as specified in this
14 subsection. For purposes of this Section, "unreimbursed
15 eligible remediation costs" means costs approved by the
16 Illinois Environmental Protection Agency ("Agency") under
17 Section 58.14 of the Environmental Protection Act that were
18 paid in performing environmental remediation at a site for
19 which a No Further Remediation Letter was issued by the
20 Agency and recorded under Section 58.10 of the
21 Environmental Protection Act. The credit must be claimed
22 for the taxable year in which Agency approval of the
23 eligible remediation costs is granted. The credit is not
24 available to any taxpayer if the taxpayer or any related
25 party caused or contributed to, in any material respect, a
26 release of regulated substances on, in, or under the site

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1 that was identified and addressed by the remedial action
2 pursuant to the Site Remediation Program of the
3 Environmental Protection Act. After the Pollution Control
4 Board rules are adopted pursuant to the Illinois
5 Administrative Procedure Act for the administration and
6 enforcement of Section 58.9 of the Environmental
7 Protection Act, determinations as to credit availability
8 for purposes of this Section shall be made consistent with
9 those rules. For purposes of this Section, "taxpayer"
10 includes a person whose tax attributes the taxpayer has
11 succeeded to under Section 381 of the Internal Revenue Code
12 and "related party" includes the persons disallowed a
13 deduction for losses by paragraphs (b), (c), and (f)(1) of
14 Section 267 of the Internal Revenue Code by virtue of being
15 a related taxpayer, as well as any of its partners. The
16 credit allowed against the tax imposed by subsections (a)
17 and (b) shall be equal to 25% of the unreimbursed eligible
18 remediation costs in excess of $100,000 per site, except
19 that the $100,000 threshold shall not apply to any site
20 contained in an enterprise zone as determined by the
21 Department of Commerce and Community Affairs (now
22 Department of Commerce and Economic Opportunity). The
23 total credit allowed shall not exceed $40,000 per year with
24 a maximum total of $150,000 per site. For partners and
25 shareholders of subchapter S corporations, there shall be
26 allowed a credit under this subsection to be determined in

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1 accordance with the determination of income and
2 distributive share of income under Sections 702 and 704 and
3 subchapter S of the Internal Revenue Code.
4 (ii) A credit allowed under this subsection that is
5 unused in the year the credit is earned may be carried
6 forward to each of the 5 taxable years following the year
7 for which the credit is first earned until it is used. The
8 term "unused credit" does not include any amounts of
9 unreimbursed eligible remediation costs in excess of the
10 maximum credit per site authorized under paragraph (i).
11 This credit shall be applied first to the earliest year for
12 which there is a liability. If there is a credit under this
13 subsection from more than one tax year that is available to
14 offset a liability, the earliest credit arising under this
15 subsection shall be applied first. A credit allowed under
16 this subsection may be sold to a buyer as part of a sale of
17 all or part of the remediation site for which the credit
18 was granted. The purchaser of a remediation site and the
19 tax credit shall succeed to the unused credit and remaining
20 carry-forward period of the seller. To perfect the
21 transfer, the assignor shall record the transfer in the
22 chain of title for the site and provide written notice to
23 the Director of the Illinois Department of Revenue of the
24 assignor's intent to sell the remediation site and the
25 amount of the tax credit to be transferred as a portion of
26 the sale. In no event may a credit be transferred to any

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1 taxpayer if the taxpayer or a related party would not be
2 eligible under the provisions of subsection (i).
3 (iii) For purposes of this Section, the term "site"
4 shall have the same meaning as under Section 58.2 of the
5 Environmental Protection Act.
6 (m) Education expense credit. Beginning with tax years
7ending after December 31, 1999, a taxpayer who is the custodian
8of one or more qualifying pupils shall be allowed a credit
9against the tax imposed by subsections (a) and (b) of this
10Section for qualified education expenses incurred on behalf of
11the qualifying pupils. The credit shall be equal to 25% of
12qualified education expenses, but in no event may the total
13credit under this subsection claimed by a family that is the
14custodian of qualifying pupils exceed (i) $500 for tax years
15ending prior to December 31, 2017, and (ii) $750 for tax years
16ending on or after December 31, 2017. In no event shall a
17credit under this subsection reduce the taxpayer's liability
18under this Act to less than zero. Notwithstanding any other
19provision of law, for taxable years beginning on or after
20January 1, 2017, no taxpayer may claim a credit under this
21subsection (m) if the taxpayer's adjusted gross income for the
22taxable year exceeds (i) $500,000, in the case of spouses
23filing a joint federal tax return or (ii) $250,000, in the case
24of all other taxpayers. This subsection is exempt from the
25provisions of Section 250 of this Act.
26 For purposes of this subsection:

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1 "Qualifying pupils" means individuals who (i) are
2residents of the State of Illinois, (ii) are under the age of
321 at the close of the school year for which a credit is
4sought, and (iii) during the school year for which a credit is
5sought were full-time pupils enrolled in a kindergarten through
6twelfth grade education program at any school, as defined in
7this subsection.
8 "Qualified education expense" means the amount incurred on
9behalf of a qualifying pupil in excess of $250 for tuition,
10book fees, and lab fees at the school in which the pupil is
11enrolled during the regular school year.
12 "School" means any public or nonpublic elementary or
13secondary school in Illinois that is in compliance with Title
14VI of the Civil Rights Act of 1964 and attendance at which
15satisfies the requirements of Section 26-1 of the School Code,
16except that nothing shall be construed to require a child to
17attend any particular public or nonpublic school to qualify for
18the credit under this Section.
19 "Custodian" means, with respect to qualifying pupils, an
20Illinois resident who is a parent, the parents, a legal
21guardian, or the legal guardians of the qualifying pupils.
22 (n) River Edge Redevelopment Zone site remediation tax
23credit.
24 (i) For tax years ending on or after December 31, 2006,
25 a taxpayer shall be allowed a credit against the tax
26 imposed by subsections (a) and (b) of this Section for

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1 certain amounts paid for unreimbursed eligible remediation
2 costs, as specified in this subsection. For purposes of
3 this Section, "unreimbursed eligible remediation costs"
4 means costs approved by the Illinois Environmental
5 Protection Agency ("Agency") under Section 58.14a of the
6 Environmental Protection Act that were paid in performing
7 environmental remediation at a site within a River Edge
8 Redevelopment Zone for which a No Further Remediation
9 Letter was issued by the Agency and recorded under Section
10 58.10 of the Environmental Protection Act. The credit must
11 be claimed for the taxable year in which Agency approval of
12 the eligible remediation costs is granted. The credit is
13 not available to any taxpayer if the taxpayer or any
14 related party caused or contributed to, in any material
15 respect, a release of regulated substances on, in, or under
16 the site that was identified and addressed by the remedial
17 action pursuant to the Site Remediation Program of the
18 Environmental Protection Act. Determinations as to credit
19 availability for purposes of this Section shall be made
20 consistent with rules adopted by the Pollution Control
21 Board pursuant to the Illinois Administrative Procedure
22 Act for the administration and enforcement of Section 58.9
23 of the Environmental Protection Act. For purposes of this
24 Section, "taxpayer" includes a person whose tax attributes
25 the taxpayer has succeeded to under Section 381 of the
26 Internal Revenue Code and "related party" includes the

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1 persons disallowed a deduction for losses by paragraphs
2 (b), (c), and (f)(1) of Section 267 of the Internal Revenue
3 Code by virtue of being a related taxpayer, as well as any
4 of its partners. The credit allowed against the tax imposed
5 by subsections (a) and (b) shall be equal to 25% of the
6 unreimbursed eligible remediation costs in excess of
7 $100,000 per site.
8 (ii) A credit allowed under this subsection that is
9 unused in the year the credit is earned may be carried
10 forward to each of the 5 taxable years following the year
11 for which the credit is first earned until it is used. This
12 credit shall be applied first to the earliest year for
13 which there is a liability. If there is a credit under this
14 subsection from more than one tax year that is available to
15 offset a liability, the earliest credit arising under this
16 subsection shall be applied first. A credit allowed under
17 this subsection may be sold to a buyer as part of a sale of
18 all or part of the remediation site for which the credit
19 was granted. The purchaser of a remediation site and the
20 tax credit shall succeed to the unused credit and remaining
21 carry-forward period of the seller. To perfect the
22 transfer, the assignor shall record the transfer in the
23 chain of title for the site and provide written notice to
24 the Director of the Illinois Department of Revenue of the
25 assignor's intent to sell the remediation site and the
26 amount of the tax credit to be transferred as a portion of

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1 the sale. In no event may a credit be transferred to any
2 taxpayer if the taxpayer or a related party would not be
3 eligible under the provisions of subsection (i).
4 (iii) For purposes of this Section, the term "site"
5 shall have the same meaning as under Section 58.2 of the
6 Environmental Protection Act.
7 (o) For each of taxable years during the Compassionate Use
8of Medical Cannabis Pilot Program, a surcharge is imposed on
9all taxpayers on income arising from the sale or exchange of
10capital assets, depreciable business property, real property
11used in the trade or business, and Section 197 intangibles of
12an organization registrant under the Compassionate Use of
13Medical Cannabis Pilot Program Act. The amount of the surcharge
14is equal to the amount of federal income tax liability for the
15taxable year attributable to those sales and exchanges. The
16surcharge imposed does not apply if:
17 (1) the medical cannabis cultivation center
18 registration, medical cannabis dispensary registration, or
19 the property of a registration is transferred as a result
20 of any of the following:
21 (A) bankruptcy, a receivership, or a debt
22 adjustment initiated by or against the initial
23 registration or the substantial owners of the initial
24 registration;
25 (B) cancellation, revocation, or termination of
26 any registration by the Illinois Department of Public

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1 Health;
2 (C) a determination by the Illinois Department of
3 Public Health that transfer of the registration is in
4 the best interests of Illinois qualifying patients as
5 defined by the Compassionate Use of Medical Cannabis
6 Pilot Program Act;
7 (D) the death of an owner of the equity interest in
8 a registrant;
9 (E) the acquisition of a controlling interest in
10 the stock or substantially all of the assets of a
11 publicly traded company;
12 (F) a transfer by a parent company to a wholly
13 owned subsidiary; or
14 (G) the transfer or sale to or by one person to
15 another person where both persons were initial owners
16 of the registration when the registration was issued;
17 or
18 (2) the cannabis cultivation center registration,
19 medical cannabis dispensary registration, or the
20 controlling interest in a registrant's property is
21 transferred in a transaction to lineal descendants in which
22 no gain or loss is recognized or as a result of a
23 transaction in accordance with Section 351 of the Internal
24 Revenue Code in which no gain or loss is recognized.
25(Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905,
26eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; 98-756,

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1eff. 7-16-14; 10000SB0009ham003.)
2 (35 ILCS 5/202.5)
3 Sec. 202.5. Net income attributable to the period beginning
4prior to the first day of a month and ending after the last day
5of the preceding month January 1 of any year and ending after
6December 31 of the preceding year.
7 (a) In general. With respect to the taxable year of a
8taxpayer beginning prior to the first day of a month and ending
9after the last day of the preceding month January 1 of any year
10and ending after December 31 of the preceding year, net income
11for the period after the last day of the preceding month
12December 31 of the preceding year, is that amount that bears
13the same ratio to the taxpayer's net income for the entire
14taxable year as the number of days in that taxable year after
15the last day of the preceding month December 31 bears to the
16total number of days in that taxable year, and the net income
17for the period prior to the first day of the month January 1 is
18that amount that bears the same ratio to the taxpayer's net
19income for the entire taxable year as the number of days in
20that taxable year prior to the first day of the month January 1
21bears to the total number of days in that taxable year.
22 (b) Election to attribute income and deduction items
23specifically to the respective portions of a taxable year prior
24to the first day of a month and ending after the last day of the
25preceding month January 1 of any year and after December 31 of

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1the preceding year. In the case of a taxpayer with a taxable
2year beginning prior to the first day of a month and ending
3after the last day of the preceding month January 1 of any year
4and ending after December 31 of the preceding year, the
5taxpayer may elect, instead of the procedure established in
6subsection (a) of this Section, to determine net income on a
7specific accounting basis for the 2 portions of the taxable
8year:
9 (1) from the beginning of the taxable year through the
10 last day of that apportionment period December 31; and
11 (2) from the first day of the next apportionment period
12 January 1 through the end of the taxable year.
13 The election provided by this subsection must be made in
14the form and manner that the Department requires by rule, and
15must be made no later than the due date (including any
16extensions thereof) for the filing of the return for the
17taxable year, and is irrevocable.
18 (c) If the taxpayer elects specific accounting under
19subsection (b):
20 (1) there shall be taken into account in computing base
21 income for each of the 2 portions of the taxable year only
22 those items earned, received, paid, incurred or accrued in
23 each such period;
24 (2) for purposes of apportioning business income of the
25 taxpayer, the provisions in Article 3 shall be applied on
26 the basis of the taxpayer's full taxable year, without

HB4078- 184 -LRB100 13340 AXK 27924 b
1 regard to this Section;
2 (3) the exemption provided by Section 204 shall be
3 divided between the respective periods in amounts which
4 bear the same ratio to the total exemption allowable under
5 Section 204 (determined without regard to this Section) as
6 the total number of days in each period bears to the total
7 number of days in the taxable year;
8 (4) for purposes of this subsection, net income may not
9 be negative for either of the two portions of the taxable
10 year and positive for the other; if net income for one
11 portion of the taxable year would be positive and net
12 income for the other portion would otherwise be negative,
13 the net income for the entire taxable year shall be
14 attributed to the portion of the taxable year with positive
15 net income and the net income for the other portion of the
16 taxable year shall be zero; and
17 (5) the net loss carryforward deduction for the taxable
18 year under Section 207 may not exceed combined net income
19 of both portions of the taxable year, and shall be used
20 against the net income of the portion of the taxable year
21 from the beginning of the taxable year through the last day
22 of the preceding month December 31 before any remaining
23 amount is used against the net income of the latter portion
24 of the taxable year.
25(Source: P.A. 96-1496, eff. 1-13-11; 10000SB0009ham003.)

HB4078- 185 -LRB100 13340 AXK 27924 b
1 (35 ILCS 5/203) (from Ch. 120, par. 2-203)
2 Sec. 203. Base income defined.
3 (a) Individuals.
4 (1) In general. In the case of an individual, base
5 income means an amount equal to the taxpayer's adjusted
6 gross income for the taxable year as modified by paragraph
7 (2).
8 (2) Modifications. The adjusted gross income referred
9 to in paragraph (1) shall be modified by adding thereto the
10 sum of the following amounts:
11 (A) An amount equal to all amounts paid or accrued
12 to the taxpayer as interest or dividends during the
13 taxable year to the extent excluded from gross income
14 in the computation of adjusted gross income, except
15 stock dividends of qualified public utilities
16 described in Section 305(e) of the Internal Revenue
17 Code;
18 (B) An amount equal to the amount of tax imposed by
19 this Act to the extent deducted from gross income in
20 the computation of adjusted gross income for the
21 taxable year;
22 (C) An amount equal to the amount received during
23 the taxable year as a recovery or refund of real
24 property taxes paid with respect to the taxpayer's
25 principal residence under the Revenue Act of 1939 and
26 for which a deduction was previously taken under

HB4078- 186 -LRB100 13340 AXK 27924 b
1 subparagraph (L) of this paragraph (2) prior to July 1,
2 1991, the retrospective application date of Article 4
3 of Public Act 87-17. In the case of multi-unit or
4 multi-use structures and farm dwellings, the taxes on
5 the taxpayer's principal residence shall be that
6 portion of the total taxes for the entire property
7 which is attributable to such principal residence;
8 (D) An amount equal to the amount of the capital
9 gain deduction allowable under the Internal Revenue
10 Code, to the extent deducted from gross income in the
11 computation of adjusted gross income;
12 (D-5) An amount, to the extent not included in
13 adjusted gross income, equal to the amount of money
14 withdrawn by the taxpayer in the taxable year from a
15 medical care savings account and the interest earned on
16 the account in the taxable year of a withdrawal
17 pursuant to subsection (b) of Section 20 of the Medical
18 Care Savings Account Act or subsection (b) of Section
19 20 of the Medical Care Savings Account Act of 2000;
20 (D-10) For taxable years ending after December 31,
21 1997, an amount equal to any eligible remediation costs
22 that the individual deducted in computing adjusted
23 gross income and for which the individual claims a
24 credit under subsection (l) of Section 201;
25 (D-15) For taxable years 2001 and thereafter, an
26 amount equal to the bonus depreciation deduction taken

HB4078- 187 -LRB100 13340 AXK 27924 b
1 on the taxpayer's federal income tax return for the
2 taxable year under subsection (k) of Section 168 of the
3 Internal Revenue Code;
4 (D-16) If the taxpayer sells, transfers, abandons,
5 or otherwise disposes of property for which the
6 taxpayer was required in any taxable year to make an
7 addition modification under subparagraph (D-15), then
8 an amount equal to the aggregate amount of the
9 deductions taken in all taxable years under
10 subparagraph (Z) with respect to that property.
11 If the taxpayer continues to own property through
12 the last day of the last tax year for which the
13 taxpayer may claim a depreciation deduction for
14 federal income tax purposes and for which the taxpayer
15 was allowed in any taxable year to make a subtraction
16 modification under subparagraph (Z), then an amount
17 equal to that subtraction modification.
18 The taxpayer is required to make the addition
19 modification under this subparagraph only once with
20 respect to any one piece of property;
21 (D-17) An amount equal to the amount otherwise
22 allowed as a deduction in computing base income for
23 interest paid, accrued, or incurred, directly or
24 indirectly, (i) for taxable years ending on or after
25 December 31, 2004, to a foreign person who would be a
26 member of the same unitary business group but for the

HB4078- 188 -LRB100 13340 AXK 27924 b
1 fact that foreign person's business activity outside
2 the United States is 80% or more of the foreign
3 person's total business activity and (ii) for taxable
4 years ending on or after December 31, 2008, to a person
5 who would be a member of the same unitary business
6 group but for the fact that the person is prohibited
7 under Section 1501(a)(27) from being included in the
8 unitary business group because he or she is ordinarily
9 required to apportion business income under different
10 subsections of Section 304. The addition modification
11 required by this subparagraph shall be reduced to the
12 extent that dividends were included in base income of
13 the unitary group for the same taxable year and
14 received by the taxpayer or by a member of the
15 taxpayer's unitary business group (including amounts
16 included in gross income under Sections 951 through 964
17 of the Internal Revenue Code and amounts included in
18 gross income under Section 78 of the Internal Revenue
19 Code) with respect to the stock of the same person to
20 whom the interest was paid, accrued, or incurred.
21 This paragraph shall not apply to the following:
22 (i) an item of interest paid, accrued, or
23 incurred, directly or indirectly, to a person who
24 is subject in a foreign country or state, other
25 than a state which requires mandatory unitary
26 reporting, to a tax on or measured by net income

HB4078- 189 -LRB100 13340 AXK 27924 b
1 with respect to such interest; or
2 (ii) an item of interest paid, accrued, or
3 incurred, directly or indirectly, to a person if
4 the taxpayer can establish, based on a
5 preponderance of the evidence, both of the
6 following:
7 (a) the person, during the same taxable
8 year, paid, accrued, or incurred, the interest
9 to a person that is not a related member, and
10 (b) the transaction giving rise to the
11 interest expense between the taxpayer and the
12 person did not have as a principal purpose the
13 avoidance of Illinois income tax, and is paid
14 pursuant to a contract or agreement that
15 reflects an arm's-length interest rate and
16 terms; or
17 (iii) the taxpayer can establish, based on
18 clear and convincing evidence, that the interest
19 paid, accrued, or incurred relates to a contract or
20 agreement entered into at arm's-length rates and
21 terms and the principal purpose for the payment is
22 not federal or Illinois tax avoidance; or
23 (iv) an item of interest paid, accrued, or
24 incurred, directly or indirectly, to a person if
25 the taxpayer establishes by clear and convincing
26 evidence that the adjustments are unreasonable; or

HB4078- 190 -LRB100 13340 AXK 27924 b
1 if the taxpayer and the Director agree in writing
2 to the application or use of an alternative method
3 of apportionment under Section 304(f).
4 Nothing in this subsection shall preclude the
5 Director from making any other adjustment
6 otherwise allowed under Section 404 of this Act for
7 any tax year beginning after the effective date of
8 this amendment provided such adjustment is made
9 pursuant to regulation adopted by the Department
10 and such regulations provide methods and standards
11 by which the Department will utilize its authority
12 under Section 404 of this Act;
13 (D-18) An amount equal to the amount of intangible
14 expenses and costs otherwise allowed as a deduction in
15 computing base income, and that were paid, accrued, or
16 incurred, directly or indirectly, (i) for taxable
17 years ending on or after December 31, 2004, to a
18 foreign person who would be a member of the same
19 unitary business group but for the fact that the
20 foreign person's business activity outside the United
21 States is 80% or more of that person's total business
22 activity and (ii) for taxable years ending on or after
23 December 31, 2008, to a person who would be a member of
24 the same unitary business group but for the fact that
25 the person is prohibited under Section 1501(a)(27)
26 from being included in the unitary business group

HB4078- 191 -LRB100 13340 AXK 27924 b
1 because he or she is ordinarily required to apportion
2 business income under different subsections of Section
3 304. The addition modification required by this
4 subparagraph shall be reduced to the extent that
5 dividends were included in base income of the unitary
6 group for the same taxable year and received by the
7 taxpayer or by a member of the taxpayer's unitary
8 business group (including amounts included in gross
9 income under Sections 951 through 964 of the Internal
10 Revenue Code and amounts included in gross income under
11 Section 78 of the Internal Revenue Code) with respect
12 to the stock of the same person to whom the intangible
13 expenses and costs were directly or indirectly paid,
14 incurred, or accrued. The preceding sentence does not
15 apply to the extent that the same dividends caused a
16 reduction to the addition modification required under
17 Section 203(a)(2)(D-17) of this Act. As used in this
18 subparagraph, the term "intangible expenses and costs"
19 includes (1) expenses, losses, and costs for, or
20 related to, the direct or indirect acquisition, use,
21 maintenance or management, ownership, sale, exchange,
22 or any other disposition of intangible property; (2)
23 losses incurred, directly or indirectly, from
24 factoring transactions or discounting transactions;
25 (3) royalty, patent, technical, and copyright fees;
26 (4) licensing fees; and (5) other similar expenses and

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1 costs. For purposes of this subparagraph, "intangible
2 property" includes patents, patent applications, trade
3 names, trademarks, service marks, copyrights, mask
4 works, trade secrets, and similar types of intangible
5 assets.
6 This paragraph shall not apply to the following:
7 (i) any item of intangible expenses or costs
8 paid, accrued, or incurred, directly or
9 indirectly, from a transaction with a person who is
10 subject in a foreign country or state, other than a
11 state which requires mandatory unitary reporting,
12 to a tax on or measured by net income with respect
13 to such item; or
14 (ii) any item of intangible expense or cost
15 paid, accrued, or incurred, directly or
16 indirectly, if the taxpayer can establish, based
17 on a preponderance of the evidence, both of the
18 following:
19 (a) the person during the same taxable
20 year paid, accrued, or incurred, the
21 intangible expense or cost to a person that is
22 not a related member, and
23 (b) the transaction giving rise to the
24 intangible expense or cost between the
25 taxpayer and the person did not have as a
26 principal purpose the avoidance of Illinois

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1 income tax, and is paid pursuant to a contract
2 or agreement that reflects arm's-length terms;
3 or
4 (iii) any item of intangible expense or cost
5 paid, accrued, or incurred, directly or
6 indirectly, from a transaction with a person if the
7 taxpayer establishes by clear and convincing
8 evidence, that the adjustments are unreasonable;
9 or if the taxpayer and the Director agree in
10 writing to the application or use of an alternative
11 method of apportionment under Section 304(f);
12 Nothing in this subsection shall preclude the
13 Director from making any other adjustment
14 otherwise allowed under Section 404 of this Act for
15 any tax year beginning after the effective date of
16 this amendment provided such adjustment is made
17 pursuant to regulation adopted by the Department
18 and such regulations provide methods and standards
19 by which the Department will utilize its authority
20 under Section 404 of this Act;
21 (D-19) For taxable years ending on or after
22 December 31, 2008, an amount equal to the amount of
23 insurance premium expenses and costs otherwise allowed
24 as a deduction in computing base income, and that were
25 paid, accrued, or incurred, directly or indirectly, to
26 a person who would be a member of the same unitary

HB4078- 194 -LRB100 13340 AXK 27924 b
1 business group but for the fact that the person is
2 prohibited under Section 1501(a)(27) from being
3 included in the unitary business group because he or
4 she is ordinarily required to apportion business
5 income under different subsections of Section 304. The
6 addition modification required by this subparagraph
7 shall be reduced to the extent that dividends were
8 included in base income of the unitary group for the
9 same taxable year and received by the taxpayer or by a
10 member of the taxpayer's unitary business group
11 (including amounts included in gross income under
12 Sections 951 through 964 of the Internal Revenue Code
13 and amounts included in gross income under Section 78
14 of the Internal Revenue Code) with respect to the stock
15 of the same person to whom the premiums and costs were
16 directly or indirectly paid, incurred, or accrued. The
17 preceding sentence does not apply to the extent that
18 the same dividends caused a reduction to the addition
19 modification required under Section 203(a)(2)(D-17) or
20 Section 203(a)(2)(D-18) of this Act.
21 (D-20) For taxable years beginning on or after
22 January 1, 2002 and ending on or before December 31,
23 2006, in the case of a distribution from a qualified
24 tuition program under Section 529 of the Internal
25 Revenue Code, other than (i) a distribution from a
26 College Savings Pool created under Section 16.5 of the

HB4078- 195 -LRB100 13340 AXK 27924 b
1 State Treasurer Act or (ii) a distribution from the
2 Illinois Prepaid Tuition Trust Fund, an amount equal to
3 the amount excluded from gross income under Section
4 529(c)(3)(B). For taxable years beginning on or after
5 January 1, 2007, in the case of a distribution from a
6 qualified tuition program under Section 529 of the
7 Internal Revenue Code, other than (i) a distribution
8 from a College Savings Pool created under Section 16.5
9 of the State Treasurer Act, (ii) a distribution from
10 the Illinois Prepaid Tuition Trust Fund, or (iii) a
11 distribution from a qualified tuition program under
12 Section 529 of the Internal Revenue Code that (I)
13 adopts and determines that its offering materials
14 comply with the College Savings Plans Network's
15 disclosure principles and (II) has made reasonable
16 efforts to inform in-state residents of the existence
17 of in-state qualified tuition programs by informing
18 Illinois residents directly and, where applicable, to
19 inform financial intermediaries distributing the
20 program to inform in-state residents of the existence
21 of in-state qualified tuition programs at least
22 annually, an amount equal to the amount excluded from
23 gross income under Section 529(c)(3)(B).
24 For the purposes of this subparagraph (D-20), a
25 qualified tuition program has made reasonable efforts
26 if it makes disclosures (which may use the term

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1 "in-state program" or "in-state plan" and need not
2 specifically refer to Illinois or its qualified
3 programs by name) (i) directly to prospective
4 participants in its offering materials or makes a
5 public disclosure, such as a website posting; and (ii)
6 where applicable, to intermediaries selling the
7 out-of-state program in the same manner that the
8 out-of-state program distributes its offering
9 materials;
10 (D-21) For taxable years beginning on or after
11 January 1, 2007, in the case of transfer of moneys from
12 a qualified tuition program under Section 529 of the
13 Internal Revenue Code that is administered by the State
14 to an out-of-state program, an amount equal to the
15 amount of moneys previously deducted from base income
16 under subsection (a)(2)(Y) of this Section;
17 (D-22) For taxable years beginning on or after
18 January 1, 2009, in the case of a nonqualified
19 withdrawal or refund of moneys from a qualified tuition
20 program under Section 529 of the Internal Revenue Code
21 administered by the State that is not used for
22 qualified expenses at an eligible education
23 institution, an amount equal to the contribution
24 component of the nonqualified withdrawal or refund
25 that was previously deducted from base income under
26 subsection (a)(2)(y) of this Section, provided that

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1 the withdrawal or refund did not result from the
2 beneficiary's death or disability;
3 (D-23) An amount equal to the credit allowable to
4 the taxpayer under Section 218(a) of this Act,
5 determined without regard to Section 218(c) of this
6 Act;
7 (D-24) For taxable years ending on or after
8 December 31, 2017, an amount equal to the deduction
9 allowed under Section 199 of the Internal Revenue Code
10 for the taxable year;
11 and by deducting from the total so obtained the sum of the
12 following amounts:
13 (E) For taxable years ending before December 31,
14 2001, any amount included in such total in respect of
15 any compensation (including but not limited to any
16 compensation paid or accrued to a serviceman while a
17 prisoner of war or missing in action) paid to a
18 resident by reason of being on active duty in the Armed
19 Forces of the United States and in respect of any
20 compensation paid or accrued to a resident who as a
21 governmental employee was a prisoner of war or missing
22 in action, and in respect of any compensation paid to a
23 resident in 1971 or thereafter for annual training
24 performed pursuant to Sections 502 and 503, Title 32,
25 United States Code as a member of the Illinois National
26 Guard or, beginning with taxable years ending on or

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1 after December 31, 2007, the National Guard of any
2 other state. For taxable years ending on or after
3 December 31, 2001, any amount included in such total in
4 respect of any compensation (including but not limited
5 to any compensation paid or accrued to a serviceman
6 while a prisoner of war or missing in action) paid to a
7 resident by reason of being a member of any component
8 of the Armed Forces of the United States and in respect
9 of any compensation paid or accrued to a resident who
10 as a governmental employee was a prisoner of war or
11 missing in action, and in respect of any compensation
12 paid to a resident in 2001 or thereafter by reason of
13 being a member of the Illinois National Guard or,
14 beginning with taxable years ending on or after
15 December 31, 2007, the National Guard of any other
16 state. The provisions of this subparagraph (E) are
17 exempt from the provisions of Section 250;
18 (F) An amount equal to all amounts included in such
19 total pursuant to the provisions of Sections 402(a),
20 402(c), 403(a), 403(b), 406(a), 407(a), and 408 of the
21 Internal Revenue Code, or included in such total as
22 distributions under the provisions of any retirement
23 or disability plan for employees of any governmental
24 agency or unit, or retirement payments to retired
25 partners, which payments are excluded in computing net
26 earnings from self employment by Section 1402 of the

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1 Internal Revenue Code and regulations adopted pursuant
2 thereto;
3 (G) The valuation limitation amount;
4 (H) An amount equal to the amount of any tax
5 imposed by this Act which was refunded to the taxpayer
6 and included in such total for the taxable year;
7 (I) An amount equal to all amounts included in such
8 total pursuant to the provisions of Section 111 of the
9 Internal Revenue Code as a recovery of items previously
10 deducted from adjusted gross income in the computation
11 of taxable income;
12 (J) An amount equal to those dividends included in
13 such total which were paid by a corporation which
14 conducts business operations in a River Edge
15 Redevelopment Zone or zones created under the River
16 Edge Redevelopment Zone Act, and conducts
17 substantially all of its operations in a River Edge
18 Redevelopment Zone or zones. This subparagraph (J) is
19 exempt from the provisions of Section 250;
20 (K) An amount equal to those dividends included in
21 such total that were paid by a corporation that
22 conducts business operations in a federally designated
23 Foreign Trade Zone or Sub-Zone and that is designated a
24 High Impact Business located in Illinois; provided
25 that dividends eligible for the deduction provided in
26 subparagraph (J) of paragraph (2) of this subsection

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1 shall not be eligible for the deduction provided under
2 this subparagraph (K);
3 (L) For taxable years ending after December 31,
4 1983, an amount equal to all social security benefits
5 and railroad retirement benefits included in such
6 total pursuant to Sections 72(r) and 86 of the Internal
7 Revenue Code;
8 (M) With the exception of any amounts subtracted
9 under subparagraph (N), an amount equal to the sum of
10 all amounts disallowed as deductions by (i) Sections
11 171(a) (2), and 265(2) of the Internal Revenue Code,
12 and all amounts of expenses allocable to interest and
13 disallowed as deductions by Section 265(1) of the
14 Internal Revenue Code; and (ii) for taxable years
15 ending on or after August 13, 1999, Sections 171(a)(2),
16 265, 280C, and 832(b)(5)(B)(i) of the Internal Revenue
17 Code, plus, for taxable years ending on or after
18 December 31, 2011, Section 45G(e)(3) of the Internal
19 Revenue Code and, for taxable years ending on or after
20 December 31, 2008, any amount included in gross income
21 under Section 87 of the Internal Revenue Code; the
22 provisions of this subparagraph are exempt from the
23 provisions of Section 250;
24 (N) An amount equal to all amounts included in such
25 total which are exempt from taxation by this State
26 either by reason of its statutes or Constitution or by

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1 reason of the Constitution, treaties or statutes of the
2 United States; provided that, in the case of any
3 statute of this State that exempts income derived from
4 bonds or other obligations from the tax imposed under
5 this Act, the amount exempted shall be the interest net
6 of bond premium amortization;
7 (O) An amount equal to any contribution made to a
8 job training project established pursuant to the Tax
9 Increment Allocation Redevelopment Act;
10 (P) An amount equal to the amount of the deduction
11 used to compute the federal income tax credit for
12 restoration of substantial amounts held under claim of
13 right for the taxable year pursuant to Section 1341 of
14 the Internal Revenue Code or of any itemized deduction
15 taken from adjusted gross income in the computation of
16 taxable income for restoration of substantial amounts
17 held under claim of right for the taxable year;
18 (Q) An amount equal to any amounts included in such
19 total, received by the taxpayer as an acceleration in
20 the payment of life, endowment or annuity benefits in
21 advance of the time they would otherwise be payable as
22 an indemnity for a terminal illness;
23 (R) An amount equal to the amount of any federal or
24 State bonus paid to veterans of the Persian Gulf War;
25 (S) An amount, to the extent included in adjusted
26 gross income, equal to the amount of a contribution

HB4078- 202 -LRB100 13340 AXK 27924 b
1 made in the taxable year on behalf of the taxpayer to a
2 medical care savings account established under the
3 Medical Care Savings Account Act or the Medical Care
4 Savings Account Act of 2000 to the extent the
5 contribution is accepted by the account administrator
6 as provided in that Act;
7 (T) An amount, to the extent included in adjusted
8 gross income, equal to the amount of interest earned in
9 the taxable year on a medical care savings account
10 established under the Medical Care Savings Account Act
11 or the Medical Care Savings Account Act of 2000 on
12 behalf of the taxpayer, other than interest added
13 pursuant to item (D-5) of this paragraph (2);
14 (U) For one taxable year beginning on or after
15 January 1, 1994, an amount equal to the total amount of
16 tax imposed and paid under subsections (a) and (b) of
17 Section 201 of this Act on grant amounts received by
18 the taxpayer under the Nursing Home Grant Assistance
19 Act during the taxpayer's taxable years 1992 and 1993;
20 (V) Beginning with tax years ending on or after
21 December 31, 1995 and ending with tax years ending on
22 or before December 31, 2004, an amount equal to the
23 amount paid by a taxpayer who is a self-employed
24 taxpayer, a partner of a partnership, or a shareholder
25 in a Subchapter S corporation for health insurance or
26 long-term care insurance for that taxpayer or that

HB4078- 203 -LRB100 13340 AXK 27924 b
1 taxpayer's spouse or dependents, to the extent that the
2 amount paid for that health insurance or long-term care
3 insurance may be deducted under Section 213 of the
4 Internal Revenue Code, has not been deducted on the
5 federal income tax return of the taxpayer, and does not
6 exceed the taxable income attributable to that
7 taxpayer's income, self-employment income, or
8 Subchapter S corporation income; except that no
9 deduction shall be allowed under this item (V) if the
10 taxpayer is eligible to participate in any health
11 insurance or long-term care insurance plan of an
12 employer of the taxpayer or the taxpayer's spouse. The
13 amount of the health insurance and long-term care
14 insurance subtracted under this item (V) shall be
15 determined by multiplying total health insurance and
16 long-term care insurance premiums paid by the taxpayer
17 times a number that represents the fractional
18 percentage of eligible medical expenses under Section
19 213 of the Internal Revenue Code of 1986 not actually
20 deducted on the taxpayer's federal income tax return;
21 (W) For taxable years beginning on or after January
22 1, 1998, all amounts included in the taxpayer's federal
23 gross income in the taxable year from amounts converted
24 from a regular IRA to a Roth IRA. This paragraph is
25 exempt from the provisions of Section 250;
26 (X) For taxable year 1999 and thereafter, an amount

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1 equal to the amount of any (i) distributions, to the
2 extent includible in gross income for federal income
3 tax purposes, made to the taxpayer because of his or
4 her status as a victim of persecution for racial or
5 religious reasons by Nazi Germany or any other Axis
6 regime or as an heir of the victim and (ii) items of
7 income, to the extent includible in gross income for
8 federal income tax purposes, attributable to, derived
9 from or in any way related to assets stolen from,
10 hidden from, or otherwise lost to a victim of
11 persecution for racial or religious reasons by Nazi
12 Germany or any other Axis regime immediately prior to,
13 during, and immediately after World War II, including,
14 but not limited to, interest on the proceeds receivable
15 as insurance under policies issued to a victim of
16 persecution for racial or religious reasons by Nazi
17 Germany or any other Axis regime by European insurance
18 companies immediately prior to and during World War II;
19 provided, however, this subtraction from federal
20 adjusted gross income does not apply to assets acquired
21 with such assets or with the proceeds from the sale of
22 such assets; provided, further, this paragraph shall
23 only apply to a taxpayer who was the first recipient of
24 such assets after their recovery and who is a victim of
25 persecution for racial or religious reasons by Nazi
26 Germany or any other Axis regime or as an heir of the

HB4078- 205 -LRB100 13340 AXK 27924 b
1 victim. The amount of and the eligibility for any
2 public assistance, benefit, or similar entitlement is
3 not affected by the inclusion of items (i) and (ii) of
4 this paragraph in gross income for federal income tax
5 purposes. This paragraph is exempt from the provisions
6 of Section 250;
7 (Y) For taxable years beginning on or after January
8 1, 2002 and ending on or before December 31, 2004,
9 moneys contributed in the taxable year to a College
10 Savings Pool account under Section 16.5 of the State
11 Treasurer Act, except that amounts excluded from gross
12 income under Section 529(c)(3)(C)(i) of the Internal
13 Revenue Code shall not be considered moneys
14 contributed under this subparagraph (Y). For taxable
15 years beginning on or after January 1, 2005, a maximum
16 of $10,000 contributed in the taxable year to (i) a
17 College Savings Pool account under Section 16.5 of the
18 State Treasurer Act or (ii) the Illinois Prepaid
19 Tuition Trust Fund, except that amounts excluded from
20 gross income under Section 529(c)(3)(C)(i) of the
21 Internal Revenue Code shall not be considered moneys
22 contributed under this subparagraph (Y). For purposes
23 of this subparagraph, contributions made by an
24 employer on behalf of an employee, or matching
25 contributions made by an employee, shall be treated as
26 made by the employee. This subparagraph (Y) is exempt

HB4078- 206 -LRB100 13340 AXK 27924 b
1 from the provisions of Section 250;
2 (Z) For taxable years 2001 and thereafter, for the
3 taxable year in which the bonus depreciation deduction
4 is taken on the taxpayer's federal income tax return
5 under subsection (k) of Section 168 of the Internal
6 Revenue Code and for each applicable taxable year
7 thereafter, an amount equal to "x", where:
8 (1) "y" equals the amount of the depreciation
9 deduction taken for the taxable year on the
10 taxpayer's federal income tax return on property
11 for which the bonus depreciation deduction was
12 taken in any year under subsection (k) of Section
13 168 of the Internal Revenue Code, but not including
14 the bonus depreciation deduction;
15 (2) for taxable years ending on or before
16 December 31, 2005, "x" equals "y" multiplied by 30
17 and then divided by 70 (or "y" multiplied by
18 0.429); and
19 (3) for taxable years ending after December
20 31, 2005:
21 (i) for property on which a bonus
22 depreciation deduction of 30% of the adjusted
23 basis was taken, "x" equals "y" multiplied by
24 30 and then divided by 70 (or "y" multiplied by
25 0.429); and
26 (ii) for property on which a bonus

HB4078- 207 -LRB100 13340 AXK 27924 b
1 depreciation deduction of 50% of the adjusted
2 basis was taken, "x" equals "y" multiplied by
3 1.0.
4 The aggregate amount deducted under this
5 subparagraph in all taxable years for any one piece of
6 property may not exceed the amount of the bonus
7 depreciation deduction taken on that property on the
8 taxpayer's federal income tax return under subsection
9 (k) of Section 168 of the Internal Revenue Code. This
10 subparagraph (Z) is exempt from the provisions of
11 Section 250;
12 (AA) If the taxpayer sells, transfers, abandons,
13 or otherwise disposes of property for which the
14 taxpayer was required in any taxable year to make an
15 addition modification under subparagraph (D-15), then
16 an amount equal to that addition modification.
17 If the taxpayer continues to own property through
18 the last day of the last tax year for which the
19 taxpayer may claim a depreciation deduction for
20 federal income tax purposes and for which the taxpayer
21 was required in any taxable year to make an addition
22 modification under subparagraph (D-15), then an amount
23 equal to that addition modification.
24 The taxpayer is allowed to take the deduction under
25 this subparagraph only once with respect to any one
26 piece of property.

HB4078- 208 -LRB100 13340 AXK 27924 b
1 This subparagraph (AA) is exempt from the
2 provisions of Section 250;
3 (BB) Any amount included in adjusted gross income,
4 other than salary, received by a driver in a
5 ridesharing arrangement using a motor vehicle;
6 (CC) The amount of (i) any interest income (net of
7 the deductions allocable thereto) taken into account
8 for the taxable year with respect to a transaction with
9 a taxpayer that is required to make an addition
10 modification with respect to such transaction under
11 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
12 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
13 the amount of that addition modification, and (ii) any
14 income from intangible property (net of the deductions
15 allocable thereto) taken into account for the taxable
16 year with respect to a transaction with a taxpayer that
17 is required to make an addition modification with
18 respect to such transaction under Section
19 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
20 203(d)(2)(D-8), but not to exceed the amount of that
21 addition modification. This subparagraph (CC) is
22 exempt from the provisions of Section 250;
23 (DD) An amount equal to the interest income taken
24 into account for the taxable year (net of the
25 deductions allocable thereto) with respect to
26 transactions with (i) a foreign person who would be a

HB4078- 209 -LRB100 13340 AXK 27924 b
1 member of the taxpayer's unitary business group but for
2 the fact that the foreign person's business activity
3 outside the United States is 80% or more of that
4 person's total business activity and (ii) for taxable
5 years ending on or after December 31, 2008, to a person
6 who would be a member of the same unitary business
7 group but for the fact that the person is prohibited
8 under Section 1501(a)(27) from being included in the
9 unitary business group because he or she is ordinarily
10 required to apportion business income under different
11 subsections of Section 304, but not to exceed the
12 addition modification required to be made for the same
13 taxable year under Section 203(a)(2)(D-17) for
14 interest paid, accrued, or incurred, directly or
15 indirectly, to the same person. This subparagraph (DD)
16 is exempt from the provisions of Section 250;
17 (EE) An amount equal to the income from intangible
18 property taken into account for the taxable year (net
19 of the deductions allocable thereto) with respect to
20 transactions with (i) a foreign person who would be a
21 member of the taxpayer's unitary business group but for
22 the fact that the foreign person's business activity
23 outside the United States is 80% or more of that
24 person's total business activity and (ii) for taxable
25 years ending on or after December 31, 2008, to a person
26 who would be a member of the same unitary business

HB4078- 210 -LRB100 13340 AXK 27924 b
1 group but for the fact that the person is prohibited
2 under Section 1501(a)(27) from being included in the
3 unitary business group because he or she is ordinarily
4 required to apportion business income under different
5 subsections of Section 304, but not to exceed the
6 addition modification required to be made for the same
7 taxable year under Section 203(a)(2)(D-18) for
8 intangible expenses and costs paid, accrued, or
9 incurred, directly or indirectly, to the same foreign
10 person. This subparagraph (EE) is exempt from the
11 provisions of Section 250;
12 (FF) An amount equal to any amount awarded to the
13 taxpayer during the taxable year by the Court of Claims
14 under subsection (c) of Section 8 of the Court of
15 Claims Act for time unjustly served in a State prison.
16 This subparagraph (FF) is exempt from the provisions of
17 Section 250; and
18 (GG) For taxable years ending on or after December
19 31, 2011, in the case of a taxpayer who was required to
20 add back any insurance premiums under Section
21 203(a)(2)(D-19), such taxpayer may elect to subtract
22 that part of a reimbursement received from the
23 insurance company equal to the amount of the expense or
24 loss (including expenses incurred by the insurance
25 company) that would have been taken into account as a
26 deduction for federal income tax purposes if the

HB4078- 211 -LRB100 13340 AXK 27924 b
1 expense or loss had been uninsured. If a taxpayer makes
2 the election provided for by this subparagraph (GG),
3 the insurer to which the premiums were paid must add
4 back to income the amount subtracted by the taxpayer
5 pursuant to this subparagraph (GG). This subparagraph
6 (GG) is exempt from the provisions of Section 250.
7 (b) Corporations.
8 (1) In general. In the case of a corporation, base
9 income means an amount equal to the taxpayer's taxable
10 income for the taxable year as modified by paragraph (2).
11 (2) Modifications. The taxable income referred to in
12 paragraph (1) shall be modified by adding thereto the sum
13 of the following amounts:
14 (A) An amount equal to all amounts paid or accrued
15 to the taxpayer as interest and all distributions
16 received from regulated investment companies during
17 the taxable year to the extent excluded from gross
18 income in the computation of taxable income;
19 (B) An amount equal to the amount of tax imposed by
20 this Act to the extent deducted from gross income in
21 the computation of taxable income for the taxable year;
22 (C) In the case of a regulated investment company,
23 an amount equal to the excess of (i) the net long-term
24 capital gain for the taxable year, over (ii) the amount
25 of the capital gain dividends designated as such in

HB4078- 212 -LRB100 13340 AXK 27924 b
1 accordance with Section 852(b)(3)(C) of the Internal
2 Revenue Code and any amount designated under Section
3 852(b)(3)(D) of the Internal Revenue Code,
4 attributable to the taxable year (this amendatory Act
5 of 1995 (Public Act 89-89) is declarative of existing
6 law and is not a new enactment);
7 (D) The amount of any net operating loss deduction
8 taken in arriving at taxable income, other than a net
9 operating loss carried forward from a taxable year
10 ending prior to December 31, 1986;
11 (E) For taxable years in which a net operating loss
12 carryback or carryforward from a taxable year ending
13 prior to December 31, 1986 is an element of taxable
14 income under paragraph (1) of subsection (e) or
15 subparagraph (E) of paragraph (2) of subsection (e),
16 the amount by which addition modifications other than
17 those provided by this subparagraph (E) exceeded
18 subtraction modifications in such earlier taxable
19 year, with the following limitations applied in the
20 order that they are listed:
21 (i) the addition modification relating to the
22 net operating loss carried back or forward to the
23 taxable year from any taxable year ending prior to
24 December 31, 1986 shall be reduced by the amount of
25 addition modification under this subparagraph (E)
26 which related to that net operating loss and which

HB4078- 213 -LRB100 13340 AXK 27924 b
1 was taken into account in calculating the base
2 income of an earlier taxable year, and
3 (ii) the addition modification relating to the
4 net operating loss carried back or forward to the
5 taxable year from any taxable year ending prior to
6 December 31, 1986 shall not exceed the amount of
7 such carryback or carryforward;
8 For taxable years in which there is a net operating
9 loss carryback or carryforward from more than one other
10 taxable year ending prior to December 31, 1986, the
11 addition modification provided in this subparagraph
12 (E) shall be the sum of the amounts computed
13 independently under the preceding provisions of this
14 subparagraph (E) for each such taxable year;
15 (E-5) For taxable years ending after December 31,
16 1997, an amount equal to any eligible remediation costs
17 that the corporation deducted in computing adjusted
18 gross income and for which the corporation claims a
19 credit under subsection (l) of Section 201;
20 (E-10) For taxable years 2001 and thereafter, an
21 amount equal to the bonus depreciation deduction taken
22 on the taxpayer's federal income tax return for the
23 taxable year under subsection (k) of Section 168 of the
24 Internal Revenue Code;
25 (E-11) If the taxpayer sells, transfers, abandons,
26 or otherwise disposes of property for which the

HB4078- 214 -LRB100 13340 AXK 27924 b
1 taxpayer was required in any taxable year to make an
2 addition modification under subparagraph (E-10), then
3 an amount equal to the aggregate amount of the
4 deductions taken in all taxable years under
5 subparagraph (T) with respect to that property.
6 If the taxpayer continues to own property through
7 the last day of the last tax year for which the
8 taxpayer may claim a depreciation deduction for
9 federal income tax purposes and for which the taxpayer
10 was allowed in any taxable year to make a subtraction
11 modification under subparagraph (T), then an amount
12 equal to that subtraction modification.
13 The taxpayer is required to make the addition
14 modification under this subparagraph only once with
15 respect to any one piece of property;
16 (E-12) An amount equal to the amount otherwise
17 allowed as a deduction in computing base income for
18 interest paid, accrued, or incurred, directly or
19 indirectly, (i) for taxable years ending on or after
20 December 31, 2004, to a foreign person who would be a
21 member of the same unitary business group but for the
22 fact the foreign person's business activity outside
23 the United States is 80% or more of the foreign
24 person's total business activity and (ii) for taxable
25 years ending on or after December 31, 2008, to a person
26 who would be a member of the same unitary business

HB4078- 215 -LRB100 13340 AXK 27924 b
1 group but for the fact that the person is prohibited
2 under Section 1501(a)(27) from being included in the
3 unitary business group because he or she is ordinarily
4 required to apportion business income under different
5 subsections of Section 304. The addition modification
6 required by this subparagraph shall be reduced to the
7 extent that dividends were included in base income of
8 the unitary group for the same taxable year and
9 received by the taxpayer or by a member of the
10 taxpayer's unitary business group (including amounts
11 included in gross income pursuant to Sections 951
12 through 964 of the Internal Revenue Code and amounts
13 included in gross income under Section 78 of the
14 Internal Revenue Code) with respect to the stock of the
15 same person to whom the interest was paid, accrued, or
16 incurred.
17 This paragraph shall not apply to the following:
18 (i) an item of interest paid, accrued, or
19 incurred, directly or indirectly, to a person who
20 is subject in a foreign country or state, other
21 than a state which requires mandatory unitary
22 reporting, to a tax on or measured by net income
23 with respect to such interest; or
24 (ii) an item of interest paid, accrued, or
25 incurred, directly or indirectly, to a person if
26 the taxpayer can establish, based on a

HB4078- 216 -LRB100 13340 AXK 27924 b
1 preponderance of the evidence, both of the
2 following:
3 (a) the person, during the same taxable
4 year, paid, accrued, or incurred, the interest
5 to a person that is not a related member, and
6 (b) the transaction giving rise to the
7 interest expense between the taxpayer and the
8 person did not have as a principal purpose the
9 avoidance of Illinois income tax, and is paid
10 pursuant to a contract or agreement that
11 reflects an arm's-length interest rate and
12 terms; or
13 (iii) the taxpayer can establish, based on
14 clear and convincing evidence, that the interest
15 paid, accrued, or incurred relates to a contract or
16 agreement entered into at arm's-length rates and
17 terms and the principal purpose for the payment is
18 not federal or Illinois tax avoidance; or
19 (iv) an item of interest paid, accrued, or
20 incurred, directly or indirectly, to a person if
21 the taxpayer establishes by clear and convincing
22 evidence that the adjustments are unreasonable; or
23 if the taxpayer and the Director agree in writing
24 to the application or use of an alternative method
25 of apportionment under Section 304(f).
26 Nothing in this subsection shall preclude the

HB4078- 217 -LRB100 13340 AXK 27924 b
1 Director from making any other adjustment
2 otherwise allowed under Section 404 of this Act for
3 any tax year beginning after the effective date of
4 this amendment provided such adjustment is made
5 pursuant to regulation adopted by the Department
6 and such regulations provide methods and standards
7 by which the Department will utilize its authority
8 under Section 404 of this Act;
9 (E-13) An amount equal to the amount of intangible
10 expenses and costs otherwise allowed as a deduction in
11 computing base income, and that were paid, accrued, or
12 incurred, directly or indirectly, (i) for taxable
13 years ending on or after December 31, 2004, to a
14 foreign person who would be a member of the same
15 unitary business group but for the fact that the
16 foreign person's business activity outside the United
17 States is 80% or more of that person's total business
18 activity and (ii) for taxable years ending on or after
19 December 31, 2008, to a person who would be a member of
20 the same unitary business group but for the fact that
21 the person is prohibited under Section 1501(a)(27)
22 from being included in the unitary business group
23 because he or she is ordinarily required to apportion
24 business income under different subsections of Section
25 304. The addition modification required by this
26 subparagraph shall be reduced to the extent that

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1 dividends were included in base income of the unitary
2 group for the same taxable year and received by the
3 taxpayer or by a member of the taxpayer's unitary
4 business group (including amounts included in gross
5 income pursuant to Sections 951 through 964 of the
6 Internal Revenue Code and amounts included in gross
7 income under Section 78 of the Internal Revenue Code)
8 with respect to the stock of the same person to whom
9 the intangible expenses and costs were directly or
10 indirectly paid, incurred, or accrued. The preceding
11 sentence shall not apply to the extent that the same
12 dividends caused a reduction to the addition
13 modification required under Section 203(b)(2)(E-12) of
14 this Act. As used in this subparagraph, the term
15 "intangible expenses and costs" includes (1) expenses,
16 losses, and costs for, or related to, the direct or
17 indirect acquisition, use, maintenance or management,
18 ownership, sale, exchange, or any other disposition of
19 intangible property; (2) losses incurred, directly or
20 indirectly, from factoring transactions or discounting
21 transactions; (3) royalty, patent, technical, and
22 copyright fees; (4) licensing fees; and (5) other
23 similar expenses and costs. For purposes of this
24 subparagraph, "intangible property" includes patents,
25 patent applications, trade names, trademarks, service
26 marks, copyrights, mask works, trade secrets, and

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1 similar types of intangible assets.
2 This paragraph shall not apply to the following:
3 (i) any item of intangible expenses or costs
4 paid, accrued, or incurred, directly or
5 indirectly, from a transaction with a person who is
6 subject in a foreign country or state, other than a
7 state which requires mandatory unitary reporting,
8 to a tax on or measured by net income with respect
9 to such item; or
10 (ii) any item of intangible expense or cost
11 paid, accrued, or incurred, directly or
12 indirectly, if the taxpayer can establish, based
13 on a preponderance of the evidence, both of the
14 following:
15 (a) the person during the same taxable
16 year paid, accrued, or incurred, the
17 intangible expense or cost to a person that is
18 not a related member, and
19 (b) the transaction giving rise to the
20 intangible expense or cost between the
21 taxpayer and the person did not have as a
22 principal purpose the avoidance of Illinois
23 income tax, and is paid pursuant to a contract
24 or agreement that reflects arm's-length terms;
25 or
26 (iii) any item of intangible expense or cost

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1 paid, accrued, or incurred, directly or
2 indirectly, from a transaction with a person if the
3 taxpayer establishes by clear and convincing
4 evidence, that the adjustments are unreasonable;
5 or if the taxpayer and the Director agree in
6 writing to the application or use of an alternative
7 method of apportionment under Section 304(f);
8 Nothing in this subsection shall preclude the
9 Director from making any other adjustment
10 otherwise allowed under Section 404 of this Act for
11 any tax year beginning after the effective date of
12 this amendment provided such adjustment is made
13 pursuant to regulation adopted by the Department
14 and such regulations provide methods and standards
15 by which the Department will utilize its authority
16 under Section 404 of this Act;
17 (E-14) For taxable years ending on or after
18 December 31, 2008, an amount equal to the amount of
19 insurance premium expenses and costs otherwise allowed
20 as a deduction in computing base income, and that were
21 paid, accrued, or incurred, directly or indirectly, to
22 a person who would be a member of the same unitary
23 business group but for the fact that the person is
24 prohibited under Section 1501(a)(27) from being
25 included in the unitary business group because he or
26 she is ordinarily required to apportion business

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1 income under different subsections of Section 304. The
2 addition modification required by this subparagraph
3 shall be reduced to the extent that dividends were
4 included in base income of the unitary group for the
5 same taxable year and received by the taxpayer or by a
6 member of the taxpayer's unitary business group
7 (including amounts included in gross income under
8 Sections 951 through 964 of the Internal Revenue Code
9 and amounts included in gross income under Section 78
10 of the Internal Revenue Code) with respect to the stock
11 of the same person to whom the premiums and costs were
12 directly or indirectly paid, incurred, or accrued. The
13 preceding sentence does not apply to the extent that
14 the same dividends caused a reduction to the addition
15 modification required under Section 203(b)(2)(E-12) or
16 Section 203(b)(2)(E-13) of this Act;
17 (E-15) For taxable years beginning after December
18 31, 2008, any deduction for dividends paid by a captive
19 real estate investment trust that is allowed to a real
20 estate investment trust under Section 857(b)(2)(B) of
21 the Internal Revenue Code for dividends paid;
22 (E-16) An amount equal to the credit allowable to
23 the taxpayer under Section 218(a) of this Act,
24 determined without regard to Section 218(c) of this
25 Act;
26 (E-17) For taxable years ending on or after

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1 December 31, 2017, an amount equal to the deduction
2 allowed under Section 199 of the Internal Revenue Code
3 for the taxable year;
4 and by deducting from the total so obtained the sum of the
5 following amounts:
6 (F) An amount equal to the amount of any tax
7 imposed by this Act which was refunded to the taxpayer
8 and included in such total for the taxable year;
9 (G) An amount equal to any amount included in such
10 total under Section 78 of the Internal Revenue Code;
11 (H) In the case of a regulated investment company,
12 an amount equal to the amount of exempt interest
13 dividends as defined in subsection (b) (5) of Section
14 852 of the Internal Revenue Code, paid to shareholders
15 for the taxable year;
16 (I) With the exception of any amounts subtracted
17 under subparagraph (J), an amount equal to the sum of
18 all amounts disallowed as deductions by (i) Sections
19 171(a) (2), and 265(a)(2) and amounts disallowed as
20 interest expense by Section 291(a)(3) of the Internal
21 Revenue Code, and all amounts of expenses allocable to
22 interest and disallowed as deductions by Section
23 265(a)(1) of the Internal Revenue Code; and (ii) for
24 taxable years ending on or after August 13, 1999,
25 Sections 171(a)(2), 265, 280C, 291(a)(3), and
26 832(b)(5)(B)(i) of the Internal Revenue Code, plus,

HB4078- 223 -LRB100 13340 AXK 27924 b
1 for tax years ending on or after December 31, 2011,
2 amounts disallowed as deductions by Section 45G(e)(3)
3 of the Internal Revenue Code and, for taxable years
4 ending on or after December 31, 2008, any amount
5 included in gross income under Section 87 of the
6 Internal Revenue Code and the policyholders' share of
7 tax-exempt interest of a life insurance company under
8 Section 807(a)(2)(B) of the Internal Revenue Code (in
9 the case of a life insurance company with gross income
10 from a decrease in reserves for the tax year) or
11 Section 807(b)(1)(B) of the Internal Revenue Code (in
12 the case of a life insurance company allowed a
13 deduction for an increase in reserves for the tax
14 year); the provisions of this subparagraph are exempt
15 from the provisions of Section 250;
16 (J) An amount equal to all amounts included in such
17 total which are exempt from taxation by this State
18 either by reason of its statutes or Constitution or by
19 reason of the Constitution, treaties or statutes of the
20 United States; provided that, in the case of any
21 statute of this State that exempts income derived from
22 bonds or other obligations from the tax imposed under
23 this Act, the amount exempted shall be the interest net
24 of bond premium amortization;
25 (K) An amount equal to those dividends included in
26 such total which were paid by a corporation which

HB4078- 224 -LRB100 13340 AXK 27924 b
1 conducts business operations in a River Edge
2 Redevelopment Zone or zones created under the River
3 Edge Redevelopment Zone Act and conducts substantially
4 all of its operations in a River Edge Redevelopment
5 Zone or zones. This subparagraph (K) is exempt from the
6 provisions of Section 250;
7 (L) An amount equal to those dividends included in
8 such total that were paid by a corporation that
9 conducts business operations in a federally designated
10 Foreign Trade Zone or Sub-Zone and that is designated a
11 High Impact Business located in Illinois; provided
12 that dividends eligible for the deduction provided in
13 subparagraph (K) of paragraph 2 of this subsection
14 shall not be eligible for the deduction provided under
15 this subparagraph (L);
16 (M) For any taxpayer that is a financial
17 organization within the meaning of Section 304(c) of
18 this Act, an amount included in such total as interest
19 income from a loan or loans made by such taxpayer to a
20 borrower, to the extent that such a loan is secured by
21 property which is eligible for the River Edge
22 Redevelopment Zone Investment Credit. To determine the
23 portion of a loan or loans that is secured by property
24 eligible for a Section 201(f) investment credit to the
25 borrower, the entire principal amount of the loan or
26 loans between the taxpayer and the borrower should be

HB4078- 225 -LRB100 13340 AXK 27924 b
1 divided into the basis of the Section 201(f) investment
2 credit property which secures the loan or loans, using
3 for this purpose the original basis of such property on
4 the date that it was placed in service in the River
5 Edge Redevelopment Zone. The subtraction modification
6 available to taxpayer in any year under this subsection
7 shall be that portion of the total interest paid by the
8 borrower with respect to such loan attributable to the
9 eligible property as calculated under the previous
10 sentence. This subparagraph (M) is exempt from the
11 provisions of Section 250;
12 (M-1) For any taxpayer that is a financial
13 organization within the meaning of Section 304(c) of
14 this Act, an amount included in such total as interest
15 income from a loan or loans made by such taxpayer to a
16 borrower, to the extent that such a loan is secured by
17 property which is eligible for the High Impact Business
18 Investment Credit. To determine the portion of a loan
19 or loans that is secured by property eligible for a
20 Section 201(h) investment credit to the borrower, the
21 entire principal amount of the loan or loans between
22 the taxpayer and the borrower should be divided into
23 the basis of the Section 201(h) investment credit
24 property which secures the loan or loans, using for
25 this purpose the original basis of such property on the
26 date that it was placed in service in a federally

HB4078- 226 -LRB100 13340 AXK 27924 b
1 designated Foreign Trade Zone or Sub-Zone located in
2 Illinois. No taxpayer that is eligible for the
3 deduction provided in subparagraph (M) of paragraph
4 (2) of this subsection shall be eligible for the
5 deduction provided under this subparagraph (M-1). The
6 subtraction modification available to taxpayers in any
7 year under this subsection shall be that portion of the
8 total interest paid by the borrower with respect to
9 such loan attributable to the eligible property as
10 calculated under the previous sentence;
11 (N) Two times any contribution made during the
12 taxable year to a designated zone organization to the
13 extent that the contribution (i) qualifies as a
14 charitable contribution under subsection (c) of
15 Section 170 of the Internal Revenue Code and (ii) must,
16 by its terms, be used for a project approved by the
17 Department of Commerce and Economic Opportunity under
18 Section 11 of the Illinois Enterprise Zone Act or under
19 Section 10-10 of the River Edge Redevelopment Zone Act.
20 This subparagraph (N) is exempt from the provisions of
21 Section 250;
22 (O) An amount equal to: (i) 85% for taxable years
23 ending on or before December 31, 1992, or, a percentage
24 equal to the percentage allowable under Section
25 243(a)(1) of the Internal Revenue Code of 1986 for
26 taxable years ending after December 31, 1992, of the

HB4078- 227 -LRB100 13340 AXK 27924 b
1 amount by which dividends included in taxable income
2 and received from a corporation that is not created or
3 organized under the laws of the United States or any
4 state or political subdivision thereof, including, for
5 taxable years ending on or after December 31, 1988,
6 dividends received or deemed received or paid or deemed
7 paid under Sections 951 through 965 of the Internal
8 Revenue Code, exceed the amount of the modification
9 provided under subparagraph (G) of paragraph (2) of
10 this subsection (b) which is related to such dividends,
11 and including, for taxable years ending on or after
12 December 31, 2008, dividends received from a captive
13 real estate investment trust; plus (ii) 100% of the
14 amount by which dividends, included in taxable income
15 and received, including, for taxable years ending on or
16 after December 31, 1988, dividends received or deemed
17 received or paid or deemed paid under Sections 951
18 through 964 of the Internal Revenue Code and including,
19 for taxable years ending on or after December 31, 2008,
20 dividends received from a captive real estate
21 investment trust, from any such corporation specified
22 in clause (i) that would but for the provisions of
23 Section 1504 (b) (3) of the Internal Revenue Code be
24 treated as a member of the affiliated group which
25 includes the dividend recipient, exceed the amount of
26 the modification provided under subparagraph (G) of

HB4078- 228 -LRB100 13340 AXK 27924 b
1 paragraph (2) of this subsection (b) which is related
2 to such dividends. This subparagraph (O) is exempt from
3 the provisions of Section 250 of this Act;
4 (P) An amount equal to any contribution made to a
5 job training project established pursuant to the Tax
6 Increment Allocation Redevelopment Act;
7 (Q) An amount equal to the amount of the deduction
8 used to compute the federal income tax credit for
9 restoration of substantial amounts held under claim of
10 right for the taxable year pursuant to Section 1341 of
11 the Internal Revenue Code;
12 (R) On and after July 20, 1999, in the case of an
13 attorney-in-fact with respect to whom an interinsurer
14 or a reciprocal insurer has made the election under
15 Section 835 of the Internal Revenue Code, 26 U.S.C.
16 835, an amount equal to the excess, if any, of the
17 amounts paid or incurred by that interinsurer or
18 reciprocal insurer in the taxable year to the
19 attorney-in-fact over the deduction allowed to that
20 interinsurer or reciprocal insurer with respect to the
21 attorney-in-fact under Section 835(b) of the Internal
22 Revenue Code for the taxable year; the provisions of
23 this subparagraph are exempt from the provisions of
24 Section 250;
25 (S) For taxable years ending on or after December
26 31, 1997, in the case of a Subchapter S corporation, an

HB4078- 229 -LRB100 13340 AXK 27924 b
1 amount equal to all amounts of income allocable to a
2 shareholder subject to the Personal Property Tax
3 Replacement Income Tax imposed by subsections (c) and
4 (d) of Section 201 of this Act, including amounts
5 allocable to organizations exempt from federal income
6 tax by reason of Section 501(a) of the Internal Revenue
7 Code. This subparagraph (S) is exempt from the
8 provisions of Section 250;
9 (T) For taxable years 2001 and thereafter, for the
10 taxable year in which the bonus depreciation deduction
11 is taken on the taxpayer's federal income tax return
12 under subsection (k) of Section 168 of the Internal
13 Revenue Code and for each applicable taxable year
14 thereafter, an amount equal to "x", where:
15 (1) "y" equals the amount of the depreciation
16 deduction taken for the taxable year on the
17 taxpayer's federal income tax return on property
18 for which the bonus depreciation deduction was
19 taken in any year under subsection (k) of Section
20 168 of the Internal Revenue Code, but not including
21 the bonus depreciation deduction;
22 (2) for taxable years ending on or before
23 December 31, 2005, "x" equals "y" multiplied by 30
24 and then divided by 70 (or "y" multiplied by
25 0.429); and
26 (3) for taxable years ending after December

HB4078- 230 -LRB100 13340 AXK 27924 b
1 31, 2005:
2 (i) for property on which a bonus
3 depreciation deduction of 30% of the adjusted
4 basis was taken, "x" equals "y" multiplied by
5 30 and then divided by 70 (or "y" multiplied by
6 0.429); and
7 (ii) for property on which a bonus
8 depreciation deduction of 50% of the adjusted
9 basis was taken, "x" equals "y" multiplied by
10 1.0.
11 The aggregate amount deducted under this
12 subparagraph in all taxable years for any one piece of
13 property may not exceed the amount of the bonus
14 depreciation deduction taken on that property on the
15 taxpayer's federal income tax return under subsection
16 (k) of Section 168 of the Internal Revenue Code. This
17 subparagraph (T) is exempt from the provisions of
18 Section 250;
19 (U) If the taxpayer sells, transfers, abandons, or
20 otherwise disposes of property for which the taxpayer
21 was required in any taxable year to make an addition
22 modification under subparagraph (E-10), then an amount
23 equal to that addition modification.
24 If the taxpayer continues to own property through
25 the last day of the last tax year for which the
26 taxpayer may claim a depreciation deduction for

HB4078- 231 -LRB100 13340 AXK 27924 b
1 federal income tax purposes and for which the taxpayer
2 was required in any taxable year to make an addition
3 modification under subparagraph (E-10), then an amount
4 equal to that addition modification.
5 The taxpayer is allowed to take the deduction under
6 this subparagraph only once with respect to any one
7 piece of property.
8 This subparagraph (U) is exempt from the
9 provisions of Section 250;
10 (V) The amount of: (i) any interest income (net of
11 the deductions allocable thereto) taken into account
12 for the taxable year with respect to a transaction with
13 a taxpayer that is required to make an addition
14 modification with respect to such transaction under
15 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
16 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
17 the amount of such addition modification, (ii) any
18 income from intangible property (net of the deductions
19 allocable thereto) taken into account for the taxable
20 year with respect to a transaction with a taxpayer that
21 is required to make an addition modification with
22 respect to such transaction under Section
23 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
24 203(d)(2)(D-8), but not to exceed the amount of such
25 addition modification, and (iii) any insurance premium
26 income (net of deductions allocable thereto) taken

HB4078- 232 -LRB100 13340 AXK 27924 b
1 into account for the taxable year with respect to a
2 transaction with a taxpayer that is required to make an
3 addition modification with respect to such transaction
4 under Section 203(a)(2)(D-19), Section
5 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
6 203(d)(2)(D-9), but not to exceed the amount of that
7 addition modification. This subparagraph (V) is exempt
8 from the provisions of Section 250;
9 (W) An amount equal to the interest income taken
10 into account for the taxable year (net of the
11 deductions allocable thereto) with respect to
12 transactions with (i) a foreign person who would be a
13 member of the taxpayer's unitary business group but for
14 the fact that the foreign person's business activity
15 outside the United States is 80% or more of that
16 person